How to Put a Bid Together for a City Art Installation

How To Write A Construction Proposal

By Robert Robillard on Contractor Communication

Construction Proposal -Learn How to Write I

Regardless of the cost of a project a written construction proposal protects all parties involved.

A written construction proposal that clearly details and "paints a flick" of what you are promising to do. Details in this proposal  include specific materials, payment schedule and costs. A professional person and well-written proposal non only portrays yous in a professional light just protects you and your client from misunderstandings and disharmonize

Detailed Scope of Piece of work

A construction proposal should always be specific with regard to the scope of work. This protects yous from having to do piece of work, you had no original intention of doing. Y'all know what I mean, that dreaded "I assumed yous were also going to do X, Y and Z?" or fifty-fifty worse " I thought that was included." Those comments usually back-trail a customer holding back the final  payment until you agree to do something for them that yous never agreed to but they "causeless" it was covered.

How do you protect from that?  By providing the client a  well written and detailed scope of work proposal!  Not simply does a detailed proposal protect you from having to do actress work, it ensures that you can charge for any actress work not originally agreed on. Actress things like add on items, changes mid-projection and the dreaded hidden conditions.

What A Construction Proposal Should Include:

I want to stress that if yous are researching how to brand your own contract you should first check with your local land and licensing authority for input and advice. Many state websites give you sample contracts to use every bit a boiler plate template.  This is the first step when learning how to write a construction proposal.

In Massachusetts whatever projection over $1000 requires a written contract [proposal] besides every bit additional points that need to be included in the proposal. [MGL c. 142A] My states mandatory requirements are:

•  The complete agreement betwixt the contractor and the owner and a clear description of any other documents, which are part of the understanding.
•  The total names, federal I.D. number (if applicative), addresses, of the parties, the contractors registration number, the proper noun(south) of the salesperson(s) involved, if whatsoever and the date the contract was executed by the parties.
•  The date on which the piece of work is scheduled to brainstorm and the date the piece of work is scheduled to be substantially completed.
•  A detailed description of the work to be done and the materials to be used.
•  The total amount agreed to be paid for the work to be performed nether the contract.
•  A time schedule of payments to exist made under the contract and the amount of each payment stated in dollars, including any finance charges.
•  Whatsoever deposit required to be paid in accelerate of the commencement of the piece of work SHALL Non exceed one-3rd of the total contract toll or the bodily price of any material or equipment of a special order or custom made nature, which must be ordered in accelerate of the start of the work to assure that the project will proceed on schedule.
•  No last payment shall be demanded until the contract is completed to the satisfaction of all parties.
•  All parties must sign the contract.
•  A clear and conspicuous notice stating that all habitation improvement contractors and subcontractors shall exist registered and that whatever inquiries almost a contractor or subcontractor relating to a registration should be directed to:
•  Part of Consumer Affairs and Business Regulation [list accost]
•  The contractor's registration number must be on the first folio of the contract.
•  The homeowner's 3 day cancellation rights under MGL c 93 south 48; MGL c 140D s 10 or MGL c 255D due south xiv equally may be applicative.
•  All warranties on the owner's rights nether the provisions of and MGL c. 142A.
•  In 10 point bold type or larger, directly above the space provided for the signature, the following statement:
•  DO NOT SIGN THIS CONTRACT IF THERE ARE ANY BLANK SPACES.  [Has to be in capital messages]
•  Whether any lien or security interest is on the residence as a consequence of the contract.
•  An enumeration of such other matters upon which the possessor and contractor may lawfully agree.
•  Whatsoever other provisions otherwise required by the applicative laws of the Commonwealth.
•  Permit Observe: Every contract shall contain a clause informing the possessor of the following: any and all necessary structure-related permits; that it shall be the obligation of the contractor to obtain such permits. That owners who secure their own construction-related permits or deal with unregistered contractors shall be excluded from admission to the Guarantee Fund.
• Acceleration of payment: No contract shall comprise an acceleration clause under which whatever part or all of the balance non yet due may be alleged due and payable because the holder deems himself to be insecure.
• Yet, where the contractor deems himself to be insecure he may require every bit a prerequisite to continuing said work that the balance of funds due under the contract, which are in possession of the owner, shall be placed in a joint escrow account requiring the signatures of the home improvement contractor and the owner for withdrawal.
•  No work shall begin prior to the signing of the contract and transmittal to the owner of a copy of such contract.
• Arbitration: If the contractor determines that in the outcome of a dispute, the contractor wishes the dispute to be settled by arbitration, this fact must be signified on the contract and both the contractor and owner shall sign this clause separately. The following format is adequate (in 10 point blazon or larger);
• "The contractor and the homeowner hereby mutually agree in advance that in the event that the contractor has a dispute concerning this contract, the contractor may submit such dispute to a private arbitration service which has been approved past the Office of Consumer Affairs and Business Regulation and the consumer shall be required to submit to such arbitration as provided in MGL c 142A
• Possessor and contractor signatures and date also as a this Notice: The signatures of the parties higher up use only to the understanding of the parties to alternate dispute resolution initiated past the contractor. The possessor may initiate alternative dispute resolution fifty-fifty where this section is not signed separately by the parties."

