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Estimating & Bidding

Proposal

In Plain English

A contractor's formal written offer outlining price, scope, and terms for a project.

Definition

In construction, a proposal is a contractor's offer to perform a defined scope of work for a stated price and under specified terms. Proposals are common in negotiated contracting and for change order pricing. The term is sometimes used interchangeably with bid, though proposals often include more detail about approach, schedule, and qualifications.

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