ContractorHandbook

Free Contractor Proposal Template

A proposal is an estimate written to be signed. The price is the part the customer reads first, but what makes it a proposal is that the scope, the exclusions, the payment terms and the acceptance line are all on the one sheet, so a signature turns it into the agreement instead of starting a second conversation about one.

Fill it in online Type your details in and download it already filled in.

Proposal, quote, estimate or bid: this is the same document

It is one form, and the word at the top is doing less work than the page it is printed on. An estimate is a considered approximation that can move with the scope, a quote is normally a fixed price you are committing to, a bid is a price submitted into a competitive process, and a proposal is the version written to be accepted in writing. Customers use all four interchangeably and will not read the heading the way you meant it.

The part that is genuinely different is at the bottom. This one has an acceptance block, and that single line changes what the document is for: the customer is not being asked to think about a number, they are being asked to sign the scope, the exclusions and the payment terms at the same time. On a small job that signature is very often the only signed document that will ever exist, which is exactly why the exclusions above it have to be written properly.

The longer version, including what belongs in the exclusions and why every price you send needs a valid until date, is in estimate vs quote vs bid. The blank contractor estimate template is this same form with the other word on it.

What a contractor proposal should contain

  • Your business details and license number where required
  • The customer name and the job address
  • A proposal number and the date you wrote it
  • Scope in plain language, line by line, because once this is signed that wording is the scope you agreed to
  • What is explicitly excluded, written in the same detail as the scope, since both are being accepted at the same moment
  • The price, any deposit required to book the work, and when the rest falls due
  • A start window and a working duration rather than a completion date you do not control
  • A line saying scope changes are priced in writing and approved before the work is performed
  • An acceptance block, so the signature and the date that accept all of it sit on the document itself

Write an exclusions line, it wins arguments before they start

Most disputes are not about the price, they are about whether something was included. Permits, disposal, painting after drywall, moving furniture, parking, after hours work, unforeseen rot behind a wall. Name them.

"Excludes permit fees, asbestos or mold remediation, and any repair to structure found behind existing finishes" is a single line that has saved contractors thousands.

Put an expiry on every price you send

Material prices move. An estimate with no valid until date is an open ended offer that a customer can accept next spring at last summer's lumber price.

Thirty days is the usual default. If your material is volatile, say 14 days and say why.

Questions people ask

Is a signed proposal a contract?

In practice it behaves like one, and on small residential jobs it is frequently the only signed document in existence. What makes it hold up is not the word proposal, it is whether the scope, the exclusions, the price and the payment terms are all written on the sheet that was signed. For anything large, or anything where you are relying on warranty, termination or dispute terms, use a full agreement instead. Nothing here is legal advice.

What is the difference between a proposal and an estimate?

An estimate is a price you are offering. A proposal is that price plus the scope, the exclusions and the payment terms, laid out to be signed. An estimate invites a conversation; a proposal invites a signature. That is the whole difference, and it is why this template has an acceptance block and the estimate does not.

Do I still need a separate contract if the customer signs the proposal?

For a small, short job where the scope is fully written down, a signed proposal usually does the work. Once the job runs long, involves a deposit you would struggle to refund, needs a change order process, or has anything to say about warranty or what happens if either side walks away, use the contractor agreement template instead and attach the proposal to it as the scope.

What happens if the customer wants to change something after signing?

That is what the change order line is for, and it is already in this template: scope changes are priced in writing and approved before the work is performed. Price the change, get it accepted the same way the proposal was accepted, and keep it with the signed sheet. Work performed on a verbal change is work you will be arguing about later.

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