Photograph Source: chestofbooks.com

Spend Time On The Scope Of Work:

Most of my construction proposal is a template and I fill in the blanks for the following:

1. Owner information
2. Scope of work for that project
3. Payment schedule
4. First and finish dates

The scope of work section is where I spend nearly of my time and is where you should pay the MOST attention to. This is by far the Nigh Of import department of the contract and you lot demand to be every bit detailed equally possible.

Don't Become Lazy Here

This is the spot where I mention the steps in the procedure, materials used, model and spec numbers, colors, etc. It also has a very important closing statement that reads:

"Only those materials, appurtenances, labor and services SPECIFICALLY STATED in the preceding paragraphs of this contract are bound under the terms of this contract."

Many a contractor has told me that they specifically stay generic in the description of scope of piece of work department in order not to give the client research information – especially when information technology comes to model numbers and measurements. They make the argument that many potential clients will inquiry items on line and the tell the contractor that they tin go a better price online. They as well are concerned that the client volition share this information with other contractors to get better pricing.

I disagree. You Tin'T afford non to be detailed and specific in your scope of work! If a customer wants to purchase their own fixtures or materials I say let them but tell them that you volition not award any warranty work on homeowner supplied materials or fixtures.

Payment Schedule: Cash Flow

This is the section where you list the chore full cost and break down for payments. A payment schedule is essential to go along a positive cash flow every bit well as ensure that you are not waiting for a huge payment 30 days after the project is complete.

My state allows for ane/3 of the projection cost as a deposit or the cost of any materials ordered, which ever costs more.  I try to figure out what each phase costs me and ask for project payments.

The eolith is typically one/3 the cost of project and covers all materials, dumpster cost and labor into the job. Each payment ensures that I have a abiding greenbacks flow to fully pay the sub-contractor or labor costs needed for the next payment. This manner I stay ahead of my costs, avoid a large back terminate payment.

For any custom order like doors, window and fireplace mantles I always require 100% of the particular cost up front prior to ordering the particular.

Sample Payment Schedule

For case on a $ 25,000 bath remodel I will schedule payments equally follows:

• $ 8,000 33 ½% Eolith, upon the execution of this understanding. piece of work scheduled upon receipt of deposit
• $ 2,000 Afterward demo complete
• $ 4,000 Afterward rough plumbing complete
• $ ii,000 Afterwards electric rough consummate
• $ ii,000 Subsequently plaster complete
• $ 2,000 After tile complete
• $ 2,000 After vanity and counter installed
• $ 1,500 Later stop plumbing and electrical
• $ 1,500 Final Payment: Upon completion of project.

If I've done my task correctly the concluding payment is usually all visitor profit. If there is a dispute over the last payment at the finish of the project at least I have covered all of my material, labor and sub contractor costs. At that place is nothing worse than not being able to pay your sub contractors.

Allowances:

Some items on my proposal I listing as "allowance" items. This means that a certain dollar corporeality figure has been ready as an assart for each of these items. Generally, I use allowances for work that is normally sub-contracted such equally excavation, concrete, heating, plumbing, electrical, cabinets, appliances, flooring and painting. These allowance figures are based on current figures from my job files and are intended to represent a realistic and reasonable dollar effigy for the item.

