TOPIC: CONTRACTOR PROPOSALS
Contractor Proposals are a necessary part of any home improvement project. There are key components to a Contractor Proposal that should be included to cover your business as well as clearly explain the services rendered for the Client.
The key components are:
- Name and Contact Information for the Client
- Physical address of the property where the work is to be completed
- Specify each task to be performed in as much detail as possible. Allowances can be included if specific costs are not known at the time the Proposal is written. Client should know that if they exceed the allowance, they are responsible to pay the difference.
- Include deliverable timelines (Always add more time to your estimate. It is better to under-promise and over-deliver.)
- Clearly state in the proposal that if any substantive changes are made to the work described in the proposal once the work has begun, a Change Order will be issued with the new related costs.
- Articulate that any changes to the original proposal may result in a change in the final deliverable schedule.
- State payment terms (initial deposit, amounts due based on completion of milestones, final payment due upon final walk through)
- If creating drawings or sample boards, clearly articulate when payment is expected for final versions.
- Have a place for Client and vendor to sign proposal.
REAL LIFE SITUATION:
A vendor partner in the iSearchDecor home décor/home improvement business network created initial diagrams of kitchen cabinetry as a part of her project proposal. The Client called the vendor partner and asked her to drop everything, create the final drawings and create a final proposal based on the final drawings.
The vendor partner of course did as she was instructed, and spent the next 3 days completing final drawings and obtaining final pricing on the custom cabinetry.
After the final drawings and final pricing had been submitted to Client, the Client decided not to proceed with the project. The vendor partner was devastated, and decided to send the Client an invoice for the final drawings.
The Client refused to pay the invoice for the final drawings since there was no language regarding a payment for final drawings in the original project proposal.
STRONG RECOMMENDATION:
Include any language related to payment for final drawings, floor plans, sample boards, etc. in the original proposal. Explain at what point payment is expected even if the project does not materialize.
Contractor Proposal Templates can be found at the following websites:
http://www.printe-z.com/proposal-forms.html
http://www.ezdatasoft.com/contractor-proposal-form.htm
About iSearch Decor
iSearchDecor offers lead generation service to vendors in the furniture, home decor, professional home services, and home renovation/remodeling categories. Contact 480-619-5505 or visit www.isearchdecor.com/business for information on how iSearchDecor can provide visibility to qualified potential buyers for your business. Vendors interested in applying to join our exclusive business network please contact us at info@isearchdecor.com. We are currently servicing Phoenix/Scottsdale and Dallas. We are actively seeking vendors for San Antonio and Austin.
Other related articles
The Importance of Documenting Change Orders for the Home Improvement Contractor
How to Avoid Grievances for the Home Improvement Contractor
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