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Construction Bid Proposal

A contractor's bid proposal for pricing a job, with the base bid, alternates, allowances, unit prices, exclusions, schedule, payment terms and client sign-off.

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About this document

A construction bid proposal is a contractor's written offer to do a defined scope of work for a stated price, held until a stated date. The construction bid proposal lists the base bid, optional alternates, allowances for items the client has not chosen, unit prices, and what is included and excluded.

Use the construction bid proposal to price a remodel, addition or small commercial job before a contract is signed. Describe the work in detail with a construction scope of work, and price later changes with a construction change order. Rules on deposits, cancellation rights and required contract notices for home improvement work vary by state, so check your state's contractor licensing board before you set the deposit.

How to fill it in

  1. Fill in the header. Enter your license number, the client, the site address, the bid date and the date the price expires. List the drawings, addenda and site visit your price is based on.
  2. Price the work and options. Break the base bid into parts of the work. Add alternates the client can accept or decline, allowances for items not yet chosen, and unit prices for hidden conditions.
  3. Write exclusions and assumptions. List what is not included and what you assumed about access, utilities, working hours and hidden conditions. These lines decide who pays when the site differs from the drawings.
  4. Set the schedule and payments. Enter the start window, the duration, the deposit, progress payments and invoice terms. Some states cap home improvement deposits; California's limit is $1,000 or 10% of the price, whichever is less.
  5. Delete the notes and send. Remove the gray notes and any unused brackets, then send a PDF. When the client signs, have a lawyer licensed in your state check that your contract includes the state's required notices.
Construction Bid Proposal

Construction Bid Proposal

[Company name] · License [number] · [Street address, city, state] · [Phone] · [Email]


Proposal number

[Number]

Prepared for

[Client name, phone, email]

Project

[Project name]

Site address

[Address]

Bid date

[Date]

Price good until

[Date]

Based on

Drawings [sheet numbers] dated [date], specifications dated [date], addenda [numbers, or none], and a site visit on [date]

1. Scope of work

[Two or three sentences on what you will build. For example: Furnish all labor, materials, and equipment for the kitchen and two-bathroom remodel shown on the drawings, including demolition, framing changes, plumbing, electrical, cabinets, tile, and finishes.]

Attachments: [Scope of work dated (date), or none]. Work not described in this proposal or its attachments is not included.

2. Base bid

Part of the work

Amount

[Demolition and site protection]

[$]

[Framing and drywall]

[$]

[Plumbing]

[$]

[Electrical]

[$]

[Cabinets, tile, and finishes]

[$]

Total base bid

[$]

The base bid is a fixed price for the work in section 1. Sales tax is [included / not included].

3. Alternates

Alternates are optional changes to the base bid. The client marks each one accepted or declined when signing.

No.

Description

Add or deduct

Accepted (client initials)

1

[Heated floors in both bathrooms]

[Add $]

Yes ____ No ____

2

[Client supplies light fixtures]

[Deduct $]

Yes ____ No ____

4. Allowances

An allowance is an amount included in the base bid for an item the client has not chosen yet.

Item

Allowance

What it covers

[Floor and wall tile]

[$ per sq ft]

[Material only; installation is in the base bid]

[Plumbing fixtures]

[$]

[Faucets, sinks, toilets, and shower valves]

[Light fixtures]

[$]

[Fixtures only]

If the client's choices cost more or less than an allowance, the price changes by the difference[, plus (percent)% for overhead and profit on any increase]. Selections are due by [date] to keep the schedule.

5. Unit prices

Unit prices set the cost of added or removed quantities and of repairs to hidden conditions. That work is still approved by change order first.

