Can a proposal be signed electronically?

Yes. Electronic signatures are generally legally binding under the ESIGN Act (15 U.S.C. ch.96) and UETA where adopted, provided intent, consent, attribution, and record retention requirements are met.

Is notarization required?

Typically not for most proposals, but specific contract attachments (deeds, certain affidavits) may require notarization; local building authorities may accept remote notarization where RON is permitted.

What if names differ on documents?

Mismatched names between owner, contractor, and payment records can delay approvals or payment. Use legal entity names consistently and include doing-business-as details if applicable.

Are digital signatures the same as electronic signatures?

No. A digital signature is a cryptographic form of electronic signature (PKI) offering stronger non-repudiation; both are forms of electronic signatures acceptable under ESIGN/UETA, depending on industry requirements.

How should change orders be handled?

Define the change-order process in the proposal, require written authorization for scope or price changes, and capture approvals with signatures and dates to preserve auditability.

How long should I keep signed proposals?

Retain signed proposals for the active project plus at least three years; extend retention for tax, warranty, or industry-specific obligations as discussed in retention guidelines.

Electronic Signature
Templates
Miscellaneous
Construction Building Addition Proposal

Construction Building Addition Proposal

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

Construction Building Addition Proposal

Parties and Project Identification

Client Name: Client Address: Contractor Name / Company: Contractor Address: Project Location (if different):

Recitals

WHEREAS, Client desires to engage Contractor to perform an addition to the existing building located at the Project Location described above, including construction, finishes, and related work in accordance with the Scope of Work; and

WHEREAS, Contractor represents that Contractor possesses the skill, experience, licenses, and insurance to perform the construction work and is willing to perform the work in accordance with the terms set forth in this Proposal; and

WHEREAS, the parties desire to set forth the full terms and conditions under which Contractor will perform the work and Client will pay for such work.

Scope of Work

Detailed Scope of Work (include materials, labor, exclusions): Milestones and Deliverables (summary):

Payment Terms

Total Proposal Amount: $

Deposit / Initial Payment: Payment Schedule:

Late Payment: Unpaid amounts shall accrue interest at a rate of on overdue balances calculated monthly, plus reasonable collection costs.

Term and Termination

Commencement Date:

Estimated Completion Date:

Termination: Either party may terminate this Proposal upon written notice if the other party materially breaches its obligations and fails to cure within days after receipt of written notice. Termination by Client without cause requires payment for work performed and reasonable demobilization costs.

Change Orders

All modifications to the Scope of Work shall be made only by a written Change Order signed by both parties. Contractor is not required to perform extra work without a signed Change Order specifying the scope, price adjustment, and schedule impact.

Permits, Licenses, and Insurance

Contractor shall obtain and pay for all required building permits unless otherwise agreed in writing. Contractor shall maintain worker's compensation, commercial general liability, and automobile liability insurance in amounts customary for projects of this type and shall provide certificates of insurance upon request.

Contractor License Number (if applicable):

Warranties and Remedies

Contractor warrants that workmanship performed under this Proposal will be free from material defects for a period of from the date of substantial completion. Manufacturer warranties on materials are passed through to Client to the extent assignable. Remedies for breach of warranty are limited to repair or replacement at Contractor's expense unless otherwise required by law.

Confidentiality

Each party shall hold confidential and not disclose any non-public proprietary information obtained from the other party in connection with this Proposal, except as required by law or to perform the obligations hereunder. Confidential information shall not include information that is or becomes publicly available through no fault of the receiving party.

Indemnification

Contractor shall indemnify and hold harmless Client from claims, damages, and liabilities arising out of Contractor's negligent performance of the work, except to the extent such claims result from Client's negligence or willful misconduct. Client shall indemnify Contractor for claims arising from Client-supplied materials or directions.

Governing Law; Dispute Resolution

This Proposal shall be governed by and construed in accordance with the laws of the state selected by the parties. Any disputes arising out of or relating to this Proposal shall be resolved by binding arbitration or litigation as elected by the prevailing party; costs and fees shall be allocated as determined by the arbitrator or court.

Entire Agreement

This Proposal, including any attached exhibits and mutually executed Change Orders, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral. No modification shall be effective unless in writing and signed by both parties.

