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Residential Construction Proposal

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Proposal for Residential Construction

Customer initials _____ _____

Builder initials _____

Customer: SAMPLE PROPOSAL

Location:

Revision Date:

Berg Mountain Homes feels that it is very important to listen carefully to a customer’s wishes. At our initial meeting, we discussed many of your goals and wishes for your future home. The goal of this proposal is to translate those wishes into a working document that will accurately translate those wishes into working specifications.

This proposal is meant to be a working document. Note that at the end of each section, there may be a series of comments or questions for you in red. Please respond or add your own questions and comments in blue.

Your project won’t go to pricing until the specifications are pretty much finalized. Specifications that will be determined later will be noted as such, but these are usually items that won’t affect pricing.

Accuracy and detail in this proposal is important for several reasons:

  1. Uncertainty causes pricing risk for the builder and that risk is mitigated with cushion or padding in the price. Accuracy and detail eliminate this risk and effectively lowers the price of the home.
  2. There are a vast number of details that eventually have to be gathered in order to get your home exactly right. While not all the details included below are important for pricing, it makes sense to gather as much of the details as possible at this time as it saves work later. It will also make for a smoother, faster and more worry free construction phase.
  3. It helps eliminate the potential for surprises due to a difference in assumptions between the builder and the customer. If specifications are very detailed, it is rare that we will come across an issue during construction where we disagree as to the intent (and therefore the price). In short, it holds both the builder (and the customer) accountable for what’s in this document.
  4. Lastly, if you are getting other bids for this job, this detail will help you evaluate the bids. For obvious reasons, it’s important for comparison purposes that each bid contain the same scope of work. Since Berg Mountain Homes has spent a lot of time developing this document, we do ask that you not share it with the other bidders.

General

  1. When this document is finalized (and you hopefully choose Berg Mountain Homes as your builder), this document will be incorporated by reference into the final Construction Agreement.
  2. Unless amended in writing, please note that any specification made in this proposal will supersede any blueprints, drawings, plans or verbal discussions.
  3. Construction materials and methods may vary from the blueprints or from the construction notes provided in the blueprints; but at all times state Residential Building Codes will be met or exceeded
  4. Throughout this document, elevations (views from the side rather than overhead) are given with the view side of the home being the rear elevation, the opposite side being the front elevation (the street side) and then the left and right elevations being from a front elevation perspective. All dimensions are in format width x depth with a front elevation perspective.
  5. To facilitate the eventual creation of work orders for the sub-contractors, this document is organized generally by trade contractor and loosely follows the home building construction schedule (that’s why it starts with sitework, excavation and concrete).

Sitework and Excavation

  1. excavation of home site with backfill as needed to return site as near as possible to original condition
  2. 15’ setback from property lines to be maintained
  3. if necessary, after house site excavation, local surveyor to mark house corners to ensure no encroachment on setbacks (cost to be paid directly by Customer)
  4. Customer will identify locations for additional underbrushing and tree removal and will pay for cost outside the scope of this project
  5. underbrushing (removal to ground level of most brush and trees under 6” in diameter) in area designated and agreed to between Builder and Customer
  6. installing conventional (10” large diameter pipe) 3 bedroom septic system (in accordance with Cherokee County permit dated ); installation includes removal of brush and trees as needed to install tank and drain lines
  7. hydroseeding of steep banks exposed during basement excavation or creation of driveway / parking area
  8. gravel driveway and turnaround area; includes fill dirt sufficient to build up driveway bank and/or turnaround area
  9. private well at a suitable area near the main road – actual costs of the well to be passed through to Customer
  10. extending water from well/community water system to home
  11. connection of electrical line from transformer to externally mounted meter
  12. landscaping allowance = $2,500

Options:

• additional hydroseeding - $350 per tank (covers approximately 7,000 square feet) plus additional sitework preparation costs (smoothing, removal of stumps and stones, etc.)

