What is a Proposal?

Definition of Proposal in Construction
A proposal is a bid for a construction project, whether it is based on a lump sum value, a guaranteed maximum price, a cost plus contract, or simply a proposal based on a time and material agreement. The term proposal is a basic term that can be used to identify a number of different formats, from contractor to owner , or from subcontractor to contractor, material supplier to contractor, etc. The term proposal is a standard and popular term within the construction industry and each situation must be evaluated and studied to understand what is included in each proposal.