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How To Prepare A Scope Of Work For A Construction Proposal

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This Is A Critical Part of Clear Communication

 

We began this “Blueprint for Building a Better Proposal” series with communication and the problems that occur when it’s done poorly or not at all. This is without a doubt the area where most contractors struggle. It doesn’t have to be this way.


Communication is the most important part of the proposal process.


Things that are unfamiliar seem overwhelming. This is true for both the customer and the contractor. The customer when not understanding what the contractor is talking about and contractor when not having a system for preparing proposals.


 

Our “Blueprint for Building a Better Proposal” system has specific pieces and steps for simplifying the process.

 


Last week we went through Step 1 – Gathering Information. This is where the customer’s why is uncovered, and the physical information is gathered and recorded. Here, we’ll breakdown Step 2 – Preparing the Scope of Work.


What is a Scope of Work?


A Scope of Work, …clearly defines the project requirements, milestones, deliverables, end products, documents and reports that are expected to be provided by the vendor. It helps in the smooth functioning of a project/work contract wherein both parties can avoid ambiguities and situations leading to dispute. It is the first step to building a mutually beneficial collaboration between a vendor and his customer. From a Udemy blog post written by Richa


According to Juan Rodriguez’s The Balance Small Business article, “Must-Have Items on a Construction Scope of Work”, the basic elements…of a scope of work document describes all of the work to be done on a project, who is responsible for completing the work, how the work must be performed (techniques used), and what materials will be used.


 

Communication needs be simple and direct while explaining clearly and thoroughly.

 


Writing out the description of work to be done in terminology that both the customer and the contractor understand is key to clarity. It needs to include enough specifics to be thorough without being too technical. Communication isn’t any good if it’s confusing.

 


EXAMPLE PROJECT:


When meeting with customer Jane Smith we found out that she wanted to add on a laundry/sewing room. She loved to sew and did a lot of it. Currently she used the table in the main floor dining room and the sewing machine in the basement. Her washer and dryer were in two separate closets in the master bathroom. This made for an inconvenience when sewing or doing laundry.


Once we’ve determined the why and gathered the pertinent information…

 

…it’s time to prepare the scope of the work.

 

 

Once this process has been finished for the complete project, we’ll have a Scope of Work ready to be transferred to the Proposal template.

 


Next, we’ll start figuring out the prices for individual items using the Worksheet and Data Base.

 

How to Be Sure You Don’t Overlook Something…

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When Gathering Information for A Construction Proposal

 

You or someone you know has experienced a construction project horror story. A dream project that somewhere along the way turned into a nightmare. A communication disconnect that caused the customer and the contractor to be at odds.

 


Why is miscommunication in construction so common?


In the first post of this Blueprint for Building A Better Proposal series, I wrote about this communication problem and that a better proposal is the contractor’s responsibility. Contractors don’t start a construction project with the intention of a misunderstanding…so why is it too often the result?


Most people in the construction trades, learned their specific trade, but were never taught how to do a proposal.


In the second post of the series I explained the parts of the proposal system. In the third, I went through the different steps of the process. 

 


In this post we’ll break down STEP 1 – Gathering Information:


The first information you should gather is WHY. Why does the customer want to do this project? Do they need more space, does something need repaired or replaced, are they looking to make it more usable, or is it just because they want to? Knowing the why early helps determine a clear direction going forward.


Unless the customer has a full set of blueprints and specifications, a site visit should be one of the very first parts of this step. Every individual project is as different as the customer is. Without blueprints, specs or seeing the existing location the chances of giving the customer the project they want, is almost impossible.


Information that needs to be gathered:

  • Project info (customer name, mailing address, project address if different than mailing, phone number, email address, project overview, any other relevant information that you need)
  • Measurements and dimensions, existing and new
  • Building materials, existing and new
  • Pictures of pertinent areas and existing construction
  • Customer’s design ideas and finishes


The important part is to not overlook something.


 

Use whatever way works best for you to gather the info. Early on I used graph paper and a clip board. I continued to go through different processes before getting where I currently am.


After the graph paper I developed a printed Bid Sheet that had a pre-determined list of the different construction tasks that might be needed. Next to each task there was space for writing down a brief description, dimensions, specific notes, drawings, etc. Having a pre-determined list is a great way to minimize the possibility of forgetting something.


Now I use the same basic Bid Sheet on a Microsoft Surface tablet and can either type, write or draw right on the document. This streamlines the process and reduces the chance of something getting overlooked.


Forgetting to include something in the proposal is a sure way to lose money.


