Free AI-generated general contractor proposal — scope, allowances, change order policy, and milestone payments. Customize in 2 min, send as PDF or link.
Most construction disputes start with a proposal that left something out. 'Install new kitchen' is not a scope of work. Neither is a one-page estimate with a lump-sum number. A real GC proposal breaks out every trade, lists allowances for client-selected materials, ties payment to completed milestones, and includes a written change order policy. The template below covers what residential remodels and new construction actually require. Use it as-is or adapt it for your trade mix.
Proposal from
Crestline Construction
Prepared for
Bryan & Courtney Miles
Kitchen Remodel
Demolition of existing kitchen (cabinets, flooring, drywall as needed). Install new cabinets, countertops, tile backsplash, and luxury vinyl plank flooring. Electrical: add 2 dedicated circuits, relocate outlet locations. Plumbing: relocate sink 24 inches east.
Cabinets: $9,500 allowance (semi-custom) Countertops: $4,200 allowance (quartz, up to 45 sq ft) Backsplash tile: $800 allowance LVP flooring: $2,800 allowance Allowances are budgets — overages billed, savings credited.
Deposit (at signing): 25% — $7,875 Demolition complete: 25% — $7,875 Cabinets installed: 25% — $7,875 Final completion: 25% — $7,875 Total: $31,500 (plus allowance adjustments)
Substantial completion: 6-8 weeks from start. All changes require a written change order signed by both parties before work proceeds. Change orders under $200 waive the CO fee.
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Create Your Free AccountBreak out allowances clearly. Cabinet allowance of $8,000 vs. $4,000 is the biggest source of remodel budget surprises. Show each allowance as a separate line so clients know what they're committing to.
Include a change order policy. Every remodel has changes. Stating upfront that changes require written approval and a signed change order prevents $30,000 of verbal scope additions.
List subcontractors by trade. Clients want to know who's doing the electrical and who's doing tile. Showing the sub list signals you have the crew rather than scrambling.
Show payment milestones tied to work completion. 'Due when slab is poured' is more professional than arbitrary dates and aligns incentives.
State a substantial completion date, not a finish date. Construction doesn't finish on a date — it reaches substantial completion. Know the difference and explain it.
Attach a draw schedule to the contract. Milestone payments without a physical draw schedule create cash flow fights. Both parties should see the same spreadsheet: milestone, amount, date triggered, and who signs off.
Include a materials storage and delivery clause. Who stores materials on-site? Who's liable if they're stolen before installation? On large remodels, $15K in tile sitting in an open garage is a real risk.
Document existing conditions before demo. Photos of every wall, floor, and ceiling you'll be touching. Cracks in the foundation, water stains on drywall, uneven subfloor. If it was there before you started, you need proof.
Every strong construction proposal covers these elements. Skip one and you'll likely answer for it later.
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Construction pricing guide →An estimate is a rough number based on a walkthrough. A proposal is a binding document with a detailed scope, specific materials, payment terms, and a timeline. Never pay a deposit on an estimate. Get the proposal in writing with every trade broken out before you sign anything or hand over money.
Each client-selected material category (cabinets, countertops, tile, fixtures) should have its own dollar allowance on the proposal. If the client picks something more expensive, they pay the overage. If they come in under, they get a credit. Without this structure, the 'total price' is fiction. A $30K kitchen remodel can become $42K if the client picks $12K in upgrades that were never budgeted.
10-25% at contract signing is standard for residential construction. State licensing boards in many states cap deposits (California caps it at $1,000 or 10%, whichever is less, for home improvement contracts). Check your state's rules. The rest should be tied to completed milestones, not calendar dates.
A change order is a written amendment to the original scope. It describes the new or modified work, the cost impact, and the schedule impact. Both parties sign before work proceeds. Without this process, you end up with $20K in verbal additions and a client who says 'I never agreed to that.' Include the change order policy and markup (typically 15-20% over cost) in the original proposal.
Yes. Clients are hiring you as the GC, but they want to know who's actually doing the electrical and plumbing. Listing subs by trade and noting that they carry their own insurance builds trust. It also protects you: if a sub causes damage, the paper trail shows they were disclosed and insured from day one.
General liability ($1M minimum), workers' compensation (required in most states if you have employees), and commercial auto. Many clients and commercial property managers require a certificate of insurance (COI) before you start work. Include your license number and insurance carrier names in the proposal. Contractors who skip this step lose jobs to those who don't.
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