The proposal template, known as the Prop-003 form, is used by contractors. Contractors list specific materials and procedures for the project on the form. The project’s owner consents to use those items in implementing the project. This form helps the project owner understand the scope of the job and the cost.
What Is the Proposal Template Used For?
The proposal template outlines the materials and labor for a project. The contractor guarantees that the materials used in the project are those listed on the proposal. Labor will be completed by professional workmen according to the guidelines outlined in the form. The project owner signs the proposal template, confirming the estimate and materials to be used. This form documents the agreement between the contractor and project owner. Once the final acceptance certificate is signed, this document loses its significance, but it can be proof of the scope of the project if it is ever called into question. The size and scope of the project should not be a consideration when deciding to use the template. Even small projects benefit from a proposal, to ensure that all parties understand the details, specific materials, payment and costs.
At its core, the proposal template is a bid on a project. It includes these details:
- Project owner’s information
- Job name and location
- Project specifications
- Date of plan
- Cost estimate
- How payment will be made
- Authorized signatures
- Acceptance of proposal
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Who Uses the Proposal Template?
The contractor is the primary user of this template, but the project owner does sign it. It can be a verification for each party to know exactly what materials and labor specification are and what the costs will be. A contractor may use this with subcontractors or not, but it is the project owner who accepts the proposal. Contractors should be well-versed in local and state requirements in providing written proposals. Some states require certain information to be included in the proposal. A general template covers most of the information but may not have enough specificity for a particular location.
When Is the Proposal Template Used?
This template is used at the beginning of a project to outline the materials and labor specifications. It’s valid throughout the execution of the project. The proposal template outlines the responsibilities of both parties, as the project owner is required to carry fire, tornado and other insurance. The template also specifies instructions for legal action and who will be responsible for attorney’s fees and litigation costs. Typically, this proposal template will not require additional forms. However, if the contractor wants to include other documents to provide support of pricing or other information, that is certainly an option. This template may be part of a bigger contract, breaking down a larger project into smaller jobs that will be completed in a certain fashion. Project owners may wish to negotiate. Be prepared to change information based on their preferences and project specifications. Electronic forms make it easy to change proposals while working out specific needs, ideas and considerations. Having this form lets the project owner compare other proposals against the terms each contractor is offering. Contractors who use this form appear more professional, competent, polished and qualified. If changes are made to the project, the contractor will need to get written approval, providing another layer of protection in the contract negotiations. The proposal template provides an estimate for the project owner, thereby keeping the project within budgetary constraints. It also lets the contractor stay within project management guidelines to be able to profit off the work.
What Are the Consequences for Not Using the Proposal Template?
Although the proposal template is not required, it does confirm exactly what will be done. It is an added protection of professionalism. Using the proposal template protects both the project owner and the contractor from assumptions about what is included in the project and what isn’t.
Using the proposal template protects the project owner from unforeseen charges or low estimates, while also protecting the contractor if modifications to the project need to be done. Some contractors specifically mention unforeseen circumstances or hidden defects that are found after work is commenced. Many times, rot, structural issues and improper coding issues are found once the work has begun. Contractors should not be expected to cover those costs, but homeowners should be aware that those things are possible
Steps for Filling Out the Proposal Template
- Fill in the project owner’s name and contact information to identify the project.
- Specify the labor and materials that are needed to finish the project. Some contractors recommend staying generic in the description of the materials, while others get much more specific, including model numbers and measurements. It’s up to you to as to how detailed you should be in providing this information, but you can tell project owners that you cannot honor warranty work on materials and fixtures supplied by them.
- Fill out the cost of the project. You can also include payment information, such as deposits and timelines. Make sure to know the applicable laws for deposits in your community.
- Include a timeframe for the proposal to be accepted, if applicable.
- Sign the form.
- Send the form to the project owner.
Where do I send the proposal template when completed? The form is directed to the project owner to consider and approve. Negotiations may ensue and change the agreement. Can the contractor withdraw the offer? The contractor can specify a period that the project is valid for. If the project is not approved within the timeframe, the contractor can withdraw the offer. Can I change the legal terms? Your bid form can be simple or complex. You can write in additional terms or cross out terms that do not apply.