Past including figures in my budget proposal, I can produce a complete budget for my client, which include all the anticipated sub-contractor items. These figures are so "fine-tuned"," either before or after the contract signing, by getting the sub-contractor to review the piece of work programme on site. The subs volition and then provide us with a fixed toll for the item. The fixed price is then reconciled with the upkeep gauge figure.

The price shown on the proposal represents what I expect my cost of the item to be. If actual cost of the allowance items is less than the assart price listed, the client is entitled to 100% of the departure betwixt the allowance price listed and the actual cost of the detail. If the client chooses options that total more than the allowance effigy listed, the client will pay contractor'south cost for the item, plus 20%. All such adjustments will be handled every bit change orders to the contract.

Hidden Defects And Unforeseeable Conditions:

I accept a special section in my proposal that deals with unseen conditions. The price agreed upon does not include possible expenses entailed in coping with hidden, unknown or incidental items non included in pricing (for example, unsafe wiring, illegal plumbing atmospheric condition, rot, structural bug,  inspector or engineer requirements made subsequent to my understanding and / or overlooked or unknown conditions institute after the I take commenced piece of work.

In my proposal I state that the homeowner agrees to pay all costs upon completion of such piece of work. I state that I will inform the homeowner of any such condition in the class of a "Change Order" or if agreed the homeowner shall pay the me a time and materials rate [stated in proposal] to consummate the actress piece of work.

I also state that the homeowner agrees to pay all costs incurred in the identifying, testing for, handling, containment, and disposal of all hazardous material found at the job-site, including lead, lead paints, solvents, and asbestos.

Schedule:

It is important to the client and required by law to provide an estimated start appointment and date that the work will exist essentially completed.  People plan around renovations and as well may demand make arrangements for pets or furniture.   Some folks programme vacations so they will be out of the business firm during the demo work.

Alterations To The Contract Or "Extras"

A change order is a written agreement to modify, alter, add or delete from the agreed upon telescopic of work.

Many unscrupulous contractors will ofttimes "low bid" a project to get the job. They do this by omitting items in their scope of work or quoting lower quality materials or appliances and then later make up their money on the "extras."

This unscrupulous contractor strategy is anticipated and I always stress to my clients and potential clients that it is important to compare apples to apples in the scope of work.  Whatever telescopic of piece of work that is not detailed should exist updated or discarded from consideration. I try to do my enquiry up front and become all of the information from the client and then that I am proposing a realistic toll with minimal chances of change orders / extras later on on.

For data on how to accomplish this read: How to plan a bath remodel

Change Orders [Extras]

Back to change orders: "whatever Homeowner-initiated alterations or modifications to the work outlined in Section One and the price therefore must be agreed upon by the parties in a written "Change Order," before work on such amending or modification shall commence. Payment for such alteration or modification shall exist fabricated in accordance with the terms of the "Change Social club."

This is where contractors go lazy and procrastinate to the terminate of the job to ask for extra payments. The fourth dimension to become paid for an extra payment is when it occurs.  People's memories are fresh and they are motivated to keep the job moving and write a check. You never desire to "hit the client over the caput" with a huge back end extra payment. With all the details and progress payments, they typically tend to forget why your charging them the extra and this tin can cause resentment.

I know it sucks, merely take the time to write up a change order / judge and request payment at the time of the alter or actress work. At a minimum get a verbal immediately then follow up that nighttime with an email asking the client to concur to the actress work and cost.

Utilise Email / Save Emails

Emails are the preferred method for many of my clients. Use email and save them to a file or folder. The beautiful thing about emails is that they are date and time stamped. Be careful with emails, they lack tone and can be confusing. Make sure your emails says what you hateful – proof read them. For more information on sending emails to clients read my article Rules for Writing Professional Emails.

Description emails works cracking, for example: "Marc this morning you asked me to install an additional window in your bedroom, Eastward wall – centered within the room. This window is to be identical to the 1 we are currently installing on the West wall.  the additional toll for this piece of work is $950.00.  Please confirm that I have this correct and that you approve the work."

