Bid Proposal Template (UK)

Updated on 13 August 2026

A bid proposal is a contractor's or supplier's formal, priced response to a specific project or solicitation — different from a simple quote in that it responds to a defined scope set by the party requesting bids, and is usually one of several competing bids being compared against each other. Use this when you're bidding into a competitive process; use our quote or estimate templates instead for a straightforward priced offer with no competing bidders.

The widely circulated US free version of this document is almost entirely generic: a purpose paragraph, a single price figure, and a four-phase payment table, with no exclusions or assumptions list, no bid reference number, no bid bond, and a termination clause that charges the client the full contract price regardless of work performed. This template adds each of those, while staying scoped to private commercial bids — for a public-sector tender, the compliance checklist below flags that England, Wales and Northern Ireland now sit under a different regime from Scotland.

1 of 18 blanks filled

Tap any highlighted blank in the document below and type straight into it.Free — no sign-up, no watermark

Choose your version

VAT treatment

Bid Proposal

Bid reference:
Bid date:
Contractor:
Client:
Project:

1. Scope of Services

proposes to provide the following services for : .

2. Exclusions and Assumptions

This bid price is based on, and excludes, the following: . Any work outside this description is not included in the price and shall be priced and agreed separately before being performed.

3. Pricing

:
:
:
Total bid price:

The price stated above excludes VAT and any other applicable tax, which shall be added at invoicing.

OptionalSolicitation requires a bid bond

4. Schedule

5. Validity and Acceptance

This bid remains open for acceptance until , after which a new bid must be submitted. This bid becomes a binding contract upon 's written acceptance before that date.

6. Termination

If terminates the resulting project for convenience after work has begun, shall pay for work actually completed and for reasonable costs already committed on the project, and not the full bid price stated above.

7. Confidentiality

The pricing in this bid is confidential and shall not be disclosed by either party except as required to evaluate or accept the bid, or as required by law.

8. General

This bid is governed by the law of .

Contractor

Date:

Client (acceptance)

Date:

Exclusions and assumptions are the most disputed part of a bid

The free version has no exclusions or assumptions list at all — which means every disagreement about what was actually included in the price has to be argued from a purpose paragraph that says nothing specific. This template adds a dedicated exclusions-and-assumptions section, because most bid disputes come down to "I assumed X was included" versus "X was never priced."

A real pricing structure, not one number

A single lump-sum figure with "extras priced separately" and no rate card gives the client nothing to evaluate the bid against. This template adds itemised pricing lines, an optional bid bond for larger public or commercial solicitations, and a clear statement of whether the price includes or excludes VAT.

Public procurement changed in 2025 — and Scotland didn't follow

The Procurement Act 2023 came into force on 24 February 2025, replacing the Public Contracts Regulations 2015 for procurements in England, Wales and Northern Ireland commenced on or after that date. Scotland did not adopt the new Act — Scottish contracting authorities continue to operate under the Procurement Reform (Scotland) Act 2014 and the Scottish public contracts regulations. A bid template that ignores this split risks pointing a Scottish bidder or buyer at the wrong regime entirely.

Clause-by-clause guide

Bid reference and parties: The bid or solicitation reference number, and the contractor and client (or contracting authority).
Scope of services: What the contractor proposes to provide, matched against the project or specification being bid on.
Exclusions and assumptions: What is not included in the price, and what assumptions the price relies on — the section most bid disputes turn on.
Pricing: Itemised pricing lines, whether the price includes or excludes VAT, and how additional work is priced.
Bid bond: An optional clause for a bid bond or other surety, common on larger public or commercial solicitations.
Schedule: Key milestones and the phase-by-phase timeline for the proposed work.
Validity and acceptance: How long the bid remains open, and how the client's acceptance is communicated and becomes binding.
Termination: Pays the contractor for work actually completed and committed costs if the client terminates for convenience, rather than the full bid price.
Confidentiality and signatures: Keeps the pricing confidential between the parties, and records acceptance with signatures.

UK compliance checklist

Public-sector bids carry additional rules this template does not attempt to satisfy on its own — confirm the specific solicitation's requirements.

Confirm which procurement regime applies
The Procurement Act 2023 has applied to procurements commenced on or after 24 February 2025 by contracting authorities in England, Wales and Northern Ireland, replacing the Public Contracts Regulations 2015. Scotland did not adopt the Act and continues under the Procurement Reform (Scotland) Act 2014 and the Scottish public contracts regulations — check which regime governs the specific solicitation before relying on general UK guidance.
GOV.UK — Transforming Public Procurement
Check bonding requirements
Many public and larger commercial solicitations require a bid bond (guaranteeing the bidder will sign the contract if awarded) and, separately, a performance bond after award — confirm what the specific solicitation requires before submitting.
State VAT treatment clearly
State whether the price includes or excludes VAT, since this affects how the client evaluates the bid against other bidders' prices.

How to complete this template

Enter the bid reference and parties. Add the bid or solicitation reference, and the contractor's and client's details.
Describe the scope, exclusions and assumptions. State what is included, what is excluded, and any assumptions the price relies on.
Add the pricing and schedule. Enter the itemised pricing lines, VAT treatment, and the phase-by-phase schedule.
Add a bid bond if required. Switch on the bid bond clause if the solicitation requires one, and enter the surety details.
Set validity, sign and submit. Set how long the bid remains open, then sign and submit it before the solicitation deadline.

Frequently asked questions

What's the difference between a bid proposal and a quote or estimate?

A bid proposal responds to a specific solicitation or project spec, usually competing against other bidders for the same work. A quote or estimate is a straightforward priced offer for a job with no competing bidders — use our quote or estimate template for that instead.

Does the Procurement Act 2023 apply everywhere in the UK?

No — it applies to procurements commenced on or after 24 February 2025 by contracting authorities in England, Wales and Northern Ireland. Scotland kept its own separate regime under the Procurement Reform (Scotland) Act 2014. Check which regime governs the specific solicitation.

Do I need a bid bond?

It depends on the solicitation — many public and larger commercial bids require one, but plenty of private commercial bids don't. Check the specific solicitation's requirements before submitting.

What should go in the exclusions and assumptions section?

Anything the price depends on that isn't obvious from the scope alone — site-access assumptions, permissions the client is responsible for obtaining, materials not included, and anything explicitly excluded from the price.

Is my bid a binding offer once I submit it?

Generally yes, for the validity period stated in the bid — that's exactly why this template requires stating how long the bid remains open and how the client's acceptance is communicated, rather than leaving it unstated.

What happens if the client cancels the project after I've started?

Under this template, the client pays for work actually completed plus reasonable committed costs, not the full bid price — unlike the widely circulated free version, which charges the client the entire amount regardless of how much work was done.

Should my price include VAT?

State it explicitly either way. This template requires you to say whether the price includes or excludes VAT, because leaving it unstated is a common source of pricing disputes after award.

Disclaimer

This template and guide are for general information only and do not constitute legal advice. Public-sector procurement carries additional rules this template does not attempt to satisfy, and the applicable regime differs between England, Wales and Northern Ireland and Scotland. Confirm the specific solicitation's requirements before submitting.