Bid Proposal Template
Perhaps you have a project that needs to be completed, but your team either lacks the expertise or the time to do it. In many cases, businesses choose to hire contractors to complete this kind of work. This template will help you develop a bid proposal (also known as a Request for Proposal or RFP) to request bids from potential contractors.
You can issue a competitive bid proposal to receive responses from a number of bidders, then review the responses and narrow down your choices to one final contractor. Alternatively, you could send the bid proposal to just one contractor and request their best offer in response.
HubSpot Tip: This template can be adapted to projects of differing size and complexity in a variety of industries. Feel free to customize it to meet your needs!
Describe your company, focusing on what makes you stand out in your industry. It might be helpful to include biographical sketches of some of the key management and operations staff in the company. You can also introduce the internal team that the contractor will work with once the contract begins.
HubSpot Tip: Be persuasive and aim to convince the contractors you have invited to bid that working with your firm would be a worthwhile venture.
About the Project
Use this section to describe the project from start to finish. If the requirements are complex, it could be helpful to divide the work into phases.
Indicate the deliverables, which are the tangible and intangible products to be provided by the contractor. Link them to the appropriate phase, and define the specifications and requirements for each.
HubSpot Tip: Most projects require input from more than just one player. Don’t forget to include the tasks that will be completed by your organization or other suppliers, so the contractor is able to understand the entire project.
Indicate the period of performance for the project. When will the contract start and by when does it need to be completed?
Consider showing the phases of the project graphically. You can use a schedule diagram like the one below.
As they apply to your project, you should describe which tasks are dependent on one another (contingencies) and any potential risks to the schedule.
HubSpot Tip: If your project is very complicated, consider requesting that the contractor use Microsoft Project or another project management software to track contract progress.
The payment structure for your project can vary depending on your industry and the specific requirements. Some common pay structures are: flat fee, hourly rate, commission, and cost plus fixed fee.
You can provide a budget range that you would like the contractors to bid within, or you can allow for open bidding.
HubSpot Tip: Consider providing contractors with a pricing template in Microsoft Excel or another spreadsheet program. This ensures that you receive bids that are formatted to your specifications and makes it easier to evaluate and compare what you collect from different contractors.
Terms and Conditions
Include your company’s terms and conditions. These indicate the provisions, requirements, rules, specifications, and standards on which the resulting contract will be based.
HubSpot Tip: If you use a standard Terms and Conditions template, be sure to make any adaptations that are necessary for this specific bid proposal.
Schedule A – Deliverables Schedule
Provide a draft version of the deliverables timeline. Indicate when each of the products or major services of the project should be completed, and include the specific requirements associated with each. Use a table like the one below to organize the information.
You may want to indicate that all deliverables will become the property of your company upon the contractor’s delivery to you.
HubSpot Tip: Organize the deliverables chronologically according to the deadline.
Schedule B – Payment Schedule
Provide a draft version of the payment schedule to show when payments will occur and what milestones need to be completed in order for the contractor to receive payment. Organize this information in a table like the one below.
HubSpot Tip: Assigning payments to milestones helps you track the contractor’s progress throughout the project timeline.
Now that you have described your needs and the project details, tell the contractor how to respond with a bid. Be as clear and concise as possible, and provide contact information for the responsible person in your company so contractors can request clarification.
HubSpot Tip: Depending on the project and your industry, the instructions might be simple, with just a few requirements, or they may entail several paragraphs, or even pages, of text.