Bid Proposal Template
What is a bid proposal?
A bid proposal is a document, produced by a company that provides goods or a service, like construction, and is sent to potential contractors, with the intention of encouraging them to agree to complete a project.
PandaTip: Considering you are taking the effort to write out a full bid proposal, chances are that the project is fairly extensive and will require you and the contractor working closely together for an extended period of time. Therefore, it is important to convey who you are to the contractor. Don’t just give some background, though. Show some personality as that will lend itself to them wanting to work with you more than a strictly mechanical description of yourself and your company.
PandaTip: Here is where you go into detail about the project – not just the specific duties that you will need the contractor to accomplish, but really paint a picture of what you are looking to do. Use your bid proposal to get the contractor excited about working with you and being a part of the bigger picture. Especially if you are looking for a bid that is under the typical market price for contractors this will be very important.
PandaTip: When describing your budget within your bid proposal, you may want to set a number of different guidelines, depending on the nature of your project:
- Hourly Rate: Standard, but leaves costs open since you’re paying by the hour rather than by deliverables
- Flat Fee: Second most common arrangement, but the contractor may not be open to this if the nature of the work is such that they cannot determine how time-intensive the project will be
- Hourly Rate (Capped): Essentially you pay an hourly rate, but only up to a certain point with the obligation to finish the project remaining even after reaching the cap
- Equity: A creative option where you offer ownership in your company in exchange for the work to be completed which can be an attractive option for a startup that has a big vision
- Profit Share: In the same vein as offering equity, you could offer a direct share of the profits stemming from that which is generated from the completion of the project
- Combination: Any of the above can be combined – be creative!
PandaTip: This Bid Proposal is written from the perspective of a company that has a project that needs to be completed and is contacting a contractor that can potentially get the work done if they can come to an agreement.
INDEPENDENT CONTRACTOR CONTRACT TEMPLATE
This Independent Contractor Contract (the “Contract”) states the terms and conditions that govern the contractual agreement between [COMPANY] having its principal place of business at [ADDRESS] (the “Company”), and [CONTRACTOR] (the “Contractor”) who agrees to be bound by this Contract.
WHEREAS, the Company is planning to conduct [PROJECT], [PROJECT DESCRIPTION] (the “Project”); and
WHEREAS, the Contractor agrees to manage the Project according to the terms and conditions herein.
NOW, THEREFORE, In consideration of the mutual covenants and promises made by the parties within this Contract, the Company and the Contractor (individually, each a “Party” and collectively, the “Parties”) covenant and agree as follows:
CONTRACTOR’S DUTIES. The Contractor shall perform all duties pertaining to the Project in the manner described on Schedule A attached hereto.
PandaTip: As the Project could be any number of things, the Contractor’s duties could widely vary. Thus, you should clearly delineate on the attached schedule exactly what the Contractor should do and in what manner. For the purposes of this schedule, don’t worry about anything but clearly defining the role the Contractor will play. Legal language is not important for such things.
PAYMENT. The total cost to be paid to the Company by the Contractor for the services hereunder shall be [WRITTEN DOLLAR AMOUNT] dollars ($[NUMERICAL DOLLAR AMOUNT]). The dates on which payments are due are listed on the payment schedule attached hereto as Schedule B.
PandaTip: Feel free to get creative here. See the PandaTip on the proposal cover page that discusses the various options that you may use to pay your Contractor.
TERM. The term of this Contract shall last from [DATE] to the satisfactory completion of the Project, as determined solely by the Company.
OWNERSHIP OF PROJECT DELIVERABLES. The Parties acknowledge that this is a Work for Hire and agree that the Company will hold all intellectual property rights in the Project including, but not limited to, copyright and trademark rights in any deliverables. The Contractor agrees not to claim any such ownership in such intellectual property at any time prior to or after the completion of the Project.
PandaTip: Although it is not immediately obvious, this could end up being the most important clause in your contract. “Deliverables” could be anything from a website to a book to a video and in any case you want to be sure that you hold all the rights to the final product.
EXPENSES. The Parties agree and acknowledge that all expenses the Contractor incurs in performing the Duties under this Contract shall be borne by the Contractor unless the Contractor receives prior written approval by the Company and presents receipts for such expenses, in which case the Company will reimburse the Contractor.
NO MODIFICATION UNLESS IN WRITING. No modification of this Contract shall be valid unless in writing and agreed upon by both Parties.
APPLICABLE LAW. This Contract and the interpretation of its terms shall be governed by and construed in accordance with the laws of the State of [STATE] and subject to the exclusive jurisdiction of the federal and state courts located in [COUNTY], [STATE].
IN WITNESS WHEREOF, each of the Parties has executed this Contract, both Parties by its duly authorized officer, as of the day and year set forth below.
[NAME], [TITLE] DATE
[NAME], [TITLE] DATE