Guides

How to Write a Contractor Proposal (With Template)

The difference between a proposal, an estimate and a bid, the nine sections of a proposal that gets signed, a template with an HVAC replacement example, and what changes for a reroof.

Ijharul Islam October 21, 2026 9 min read

How to write a contractor proposal, in short: restate the customer's problem, recommend a fix, give two or three priced options with a clear scope and exclusions, show the schedule, payment terms and warranty, add one piece of proof, and end with a single way to approve. Send it within a day, with an expiry date.

More on this topic: Pricing, estimates and getting paid, every guide in one place.

An estimate tells a customer what a job costs. A proposal tells them why they should hire you to do it. For a $400 repair, an estimate is enough. For a $12,000 system replacement or a $20,000 reroof, the customer is comparing you with two other companies, often at the kitchen table with their partner, without you in the room. The proposal has to make your case on its own. This guide covers the structure, a template you can copy, and an HVAC replacement worked example, with notes on what changes for a roof.

Key takeaways

Proposal, estimate and bid aren't the same: a proposal adds a recommendation, options and terms to the price.
Lead with the customer's problem in their words, not your company history.
Give two or three options so the question becomes which one, not whether.
Scope and exclusions do more to prevent disputes than any amount of fine print.
A signed proposal can be a binding contract. Write it with that in mind, including state contract rules and the three-day cancellation rule for sales made at the home.
The 25C federal tax credit ended for improvements made after December 31, 2025, so don't promise it in 2026 HVAC proposals.

What is the difference between a proposal, an estimate and a bid?

A proposal is a sales document with a price; an estimate is a price; a bid is a price offered against someone else's plans.

	Estimate	Bid	Proposal
Main job	Say what the work will cost	Win work someone else has specified	Persuade the customer to choose you and an option
Who sets the scope	You, after diagnosis	The owner, architect or GC	You, with the customer
Price	Often approximate	Fixed, for the specified scope	Fixed per option
Typical use	Repairs and service work	Commercial and new construction	Replacements, reroofs, upgrades
Includes	Scope, price, terms	Price, compliance with the bid documents	Problem, recommendation, options, scope, schedule, terms, warranty, proof

For the line-by-line fields of a repair estimate, see our plumbing estimate template, or fill one in with the free contractor estimate generator. This guide is about the bigger jobs where the customer is choosing between companies.

What should a contractor proposal include?

Header: your business name, license number, contact details, proposal number, date and expiry date.
What we found: two or three sentences on the problem, in plain English, with the readings or photos that back it up.
Our recommendation: the option you'd choose for this house and why, in one paragraph.
Options: two or three, each with a name, a price and what's different.
Scope of work: what you'll remove, install, connect, test and haul away, plus a clear list of what's not included.
Schedule: when you can start and how long the work takes.
Investment and payment terms: price per option, deposit, when the balance is due and how to pay.
Warranty: the manufacturer's coverage and your workmanship warranty, in years.
Why us and approval: one piece of proof (a short review, a similar job nearby, your license and insurance), then a signature line or approve button.

Contractor proposal template (with an HVAC replacement example)

The prices below are illustrative. Build yours from your own costs and price book.

[Ace Heating & Air] · License [#__] · [phone] · [email]
Proposal #[2207] · [October 21, 2026] · Valid until [November 20, 2026]
Prepared for: [Dana Ruiz], [address]
What we found: [Your 2008 air conditioner has a failed compressor, and the furnace heat exchanger shows rust at the burners. Repairing the AC would cost about [$3,200] on a 17-year-old system. You told us the upstairs bedrooms are always hot.]
Our recommendation: [Option 2. It replaces both units together, fixes the upstairs comfort problem with a variable-speed blower, and costs less to run than your current system.]
Option 1: Replace AC only · [$7,400]
[New 3-ton AC and matching coil. Keeps your current furnace.]
Option 2: AC and furnace, variable-speed · [$12,900] (recommended)
[New 3-ton AC, coil and variable-speed gas furnace, new thermostat, upstairs supply balanced.]
Option 3: Heat pump with gas backup · [$15,800]
[Everything in Option 2, with a heat pump in place of the AC for efficient heating in mild weather.]
Scope (all options): [Remove and recover refrigerant from old equipment; install new equipment on a new pad; new line set where required; new condensate drain and safety switch; electrical disconnect; permit and inspection; start-up, test and walk-through; haul away old equipment.]
Not included: [Ductwork changes beyond the upstairs balancing, electrical panel upgrades, drywall or paint, and any condition hidden in walls, which we'll price before doing it.]
Schedule: [Install in one day, within 5 business days of approval.]
Payment: [Deposit of $__ when you approve; balance due when the system is installed and running.] Rebates: [list only rebates you've confirmed with the utility.]
Warranty: [10-year manufacturer parts warranty when registered, which we do for you; 2-year workmanship warranty on Options 2 and 3, 1 year on Option 1.]
Why us: [Licensed and insured; we installed a similar system on your street in May.]
Approval: I choose Option [ ]. Signature [ ] Date [ ]

How do you price the options in a proposal?

