Chapter 3 Developing Project Proposal

Chapter 3 Developing Project Proposal

Normally customers prefer to work with people they know and trust. Successful contactors should maintain frequent contacts with past and current customers and initiate contacts with potential customers.

Contractors interested in submitting a proposal in response to an RFP must be realistic about the probability of being selected as the winning contract, therefor the contractors might consider few factors as following: competition, risk, mission, extension, reputation, customer funds, proposal resources, and project resources. Contractor’s proposal is a selling document and it is not a technical report. In the proposal the contractor must convince the customer that the contractor understanding what the customer is looking for and will provide the greatest value to the customer.

Proposal content from three major sectors: technical, management, and cost.

1-    Technical section is to convince the customer that contractor understands the need or problem, and can provide least risky and most beneficial solution. The technical section should contain the following features: understanding of the need, proposed approach or solution, description of how the contractor would collect, analyze, and evaluate data, provide alternative solution, and benefits to the customer.

2-    Management section is to convince customer the contractor can do proposed work, and should contain the following: description of major task, deliverables, project schedule, project organization, related experience and equipment and facilities.

3-    Cost section is to convince the customer proposal’s price is realistic and reasonable, and should contain the following: labor, materials, equipment, facilities, subcontractors, travel, documentation, overhead, escalation, reserve, and profit.

Submitting the proposal according to the customer’s due date. Contractors must continue to be proactive even after submitting the proposal by calling the customer to make sure the proposal has been received.

Once the customer has selected the winning contractor, the contractor is subject to successful negotiation of a contract. There are two kinds of contracts: fixed price and cost reimbursement.

There is some miscellaneous terms and conditions that may be included in project contracts: misrepresentation of cots, notice of cost overruns or corrective or schedule delays, approval of subcontractor, customer-furnished equipment or information, patents, disclosure of proprietary information, and bonus/penalty payments.