Free AI-generated general contractor proposal — scope, subcontractor breakdown, payment schedule, and change order terms. Customize in 2 min, send as PDF.
A general contractor proposal is more complex than a trade proposal because you're managing multiple subcontractors, material deliverables, and client expectations across a months-long project. The most common reasons GC projects go sideways aren't cost overruns — they're undefined scope, undocumented change orders, and payment terms that didn't account for how the job actually unfolds. The proposal is your contract backbone. If it's vague, everything downstream is a negotiation. If it's specific — scope, timeline, payment triggers, change order process, subcontractor responsibilities — you have a project that can actually be managed. Residential remodels for GCs typically run $50,000-$500,000. Commercial projects scale from $100,000 to millions. The markup on subcontractor work runs 15-25%. The template below covers what working GCs actually put in winning bids.
Proposal from
Apex Construction Group
Prepared for
Robert & Diana Kowalski
Whole-House Addition & Kitchen Renovation
Two-phase project at 412 Birchwood Drive: 1. Two-story addition (600 sq ft): Master suite with walk-in closet and en-suite bath (upper level), mudroom and laundry room (main level). Attached to existing structure at north wall. 2. Kitchen renovation: Full gut of existing 280 sq ft kitchen. New custom cabinetry, quartz countertops, tile backsplash, island with seating, new electrical panel subpanel for dedicated appliance circuits, hardwood flooring to match existing.
Foundation & framing: Kowalski Framing (licensed, insured) Electrical: Bright Future Electric — 200A service upgrade, addition rough-in, kitchen circuits Plumbing: Summit Mechanical — en-suite bath, kitchen sink relocation and dishwasher HVAC: ClearAir Systems — extend existing ductwork to addition, kitchen range hood ventilation Drywall: ProFinish Drywall — hang and finish all addition and kitchen walls Tile & flooring: Exact Tile Co. — bath tile, kitchen backsplash; Apex crew — hardwood match Cabinetry & countertops: Owner-supplied cabinets, Apex installs; quartz by Stone Concepts
Mobilization (contract signing): $22,500 (10%) Foundation & framing complete: $45,000 (20%) Rough-ins complete (MEP): $45,000 (20%) Exterior complete (roofing, windows, siding): $45,000 (20%) Drywall & interior finish complete: $45,000 (20%) Final completion & punch list: $22,500 (10%) Total contract: $225,000
Estimated project duration: 18-22 weeks from permit issuance. Timeline subject to permit processing (estimated 4-6 weeks after application), weather delays, and material lead times for custom cabinetry (10-12 weeks). Change orders: written authorization required before any changes begin. Owner responsible for all permits; Apex pulls GC permit, owner pulls kitchen permit for owner-furnished cabinet installation.
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Create Your Free AccountBreak the scope into phases, not a single paragraph. Foundation, framing, rough-in, exterior, interior finish, punch list — clients need to see the sequence to understand what they're buying. A phase-based scope also makes progress payments logical because everyone can see what was completed.
List every subcontractor trade by name, not just category. 'Electrical' is vague. 'Licensed electrician for 200A panel upgrade, rough-in of 24 circuits, and trim-out' is a scope. When clients understand each trade's role, they stop asking why the bill is what it is.
Define your change order process up front. Changes happen on every project. Specify how they're documented (written only), how they're priced (T&M or fixed fee), and when they're due before work continues. A change order clause that requires written approval before any change work starts prevents the 'I told you verbally' dispute.
Tie payment milestones to deliverables, not dates. 'Payment due on the 15th' creates arguments when weather delayed the pour. 'Payment due upon completion of framing inspection' is tied to something real that both parties can verify. Progress payments of 10-20% per milestone are standard on residential projects.
State your materials policy clearly. Are you purchasing materials or is the client? If you're buying, what's the markup (standard is 15-20%)? If the client is sourcing materials, what happens when they're wrong, damaged, or delayed? Ambiguity here has killed more projects than anything else.
Include a permit and inspection responsibility section. Who pulls permits? Who schedules inspections? Who pays reinspection fees if a trade fails the first time? Most jurisdictions require the GC to hold the permit, but not all clients know that. State it, because the homeowner who thinks they'll save money pulling their own permit will cost you three weeks.
Set a written access and work hours policy. Can you store materials on-site? When can crews arrive and leave? Is there a pet or child safety protocol? Getting locked out, dealing with pets in the work area, or starting work at 6:45 AM in a neighborhood that objects creates problems that aren't about money but will end up costing money.
Document the punch list process. Define what constitutes substantial completion, how the punch list gets created (joint walkthrough), the timeline for completing punch list items (typically 30 days), and when final payment triggers. GCs who skip this end up with retainage held for six months over a paint touch-up.
Every strong general contractor proposal covers these elements. Skip one and you'll likely answer for it later.
General contractors typically charge 15-25% overhead and profit on top of all direct costs (labor, materials, subcontractors, permits). On a $200,000 project, the GC's markup is $30,000-$50,000. This covers project management, insurance, warranty, coordination, and risk. Some GCs charge a flat management fee for owner-managed projects. The markup percentage should be on the proposal — clients who don't see it will assume it's hidden.
A full GC proposal includes: scope of work broken down by phase and trade, project timeline with milestones, payment schedule tied to milestones, change order terms, materials responsibility and markup, permit and inspection responsibilities, subcontractor list, site access policy, warranty terms, and lien waiver process. The more specific the scope, the fewer disputes. Every line item that seems obvious to a contractor is not obvious to a homeowner.
Progress payments are typically tied to project milestones, not calendar dates. A standard residential structure: 10% at contract signing (mobilization), 20-25% per phase (foundation complete, framing complete, rough-ins complete, drywall complete, finish work complete), 5-10% retained until punch list completion and final inspection sign-off. Payment schedules tied to milestones prevent disputes about whether the contractor 'deserves' the payment — it's either complete or it isn't.
Written change orders before work begins, every time. Verbal approvals turn into 'I never agreed to that.' A change order should include: description of the change, reason for the change (client request vs. unforeseen condition), cost impact (T&M or fixed fee), schedule impact, and client signature before any change work starts. Include a blanket change order rate in the original contract so clients know the basis for pricing — typically your standard labor rate plus a 15-20% markup on materials and sub work.
Retainage is a percentage (usually 5-10%) withheld from each progress payment until the project reaches substantial completion and all punch list items are resolved. It protects the owner if work isn't finished. For GCs, it means 5-10% of your project revenue is locked up until the end. The proposal should specify the retainage percentage, the definition of substantial completion, the punch list creation process (joint walkthrough), and the timeline for completing punch list items before final retainage is released.
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