There are over one hundred items listed on the Bid Sheet and it still doesn’t cover every possibility. Construction projects vary a lot. Even small projects can include a lot of different pieces. If you leave one of the pieces out, someone’s going to end up unhappy.

 


If you start with a list, you’re less likely to overlook something.


Next week we’ll take the information gathered on the Bid Sheet and turn it into a Scope of Work.

 

 

How to Be Sure You Don’t Overlook Something…

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When Gathering Information for A Construction Proposal

 

You or someone you know has experienced a construction project horror story. A dream project that somewhere along the way turned into a nightmare. A communication disconnect that caused the customer and the contractor to be at odds.

 


Why is miscommunication in construction so common?


In the first post of this Blueprint for Building A Better Proposal series, I wrote about this communication problem and that a better proposal is the contractor’s responsibility. Contractors don’t start a construction project with the intention of a misunderstanding…so why is it too often the result?


Most people in the construction trades, learned their specific trade, but were never taught how to do a proposal.


In the second post of the series I explained the parts of the proposal system. In the third, I went through the different steps of the process. 

 


In this post we’ll break down STEP 1 – Gathering Information:


The first information you should gather is WHY. Why does the customer want to do this project? Do they need more space, does something need repaired or replaced, are they looking to make it more usable, or is it just because they want to? Knowing the why early helps determine a clear direction going forward.


Unless the customer has a full set of blueprints and specifications, a site visit should be one of the very first parts of this step. Every individual project is as different as the customer is. Without blueprints, specs or seeing the existing location the chances of giving the customer the project they want, is almost impossible.


Information that needs to be gathered:

  • Project info (customer name, mailing address, project address if different than mailing, phone number, email address, project overview, any other relevant information that you need)
  • Measurements and dimensions, existing and new
  • Building materials, existing and new
  • Pictures of pertinent areas and existing construction
  • Customer’s design ideas and finishes


The important part is to not overlook something.


 

Use whatever way works best for you to gather the info. Early on I used graph paper and a clip board. I continued to go through different processes before getting where I currently am.


After the graph paper I developed a printed Bid Sheet that had a pre-determined list of the different construction tasks that might be needed. Next to each task there was space for writing down a brief description, dimensions, specific notes, drawings, etc. Having a pre-determined list is a great way to minimize the possibility of forgetting something.


Now I use the same basic Bid Sheet on a Microsoft Surface tablet and can either type, write or draw right on the document. This streamlines the process and reduces the chance of something getting overlooked.


Forgetting to include something in the proposal is a sure way to lose money.


There are over one hundred items listed on the Bid Sheet and it still doesn’t cover every possibility. Construction projects vary a lot. Even small projects can include a lot of different pieces. If you leave one of the pieces out, someone’s going to end up unhappy.

 


If you start with a list, you’re less likely to overlook something.


Next week we’ll take the information gathered on the Bid Sheet and turn it into a Scope of Work.

 

 

An Overview of the “Blueprint for Building A Better Proposal”

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An Explanation of How That System Works

 

This is the third post in the Blueprint for Building A Better Proposal series. The first focused on the importance of communication between contractor and customer and the problems that can happen without it. The second listed the foundational pieces of the proposal system. 

In this post we’ll take an overview of the process and how the different pieces fit together.

STEP 1 – Gathering Information

Once you’ve been contacted by a potential customer schedule a meeting to discuss the customer’s dreams and find out what they hope to get from this project. At this initial meeting you will gather information –

  • Measurements and dimensions, existing and new

  • Building materials, existing and new

  • Pictures of pertinent areas and existing construction

  • Customer’s design ideas and finishes

The information gathered in this meeting can be recorded in a variety of ways. The important thing in this step is to gather any and all information needed to prepare an accurate proposal. It can be handwritten on a printed out Bid Sheet. It can be typed in an electronic Bid Sheet on a tablet, smart phone or laptop. The purpose for using the Bid Sheet is that all the areas of a construction project are listed out, this minimizes overlooking things.

STEP 2 – Preparing the Scope of Work

After the preliminary information has been gathered it’s time to clarify the scope of the project by writing out the description of each specific task in terminology that both the customer and the contractor understand. It needs to include enough specifics to be thorough without being too technical. It doesn’t help communication if it’s confusing for the customer. This written description on the Bid Sheet gets transferred to the Proposal and serves as a written scope of work to be performed and materials to be provided.

STEP 3 – Pricing the Project

Next is putting prices to the project. This process involves two different Excel spreadsheets, the Worksheet and the Data Base. Based on the descriptions written on the Bid Sheet, content from the Data Base will be copied and pasted into the correlating cells on the Worksheet. After the pertinent information from the Data Base has been placed on the Worksheet it’s time to fill in the specific quantities.

