Bid Proposal Template (US)
Updated on August 12, 2026
A bid proposal is a contractor's or vendor's formal, priced response to a specific project or solicitation — different from a simple price 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 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, treat the compliance checklist below as a starting point, not a substitute for the actual solicitation rules.
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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 sales tax and any other applicable tax, which shall be added at invoicing.
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 itemized pricing lines, an optional bid bond for larger public or commercial solicitations, and a clear statement of whether the price includes or excludes tax.
Termination for convenience shouldn't mean paying the full price for no work
"If the Client terminates the Project without giving a reasonable reason... is obliged to pay the full amount" charges the client the entire contract price even if the contractor has done almost none of the work — the shape of a penalty, not a genuine estimate of loss. This template instead pays the contractor for work actually completed plus reasonable costs already committed, which is what a termination-for-convenience clause is supposed to do.
Clause-by-clause guide
- Bid reference and parties
- The bid or solicitation reference number, and the Contractor and Client (or issuing 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
- Itemized pricing lines, whether the price includes or excludes tax, 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 contract price.
- Confidentiality and signatures
- Keeps the pricing confidential between the parties, and records acceptance with signatures.
US 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 whether this is a public-sector solicitation
A bid into a federal, state or local government solicitation is generally subject to procurement rules — bid form requirements, mandatory disclosures, bonding, and prevailing-wage rules on many public construction projects — that a private commercial bid is not. Read the actual solicitation document; this template does not substitute for it.
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 tax treatment clearly
State whether the price includes or excludes sales tax and any other applicable tax, since this varies by state and by the nature of the work.
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 itemized pricing lines, tax 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.
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, permits 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 contract price — unlike the widely circulated free version, which charges the client the entire amount regardless of how much work was done.
Can I use this for a government contract bid?
You can use it as a starting structure, but a government solicitation will have its own mandatory bid form, disclosures and bonding rules that this template does not substitute for — always follow the actual solicitation document.
Should my price include tax?
State it explicitly either way. This template requires you to say whether the price includes or excludes tax, because leaving it unstated is a common source of pricing disputes after award.
Related templates
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. Confirm the specific solicitation's requirements, and consult an attorney for a bid of significant value, before submitting.
