A good proposal wins the job and prevents arguments later. It tells the customer exactly what they're getting, what it costs, when they pay, and what happens if something changes.
Not legal advice. Many states have specific rules for home-improvement contracts, such as required wording, deposit limits and cancellation rights. Check your state's rules or ask an attorney before you rely on a template.
The checklist
- Your business: name, address, phone, email, and your license number if your state requires one.
- Insurance: many customers and GCs want to see that you carry liability insurance.
- Customer and job address.
- Scope of work: exactly what you'll do, in plain words. "Remove and replace 80 sq ft of bathroom floor tile" beats "redo bathroom floor".
- Exclusions: what's not included, like permits, painting, moving furniture or hidden damage.
- Materials: brands, models or allowances. If the customer is choosing, give an allowance amount.
- Price: the total, and a breakdown if it helps the customer understand it.
- Payment schedule: deposit, progress payments and final payment, with what triggers each one.
- Timeline: start date and how long the work should take.
- Change orders: how changes are approved and priced.
- Hidden conditions: what happens if you find rot, old wiring or other surprises.
- Warranty: what you guarantee and for how long.
- Expiration date: how long the price is good for.
- Signatures and date from you and the customer.
Scope and exclusions prevent most arguments
Most disputes come from a gap between what the customer pictured and what you priced. Write the scope as if a stranger had to do the job from it. Then list what's excluded, so nothing is assumed.
Set a clear payment schedule
| Payment | When |
|---|---|
| Deposit | When the proposal is signed |
| Progress payment | At a clear milestone, like rough-in done or cabinets set |
| Final payment | When the work is complete |
Deposit limits are set by some states, so check yours. The Getting Paid & Collections guide covers payment terms and what to do when payments are late.
Cancellation rights
Under the FTC's Cooling-Off Rule, many sales of $25 or more made at the customer's home give the customer three business days to cancel, and you must give them written notice of that right. Some states add their own rules for home-improvement contracts. Check what applies to you.
Tip: Send proposals the customer can approve online. You get the signature faster and have a record of exactly what they agreed to.
See also: How to Write a Change Order and Estimating Basics.