Work Proposal And Contract Vs. Just A Contract

wackman

How many of you guys work up a detailed proposal/bid/estimate for a potential client and then if accepted draft a contract as well?

My Proposal is really similar to my contract, all the pertinent job info is in both. One has lien info in it and the other has a "protect yourself before you hire a contractor" warning required by the state, one has signature lines the other doesn't.

I'm starting to feel like I'm just double entering all this info (I know, I could cut and paste, but that still takes my precious time). I'm thinking about merging the two into one and then if they like the proposal they just sign the thing and gett-er-done!

Do any of you have a good reason for keeping them both seperate?

jensenconstruction

We do a proposal/bid then if accepted we draft a contract. Our contract includes all our terms and conditions, specific language and disclosers as required by the state of CA, and is at least 8 pages long, more on complex jobs. If all this were put into our proposal I think it would overwhelm our clients as well as add to my workload. So, I only type up contracts for accepted proposals.

wackman

So what kind of details do you leave out of the proposal? By far the bulk of my contracts are specific job details that really should also be known at the proposal, so it's about 7/8 the size of my contract.

Mike Finley

We average about a 15 page information packet, 5-15 page proposal, and a 6 page contract which also acts as an information holder for where things are in the customers home (elec panels, water shut offs)as well as disclaimers for dumpsters and the like and a payment schedule for them to have.

The reason they are kept separate is because the proposal and the contract have little to do with each other. The contract references the proposal as the scope of work and is just the legalese.

Why don't you simply separate the two and let your contract call up the official scope of work that is your proposal? That would make them separate documents and eliminate all the double entry.

jensenconstruction

Our proposal does not include all of our terms and conditions, state required statements. Also In my contract I am much more specfic in my scope of work and methods of construction in order to avoid future misunderstandings. In my proposal I tend to be a little more conceptual and avoid all the little specifics. I used to do very specific proposals but found that clients were taking my detailed specs and using them to solicit other bids based on my written specifications. So now I only write them out for sold jobs.

wackman

I've never thought of the contract NOT including the scope but now that you mention it it's not a bad idea at all. I'll need to rework everything but then after that it would just be one entry and then a pretty standard contract that wouldn't need much change per job.

Where did you get your info packet, or did you build it yourself?

Mike Finley

Info packet is something you everyone would need to put together personally.

Also if you are at all nervous about only referencing the proposal from the contract you can add some customer initial spots on the bottom of each page of your proposal, and have the customer initial each page of your proposal at the time you convert them and are signing the contract.

wackman

I actually already have intitials at the bottom of every page of the contract, so none of the details on pages that don't get signatures can be altered or claim weren't seen.

Have you had any problem giving out all the details in your proposal rather than the contract like Jensen mentioned? I currently do something similar to him, the proposal is a bit vague on the details although is clear on the job. Then the contract gets very specific.

Mike Finley

I'm not sure I was clear - I'm talking about initialing your proposal pages to acknowledge them and cover yourself so that there is no misunderstanding as to what the contract is refering to.

The proposal is detailed about the individual job. Unless you want to write the job up 2 times it has to be, since the contract is just legal terms, generic to any job and doesn't ever change.

The detailed specifics of site conditions, materials and the actual work can change from job to job, that is why the proposal is the document that changes from job to job.

There is no doubt one of our proposal has been used by a customer as a road map for another contractor to bid the job or do the work not awarded to us, but what does it matter?

As a company we have a very specific type of customer we want to work with and our estimating method appeals to that type of customer, and that's what is the most important thing for any of us to consider.

RobertCDF

Keep in mind your estimate needs to be specific... I use that as a selling point on mine Ex: Look what I do that the others dont! Trust me you want all you can get on there so that if it comes down to it they will pick you because they KNOW for sure what your are planning on doing because it is in your estimate.

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Robert Shaw
Colorado Springs Custom Decks
Colorado Custom Decks
Custom Composite Decks

ultimatetouch

Mike I am just curious how you put this package togather. I have always been about doing things as simple as possible thats why we give a work agreement right off the bat with scope of work and some legal verbage. What your talking about lends to your image of professionalism to, it makes you look even better, which I am all about.
If you wouldnt mind pming me so I could get some ideas from yours, if you could that would be great and if you dont that would be fine to.

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Ultimatetouch
Illinois Remodeling Company, Kitchen Remodeling Chicago, Room Additions Illinois

AtlanticWBConst

For us, it depends on the size of the job or the scope of the work.

We do a proposal/contract on some jobs (smaller ones/small repairs, etc.)


We will also do an 'Initial proposal' for larger jobs. This is because there are always details to be worked out as the contract step moves up.

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