Notes/Questions:

Concrete, Foundation and Slab

  1. poured concrete stem wall (with footer) on view side as needed depending on depth/location of virgin soil; allowance for stem wall = $ which includes a ’ tall section of concrete (the full view side plus ’ back on each side); an increase or decrease in the amount of the concrete used in the stem wall will result in a $15/square foot cost adjustment
  2. concrete footers around house perimeter – sized to code
  3. footers as needed under interior load bearing walls
  4. house footers that do not sit underneath concrete walls to be poured monolithically with slab
  5. poured concrete basement walls (8” thick) as needed to retain earth around basement
  6. concrete wall in basement bedroom to include formed opening for window
  7. retaining wall off corner; allowance for retaining wall = $ which includes a ’ tall section of wall; an increase or decrease in the amount of concrete used in the stem wall will result in a $10/square foot cost adjustment
  8. retaining wall off corner approximately sloping from 8' tall to 2' tall and extending approximately 12' from house corner
  9. estimated concrete wall sizes as follows:
    • stem wall – 6’ high x 70’ long
    • basement wall – 9’ high x 77’ long
    • left side retaining wall left side of house – 8’ high x 12’ long
  10. if length of concrete walls exceed estimated lengths, Customer will pay additional costs as follows (Customer will also receive a credit if lengths are less than estimated):
    • 3’ wall - $65 per linear foot
    • 4’ wall - $70
    • 5’ wall - $80
    • 6’ wall - $85
    • 7’ wall - $90
    • 8’ wall - $95
    • 9’ wall - $105
    • 10’ wall - $115
  11. if height of concrete walls exceed estimated heights, Customer will pay additional costs calculated using the difference between the estimated height and the actual height in accordance with the above price schedule (Customer will also receive a credit if heights are less than estimated)
  12. chases in basement concrete walls as needed for water lines, gas lines, electrical and drain lines
  13. concrete slab as basement / garage floor with 6” x 6” #10 welded wire mesh
  14. concrete stoop off kitchen entry (approx. 4’ x 6’)
  15. termite treatment beneath slab
  16. waterproofing of all below grade concrete walls (including footer level drainage system) – 5 yr warranty

Notes/Questions:

Framing

Square footage:

Main floor to have finished sqft

2nd floor to have finished sqft

Basement to have finished sqft

Basement to have partially finished sqft

Basement to have unfinished sqft

sqft attached/detached garage

Total finished area sqft

Total partially finished area sqft

Total unfinished area sqft

Roof structure:

12 / 8 pitch roof with single ridge beam and gable ends

(2) front dormers with 12/12 pitch

front covered porch with 9/12 pitch

shed roof with 4/12 pitch over rear deck

16" soffits

stick framed roof or roof trusses

OSB roof sheathing with Titanium brand underlayment

roof sheathing with a reflective radiant barrier with Titanium brand underlayment

Ceilings:

vaulted ceiling in great room, and foyer; all other main floor ceiling heights at 8’

vaulted ceiling in loft; all other 2nd floor ceiling height at 8’

basement ceiling height to be minimum 8'

Walls:

exterior walls to be 2x6 16” on-center with 7/16” (or thicker) sheathing

interior walls to be 2x4 24” on-center

insulation walls against basement concrete to be 2x2’s

full house wrap and taping of all house wrap joints and around windows and doors

7/16" Huber zip system for exterior wall; fully taped and sealed

Floor system:

floor system between basement and main floor to be open web trusses

floor system between basement and main floor to be conventional framing or I-joists with HVAC chases

floor system between first floor and second floor to be open web trusses

floor system between first floor and second floor to be conventional framing or I-joists with HVAC chases

3/4" floor sheathing glued and screwed to floor system

Exterior

Siding and trim:

fiber cement board lap siding on all exterior walls

fiber cement board shake shingle accents in all gable ends

Miratec trim and standouts for hose bibs, exterior lighting, etc.

untextured fiber cement board soffit and venting to code

siding / trim to be painted on-site with three colors

Exterior masonry:

stacked rock around great room entry door

stacked rock columns at view side basement corners

stacked rock 42” up the wall on lower portion of view side basement wall

all stacked rock to be cultured stone

fieldstone on any other exposed above grade concrete

painted textured stucco on any other visible above grade concrete

Rear deck size: sqft

Front covered porch size: sqft

Interior

R21 blown-in cellulose insulation in exterior framed walls and any interior framed walls that adjoin unfinished areas

R5 blown-in cellulose insulation in 2x2 framed cavity in all exterior concrete walls

R38 blown-in cellulose insulation in roof

no insulation in interior walls

all walls and ceiling to be drywalled except specified areas

all drywall glued and screwed to studs

all drywall finished with light knockdown texture

upgraded trim package

all woodwork to be stained and finished with lacquer

Flooring

unfinished garage floor

attic crawl space to have several sheets of plywood

epoxy paint on garage floor

epoxy paint on mechanical room floor

Doors

standard hardware with matching hinges and doorstops

privacy locks on all bedrooms and bathrooms

exterior doors to have standard one side keyed deadbolt

front entrance door upgraded handle set

Windows

operable windows to be Atrium brand premium vinyl with Low-E coating and argon gas insulation

