Contractor Proposal Sheet Template for England and Wales

A proposal sheet outlines the scope, pricing, timeline, and conditions under which a contractor will carry out work. It is an offer. A formal contract is the binding agreement created once the client accepts the offer. The proposal feeds into the contract, but on its own it does not create enforceable obligations until accepted.

If the client signs the proposal sheet and it contains all material terms (scope, price, start date, payment terms), a court may treat it as a binding contract. To avoid uncertainty, state clearly in the proposal whether it requires a separate formal contract or whether a countersignature constitutes acceptance and creates the contract.

Include the total price, any staged payment schedule, the due date for each payment, and the period after which the Late Payment of Commercial Debts Act entitles you to statutory interest. For construction work, also include the payment notice and pay-less notice provisions required by the Housing Grants, Construction and Regeneration Act 1996.

Include a variation clause in the proposal that sets out the process for instructing and pricing changes to scope. Require written instructions before starting any variation work. This prevents disputes about whether additional work was requested, what was agreed for it, and how it affects the programme or overall price.

Unless the contract contains a cost reimbursement or fluctuations clause, the contractor is generally held to the price in the accepted proposal. Lump-sum proposals carry the risk that unforeseeable costs are absorbed by the contractor. Using provisional sums for uncertain items and including a clear variation mechanism reduces this risk.

Yes, if you want them to be enforceable. Subject to the Unfair Contract Terms Act 1977, you can limit liability to the contract value or to direct losses only. Any limitation must satisfy the reasonableness test in business-to-business contracts. Liability for death or personal injury caused by negligence cannot be limited under any circumstances.

If the work constitutes construction operations, the CDM Regulations 2015 apply and it is good practice to acknowledge this in the proposal. Reference the roles and responsibilities (principal contractor, principal designer) and confirm that CDM compliance costs are included in the pricing. This helps manage client expectations from the outset.

Keep the signed proposal for at least six years after the project completes, as the Limitation Act 1980 allows contract claims to be brought within six years (twelve years if executed as a deed). For buildings subject to Building Safety Act 2022 requirements, relevant project records may need to be kept for the life of the building.