WRITING PROPOSALS

A proposal is simply an agreement to do “this for that”. Basic proposals may be used to bid basic minimum type jobs however, due to the very nature of the work, Floor Covering Proposals tend to be rather lengthy and technically involved. By using a basic formula, and a boilerplate, a proposal can be reduced to a minor task. For those unfamiliar with the term, "boilerplate” is a collection of stock phrases included in every proposal.

Proposals should include numbered Sections. This format helps when referring to the document in conversation and other communications.

The suggested format would be as follows:

1.0-Overview: This section offers a basic outline of work required.

2.0-Description of Services: A list of services being offered. This Section needs to be thorough in scope. ALL services associated with the project that you intend upon billing for must be presented here. This section may need to be rather technical in nature as here is where you will be describing in full, how you intend on proceeding with the project. Include any “special” techniques that you might be using to successfully solve any problems that might be associated with the project. For Example: A crane might be
necessary to stock the job, overtime might be part of the original bid, or, special adhesives or materials might be required.  A professional proposal will point out these types of situations and if properly written, this section may well separate you from the
competition.

3.0-Materials:  A listing of materials to be used. This section might consist of cove base, transitions, cove cap etc. Any product or material that you intend upon buying, supplying and installing. 

4.0-Project Cost:  This section outlines all costs associated with the project as outlined in Section 2.0. If the project goes as planned and there are no additions or other changes, this section would outline your total project fee. It is rare that any job is completed without some form of change order, therefore, sub-sections are necessary.

4.1-Additional Services:  This section outlines to the customer that any additional time or work required to complete the project due to changes or modifications to the original bid will require additional compensation. This section should include your fee schedule for any additional services that you might care to offer that is not included in Section 4.0, such as overtime, floor prep, repair work, furniture moving, “down time” due to schedule conflicts, handling/repairing of defective goods, collections etc.

4.2-Ancillary Expenses:  These are the expenses not included in the proposal but may be associated with the completion of the project.  They might include travel expenses, postage, shipping, copies, faxes, re-figures on jobs etc. Basically, any non-installation expenses related to the project would go in this section.  Bare in mind, you do not have to impose any of the charges in this section, and in most cases, you probably will not.

From Section 4.1 on, you would start using your “boilerplate” material. By using phrases that have been previously used in other proposals and saved to a list, you simply “cut and paste” the necessary items to your document.  The boilerplate starting with Section 5 may require some development.  As issues come up in the course of your career, you will find yourself adjusting many of the items.

5.0-Job Quality:  This section lets your client know that you care bout the quality of your work. You might want to include a description of the materials you will be using. For example:  We use only Premium Adhesives in an effort to minimize potential future problems that may be caused due to maintenance. Or, We select the proper supplies for our projects based upon the recommendations of the Manufacturer. This section may establish a distinction between your proposal and a proposal of a competitor.

5.1-Standards and Compliance:  In this section, you might want to refer to National or Local Standards that are required.  For Example: We intend upon completing this project as per the Specifications outlined in the Carpet and Rug Institute's C-104 or the Resilient Floor Covering Institute.. It may also be a good idea to attach a copy of the booklet to the proposal. You might also include a copy of the Manufacturer's Installation Guidelines. 

5.2-Work Schedule:  This section is intended to clearly outline when work will start and when work will finish. It also distinguishes between working an non-working hours and specifies that there is a consideration for overtime, weekend and holiday work fees. Should the schedule need to be modified, it can be changed within the context of this section.

5.3-Job Completion/Evaluation:  This section outlines the procedure that you are requesting to have the completed work checked and evaluated by the client so you can get your sign off.

5.4-Product Warranty:  If you are supplying any products for the project, this section would be used to outline the warranty for those products. In most cases, it will be the Manufacturer's warranty. You might want to include a copy of the warranties with your proposal.

5.5-Job Guarantee:  This section is used for the purpose of outlining your installation Guarantee. It is also a place to name any exclusions. This section would also offer an opportunity to include a service agreement.

6.0-Conditions:  This section allows you to clarify your expectations of the setting your work will take place in.

6.1-Availability of Information:  This section alerts the client of their responsibilities when it comes to getting information to you.  This information might include project scheduling, color selections, or any other aspect of the job that might impact your work.

6.2-Site Access:  Site access includes time as well as space.  In this section you outline your expectations for usage of things such as freight elevators, loading docks, doors, parking, etc.  Also, storage on site should be addressed.

6.3-Coordination with Other Trades: This section outlines the necessity of sticking to the schedule. Your expectations of entering an area that is void of other workers and debris. It is important to know who is responsible for coordinating others not bound by your contract.  In this section, you should alert your client to their responsibility for setting up clear lines of communication between you and the site manager. 

6.4-Unforeseen Hazards:  This section deals with the unknown and unforeseen conditions that sometimes occur on projects.  Such as concealed damage after removal of existing floor coverings.  You must spell out that on occasions such situations impact your schedule and the cost of your work.

7.0-Use of This Document: This section is a reminder of professional ethics. After expending sometimes numerous hours preparing a comprehensive proposal, it becomes a "design document". In this section you let the client know that if they intend on using your proposal to solicit other bids (based upon your specifications), that the design value of the proposal is _______ $'s. Make the amount rather substantial to dissuade them from using YOUR ideas to accomplish the task at hand.  Unfortunately this section isn't always effective.  Bear in mind, you are in the floor covering business, not the litigation business.

8.0-Resolution of Dispute:  As misunderstandings can occur, it is wise to list up front your preferred methods of resolving them.  One of the easiest ways to resolve conflicts is through the use of a professional mediator. You might care to include the following paragraph from the American Arbitration Association.  "If a dispute arises out of or relates to this agreement, or breach thereof, and if said dispute cannot be settled by  negotiation, the parties agree to first to try to settle the dispute by mediation under the Commercial Mediation Rules of the American Arbitration Association before resorting to arbitration, litigation, or some other dispute resolution procedure."

9.0-Payment Schedule:  No job can be considered complete until it is paid for. In this section you alert your client that any efforts expended by either you or your employees toward collection are "billable hours". 

10.0-Acceptance of Contract:  You can save time by having your proposal serve as a contract by adding the phrase: "Upon acceptance of this proposal it will constitute a contract." It is important to put a time frame on the proposal to protect against unforeseen price increases so state the length of time for which the proposal remains valid. To make the contract complete, simply add a few lines for signatures and dates.

The preceding information was culled from an article titled The Art of Proposal Writing written by Michael Stocker in October 1996 and posted on the Internet at http://www.msa-design.com/Article-prop_art.html