A contractor bid is a written offer to do a specific job for a specific price, open until a set date. General contractors, trades and subs send one when a customer is comparing quotes, and the customer signs it to accept. Our free contractor bid template in Word and PDF lays out scope, price, exclusions, payment schedule and the expiry date on one or two pages.

When do you need a contractor bid?

You need one when a customer is deciding between you and someone else and wants a firm number for a defined job. The FTC’s guide for homeowners tells them to get written estimates from several firms and not to automatically choose the lowest bidder, so a clear bid is often what wins the work.

Here’s a hypothetical. Priya runs a small deck-building company. A homeowner wants a 14 by 16 foot composite deck and has two other contractors coming out this week. Priya’s bid says what’s in (footings, framing, decking, one set of stairs, railing), what’s out (permits, removing the old patio, lighting), the price of $21,400, how it’s paid, and that the price holds for 30 days. When the homeowner compares three bids, hers is the one where they can see what they’re actually buying.

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

A bid is a firm offer, an estimate is an informed guess, and a contract is the full signed agreement. They’re three steps that often happen in order, and mixing them up causes most pricing arguments.

  • An estimate says roughly what the job will cost before every detail is settled. The final price can move. If that’s what you need, use our construction estimate template.
  • A bid (also called a contractor proposal or construction bid form) commits you to a price for the scope written in it, as long as the customer accepts before the validity date.
  • A contract sets out everything: scope, price, schedule, permits, warranties, change orders, what happens if things go wrong. For bigger residential jobs, follow an accepted bid with a full construction contract.

Once work starts, any change to the scope or price goes on a signed change order, not a revised bid.

What should a contractor bid include?

Our contractor bid template follows the order a customer reads in. Here’s what each part does.

Contractor and customer details. Business name, address, phone, email and license number if your trade is licensed, plus the customer’s name and the job address. California’s licensing board tells homeowners a contract should identify the contractor with an address and license number, and customers look for the same on a bid.

Scope of work. What you’ll build, install or repair, with materials, brands or grades, quantities and dimensions. This is the part that makes a bid comparable. “New deck” can’t be compared to anything. “224 sq ft composite deck, pressure-treated frame, 12 footings, one 4-step stair” can.

Exclusions. What the price doesn’t cover. Permits, debris removal, repairs to hidden damage, painting, landscaping repair after the work. The FTC lists cleanup and the contractor’s duty to get permits among the things a contract should spell out, so say clearly on the bid whether they’re in or out. Exclusions protect both sides.

Price. A lump sum, or a line-item breakdown if you want to show it, plus any allowances for things the customer still has to choose.

Payment schedule. How much is due when. The FTC suggests tying payments to progress, and notes that some state laws limit down payments. In California the licensing board says a home improvement down payment should never exceed 10 percent of the contract price or $1,000, whichever is less (with an exception for contractors who have a blanket performance and payment bond on file). New York City’s consumer agency tells homeowners to pay no more than 25% upfront. Fill in the template’s schedule to match your state.

Timeline. An estimated start date and how long the work takes once started, with a note that weather and material delays can move it.

Validity date. The date the offer expires. After it, you can re-price. Pick a period you can actually hold your material prices for.

Acceptance. The customer signs to accept the bid on its terms. The template has a checkbox for whether the accepted bid is the whole agreement or whether a full contract follows.

What should you check for your state?

Check your state’s home improvement rules before you send a bid to a homeowner. California’s licensing board says there must be a written contract for all home improvement projects over $500, so in California make sure whatever the customer signs covers everything the board expects in a contract. A short bid often won’t. New York City requires home improvement contractors to give a signed written contract, with a separate Notice of Cancellation form, before work begins.

Then there’s the cooling-off rule. If you sell to a homeowner at their home, the FTC’s Cooling-Off Rule can apply to sales of $25 or more, giving the buyer until midnight of the third business day to cancel. The seller has to give a written notice of cancellation at signing. Our template has a reminder line for this; the notice form itself is described in the federal rule linked below.

Public and government jobs are different. They usually require their own bid form, bonds and submission rules. Use theirs.

How do you fill it in and get it signed?

  1. Visit the site and measure before you price anything.
  2. Fill in the scope and exclusions first, then the price. It’s easier to price a list than a vague idea.
  3. Set the payment schedule within your state’s deposit limits and add the validity date.
  4. Sign the bid yourself, then send it to the customer to accept. Signing first shows you stand behind the price until the expiry date, and the customer’s signature completes the deal.
  5. Once accepted, send the full contract if your state or the job size calls for one, and keep the signed bid with it.

E-signing a bid is generally fine. Under the federal ESIGN Act, a contract can’t be denied legal effect solely because an electronic signature was used to form it. Our guide on whether electronic signatures are legally binding explains the rule and its exceptions.

Download it, fill in the blanks, and send it for e-signature with any tool you like. (SignWren is built for paperwork like this; start free and send it from your browser.)

This template is general information, not legal advice. For a specific contract or dispute, talk to a lawyer licensed where you are.