Acceptance of Proposal

By signing below, Client accepts this Proposal and authorizes Contractor to proceed in accordance with the terms set forth herein. Acceptance constitutes a binding agreement upon signature.

Client Printed Name:

By:

Date:

Contractor Printed Name:

By:

Date:

What a Construction Building Addition Proposal Is

A Construction Building Addition Proposal is a formal, written offer from a contractor or design-builder that describes the scope, costs, schedule, and terms for adding new space to an existing structure. It organizes technical scope (plans, materials, structural notes), pricing (labor, materials, allowances, contingencies), schedule milestones, and contract terms so owners can compare bids and authorize work. Proposals may be used to obtain permits, secure financing, or begin contract negotiations and often become the basis for a binding construction contract when accepted and signed by the owner.

Why a Clear Proposal Matters for Building Additions

A well-prepared Construction Building Addition Proposal reduces misunderstandings, speeds permit review, and provides the evidentiary basis for costs, schedule, and contractual obligations in case of disputes.

Who Typically Prepares and Reviews These Proposals

Owners, general contractors, architects, and project managers are the primary users of construction addition proposals; lenders and permitting authorities also review them when financing or approvals are required.

General Contractors and Remodelers: Prepare itemized bids, subcontractor scopes, and construction schedules for owner review.
Property Owners and Developers: Compare proposals to budgets and financing, evaluate schedule and risk allocation.
Architects and Engineers: Review technical scope, drawings, and code compliance to confirm feasibility.

Clear proposals align expectations among these stakeholders and create a defensible record for permitting, budgeting, and contract formation.

Key Signatory Roles and Contacts

Owner / Client

The legal owner or authorized representative who approves scope and funding. The owner signs to accept the proposal and authorize permit applications; include full legal name and mailing address for the signature block.

Contractor / Signer

The licensed contractor, company officer, or authorized agent who prepares the proposal. Include company name, license number, contact information, and a statement of authority to bind the contractor to the terms.

Essential Sections to Include in a Professional Proposal

Organize the proposal into clear sections so reviewers can find scope, cost, schedule, and contract terms without ambiguity.

Project Summary

One-page overview describing the addition, its purpose, location within the building, and key design constraints so reviewers immediately understand the proposal context.

Scope of Work

Detailed description of trades, demolition, structural work, finishes, mechanical/electrical/plumbing, and exclusions to prevent scope creep or disputes.

Drawings and Specifications

List of included drawings and spec sheets with revision numbers and dates, and a clear statement of whether drawings are conceptual or permit-ready.

Pricing and Allowances

Line-item pricing for labor and materials, optional allowances, a contingency amount, and conditions that would trigger change orders.

Schedule and Milestones

Start and completion dates, critical milestones (permit approval, inspections), and time allowances for owner-supplied items.

Terms and Conditions

Payment terms, warranty language, insurance and bonding requirements, dispute resolution, and termination clauses to manage contractual risk.

Required Data Elements to Capture

Project Address: Street, city, state, ZIP

Owner Contact: Name, phone, email

Contractor ID: Company name, license number

Scope Reference: Drawing list, spec file names

Price Summary: Total, allowances, contingency

Schedule Dates: Start, substantial completion

Common Legal and Financial Risks If the Proposal Is Incorrect

Permit Delays: Missing or inaccurate scope can force re-submission and extend permit approval schedules

Cost Overruns: Ambiguous allowances or omitted items can produce unexpected change orders and higher owner costs

Contract Disputes: Vague terms on payment, warranties, or change order procedures increase litigation risk

Liability Exposure: Incomplete insurance or licensing details can shift risk to parties and invalidate coverage

Tax and Reporting: Incorrect contractor identification or payment reporting may trigger IRS backup withholding

Lien Risk: Missed subcontractor payments or improper lien waiver handling can result in construction liens

Avoidable Preparation Pitfalls

Leaving technical drawings undated or unsigned, which complicates permit review and acceptance
Using vague cost language like 'to be determined' instead of specific allowances or exclusions
Failing to disclose critical site conditions or access restrictions that affect schedule
Not specifying who pays for required inspections or code corrections

Step-by-Step: Completing a Construction Building Addition Proposal

Follow these sequential steps to produce a complete, permit-ready proposal that owners and authorities can rely on.

