If writing bids and proposals (and doing all the paperwork that’s part and parcel of being a contractor) is the least favorite part of your day, you’re not alone. For many contractors, the project proposal is the task you suffer through so you can get to the fun stuff. But don’t underestimate the importance of a thorough, detailed project proposal. If you can morph into an all-the-tiny-details guy while you’re writing the proposal, you’ll save yourself money and hassle down the road.
There are two very big reasons to include all the tiny details on your project proposal.
- To put together an accurate, realistic project proposal, you’ve got to account for every single tiny detail in your budget. Going through the minute details is actually a benefit for you, more than it is for your customer. You might have a pretty accurate estimate off the top of your head of how much it will cost you to complete the project. However, until you write down all the details, you can’t be sure you aren’t missing anything. And tasks you have to do or materials you need to order that you didn’t account for from the get-go can add up fast!
- A detailed project proposal will help you head off the phrase every contractor hates, “I thought [fill in the blank] was included…” Head off miscommunications from the start by creating a detailed proposal. Spell out exactly what you’re going to be doing and for what price. After all, the last thing you want is to do extra work you’re not being paid for. Even worse is to end up with a dissatisfied customer because they didn’t understand what they were agreeing to.
Just how detailed are we talking?
Many municipalities will provide project proposal templates online, free for a contractor to download. So, start by seeing if your area provides anything like that. To give you a good idea, here are some examples of common items your proposal should include.
Provide:
- A detailed description of the work you will be doing.
- A list of the materials you’ll be using.
- The agreed-upon price.
- Due dates of all the payments and deposits.
- Homeowner’s 3-day cancellation rights.
- The dates the work will begin and when it should be completed.
- Declaration about any permits required and who is responsible for securing them.
- Arbitration notice.
- Contractor and homeowner signatures and addresses.
- Contractor registration number and/or federal ID number .
Again, these are general standards that contractors include on a project proposal, but be sure to check with your own municipality for the specifics and also a template.
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