How To Write a Bid Proposal (With a Template and Example)
When pursuing a new client, it's imperative that you clearly outline expectations and showcase your company's eligibility for the job. An effectively written bid proposal can clarify a variety of key details at the very beginning of a client relationship, establish your company's expertise and increase your company's chances of being hired for the project.
In this article, we explain what a bid proposal is, detail the elements they include, describe how to create one and provide a template and example that can guide you as you create your own bid proposal.
What is a bid proposal?
A bid proposal is a document that companies use to outline the products or services, pricing and time frame they can offer clients for completing a specific project. Bid proposals are primarily used to showcase a company's qualifications and provide details for pricing so that the prospective client can decide if they are the right fit for the job.
Bid proposals are used by individuals and companies that are being contracted out to complete a project for a client. Because of this, they can be used any time one party is providing a good or service for another party, regardless of the industry. Construction companies, marketing or advertising firms and freelancers commonly rely on bid proposals.
Related: How to Write a Proposal Letter (With Template and Example)
Elements of a bid proposal
Bid proposals can vary depending on the project and industry, but they usually contain a few key elements, such as the:
Client's contact information
Contractor's contact information
Purpose of the proposal and project
Services or products that would be provided
Additional terms and conditions of the agreement
Estimated project timeline
Signature of both parties
Related: How To Write Proposals
How to write a bid proposal
Follow these steps to craft an effective bid proposal:
Get an in-depth understanding of the project. Before drafting a bid proposal, make sure that you understand exactly what the project entails and what the client is hoping to accomplish, You can often do this by reading the job description, but ask the client for additional information if you feel that you need more details.
Research the client. Learning a bit about the client can help you write a bid proposal that both impresses them and communicates that your company is ideal for the job. If the client is another organization, research the company and explore its website so that you can evaluate their challenges and values.
Evaluate the competition. Regardless of the project, there are likely other companies and individuals competing for the opportunity to offer their goods and/or services. By conducting a competitor analysis, you can create a bid proposal that helps your company stand out.
Consider offering an additional good or service. In order to make sure that your company is able to set itself apart from the competition, you could include an additional service or product in your bid proposal, free of charge.
Include relevant information. It's often helpful to include things like samples of your company's work or even reviews from satisfied customers to demonstrate that your company is qualified to effectively and efficiently complete the project.
Proofread your proposal. As with any professional correspondence, it's vital that you double-check your work. Look for grammatical, spelling or formatting errors, as well as any wording that is awkward or unclear.
Related: How To Write a Business Proposal in 2022
Bid proposal template
Here's a template that you can use as you create your own bid proposal:
Job name: [Name of project]
Job summary: [Brief overview of the project and how your company plans to provide its expertise to complete it.]
[List of the tasks that your company would perform, including key deliverables.]
Proposed project budget: [Estimated cost of the project, including details that could alter it.]
Terms and conditions: [Details about expectations, variables that could affect the proposal and additional responsibilities.]
Project timeline: [You can either list the start and completion date for the project or provide a general timeframe for once an agreement has been reached.]
Client signature: [Leave a space for the client to sign and date.]
Contractor signature: [Leave a space for the company representative to sign and date.]
Related: Request for Proposal: Definition and What To Include
Bid proposal example
Here's a sample bid proposal:
1234 Jean St.
Atlanta, GA, 30301
Pretty Penny Media
5678 Green Ave.
Atlanta, GA, 30301
Job name: Boxes Galore Rebrand
Pretty Penny Media has expertise in developing brands through creative services. The agency will create a logo, build a brand guide, execute a branding shoot, and redesign the website to reinvigorate Boxes Galore's brand and prepare for its launch. A brand will be built for the client through these services:
Logo: We will provide 2-3 rounds of designs to decide on a new logo that meets the client's needs and appropriately represents their brand.
Brand guide: The logo design will inform the development of a brand guide that contains fonts, colors and alternative marks.
Branding shoot: After determining the brand's colors and aesthetics, we will execute a branding shoot to take photos for social media and website content.
Website design: We will redesign and write the copy for Boxes Galore's new website, which will include about, shop, blog and contact pages.
Proposed project budget: This project is estimated to cost $2,000 in total. Pretty Penny Media reserves the right to bill an additional $75 per hour, upon mutual agreement, for any services rendered outside of this scope.
Terms and conditions: These terms and conditions constitute an agreement with Boxes Galore and Pretty Penny Media. The amount is subject to increase if the scope of work or duration expands beyond the deliverables or expectancy. Upon payment, the deliverables will become the property of Boxes Galore. In case of termination, the client will pay a termination fee equal to $1,000 to the agency.
Project timeline: After an agreement is reached, Pretty Penny will begin working on the project. The estimated completion date is approximately three months after the start.
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