The Proposal


Following the decision to go ahead of the Go / NoGo. The proposal requires a serious analysis of the risks and opportunities for the company to complete the project and the expected benefits.

A deeper analysis concerns the customer, several questions imply it. One of the first should validate our past experience with this client or lack of experience in each case the associated risks. If we have already completed projects for this client, do we have a record of these projects and information about payment deadlines, change requests? Information that could be used during the preparation of the proposal. Your organization potentially has a registry documenting some key criteria for your customers. Other information may exist from credit agencies.

A call for tenders is never perfect. You may be able to ask for clarifications, which is usually the case. Eventually, you will have to make some assumptions to prepare your response to the tender. Assumptions will create risks, start documenting them.

It will be necessary to produce an estimate of the time of completion and all the associated costs. Depending on the size of the project, teams from several company groups may be involved. Each of the sub-units will be tempted to keep a certain margin, the maturity of your organization can influence this practice. You do not want to have hidden safety margins in each level of your proposal without knowing it. You may not be competitive anymore.

Depending on the type of project, you will have the equipment and/or subcontractors to be used. They will make their proposals to you. This evaluation must be done in parallel with yours, you do not want to have as sole information that is from your subcontractors or suppliers.

Depending on the nature of your project, you will be involved with the seasons. This is important information, make sure that it is well indicated in your proposal. Some portions that can’t or should be done during a frozen season, for example.Be clear. 

(To be continued)