MAKE YOUR FREE Bid Proposal

This Bid Proposal template covers:

• the bidder’s details

• the client’s details 

• information about the bidder, for example, who they are, what services they provide and what makes them stand out in their industry

• a proposal of services to be provided

• an estimated timeline for the provision of the services

• an overall budget for the proposal alongside a breakdown of the specific costs

• details of key personnel involved

• client responsibilities

For bidders, a Bid Proposal is an important document that enables a business to compete for a specific project, contract or business opportunity. 

Bid Proposals formally present a business’ capabilities, qualifications and proposed approach to fulfilling a clients’ requirements. By submitting a Bid Proposal, a business showcases its expertise, sets itself apart from competitors and demonstrates a thorough understanding of a project's scope and objectives. 

Bid Proposals are crucial as they detail and communicate a business’ value proposition, outlining a clear plan of action and establishing the credibility needed to win the client's trust and secure the desired contract or project. In other words, a persuasive Bid Proposal demonstrates why the business bidder is the best choice and helps them win commercial bids.

A client can use a Bid Proposal to create a standard Bid Proposal to be included alongside an invitation to bid. By using a standardised Bid Proposal, a client has a standardised way to collect bid information from multiple businesses. 

Whether you're asking businesses to submit bids for a project or a business wanting to place a bid, creating a Bid Proposal is a great way to explain all the details of a bid. Not only does it help both parties align on the details and terms of a potential contract, but it may also help determine the best bid for the project, which means the project can begin as soon as possible.

An invitation to bid (‘ITB’) is a formal request for a business (eg a supplier or contractor) to submit competitive bids for a specific project or contract. An ITB should provide relevant project details, technical specifications, submission requirements and evaluation criteria. By requesting bids from different parties, a client aims to select the most qualified bidder based on factors like cost, quality and expertise.

Other names for an invitation to bid include:

• a ‘call for bids’

• a ‘request for bids’

• an ‘invitation to tender’ (or ‘ITT’)

• a ‘request for tenders’ (or ‘RFT’)

• a ‘tender’ 

• a ‘contract opportunity’

• an ‘invitation to treat’

In all likelihood, your Bid Proposal will be competing against the Bid Proposals of other businesses. To create the best possible Proposal and give yourself the highest chance of securing the project, you should consider:

• carefully reading and reviewing the initial invitation to bid - by making sure that your bid corresponds with the client’s requirements, you increase your chances of winning a tender

• supplying relevant information about your business - identify whether your business specialises in the work you're bidding for or whether you're more of a generalist, and set out what makes you stand out in your industry. Your Bid Proposal should highlight why this makes your bid worthy of winning

• giving reasonable time and cost estimations - while everyone wants work to be done quickly and efficiently, there's such a thing as ‘too fast’ and ‘too cheap’. You should avoid giving unrealistic estimates in your Bid Proposal. It shows the receiving party that, although you might not have the fastest or cheapest estimate, you're being reasonable. That can go a long way

• providing project specifics - be specific about your knowledge and expertise in your Bid Proposal. Note all the details and explain how you came to your estimates of price and time

Generally speaking, Bid Proposals are not legally binding. They do, however, often form the basis for negotiations and discussions between a client and a chosen bidder. The final contract, setting out all details of the relationship between the client and the bidder, is typically set out and signed in a separate document. 

For more information, read How to form a valid contract.

A timeline is a crucial part of your Bid Proposal. 

Your timeline provides the client with a clear and structured overview of how the project will unfold over time, ensuring a shared understanding of the project's scope and phases. Providing a detailed timeline also enables you to showcase your thorough project planning and management skills, reassuring the client of your ability to deliver on schedule. It also helps foster transparency, enabling the client to make an informed decision by showing how you intend to work on the project. 

Ultimately, including a detailed timeline strengthens your Bid Proposal by demonstrating your professionalism, reliability and commitment to successful project execution.

As part of your project timeline under this Bid Proposal, you should provide milestones and milestone dates. Milestones like checkpoints in a project (eg client approval, securing funds and contract signing). A milestone date provides information on when a milestone should be achieved by. Examples of milestones and their respective milestone dates include:

• the procurement of resources for landscaping - 2 weeks into the project

• the completion of the project - 2 weeks after the final sketches are approved by the client following submission by the bidder

To ensure fair competition and transparency, the bidding or tendering process generally involves the following steps:

• identification of needs - the client identifies their need for goods, services or performance of a project and decides to procure this through a competitive bidding process

• preparation of relevant documents - the client prepares the tender documents. These may include project specifications, requirements, evaluation criteria and specific terms and conditions

• invitation to tender - the client formally invites businesses to submit their bids for the project

• preparation of bids - the bidders review the client’s invitation to tender, gather all necessary information and compile their Bid Proposals

• submission of bids - the bidders submit their Bid Proposals by the client’s deadline

• evaluation of bids - the client evaluates the bids they receive against their evaluation criteria (eg timeframe, cost, quality and/or experience)

• bidder selection - the client selects their preferred bidder based on the evaluation results. At this stage, the client and bidder may engage in negotiations to finalise the terms of the engagement

• awarding of the contract  - the client awards the contract to the chosen bidder and communicates this decision to all participating bidders. ‘Awarding a contract’ refers to the process of notifying a bidder that their Bid Proposal has officially been chosen by the client

• contract formation - the client and the bidder who was awarded the contract enter into a legally binding contract. This contract tends to be based on the terms outlined in the original Bid Proposal 

The bidder will then start working on the project in accordance with the terms of their contract with the client. Throughout the contractual relationship, the client will monitor the bidder’s performance to ensure compliance with the contract and project milestones. Once the project is completed to the satisfaction of the parties and in accordance with their contract, the project is said to be ‘completed’.

Do not hesitate to Ask a lawyer if you have any questions or concerns about the tendering process.

If you're using a Bid Proposal, chances are you might also need one or more of the following documents:

• a Letter of intent - setting out a proposed agreement before entering into a final contract

• a Consultancy agreement - setting out how a consultant provides their services

• a Services agreement - setting out the terms for the supply of services between businesses

• a Sales agreement - recording the sale of goods between businesses

• a Catering contract - identifying terms for the provision of catering services

• a Photography contract - identifying terms for the provision of photography services

• a Cleaning contract - identifying terms for the provision of cleaning services

• a Wedding planner agreement - identifying terms for the provision of wedding planning services

• a Subcontracting agreement - delegating obligations to a subcontractor

• a Distribution agreement - appointing a distributor to expand a business’ reach 

• an Influencer contract - setting out how an influencer will provide their promotional services to a business

• a Purchase order - confirming an order for goods or services

• an Invoice - outlining payment details for the provision of services or sale of goods

If you have any concerns or questions about what's right for you and your business, do not hesitate to Ask a lawyer.