no grids or shutters; all to have lift out screens

skylights in master closet

solar tube in upstairs guest bathroom

Kitchen

knotty pine cabinets with listed features

Kitchen cabinetry allowance: $

Granite countertops allowance: $

Bathrooms and Laundry Room

powder room vanity

master bath vanity

guest bath vanity

laundry room cabinetry

Built-Ins and Shelving

stereo cabinet in great room

bay window seat with storage below

bookcases flanking fireplace

Plumbing

tankless hot water heater

pre-plumb for water softener

floor drain in mechanical room

two outside frost proof hose bibs

Electrical

minimum 200 amp electrical service

four external electrical outlets

transfer switch for portable generator

speaker wiring at external locations

pre-wire for 5.1 or 7.1 media in great room

Lighting and Fans Allowance - $ total

dining room light

foyer hanging light

interior fans with light kits

exterior fans under covered porch

HVAC and Utilities

full contained mechanical room with gas hookups, water shutoff, telecommunication hookups, satellite distribution, electrical panel, HVAC and water heater

electric heat pump with 3 zones

energy recovery ventilator

HVAC allowance: $

Fireplaces

master bedroom fireplace

great room fireplace

Fireplace allowance: $

Fireplace masonry allowance: $

Gas Piping

installation of propane manifold in mechanical room with shutoffs to listed locations

Allowance Recap

Landscaping: $

Interior doors: $

Exterior doors: $

Windows: $

Warranty, Insurance and Change Order Policies

Warranty – all Berg Mountain Homes come with an 18 month warranty.

Insurance – Berg Mountain Homes carries both general liability and workers compensation insurance.

Changes – Any Change Order that results in additional project costs and whose cost is not otherwise specified in this proposal will be billed to Customer at actual cost plus 15%.

Change Order Administrative Fees – The first twenty (20) changes are included in the price of the home below.

Proposal

Berg Mountain Homes proposes to build the home described above for an all inclusive price of $. This price includes all Berg Mountain Home fees including design, project management, accounting, reporting, construction scheduling, supervision, and quality assurance.

The only changes to the price you will pay for your home could be as follows:

  1. Changes made to the project scope subsequent to the signing of this document.
  2. Differences between the Allowances outlined above and the actual price of those items.

Customer (sign and date)

Customer (sign and date)

Builder (sign and date)

Enter text✕

What a Residential Construction Proposal Is and What It Covers

A Residential Construction Proposal is a written offer from a contractor that describes planned work, materials, schedule, price, payment terms, and conditions for a single-family or multi-unit home renovation or new build. It frames scope, sets responsibilities, and becomes the basis for a binding construction contract if accepted and signed by authorized parties. Well-prepared proposals reduce disputes by clarifying allowances, exclusions, change order procedures, warranties, and insurance requirements and usually attach plans, specifications, and payment schedules as exhibits.

Why a Clear Proposal Matters for Projects and Risk Management

A clear Residential Construction Proposal provides a shared baseline for expectations, pricing, and timeline, reduces misunderstanding during construction, and supports permit and financing processes. Accurate proposals make it easier to document change orders and enforce payment terms.

Why a Clear Proposal Matters for Projects and Risk Management

Primary Users and Participants for Construction Proposals

Contractors, subcontractors, property owners, and lenders commonly prepare or request proposals to confirm the scope, cost, and schedule before contracts or permits are issued.

  • General contractors preparing bid-ready scopes and line-item pricing for homeowners and developers.
  • Homeowners or property owners reviewing scope, budgets, and schedule before authorizing work.
  • Subcontractors and suppliers providing quotes that become incorporated as exhibits or allowances.

Representative Signers and Their Roles

General Contractor

Typically prepares the proposal and signs as the offering party. Responsible for verifying licensing, insurance, and permit scope; must include contact details and license numbers to avoid delays or invalidation by permitting authorities.

Property Owner

Signs to accept the offer, confirm payment arrangements, and acknowledge scope and schedule. Owner signature must match legal name or authorized entity representative to bind the owner to terms and payment obligations.

Essential Elements to Include in a Professional Proposal

A complete Residential Construction Proposal contains discrete sections that remove ambiguity and allocate risk. Each element supports permitting, lender review, and later contract conversion.

Scope of Work

Clear, itemized description of tasks, deliverables, and boundaries of work including measurable specifications, drawings referenced, and any excluded items to avoid dispute.

Materials & Allowances

List major materials, brands, or allowance amounts and identify who selects and pays for upgrades; specify responsibility for lead times and substitutions.

