A bid proposal form is a document used by contractors and suppliers to provide pricing on a project or job. These forms are used in business for many procurement activities, and are also widely used in the construction industry to price building projects. The initial bid proposal template is created by the owner, developer or buyer, and is completed by the contractor or supplier in accordance with the owner's requirements.
The bid proposal is often issued in response to a request for proposal (RFP). When an owner or developer needs to hire a contractor or purchase materials from a supplier, the owner will issue an RFP to potential bidders. The RFP will often contain a bid proposal form that must be completed and submitted by each bidder. The RFP will also indicate what type of information must be included with each bid.
To complete a bid proposal, a contractor must first estimate the cost of performing the specified work, or supplying the specific product. He or she must then fill in his price on the bid template according to the owner's instructions. The proposal form may also include sections related to alternates, addendums, side projects or special requirements. Most of these forms will include information on the project delivery schedule, as well as conditions and project information. There is typically also an area for bidders to list specific exclusions or conditions to their price.
These templates offer a number of advantages to both bidders and project owners. The primary advantage to the owner is that this technique offers an "apples-to-apples" price comparison, meaning that the owner can quickly compare pricing because project scope and conditions are similar or identical. The contractor has the benefit of knowing exactly what the owner expects, and how the price should be presented for clarity. Bid proposal templates also help prevent owners from getting confused by exclusions or scope discrepancies listed on individual contractor bids.
While the bid proposal form is often created by owners for a specific project, many contractors also have their own in-house forms. When an RFP is issued and does not include a bid proposal form, the contractor or supplier will use his own form to submit pricing for the project. These forms typically contain all standard terms and conditions required by the contractor, and include space for bidders to add pricing information, as well as specific project conditions and exclusions.
