How to Write a Bid Proposal (Templates Included)

Whether it’s a contractor, supplier or vendor, the work they get depends on a bid proposal, also called a tender proposal. The better they can write a construction bid proposal, the more likely they are to get the job. This document also help ensure that the job will be a good fit for what they offer in terms of a service or product.

Learn how to write an impactful bid document by first understanding what the term means and when one is expected. Then we’ll go step-by-step through how to write a bid proposal and even provide readers with a free bid proposal template for Word that they can download to help guide them through the process.

What Is a Bid Proposal?

A construction bid proposal is a formal document that is submitted by a contractor, supplier or service provider in response to a request for bids (RFB), request for quote (RFQ) or a request for proposals (RFP) from a company or organization seeking goods or services. The tender proposal is a detailed offer outlining how the bidder intends to fulfill the requirements set out in the RFB or RFP.

The bid proposal is an essential part of the competitive bidding process. It’s used in government contracts, construction projects or large-scale procurement projects. They help the buyer choose the most suitable and cost-effective option while giving the company submitting the bid proposal the opportunity to discern if the job is right for them and can be delivered at a price that ensures their profit margin.

Those lucky enough to have their construction bid proposal accepted must turn what was a theoretical job into a real one. That requires project management software. ProjectManager is award-winning project and portfolio management software that has multiple construction planning views to ensure the project is delivered on time. General contractors can schedule work on robust Gantt charts that link all four types of task dependencies to avoid delays and cost overruns. There’s a filter to do critical path analysis quickly and efficiently. A baseline can be set to track progress in real time to stay on schedule. Subcontractors and work crews can execute their tasks on kanban boards or task lists while stakeholders can monitor progress with the calendar view. All views update simultaneously in real time. Get started with ProjectManager today or free.

ProjectManager's Gantt chart with filter — ProjectManager’s multiple views turn bid proposals into practical plans. Learn more

When to Write a Bid Proposal

There are several times when a bid proposal is needed. As noted above, this is when a client issues a detailed request outlining the project requirements in an RFP and the bidder must explain how they’ll meet those needs.

An invitation to bid (ITB) also triggers a construction bid proposal as it’s a formal invitation from a client, often for public or private construction projects, which requires a competitive bid proposal. An RFQ is another opportunity to write a bid proposal. It’s when a client asks for price quotes along with service or product details for comparison.

In general, a tender proposal is necessary when an individual, company or organization is interested in securing a project, contract or opportunity that requires competitive selection through bidding. The decision to prepare a bid proposal depends on the specific situation and the nature of the project or contract.

What are the Key Elements of a Bid Proposal or Tendering Process?

It begins with a formal announcement where the client issues a public notice, invitation or request describing the project or service they need. That’s followed by defining the criteria. Proposals are evaluated based on specific criteria, such as cost, quality, timeline and compliance with requirements.

Some bid tenders require bidders to prequalify before they can submit their bids. This is a process where bidders must demonstrate that they meet certain criteria, such as financial stability, relevant experience or technical capacity.

Bidders then review the tender documents, assess the requirements and prepare their proposals. This will include technical specifications, project plans, financial proposals, timelines and other required information. Bidders submit their completed proposals before the deadline. This is done either electronically, physically or both, depending on the tendering procedure.

For many public tenders, bids are opened in a public session where all submitted tenders are recorded and announced to ensure transparency. This is done in a competitive environment with multiple bidders submitting proposals. The client selects the most suitable one after evaluating bids based on value and alignment with their needs. The contract is then awarded to the bidder who best meets the criteria.

Who Should Write a Bid Proposal?

The construction bid proposal can be written by anyone competing to secure a contract, project or business opportunity. In general, those professionals can be one of the following.

Contractors
Suppliers
Construction firms
Consultants
Service providers
Nonprofits or NGOs

How to Write a Bid Proposal

Writing a tender proposal requires careful attention to detail and an understanding of the buyer’s needs, as well as a clear structure to present the offer effectively. Here’s a step-by-step guide to help write a comprehensive and compelling bid proposal.

1. Define the Scope of Work

Before the pen hits the paper, or fingers on the keys, the RFP must be thoroughly reviewed. This begins by understanding the scope of the project. That means clearly outlining the describing the tasks, deliverables, objectives and boundaries of the project being bid on. It’s a crucial part of the bid proposal as it sets expectations between the bidder and the client, explaining what the project will entail, what is included and executed and how the work will be completed.