Schedule & Milestones

Include start date, major milestones, completion estimate, and critical path items tied to payments or liquidated damages when applicable.

Price & Payment Terms

State total contract price, deposit, progress payment triggers, retainage, final payment conditions, and acceptable payment methods.

Change Orders

Define written change order process, pricing method for changes, approval authority, and effect on schedule and payment.

Terms & Conditions

Include warranty period, insurance and bonding requirements, dispute resolution, termination rights, and governing law for contract interpretation.

Step-by-Step: How to Complete and Issue a Proposal

Follow these sequential steps to prepare a complete, review-ready Residential Construction Proposal before submitting it for acceptance.

  • 01
    Draft Scope: Write a detailed, measurable scope tied to plans and specifications.
  • 02
    Populate Costs: Enter material, labor, permit, and allowance amounts with supporting line items.
  • 03
    Add Terms: Include payment schedule, warranties, change order process, and governing law.
  • 04
    Sign & Distribute: Have authorized parties sign, then share executed copies with owner, lender, and permit authorities.

How to Configure an Online Proposal Workflow

Set up fields, authentication, and integrations to streamline review, signatures, and recordkeeping for proposals delivered digitally.

Field Configuration
Signature Field Required; date stamp attached automatically
Authentication Email link with optional SMS code or ID verification
Conditional Fields Show pricing or allowances only when selected
Integrations Connect to accounting or project systems for storage

Where to Send an Accepted Proposal and Typical Routing

Routing depends on project financing and permitting; share the executed proposal with key stakeholders to begin permitting and mobilization.

  • Property Owner: Signed copy retained by owner for records and executor reference
  • Contractor Files: Contractor stores executed copy for scheduling and mobilization
  • Lender or Escrow: Provide signed proposal to lender when financing or draw schedules are tied to scope
  • Permit Office: Include executed proposal or contract when required by local permitting authorities

Digital Signing and Platform Considerations

Choose a platform that supports secure eSignatures, audit trails, and integrations with project or accounting systems.

  • Integration: Salesforce, Procore, NetSuite supported
  • File Types: PDF, DOCX, and fillable templates
  • Authentication: Email, SMS, or advanced verification

Typical Timing, Deadlines, and How Long Proposals Remain Valid

Proposals often include validity periods and milestone deadlines. Clarify these so bidding, permitting, and mobilization align with expectations.

Proposal Validity Period:

Commonly 30 days unless stated otherwise in the document

Deposit Due Date:

Specify when initial deposit is payable after acceptance

Permit Application Lead Time:

Allow several weeks; local jurisdictions vary significantly

Start of Work:

Tie to permit approval or a fixed calendar date

Change Order Response:

Specify response timeframe, commonly 7–10 business days

Common Errors to Avoid When Preparing Proposals

  • Vague scope descriptions that omit measurable deliverables or referenced drawings often lead to disputes and unplanned cost increases during construction.
  • Omitting license or insurance details can delay permitting, invalidate contractor eligibility, or create exposure to fines or stop-work actions by authorities.
  • Incorrect or inconsistent payment schedules and unclear retainage provisions frequently trigger payment disputes and liens from subcontractors or suppliers.
  • Failing to document change order authority and pricing method causes disagreements when scope changes and can stall progress or obstruct payments.

Consequences of an Incorrect or Incomplete Proposal

Contract Disputes: Ambiguous terms increase litigation risk
Liens and Claims: Late or disputed payments can trigger mechanic liens
Permit Delays: Missing documentation risks permit rejection
Financial Exposure: Underpriced work may lead to losses
Regulatory Fines: Licensing errors can incur fines
Reputational Harm: Contractor disputes damage future business prospects

eSignature Pricing and Feature Snapshot for Proposal Workflows

Compare common vendor starting prices and core features relevant to executing Residential Construction Proposals and managing signed records.

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, no credit card 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

Real-World Examples of Online Proposal Execution

These brief examples show how digital signing and templates speed acceptance and create auditable records for construction-related documents.

Martin Properties

Tim Martin, founder, used online signing to process and execute documents with compliance and security

  • Mobile and offline signing supported
  • The result was faster turnaround and consistent records for owner and subcontractors, reducing administrative bottlenecks.

Optica Ventures

Brian Fitzgibbons, COO, emphasized an easy interface for teams and customers

  • Simplicity increased acceptance rates
  • The approach reduced back-and-forth email negotiations and improved document completion times for project mobilization.

Frequently Asked Questions About Residential Construction Proposals

Answers to common questions about execution, enforceability, signatures, and recordkeeping for Residential Construction Proposals.


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