📝 Proposal Writing for Contractors
Your proposal is often your first impression. It's not just a price sheet — it's a document that says "we understand your project, we're qualified, and you can trust us to deliver." The contractors who win consistently aren't always the cheapest — they write the best proposals.
Key Principle
Proposals sell trust, not just price. Clients are buying confidence that you'll deliver on time, on budget, and without headaches.
Why Proposals Matter
| Proposal Quality | Win Rate | Client Perception |
|---|---|---|
| Generic template, price only | 10–15% | "They're just a number" |
| Solid structure, some customization | 25–35% | "They seem competent" |
| Fully customized, addresses client's needs | 40–55% | "They understand our project" |
| Outstanding — tells a story, solves problems | 55–70% | "These are the people we want" |
Proposal Structure
1. Cover Letter (1 Page)
The most important page — it may be the only one the decision-maker reads.
Include:
- Their name and project name (personalized, not "Dear Sir/Madam")
- One sentence showing you understand their project and goals
- Your price (don't bury it — put it on page 1)
- Your single biggest differentiator
- A call to action ("We'd welcome the chance to discuss this further")
Example opening:
"Thank you for the opportunity to bid the Riverside Medical Center expansion. We understand this project must be completed while the existing facility remains fully operational — patient safety and minimal disruption to hospital operations are your top priorities. That's exactly the kind of work we specialize in."
2. Executive Summary (1 Page)
For readers who want the highlights without the details:
- Project understanding — prove you read the documents
- Your approach — how you'll deliver the project
- Key differentiators — 3 reasons to choose you
- Price — total with clear base bid, alternates, and allowances
- Schedule — you can meet or beat it, and here's why
3. Scope of Work (1–3 Pages)
Be crystal clear about what's in and what's out.
Included:
- Detailed description of your scope, broken into phases or divisions
- Specific quantities or areas where possible
- Quality standards you'll meet
Excluded (just as important):
- Items that might be assumed to be in your scope but aren't
- Work by others that must precede or follow your work
- Items that are specifically excluded by contract documents
Assumptions and Clarifications:
- Access assumptions (working hours, site conditions)
- Document interpretation clarifications
- Anything ambiguous that you've priced a certain way
Scope Clarity Prevents Disputes
Most change order disputes come from unclear scope in the original proposal. Spend extra time making inclusions and exclusions explicit. "It was in the proposal" and "It wasn't in the proposal" are the two most common arguments in construction disputes.
4. Qualifications (1–2 Pages)
Prove you can do the work:
- 3–5 relevant projects — similar type, size, and complexity
- For each: project name, owner, value, your scope, completion date, key challenge you overcame
- Team qualifications — key people who will work on this project (not generic company bios)
- Safety record — EMR, TRIR, years without lost time
- Financial stability — bonding capacity, years in business, banking references
- References — 2–3 contacts the client can call (ask permission first)
5. Project Schedule (1 Page)
Show you've thought about how to build it:
- Major milestones with dates
- Critical path items identified
- Dependencies on others (permits, owner decisions, other trades)
- Reasonable contingency built in
- Connection to their occupancy/completion goals
6. Pricing (1–2 Pages)
Present pricing clearly and confidently:
| Element | How to Present |
|---|---|
| Base bid | Prominent — the first number they see |
| Alternates | Clearly labeled, add or deduct |
| Allowances | What's covered, what triggers an adjustment |
| Unit prices | If applicable, with clear definitions |
| Payment terms | Your billing schedule, retainage expectations |
| Validity period | How long this price is good for (30–60 days typical) |
| Exclusions | What's NOT in the price |
7. Terms & Conditions (1 Page)
Standard protections:
- Payment terms and late payment provisions
- Change order process
- Insurance and bonding provided
- Warranty terms
- Dispute resolution
- Exclusions and force majeure
Writing Tips
Do
- Use their language — Mirror the terms from their RFP/RFQ
- Be specific and concrete — "We completed a 45,000 SF medical office in 14 months" not "We have extensive experience"
- Lead with their problem — Show you understand their priorities before talking about yourself
- Include visuals — Project photos, org charts, schedule bars. People skim text but look at images.
- Proofread obsessively — Typos say "we don't pay attention to detail" — fatal for a contractor
- Follow instructions exactly — If the RFP says 20 pages max, submit 20 pages. If it says 3 copies, submit 3 copies.
Don't
- Don't use generic boilerplate — "XYZ Construction has been providing quality construction services since 1985..." is in every proposal. It says nothing.
- Don't make it all about you — The client cares about their project, not your history
- Don't bury the price — Decision-makers flip to the price page first. Make it easy to find.
- Don't over-promise — "We guarantee on-time completion" is a lawsuit waiting to happen. Be confident but realistic.
- Don't submit late — Late = disqualified. No exceptions, no excuses.
- Don't copy/paste the wrong project name — Nothing kills a proposal faster than referencing the wrong project. Triple-check.
RFP Response Strategy
Before Writing
- Read the entire RFP — Twice. Highlight every requirement, question, and evaluation criterion.
- Create a compliance matrix — List every RFP requirement and where you address it in your proposal
- Identify the real decision criteria — Price? Qualifications? Schedule? Relationship? Usually it's a weighted combination.
- Call the contact — Ask questions. Show you're engaged. Learn what they really care about.
- Attend the pre-bid meeting — Even if it's not mandatory. Meet the client, see the site, ask questions.
During Writing
- Answer every question — If the RFP asks 10 questions, answer all 10 — in the order they asked them
- Make it easy to evaluate — Use the RFP's numbering system. Put your answers where they expect them.
- Highlight your differentiators — What do you offer that competitors don't? Say it early and repeat it.
- Address weaknesses proactively — If you're smaller, explain why that's an advantage (more attention, senior leadership on-site). If you're pricier, explain why (better safety, higher quality, fewer change orders).
Win/Loss Analysis
After every proposal, whether you win or lose:
If You Win
- Ask: "What made you choose us?"
- Document the answer — it's your winning formula
- Thank everyone who contributed to the proposal
If You Lose
- Ask: "Can you share feedback on our proposal?"
- Ask: "What could we have done differently?"
- Ask: "Were we competitive on price?" (they may not answer, but ask)
- Document the feedback — patterns emerge over 10+ losses
- Don't burn the bridge — "Thank you for the opportunity. We'd love to be considered for future work."
Proposal Checklist
- Addresses all RFP/RFQ requirements
- Cover letter is personalized with client and project name
- Executive summary leads with their priorities, not your history
- Scope is specific — inclusions and exclusions are clear
- Qualifications include 3–5 relevant projects with results
- Team section names actual people, not generic titles
- Schedule shows milestones and critical path
- Price is clearly presented and easy to find
- Alternates and allowances are clearly labeled
- Terms protect your interests
- Professional formatting — clean, consistent, branded
- Proofread — zero typos, correct project name, correct client name
- Follows submission instructions exactly (format, copies, deadline)
- Submitted on time