You send a proposal to a client and hear nothing for several months. Then an email arrives saying they would like to proceed.
Good news. Except the engineer you proposed is now busy on another project, your supplier has increased its prices, and the original start date has already passed.
The client is looking at the proposal you sent. You are looking at what it would take to deliver that work now.
Problem: A delayed award can make your proposal out of date
A proposal is prepared using the costs, resources and delivery arrangements available at the time. Those conditions can change while the client is evaluating submissions, obtaining funding or seeking internal approval.
Material prices can increase. Subcontractor quotes can expire. Key staff can leave or become committed to other projects. Equipment that was available when you submitted the proposal may now be booked elsewhere.
For example, you might price a design project using an experienced engineer who is available next month. If the client takes another three months to award the work, that engineer may no longer be available. Delivering the same scope could require a more expensive replacement or a later start.
Without a clear validity period, you leave room for disagreement about how long the original offer remains available.
The problem can also affect the client. Their budget and schedule may depend on a proposal that the supplier has not reviewed for months.
Solution: State how long the proposal remains valid
Include a clear expiry date
Make sure every proposal includes a statement specifying its validity period. Put it somewhere easy to find, such as the commercial terms or proposal summary.
For a straightforward proposal, wording to discuss with your commercial reviewer might be:
“This proposal is valid for acceptance until 5 pm AEST on 30 June 2027. After that date, please contact us to confirm pricing, personnel availability and the delivery schedule before proceeding.”
Use wording consistent with the rest of your proposal and any tender conditions. Business Queensland’s guide to preparing a business quote also recommends including an expiry date because material and supply costs can increase.
An actual date is often clearer than “valid for 30 days”, especially if the proposal is revised or forwarded later. If you use a number of days, state when that period begins.
Choose a period you can support
The validity period should give the client a reasonable opportunity to decide while reflecting how long you can support the offer.
Check the expiry dates of supplier and subcontractor quotes, expected material cost changes, staff availability and the client’s likely approval timeframe. If an important supplier will only hold its price briefly, resolve that before offering the client a much longer commitment.
For a formal tender, check the required validity period before submitting. A shorter period could make your submission nonconforming, wasting your whole proposal effort. Raise concerns through the permitted clarification process.
Also, in your planning, make sure to distinguish this from the time allowed to prepare a proposal, tender or quote. The response period is the time suppliers have to submit. The validity period concerns how long the submitted offer remains available for acceptance.
Explain the basis of the schedule
A validity period does not explain every timing condition. If your delivery schedule depends on receiving an award, site access or client information by a particular date, state that separately.
For example, explain that the proposed completion date is based on receiving authorisation to proceed by a specified date. Make sure this matches the commitments elsewhere in the proposal.
This is particularly important when the client has a fixed deadline. Understand why the project due dates are set and discuss whether a delayed award would affect them.
Review extensions before agreeing
If the client needs more time, review the price, supplier commitments, staffing and schedule before agreeing to extend the validity of the proposal. Confirm the new expiry date and any agreed changes in writing, identifying the proposal number and revision.
Have one authorised person coordinate these responses so that informal emails do not create conflicting commitments.
If you are the client, track proposal expiry dates during evaluation and seek any necessary extensions before they expire. Reconfirm delivery arrangements before award, particularly after a delay.
Once the offer has been accepted and a contract formed, manage price and schedule changes under the agreed contract. The proposal expiry date is not an ongoing right to reprice the work. Clear commercial terms are part of managing projects with contracts.
Lesson: Do not leave your proposal open indefinitely
Always include a validity period on proposals. Check that it suits the tender requirements, your supporting quotes and the resources needed to deliver the work.
If the client delays, review the offer before extending it. One clear statement and a timely review can help prevent an old proposal becoming a new project with an outdated price and an unrealistic schedule.