Build each option from the same cost base, make each step up add something the customer can feel (comfort, noise, running cost, a longer warranty), and recommend one. Three options is usually the right number; more than that makes choosing harder. Our guide to good, better, best pricing covers how to space the prices. One thing to remove from HVAC proposals in 2026: the IRS says the federal energy efficient home improvement credit (up to $2,000 a year for qualifying heat pumps) applied only to improvements made through December 31, 2025. Mention utility or state rebates only when you've confirmed them.

What changes in a reroof proposal?

Options by product line (for example, three shingle lines or a shingle vs metal option), with the underlayment and ventilation spelled out for each.
A per-sheet decking price for damage found after tear-off.
Insurance terms if a claim is paying: who deals with the adjuster and who pays the deductible. Some states, including Texas and Colorado, require set wording.
Manufacturer system warranties that depend on a certified installer, listed separately from your workmanship warranty.
Measurements and photos, so the customer sees the squares you priced.

Our guides on estimating a roofing job and the roofing contract template cover the numbers and the clauses.

When does a proposal become a contract?

Usually when the customer signs it, so write every proposal as if it will be the contract. Some states set rules for what that contract must say. California's home improvement law, for example, treats any agreement over $500, written or oral, whether it's in one document or several, as a home improvement contract that must be in writing and signed before work starts, with required notices. If you sell the job in the customer's home, the FTC's Cooling-Off Rule generally gives the buyer until midnight of the third business day to cancel a sale of $25 or more and requires a cancellation notice; repairs the customer called you for are excluded, but upgrades sold during that visit aren't. Payment terms belong in the proposal too; see contractor payment terms. This isn't legal advice.

How should you send and follow up on a proposal?

Send it the same day, ideally before you leave, in a form the customer can open on a phone and approve without printing. Walk them through it in person if you can, and say which option you'd pick. Then follow up on a set schedule; our guide on following up on unsold estimates has the timing and the texts.

Which proposal mistakes lose jobs?

Starting with your company history instead of the customer's problem.
One price, take it or leave it, on a job where the customer wants to choose.
No exclusions, so every surprise becomes a dispute.
Promising rebates or tax credits you haven't confirmed for this year.
No expiry date, so last spring's price comes back after equipment costs rise.

Where CrewRobin fits

CrewRobin's quotes are built for this: good, better, best options from your price book, sent by text, that the customer picks and signs online from their phone. Follow-up texts go out on day 2, 5 and 10, and you can ask for a deposit (any percent or a fixed amount) at approval, paid by card through your own Stripe account and taken off the final invoice. When the quote is approved, the job's checklist is built from the option the customer chose. See how it works for HVAC companies.

Frequently asked questions

How do you write a contractor proposal?

Restate the customer's problem, recommend a solution, give two or three priced options, spell out the scope and exclusions, add the schedule, payment terms and warranty, include one piece of proof, and end with a clear way to approve. Send it the same day with an expiry date.

What is the difference between a proposal and an estimate?

An estimate states what the work will cost. A proposal adds the case for hiring you: the problem, your recommendation, options, schedule, terms and warranty. Use estimates for repairs and proposals for replacements and larger jobs.

Is a signed contractor proposal legally binding?

Often, yes, once the customer signs and accepts it. Some states set required terms and notices for home improvement contracts, and sales made at the home can carry a three-day right to cancel. Ask a local attorney if you're unsure.

How many options should a proposal have?

Two or three. Three lets you recommend the middle one; more than three makes the choice harder.

How long should a contractor proposal be valid?

Set a specific expiry date, such as 30 days out, and re-check equipment and material prices before renewing an expired proposal.

Put it to work this week

Send proposals with good, better, best options the customer can approve, sign and pay a deposit on from their phone. CrewRobin is free until your first 10 booked jobs, no card up front. Start free or see pricing.

Sources

Figures from outside CrewRobin were checked against these pages in October 2026. Most industry benchmarks come from vendors and agencies, so treat them as ranges, not rules.

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