STEP 4 – Quantities

On the Worksheet you will fill in the quantity needed to do the work on that line item. This may be lineal feet, square feet, square yards, cubic feet, cubic yards or numbers of pieces. Once this is completed you will now have prices for the Proposal. 

STEP 5 – Preparing the Proposal

Now you have everything you need to prepare the Proposal. You will use the description from the Bid Sheet and the prices from the Worksheet and put them both on the Proposal. Now you have a description for each specific task to be provided and the price for each. After filling out the customer’s information, the total project price, how payments are to be made and the duration of time to do the project, the Proposal is ready to present to the customer.

Next week I’ll go into the details of Gathering Information.

How To Build A Better Proposal

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One of The Foundational Building Blocks of a Successful Company

 

Small and medium size construction companies struggle with preparing detailed and accurate proposals. This problem isn’t restricted only to small companies. It begins there, but only gets worse until they either get big enough to absorb the costs of guessing at project costs or give up trying and quit.


When I started doing construction forty plus years ago, I had no clue how to prepare proposals and like every other small construction company…I guessed. I used a common method called, trial and error. Doing proposals this way is a real crap shoot and doesn’t leave much room for mistakes.


Preparing accurate proposals that communicate clearly doesn’t have to be a roll of the dice.


Early on I began working on a proposal system that worked for me. It has gone through years of experimenting and tweaking to become what it is now. Over the last fifteen or twenty years I’ve been asked multiple times by other contractors who saw my proposals how I did them. I just assumed that everybody else was doing something similar.


Several years ago, it hit me that this wasn’t the case after being hired by other contractors to do proposals for them. This is when it became apparent that there was a real need for a proposal system. I kept pushing this down the road until God hit me upside the head with a board and pointed out that my system could help other contractors.


I’ve been busy with construction projects and life in general and continued to procrastinate developing a system that other companies could use. Earlier this year I decided I better get to work on this before I get hit in the head again.


I’m happy to announce that we are currently in the final stages of preparing a proposal system that will be made available for other contractors to use. It’s currently being tested by independent contractors. We are rebuilding the Solution Building website to allow for downloading the proposal documents. It’s not just for general contractors either, it will work for any of the construction trades.


This proposal system will include templates for:

 

  • Bid sheet – A Word document with all the construction sections and individual items already listed out with space for filling out the scope of the work to be done, dimensions, materials, locations, etc., as needed for communication.

 

  • Worksheet – An Excel spreadsheet with all the construction sections and individual items already listed out with optional overhead and profit markups inserted in the appropriate cells.

 

  • Estimate – A word document with spaces to fill in the pertinent information, i.e. customer’s information, what will or will not be supplied by the contractor, the scope of work, the estimated price for each specific element and a total estimated price.

 

  • Proposal – A word document with spaces to fill in the pertinent information, i.e. customer’s information, what will or will not be supplied by the contractor, the scope of work, the proposed price for each specific element, a total project price, payment arrangements and project duration.

 

  • Contract – A word document with spaces to fill in the pertinent information, i.e. customer’s information, list of referenced documents, construction funding information, property specifics, project start date and legal terms and conditions.

 

  • Proposal-Contract – A word document that is a combination of a proposal / contract in one.

 

It also will include a data base for material and labor costs:

 

  • Data Base – An Excel spreadsheet with prices for material and labor for a wide variety of specific construction tasks. This information will be copied and pasted to a blank worksheet.

Clear communication between contactor and customer is difficult, especially when there isn’t any. Last week I wrote about the importance of communicating clearly through proposals and reasons contractors avoid doing them. 


Next week I will break down the proposal process even more.

 

 

The Bulk of The Communication Responsibility Lies on The Contractor

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How To Build A Better Proposal

 

 

Every contractor, at some time, has had an unhappy customer. This is almost always due to poor communication and/or a lack of understanding. It may have been some small misunderstanding or might have been major enough to result in being fired or going to court.


Several years ago, a partner and I were meeting with a customer early in the process of building a new home. The customer pointed out that the distance from the electric meter to the house was more than the 50’ allowance, as per the written proposal.

He asked if this was a problem. My partner told him no, it wasn’t a problem. Guess what…


It was a problem.


The problem didn’t surface until later when the customer was billed for the additional 100’. After some digging, the communication breakdown was uncovered.


The customer asked, “if it was a problem”. What he really was asking was…”is it going to cost more?”.


My partner’s response in reality was, “we can dig the additional 100’, but it will cost you three times as much as the allowance in the proposal”. This isn’t what was said.