Creating a paper trail volition always be your friend in the cease!

Logistics

This section makes you wait professional person, educates your client, gear up expectations, eliminates unrealistic expectations, as well as puts the client on detect of things he or she may be required to do.  It may also brand them aware of specific or special needs on the job-site such as toilet facilities, pets or piece of furniture storage issues. I take copied and pasted my exact wording below for your review:

• All backlog fabric supplied to the chore site and non incorporated in the work are the sole belongings of the Contractor.
• It is understood by the parties that information technology is sometimes impossible to match the color and texture of existing materials such equally stucco, plaster, siding, molding, trim and roof materials, etc. The contractor volition try to friction match existing atmospheric condition as best equally possible where applicative.
• The contractor is non responsible for stress cracking of plaster and / or interior finished of the existing structure caused by additional structural load imposed by the work which is contracted. Contractor shall not exist responsible for loosening, creeks or nail popping when working against finished walls or ceilings. In the event of any repairs done past the Contractor, the contractor shall not be liable for any repairing or refinishing. Contractor is not responsible for adventitious damage to landscaping, concrete walks, and / or asphalt that resulted from contractor'southward activities during the process of construction.
• The Homeowner shall provide safe and sanitary facilities for the contractor's workmen during the process of construction.
• The homeowner shall remove or protect personal possessions such as, just not limited to, removing pictures, antiques, valuables and other wall hanging objects from the opposite side of the walls being worked or, that may be affected by vibration that may be created.
• The Homeowner shall permit the free use of electric power for lighting and energy required for ability tools to accomplish the work too as access to the electrical service panel in the consequence a circuit / fuse is blown.
• The Homeowner shall remove all items[s] in and around the piece of work expanse[s] and proceed all persons and pets out of the work areas or any storage areas used past the contractor during piece of work. Any delays acquired by not-compliance with this provision will be billed at the rate of [hourly charge per unit hither] per man-hour.
• The Homeowner shall advise the Contractor of any condition on the property that may affect the contractor'due south functioning of piece of work.
• The Homeowner shall let access to the bounds by the contractor and / or its subcontractors during normal working hours.
• The Homeowner shall let the Contractor to park a 6' 10 ten' utility trailer on the property for the duration of the construction.
• The Homeowner shall not throw any debris that is unrelated to the construction, into the dumpster or debris pile [due south] without contractor's permission.
• The Homeowner shall notify its insurance agent of the execution of this Agreement and obtain whatever necessary riders to its current coverage.
• One week before, during and two weeks after the construction flow, Contractor may place a sign on the property, which advertises Contractor'south name, phone number, ad abilities.
• The contractor shall keep all exterior areas within the general work surface area free of debris on a daily basis. Upon the completion of the projection, the Contractor will leave the grounds as clean as they were prior to the start of the project.
• Upon completion of the project, the contractor shall get out the unabridged work expanse usable by the Homeowner; this may include polishing fixtures, vacuuming and washing floors, walls, doors, windows and woodwork. At the contractor'south discretion, a professional cleaner may be brought in to clean the home's interior after completion of the project.

Limited Warranty

My contract has wording that states the following:

"Provided that the Homeowner pays the full amount due under the contract and any change orders and conditioned thereon to the fullest extent commanded by law, contractor guarantees that the work will exist synthetic in accord with accepted dwelling house comeback practices, and it will be guaranteed against defects in workmanship and materials for a period of one (i) yr from the date of its completion. This Express warranty does not cover damages or defects that effect from characteristics common to the materials used, or conditions resulting from condensation, expansion, or contraction of such materials. Warranty work volition be completed within lx (60) days from the date of receipt of a written request from Homeowner."

You may too want to include some wording such equally:

• All implied warranties including, but not limited to warranties by merchants and fitness for a particular purpose, are limited to the ane twelvemonth warranty flow equally set up forth higher up.
• The customer is required to pay a service accuse on whatever manufacturers' products being serviced whether under warranties or not, unless such warranties have a labor clause providing for such labor. It the allowance is less than required, the customer must pay the difference.
• All warranties provided under this Agreement shall but go effective after contractor's receipt of payment in full.
• This Limited Warranty is the only expressed warranty given. In the event that any of the provisions of this Limited Warranty shall be held to be invalid, the remainder of this provision of this Limited Warranty shall remain in full force and outcome.

