Building a Winning Construction Proposal
Okay, now that you’ve added your profit margin, overhead, and taxes to the bare costs of your base bid, you now have your sales price for the job and you’re ready to build your construction proposal. Depending on who you’re providing pricing to—either directly to a customer or to a general contractor—will determine the format and detail you should include in the document.
Let me explain, general contractors usually do not care for all the extra verbiage and fluff that goes into a construction proposal and would rather receive a standard bid form for the construction project they’re accepting bids on. This is because they’re interested in seeing the cost broken out in a format that can be easily compared to competing electrical contractors and checked quickly for scope to ensure nothing is missing from the electrical package that was included in the bidding documents. Ultimately, they will be responsible for delivering a finished product that includes everything outlined in the scope of work per the construction contract at completion of the project.
In addition to the standard information below included in a typical construction bid form, you can also have supplementary requirements or break-outs. For example, some bid packages require that you break the pricing out by CSI formats to make it easier to compare the cost for each scope of work within the construction project. Also, in some cases, the customer might ask for unit costs in their construction bids for change order in the event of additions and deduction of common items. This is to ensure that you do not over charge for change orders after the construction project has been awarded.