Neither individual intended nor expected this to be a problem. It was a simple matter of misunderstanding…a lack of communication.


Communication is, …the exchange of information and the expression of feelings that result in understanding.

 

 

Understanding is the tricky part.

Why is it that contractors don’t communicate clearly through concise written proposals to customers? Here are the four main reasons for this:


First is time – It takes more time to prepare a detailed written proposal. We’re already so busy that we can’t keep up and with the limited time we have, we aren’t going to spend it on preparing a proposal.


Second is comfort – I started this company because I loved to build, plumb, wire, pour concrete, roof, etc., etc. The trade is what I know, and I don’t like doing paperwork, I want to go swing a hammer.


Third is knowledge – It’s hard to know how long something is going to take or how much material is going to cost. If I give the customer an approximate price or even better if I can just get paid for time and material, I know I won’t lose any money.


Fourth is no system – When we started the company, no one ever explained the importance of having a business system in place. A business system is the blueprint for building your business. Detailed proposals are one of the foundational pieces needed to keep it from collapsing.


These are four valid reasons for avoiding doing proposals, but…


The cost of not preparing detailed proposals, is far more expensive.


The customer also has some responsibility in preventing construction projects from falling apart and the high cost of poor communication. This whole construction process is overwhelming to most customers and they need to know what should be included in the communication. 


But the customer isn’t an experienced contractor that does this for a living.


If only there was a process for doing proposals that:

  • Saved time.
  • Could be done by office staff.
  • Didn’t require a four-year degree or twenty years of on the job training.
  • Included all the necessary parts and pieces


What if I told you that there is such a system and you could have it? There is and it’s going to become available in the next few months. Over the next several weeks we are going to breakdown the system, go through the different documents and processes in detail and explain how it works.


Remember that we are the professionals and the bulk of the communication responsibility lies on us.

Deciding What Should Be First on The List

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It’s Amazing How Things Become Clear with A Limited Amount of Time

 

There are so many things trying to get on the “to do” list and each one competing for the top position. Deciding which one should get that spot is tough. There are so many great and important things that we need or want to do.


It’s easy to say that we have limited time, but hard to actually schedule that way.


My computer’s battery is not lasting as long as it did when it was new. Recently while working out of the office, without the power cord, I had 2-3 things that I wanted to get done before the computer shut down. This limited time forced me to sort and prioritize them.


How do we decide what to say yes to? 


Emergency situations often require triage. This is the process of prioritizing patients’ treatments based on the severity of their condition and the resources available. In these situations, victims are divided into three categories.

 

  • Those who are likely to live, regardless of what care they receive;
  • Those who are unlikely to live, regardless of what care they receive:
  • Those for whom immediate care might make a positive difference in outcome.

 

These choices aren’t easy and often require a quick “gut decision”. A pre-determined system, training and experience aid in the process and provide for the greatest number of survivors.


Another life and death choice is deciding who gets a transplant when there are a limited number of organ donations available. Take for example a set of twins who both need a liver transplant and their father has one liver to give. Which little girl gets it? The early thoughts of a father would be to give half to each. The problem with this, half would help neither. The final decision will be determined by which one needs it most or which one is most likely to survive.

 


Most of the choices that we make in business aren’t this critical…or are they? The decisions we make can mean life or death for our business.

 

In medical life or death situations there is a system and plan in place before hand. This same type of system should be implemented in our business. We should predetermine how we are going to choose the most important thing to the life of our business. This is where things get hard.

 


What makes one thing more important than another?


 

What should be the highest priority? Should it be production or proposals, record keeping or customer service, marketing or staff? We’re faced with tough decisions in business every day.

 


I can’t answer this question for you, but I’m tired of struggling with this dilemma and plan to design and implement a “business triage” system going forward.


What will give my business the highest chance for survival?

The Most Positive Communication Can Be Negative

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An Honest No Is Better Than A Yes That’s Really A Maybe

 

Why is it that we say yes to more than we can possibly do? This trying to spin too many plates is a common problem. It’s a problem that’s thousands of years old. In Exodus 18:13-23 Moses’s father-in-law tells him to stop trying to do everything by himself.


Being too busy is no one’s fault but our own. I do think that overscheduling can push us to accomplish more than we would otherwise, but we take it way too far. There are too many puzzle pieces to fit in our puzzle no matter how hard we push. So many important things that need done, but…

 


We can’t DO everything.


