Contractors aren’t given jobs, they have to make an offer. That offer must be well thought out for the project. If awarded to them, the project must be delivered on time and within a profit margin that makes it worthwhile. Download this free bid proposal template for Word to ensure that all the bases are covered and the work is viable for both parties.
What Is a Bid Proposal?
The bid proposal is a formal document that a contractor or service provider submits in response to a request for proposal (RFP) or invitation to bid (ITB) from a potential client or project owner. The contractor or service provider will fill out the bid proposal, which outlines how they intend to fulfill the project requirements.
This serves as a formal response to a project opportunity, allowing bidders to demonstrate their understanding of the project, showcase their qualifications and outline their approach to completing the work. It’s often part of a competitive process that includes multiple bidders submitting their proposals. The client evaluates these based on various criteria, including price, quality of work and experience.
If accepted, the bid proposal often becomes the basis of the contract between the client and the contractor. That’s why clarity and detail are so important in the bid proposal as it avoids misunderstandings between the two parties once the project has been initiated.
Why Use a Bid Proposal Template?
A bid proposal template provides consistency. It ensures that all proposals follow a standard format, which makes it easier for both the bidder and the project client to navigate and compare different proposals. A pre-built template is more efficient as it provides a quick starting point, and there are even sections that can be cut and pasted to similar proposals to save time.
Those benefits hold true for any template. Unique to a bid proposal template is that it allows contractors to compete for projects by presenting their qualifications and pricing to potential clients. It’s similar to an advertisement where contractors can tout their skills, experience and fair rate to stand out from the rest.
From the client’s perspective, the bid proposal template allows them to evaluate the many contractors bidding for the job. It helps the decision-making process so they can contract with the ideal contractor for their requirements. This helps the contractor and build trust with the client while demonstrating thoroughness and a commitment to quality.
All this is only a preamble to the actual project. Once the bid is accepted, the promises made by the contractor and formally accepted by the client must be delivered. At this point, templates won’t help a project stay on schedule, meet quality standards, keep to its budget, etc. That’s when project management software comes in.
ProjectManager is award-winning project and portfolio management software with robust Gantt charts that can help estimate the cost and the schedule of the proposal as well as manage the project once it’s executed. Gantt charts organize tasks, resources and their associated costs, but ours goes further. It links all four types of dependencies to avoid cost overruns due to delays, can filter for the critical path to identify essential tasks and sets a baseline to capture that plan and compare it to actual progress and costs in real time. The result is a project that stays on track. Get started with ProjectManager today for free!
Who Uses a Bid Proposal Template?
A variety of professionals use a bid proposal template. While we’re talking about it mostly in the context of construction, it can be a useful document across several different industries. Here’s a list of those agencies that commonly use it.
- Construction companies submit bid proposals for building projects, renovations and infrastructure projects
- Consulting firms create proposals to provide expertise in management, IT, marketing, etc.
- Freelancers offering services such as graphic design, writing or web development submit them to potential clients
- Suppliers and vendors use them to offer products or services to businesses or government entities
- Nonprofit organizations submit them for grants or funding opportunities
- Government agencies evaluate bids from contractors for RFPs that they issue
When to Use a Bid Proposal Template
As many industries use a bid proposal template, there are as many scenarios when it is typically employed.
- Responding to RFPs
- Competitive projects
- Large contracts
- Government contracts
- Formal partnerships
- Grant applications
How to Use This Bid Proposal Template for Word
Once users open the free bid proposal template for Word, they will find a fully customizable template. We’ve covered all the bases typically used when bidding for a job, but anyone can add or delete as they see fit to fulfill the unique aspect of their proposal.
The template opens with contact information for the customer and the contractor bidding for that customer’s work. It lists the basics: company name, address, phone number, email and contact person. The below sections follow.
Executive Summary
This provides an overview of the proposal to follow. An executive summary should be short and to the point, summarizing key areas, but not going into detail. There are individual sections to address these topics in depth.
