Proposal

Definition

A proposal is the document submitted by a contractor to the owner for the construction of a project, sometimes called "the bid".

Purpose

The purpose of a proposal is to outline the contractor’s plan, cost estimates, timelines, and methodologies for completing a construction project. It serves as the basis for agreement between the contractor and the owner.

Examples of Use

• Contractors submit proposals during the bidding process for a new building project.
• A proposal may be used to detail renovation plans for an existing structure.
• Government projects often require detailed proposals to ensure transparency and fair competition among contractors.

Related Terms

• Bid: An offer to perform work or supply goods at a specified price.
• Contract: A legally binding agreement between parties.
• Tender: Another term for a bid or proposal, often used in public sector projects.

Notes

A well-prepared proposal is crucial for winning contracts and should include clear, detailed information to demonstrate the contractor's capability and reliability.