Our natural desire to help others is a big driving force behind too many yes’s. There are so many people with so many needs. A servant’s heart leads us to over promise. This can be controlled, but it requires intentional actions. Especially in business, we don’t want to say no to any potential opportunity. Too many yes’s is not a good way to treat customers. Trying to be everything to everybody isn’t a good business plan.


We can’t BE everything to everybody.


Trying to DO EVERYTHING for EVERYBODY has been something that I have always struggled with. There’s just so many great things to be done and someone needs to do them. It never works any time anybody tries it. We have to learn to say no.

 


The big question is how do I know what to say yes to?


This is definitely a big question and one that’s hard to answer. As we begin to approach the end of 2019, I’m beginning to think about 2020 and all the things I want to do. As I think through the list it becomes clear that clarity is needed.


Focusing on the right yes’s is going to be my goal for 2020. After all, 2020 is perfect vision. It isn’t going to be easy, but it can be done. It will require a clear plan of what the highest priorities are and removing things from the list that don’t qualify.

 


There are a lot of good yes’s but only one best yes.


I’ve been thinking forward through the long list of things that I want to do. All things that are good and important, but there are too many to do them all. With God as the Chairman of my Board of Directors, I’m confident that we can get a clear vision for 2020.


There are some new and exciting things on the horizon for this next year. I’m excited and ready to get started.

 

How To Win The Race Of Business

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You Win by Never Quitting

 

It’s NASCAR race weekend in Kansas City. My brother-in-law and I have already enjoyed Saturday’s race. There were several things that happened late in the race that changed the expected outcome. The winner of the race was not the one who lead most of the race, but he kept racing until the last lap and won.


Currently we are sitting in the hotel lobby, waiting to get back into our room, which we are locked out of and our stuff is inside the room. It appears that the battery on the electronic code reader is dead. Technology’s great…when it works.


I’m writing this on the hotel’s computer in the lobby since my computer is locked in the room.


Most people would say the only way to win a race, is to finish ahead of everyone else. I would argue that there are other ways you can win. For me winning is as much about staying true to values and core principles as it is finishing first. There are races inside of the race. Points accumulated toward the championship, sponsor visibility, etc.


When racing you need to be ready for whatever challenge is around the next corner. (Like being locked out of your hotel room.) There are other drivers, wrecks, breakdowns, all things that are out of your control. Things learned in this race or this season, help me to race better. Winning is how you deal with difficult situations.


This doesn’t mean you should race without passion or a desire to win.

 


In racing there are pit stops and caution flags that give you a chance to catch your breath and regroup. The same is true in business. Take advantage of these opportunities when you get them.


It takes more than a driver to win a race. It takes a good team, a good system and good equipment. Business is no different.


Winning the race is about how you run it.


Galatians 5:7, 2 Timothy 4:7 and 1 Corinthians 9:24


Three hours and we’re back in our room. The hotel was very apologetic, they comped our room, gave us free breakfast coupons and additional points. They had a computer and it served me well.


I’m going to call it a day so that tomorrow we can race another day.

When you win…remember to celebrate.

This video is from the Sunday race, 10/20/19

I Know Why Rome Wasn’t Built in A Day

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It Was A Lack of Web Presence

 

I’ve written a lot recently about the high cost of no communication. I think this might be why it took so long to build Rome. The people in charge of the project struggled to find qualified contractors.


If they only had someone like Stacey with Custom Internet Services to help them with a website.


A few weeks ago, I wrote about rebuilding our Timber Creek Construction website. Drum roll…it’s finished, live and amazing. Check it out here. Like any construction project, I had a dream and a vision of what it would be. I couldn’t be more pleased. Great job Stacey!

 

 


Our reason for having a website is so interested people can find out more about the construction process. Construction doesn’t have to be overwhelming. Our site also includes pictures and information of past projects. This helps customers see what can be done and incite ideas for their own projects.


Most customers don’t have an in-depth knowledge of the construction industry. This includes questions to be asked and answered, what should be expected from their contractor including documents that should be included. The site is designed to help with this too.


Our site had gotten old and stale, as websites go. This was pointed out to me a couple of years ago by Shannon Martin a previous assistant. We’ve been thinking, talking, designing and planning this rebuild, off and on, since then.

 


I was given an opportunity to speak to the Kansas Barn Alliance about the importance of communication through proposals and contracts. Shannon was responsible for this as well.


It was decided that it would be good to have the new site finished by the presentation and we did. Thanks Shannon. 😊


Our goals were a site that was fresh, fun, clear, informational, easy to use and looked great. Mission accomplished.


The Timber Creek Construction site turned out so good, we plan to make some changes and updates to the Solution Building site next.


Check out the Timber Creek site and let us know what you think in the comments below.