01

Gather Project Data: Collect drawings, site survey, and existing conditions
02

Define Scope: List tasks, materials, and exclusions by trade
03

Prepare Pricing: Create line-item costs, allowances, and contingency
04

Assemble Contract: Include terms, schedule, and signature blocks

How the Proposal Moves from Draft to Signed Contract

A typical progression turns the proposal into an authorized contract after technical, cost, and legal reviews are completed.

Draft Creation: Contractor prepares initial proposal and attachments
Owner Review: Owner and design team review scope and cost
Negotiation: Parties agree changes, allowances, and schedule
Execution: Authorized signatures complete the contract formation

Digital Workflow Configuration for Online Completion

Set up an e-submission workflow to collect signatures, attachments, and permit-ready documents with auditability.

Field	Configuration
Document Uploads	Allow PDF/DWG/DOCX with required filename patterns
Signature Order	Sequential or parallel signer routing
Authentication	Email link, SMS code, or ID verification
Attachments Required	Plans, specs, insurance certificate

Technical Requirements for eSubmission and Signing

Confirm the signing platform supports the file formats, signer authentication, and audit trails your jurisdiction requires.

Formats: PDF, DOCX, and flattened drawings
Authentication: Email OTP, SMS, or knowledge-based options
Audit Trail: Timestamp, IP, and signer actions recorded

Choose a platform integrated with your project management or document repositories and confirm HIPAA or regulatory addenda where required.

Typical Timeline Dates to Include in the Proposal

Define fixed dates and conditional deadlines so permit reviewers and contractors can track critical milestones.

Proposal Issue Date:

Date the proposal was sent to the owner

Permit Submission:

Date application is filed with the building department

Start Date:

Planned construction mobilization date

Substantial Completion:

Date when addition is usable for its intended purpose

Warranty Start:

Date warranty period begins (often date of substantial completion)

Key Milestones from Proposal to Post-Completion

Numbered stages show the sequential path from initial bid to final closeout and warranty.

01

1. Proposal Submission

Contractor submits proposal and required attachments for owner review

02

2. Owner Approval

Owner accepts scope, price, and signs the proposal or issues a purchase order

03

3. Permit Acquisition

Permit application and reviews are completed by local authority

04

4. Construction Start

Site mobilization and inspections begin according to schedule

Real-World Examples of Proposal Use

Two brief case summaries illustrate how proposals function in common scenarios.

Residential Addition

A homeowner requested a two-room rear addition with set-back constraints and utilities relocation

Contractor provided phased pricing with allowances for unseen foundation work
The detailed exclusions and documented site conditions prevented disputes and accelerated permit review, reducing overall project delay.

Commercial Tenant Fit-Out

A retail tenant needed a new storefront and mezzanine in an existing shell space

Proposal separated tenant scope from landlord structural work
Clear responsibility tables and schedule milestones allowed simultaneous landlord and tenant work, saving both parties time and expense during fit-out.

eSignature Vendor Pricing and Feature Comparison for Proposal Workflows

Compare baseline pricing and feature availability across common eSignature vendors; signNow appears first for reference and pricing is shown as vendor-published plan figures.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

FAQs: Common Questions About Construction Building Addition Proposals

Answers to frequent practical questions about completion, signing, and legal certainty.

Need help? Contact support

Can a proposal be signed electronically?
Yes. Electronic signatures are generally legally binding under the ESIGN Act (15 U.S.C. ch.96) and UETA where adopted, provided intent, consent, attribution, and record retention requirements are met.
Is notarization required?
Typically not for most proposals, but specific contract attachments (deeds, certain affidavits) may require notarization; local building authorities may accept remote notarization where RON is permitted.
What if names differ on documents?
Mismatched names between owner, contractor, and payment records can delay approvals or payment. Use legal entity names consistently and include doing-business-as details if applicable.
Are digital signatures the same as electronic signatures?
No. A digital signature is a cryptographic form of electronic signature (PKI) offering stronger non-repudiation; both are forms of electronic signatures acceptable under ESIGN/UETA, depending on industry requirements.
How should change orders be handled?
Define the change-order process in the proposal, require written authorization for scope or price changes, and capture approvals with signatures and dates to preserve auditability.
How long should I keep signed proposals?
Retain signed proposals for the active project plus at least three years; extend retention for tax, warranty, or industry-specific obligations as discussed in retention guidelines.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now