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Lesson 3: Developing Project Proposals

Proposal Development | Video

Your textbook discusses the typical sections that are usually included in a project proposal. The type of project and the RFP will often determine the actual content and detail included. An RFP may include a suggested budget range based on available funding, and this will limit the scope of the work that you propose. You will be using your textbook as a guide to respond to an RFP for your course project. As discussed in your text, cost estimates must be realistic and reasonable. If your budget is too conservative (too heavily padded), your proposal may exceed the customer’s authorized funding or not be competitive. However, if you underbid, you may end up losing money or end up sacrificing the quality of your end products.

“First, have a definite, clear practical ideal; a goal, an objective. Second, have the necessary means to achieve your ends; wisdom, money, materials, and methods. Third, adjust all your means to that end.”

—Aristotle (as quoted by Khanna & Awad, 2015, p. 185)

Creating a Winning Proposal (Success Factors)

Following are some things that determine the success of a proposal(adapted from Gido et al., 2018):

  • Remember that project proposals are selling documents. This is a competitive process, and the proposal is your chance to sell your company.
  • It should emphasize that your proposal is the best solution to the problem.
  • Be sure to highlight unique factors that you can provide.
  • Emphasize the benefits that your proposal will provide to the customer. Your proposal needs to distinguish what your company offers over your competitors.
  • Be as simple and concise as possible. If it’s too wordy, you reduce the chances of a complete read.
  • Be sure to address each requirement as listed in the RFP. Use headers to make it clear where you have addressed the requirements.
  • Be realistic; don’t oversell. If you propose it, be sure that you can deliver.

Obviously, a key item in a proposal is the budget and costs. Pressures will be imposed on the proposal preparer to provide margin and profit, and also to have a low enough cost to be the preferred source.

Watch Video 3.1, which is a very short Dilbert video clip on budgets.

Video 3.1. Designed to Fail

PMBOK® Guide Highlights

When considering the PMBOK® Guide recommendations (and answering questions on the course lesson quizzes or on PMP®/CAPM® exams) related to project proposals, assume that many project proposals are competing with each other, and that a formal selection process is in place to review, compare, and select/approve by management.

PMP®, CAPM®, and PMBOK® Guide are registered marks of the Project Management Institute, Inc.


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