Scope of Work
This section includes a description of the services being offered. It includes all of the materials that will be used and the plan that will be followed. A scope of work also included is a list of required certifications, annual inspections, bond and insurance information.
Company Information
Provide a brief overview of the company submitting the bid proposal, highlighting key achievements from past projects, industry regulations, certifications, licenses and other capabilities required to execute the project.
Subcontractors and Suppliers
List the subcontractors and suppliers who the contractor will use throughout project execution.
Estimated Work Schedule
Forecast the project’s proposed start and end dates, including milestones, notice dates, approvals, easements and permitting as well.
Project Management Methodology
Explain the project management methodology that will be used for the planning, execution and monitoring of the project, for example, waterfall, critical path, PRINCE2, etc.
Project Cost Estimate
Forecast the total cost of the project based on estimated costs of raw materials, equipment, machinery, labor, etc.
Exclusions
This section captures the work that will be performed by other parties that the bidding contractor will not be responsible for, such as the work of other trades, warranties outside of the agreed-upon terms, etc.
Terms and Conditions
Here the rights and responsibilities of both parties are outlined, including the proposal’s expiration date, payment terms, warranties, liability, contract termination conditions, dispute resolution procedures, etc.
Acceptance of Proposal
If the terms and conditions, pricing and other specifications meet the requirements of the potential client receiving the bid proposal template, they sign the document and return it before the expiration date.
Other Free Templates to Help With the Bid Proposal Process
The bid proposal template is made up of several different proposal documents. To assist in the process of creating a thorough bid proposal, the following free project management templates can be used to complete various sections.
Executive Summary Template
The opening salvo for the bid proposal is an executive summary. This free executive summary template for Word outlines all the parts necessary to deliver a short, concise and convincing introduction to the proposal.
Scope of Work Template
The scope of work is a detailed description of what is in and out of scope for the project. Use this free scope of work template for Word to make sure nothing is missing, from project deliverables to the project timeline and milestones.
Gantt Chart Template
This free Gantt chart template is useful when estimating the project schedule. On one side is a spreadsheet that lists all project tasks and start and end dates. As this is filled in, the timeline of the other side automatically populates to capture the entire project.
How ProjectManager Helps the Bid Proposal Process and More
While all of these templates are helpful when filling out the bid proposal template, they won’t be as efficient if that bid is won. These static documents slow down the process because they must be manually updated. Plus, they’re not collaborative, which will get in the way of working more effectively. Instead, use project management software. ProjectManager is award-winning project and portfolio management software that updates automatically in real time. Our collaborative platform connects teams anywhere and at any time to foster collaboration. Our software even helps land those bids by accurately and quickly forecasting costs, schedules and more.
Manage Bids and Execute Work
When bidding for jobs, use the kanban board to track those bids. Each bid can be a kanban card and the kanban boards can be broken down by their status: sent, in review and approved. When a bid is accepted, use the kanban to visualize the workflow of the construction crew. This allows them to manage their work and plan together, while the general contractor gets visibility into that process to identify potential roadblocks and reallocate resources to clear them before they cause delays.
Monitor Progress and Manage Resources
Other tools help monitor work. Once a baseline is established on the Gantt chart, live data is automatically captured and displayed on the real-time dashboard providing an overview of time, costs, workload and more. Customizable reports go deeper into the data or offer a general summary to keep stakeholders updated. Labor costs can be tracked with secure timesheets. Resources are monitored on the team page or workload chart, where they can be balanced to keep teams working at capacity.
Related Content
Once the bid is accepted and the project begins, there are a slew of other project management templates that help deliver the project for those not ready to upgrade to project management software. Here are a handful of useful free resources.
- Construction Budget Template
- Construction Estimate Template
- Construction Schedule Template
- Construction Quote Template
- Construction Change Order Form Template
ProjectManager is online project and portfolio management software that connects teams whether they’re in the office or on the job site. They can share files, comment at the task level and stay updated with email and in-app notifications. Get started with ProjectManager today for free.