Item

Unit

Price per unit

[Replace damaged subfloor]

[sq ft]

[$]

[Replace rotted framing]

[linear ft]

[$]

[Added labor, per worker]

[hour]

[$]

6. Included

  • [Building permit, permit fees, and inspections]

  • [Protection of floors and finishes outside the work area]

  • [Daily cleanup, dumpster, and debris removal]

  • [Final cleaning]

7. Not included

  • [Testing or removal of asbestos, lead paint, mold, or other hazardous materials]

  • [Repairs to hidden conditions; priced with the unit prices above by change order]

  • [Design, engineering, and survey fees]

  • [Utility company fees and service upgrades]

  • [Appliances, and installing items the client supplies]

  • [Painting or repairs outside the work area]

8. Assumptions and site conditions

  • Work is done on weekdays, [7 a.m. to 5 p.m.].

  • The client provides clear access to the work area and moves furniture and belongings before work starts.

  • Water and power are available on site at no charge.

  • Hidden conditions are conditions behind walls, under floors, or below ground that could not be seen at the site visit. If one is found, the contractor will stop that part of the work, show the client, and price the repair before going on.

  • [Add any other assumption your price depends on.]

9. Schedule

Work starts within [number] days after a signed contract, the deposit, and the permit are all in place. The work takes about [number] weeks. Dates can move for weather, material lead times, inspections, late selections, and changes.

10. Payment

Payment

When due

Amount

Deposit

At contract signing

[$]

[Progress payment 1]

[Rough-in inspections passed]

[$]

[Progress payment 2]

[Cabinets and tile installed]

[$]

Final payment

Completion and final walkthrough

[$]

Invoices are due within [number] days. [Retainage, if the contract uses it: (percent)% of each progress payment is held until completion.]

Note: Many states limit deposits and progress payments on home improvement work. California, for example, caps the deposit at $1,000 or 10% of the price, whichever is less. Check your state's rule, then delete this note.

11. Changes and material prices

Any change to the work, price, or schedule is agreed in a signed change order before the changed work starts.

[Optional: If the supplier price of (lumber, steel, copper wire) rises more than (percent)% between the bid date and the purchase date, the increase is added to the price, with supplier invoices as proof.]

12. License and insurance

[Company name] holds contractor license [number] in [state]. The company carries general liability insurance of [$] per occurrence and workers' compensation insurance. Certificates of insurance are available on request.

13. Warranty

Workmanship is warranted for [one year] from completion. Manufacturer warranties pass to the client. The warranty does not cover normal wear, misuse, items the client supplies, or work by others.

Acceptance

Signing below accepts this proposal, with the alternates marked accepted, for a total price of [$]. [Company name] will then prepare a written contract with this price and these terms. Work starts after both parties sign the contract. This proposal expires if it is not signed by the "price good until" date.

Note: If the client signs at home, the FTC's Cooling-Off Rule generally gives the client three business days to cancel. Many states also require cancellation, lien, and license notices in home improvement contracts. Put those notices in the contract, then delete this note.

Client

[Company name]

Signature: ______________________________

Signature: ______________________________

Name: [Name]

Name and title: [Name, title]

Date: [Date]

Date: [Date]

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Frequently asked questions

What is the difference between a bid and an estimate?

A bid is a firm price offer for a defined scope of work, and an estimate is an approximate cost that can change. A bid proposal states the price, what it covers and how long the price holds. An estimate helps a client set a budget before the design is final.

What is an allowance in a construction bid?

An allowance is a set dollar amount in the bid for an item the client has not chosen yet, such as tile or light fixtures. If the client picks something that costs more or less, the contract price goes up or down by the difference, plus any markup the proposal states.

What are alternates in a construction bid?

Alternates are optional prices for changes to the base scope, such as heated floors or a less expensive finish. Each alternate adds to or deducts from the base bid. The client accepts or declines each one when signing, so the final price is the base bid plus the accepted alternates.

Can a homeowner cancel after signing a contractor's proposal?

Often, yes, within a short window. Under the FTC's Cooling-Off Rule, a buyer who signs at home for $25 or more generally has until midnight of the third business day to cancel. Many states add their own cancellation rights for home improvement contracts.