Consequential and Incidental Damages – Elapsing of Unsaid Warranty

I list the following in my proposal:

"Please notation that this Limited Warranty specifically excludes consequential and incidental damages and at that place are limitations in duration of implied warranties. This warranty is extended to the above Homeowner and is non transferable to succeeding homeowners. Contractor hereby passes through and assigns to Homeowner any and all manufacturers' warranties on all appliances and equipment supplied by contractor in the home."

"Contractor specifically does non assume responsibility for any of the following items, each of which is specifically excluded from this Limited Warranty."

Variation in Wood and Materials

I listing the following in my proposal:

Natural variations in grain, texture, and / or color of the wood is a reality. Most people are enlightened of the "natural" characteristics of wood. Since no 2 trees are exactly the aforementioned, woods is a unique materials and natural variations in grain, texture and colour are the ingredients that cause the "beauty of wood." These variations can too cause noticeable differences between the sample and finished installation. These grain and tone differences are a natural and acceptable condition of quality wood finishes and volition exist even more pronounced in a completed project. My suppliers but use select forest to insure their quality

Consider list the post-obit bullets:

1. Defects in appliances or pieces of equipment which are covered by manufacturers' warranties are assigned directly to the Homeowner, and each manufacturer'due south warranty claim procedure must exist followed where a defect appears in any of those items.
2. Damage due to ordinary article of clothing and tear, abusive u common to materials used/ Such every bit, simply non limited to
3. Use, misuse or lack or proper maintenance or the home or its component parts or arrangement.
4. Work done or defects in items installed by Homeowner or anyone other than Contractor and its subcontractors at contractor'southward club.
5. Defects in items supplied by Homeowner.
6.  Loss or injury due to elements.
7.  Weather condition resulting from condensation on or contractions of materials.
8. Defects which are the result of a characteristic(due south) Such as:

•  Warping or deflection of woods
• Fading, chalking, and checking of paint or stain due to sunlight
• Cracks in physical due to drying and curing of concrete, plaster, brick or masonry
• Drying, shrinking, and cracking of caulking and weather stripping.

Alternative Dispute Resolution:

Hopefully you'll never need this just in my state it is required on all contracts.

"The parties acknowledge and declare that the Contractor may initiate alternative dispute resolution through whatever private arbitration services program approved past the secretarial assistant of the executive part of consumer diplomacy and business organisation regulation under Massachusetts General Laws Chapter 142A, sub-section four, to consider whatever dispute between the parties apropos or arising from this Agreement."

Construction Proposal Conclusion:

There is much, much more included on my proposal such equally agreement clauses, Lead paint warnings, etc. The point of this article was to become you thinking that you need a solid template specific to your line of work which y'all tin can reuse each and every time. One time you have that, pay a lawyer to get through information technology for legality issues, and to brand sure you are fully post-obit the law and protecting yourself in the procedure. Consider the lawyer'south cost inexpensive insurance.

The major points are to pay attention to producing a detailed telescopic of piece of work, a well thought out payment plan and to proceed up and perform alter orders as then occur and Not procrastinate.If yous are disciplined in these categories you will be perceived as professional person, methodical and efficient. Plus yous'll get paid and have lass hassles.

Sample Construction Proposal

Here is my banality plate, feel costless to copy this: Sample Construction Proposal.

Being more Organized

By far the most mutual comment I hear from guys in the structure field is that they love the work but hate the proposal,, estimates and paying of bills. I couldnt agree mote, thats why I've adopted some principles to make me more efficient in the office. Here are a few articles list some of them:

Being More Organized

How To Go The Most From Your Day

6 Tips on Prioritizing

Returning Telephone Calls

simsbecry1936.blogspot.com

Source: https://www.aconcordcarpenter.com/how-to-write-a-construction-proposal.html

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