2. Create a Project Timeline

Next, creating the project timeline will involve outlining the key milestones, deadlines and overall duration of the project. This includes indicating how long it will take to complete each task and phase. The timeline helps the client visualize when the project will start, progress and conclude. It also demonstrates to the client that the bid proposal is a well-thought-out plan to meet their expectations within a reasonable timeframe.

3. Make a Project Cost Estimate

Estimating costs in a construction bid proposal provides the client with a detailed breakdown of the costs involved in completing the project. This estimate helps the client evaluate the project’s financial feasibility and ensures that the bidder’s pricing is transparent, competitive and aligned with the scope of work. A well-prepared cost estimate not only reflects the price of the project but also demonstrates the bidder’s understanding of the project requirements and their ability to complete the work within the specified budget while maintaining their profit margin.

4. Explain the Company Background, Qualifications and Certifications

It’s also important to define one’s company and provide a background including similar jobs that have been completed. Listing the qualifications will also help build trust and credibility between parties. Any certifications should also be included as they’ll give the client the confidence that the bidder will know what they’re doing, which minimizes risk. This section demonstrates the bidder’s experience and expertise, highlighting specialized skills, assuring compliance and keeping up with safety standards, which strengthens one’s competitive advantage.

Bid Proposal Template

While a tender proposal can be written from scratch, to ensure that nothing falls through the cracks download this free bid proposal template for Word. The template ensures consistency and a standardized format to make it easier for the client to understand.

Everything needed is outlined on this free template. There’s an executive summary to begin, followed by the scope of work, company information, estimated schedule and costs plus a lot more.

More Free Construction Project Management Templates

A bid proposal template is one of over 100 free project management templates for Excel and Word that can be downloaded immediately from our site. There are templates to help with every phase of the project across multiple industries, including construction. We’ve linked to some of those below.

Construction Schedule Template

If a bid proposal is awarded to the general contractor or even to deliver the construction bid proposal’s timeline more accurately, this free construction schedule template is sure to help. It opens in ProjectManager, which means schedules can be created on Gantt charts, with milestones, critical paths, dependencies and more.

Construction Estimate Template

Another part of the bid proposal is defining the cost of the project. Use this free construction estimate template for Excel to get an accurate estimate of the project costs. It does this by breaking the project into phases and listing all the tasks for each. Then there’s space to list the labor and material costs, which will also help in creating the budget if the job is awarded.

Construction Quote Template

Another tool for general contractors to use when breaking down costs for the bid proposal is this free construction quote template for Excel. It outlines the project cost, but also the terms and conditions that apply to the work or materials quoted, which will help if the proposal is awarded to the contractor.

How ProjectManager Helps with Construction Project Management

We’ve already pointed out that if the general contractor is awarded the job after submitting the bid proposal, they’re going to need project management software. While some of the free templates available on our site could be used to schedule a project and estimate its costs, these are static documents that will not be as efficient as software. They’re also poor collaborative tools, which will be an issue when working with the construction crew on the job site and subcontractors. ProjectManager is award-winning project and portfolio management software preferred by general contractors for its wide range of features, competitive pricing and ease of use.

Robust Resource and Cost Management Features

To keep to the construction bid proposal and maintain the profit margin, general contractors need to schedule and manage resources. Human and nonhuman resources can be scheduled with costs on the Gantt chart. When onboarding the construction crew and subcontractors, set their availability, including PTO, vacation, global holidays and skill sets to help make assignments easier. Then use the color-coded workload chart or team page to balance their workload and keep everyone working at capacity. The team page provides an overview of all the team’s daily or weekly work, which can be filtered to show priority, progress and more. Secure timesheets streamline payroll and offer a window into labor costs to help stay on budget.

Online Project Management Dashboards and Reports

No matter where the general contractor is, they have eyes on the job site and the progress and performance of their team. For a high-level overview, toggle over to the real-time project and portfolio dashboard. It automatically collects live data and displays it on easy-to-read graphs and charts that show time, cost, workload and more. For more detail, use the customizable reports. There are status reports, portfolio status reports and other reports on variance, timesheets, workload and more. All of them can be filtered to get into the weeds for managers and their teams or provide a more general view of progress that can be shared with stakeholders to keep them updated.