Project proposal

Project proposal?
A project proposal is the document that facilitates a professional relationship between an organization
and outside contributors (e.g. project owners, sponsors etc.). Typically, a project proposal is the initial
framework for establishing the concept of the project and includes what you want to accomplish, an
explanation of objectives, and plans for achieving them. It is common for a project proposal to include a list
of activities or tasks that will be associated with the project, illustrate the significance of this specific project
idea, and explain the origins of this project.

A project proposal is also the professional document that kicks off a relationship between an organization
and outside project stakeholders. Creating a proposal allows an organization to establish a formal, logical
presentation to an outside worker or project donor/sponsor. Proposals are generally drafted during one of
the early phases of any project (before detailed plans are made and resources are allocated). Therefore,
time and budget estimates are often rough, at best.

Why do you need a project proposal?

• First and foremost, a proposal is required to get executive buy-in for a new project, program, or
service at your organization.
• Secondly, it is used to get everyone on the team thinking about the same goals and priorities.
• Lastly, it serves as a way for the organization to know when they need to make new hiring decisions
or budget adjustments. Successful organizations get granular with their project proposals and
engage in project planning before seeking out budget or executive buy-in.

What are the advantages of a clear project proposal?

- Establishes Project Viability. Clear proposals prove the viability of a project or program.
- Clarifies Expectations. Increase clarity regarding requirements and project roadmap.
- Creates Structure. Structure and organization are established up front, reducing the chance for
misalignment.
- Ensures/ increases Budget. Successful proposals lead to approved budgets and financial support
for organizational growth and project replication.
- Fuels Business Growth. Proposals play an integral part in organizational growth, helping in budget
approval and new client adoption/ work assurance.
- Exposes the Brand. Reaching out to stakeholders and building alliances increases credibility and
exposure in the community at large.
- Ensures Future Success. Having detailed your project’s methods and measurement tools in
advance builds accountability into every step of your work.
- Establishes How to Plan for Success. Integrating grant writing into day-to-day work turns
proposals into useful planning documents and detailed templates for project implementation.

What are the different project proposal types?

1. Solicited
A. Formally Solicited: A formally solicited project proposal is established in response to an official
request for a new proposal. In this case, a Proposal request document is used to outline client demands
and specific needs. A formally solicited proposal is the structured and specific response to said request
document. Having a document makes the entire proposal process easier. As the specifics are spelled
 out, project planning can prevent misunderstandings or a lack of information that may cause
complications later.

B. Informally Solicited: An informally solicited proposal does not require a Proposal request document.
That is, there is no specific document required to outline customer / audience/ sponsor demands. This
is the initial rough starting point when proposing a project’s viability. The major differentiator between a
formal and informal project proposal is the number of details involved in planning. Informal proposals
lack granular project details, such as goals, deliverables, and methods. An informally solicited project
proposal can be understood as a proposal request that is lacking specifics.

2. Unsolicited: Unsolicited project proposals can be compared to a cold call — no one asked for or
expected to receive one, but if the audience can relate to the proposal, it can prove extremely valuable.
An unsolicited proposal is typically formed from more ad-hoc activities, such as an “aha” moment or an
enlightening conversation with a stakeholder/customer. Unsolicited proposals can be the most difficult
types to write, as you will have to put extra work in to convince the audience of the project’s viability.
Many times, these proposals require the most research and the most finesse, as the audience is unaware
that the proposal is even coming their way.

3. Continuation: Continuation project proposals are essentially an update or reminder for ongoing and
already approved projects. This type of proposal is the simplest to construct, as it is a continuation of
already existing documentation. A continuation proposal can be thought of as a check-in with the
audience to ensure the correct funds are provided for the next phase, as well as discussing progress
and accounting for any changes before moving forward.

4. Renewal: A renewal project proposal is required when an ongoing project has been terminated or the
resources and support behind such project can no longer be used. This proposal is more about proving
that the return on investment is greater than the money being spent on resources so that the project can
begin again.

5. Supplemental: A supplemental project proposal is required when more resources are required to
complete a project than were originally proposed. The main goal of a supplemental proposal is to prove
the value of adding resources and update the audience with a timeline based on this new plan. Many
times, a supplemental proposal is required when the original project scope has grown beyond initial
expectations. It can be seen as a continuation of the original proposal document.

What a Project Proposal is NOT

A project proposal is not a contract. It’s easy to confuse it with a Business Proposal (a document in which
legal terms are outlined). Clients or sponsors merely sign the project proposal to approve its contents. After
signing and approving the project proposal, a business starts drafting a contract in addition to items such as
a project charter and a project plan.

How to Write a Project Proposal

After considering what type of proposal is the best fit for you and your project, it is time to start planning your
document. It is imperative to keep in mind that, regardless of the proposal type, you will always want to check
the following boxes when starting a proposal document.

• Define your audience.

• Determine the problem being solved by your proposal.
• Conduct research on the current state of the issue and potential solutions.
• Proactively determine the effect that this project will have on company success.
• Establish a timeline and determine the type and amount of resources required.
• Begin to outline your proposal document.
Project Proposal Outline (sample-01)
Section 1: Project Information
This section intends to provide a high-level picture of the project as well as convey the most critical project
details.

Include the following in this section:

• Name of the Organization

• Project Title
• Project Summary
• Project Timeframe
• Prepared By
• Attached Documentation
• Project Contacts (any individuals involved in the project)

Section 2: Project Summary

The goal of this section is to present the reasons for doing this project as well as stating all of the objectives.
In this section in particular, it is very important to write concisely and clearly. Some project professionals even
suggest writing the project summary last. Before you begin writing, you should be able to answer the following
questions.

• Why are you doing this project?

• What will you be doing?
• How will you be doing it?
• Who will be doing it?
• Where will it be done?
• How long will it take?
• How much will it cost?

1. Project Background This section of the proposal requires a few succinct sentences that clarify the
problem your proposal is tackling. Here, it is critical to explain the current state of the problem and why
your audience should care about solving it. Make sure to include references and statistics in this section.
Best practice is to keep this no longer than 1 page.
2. Project Objectives Use this section of the proposal to explicitly list the goals that the project is trying to
achieve.

Section 3: Project Methodology

The project methodology section of a proposal is where you detail the plan for how the objectives mentioned
in the previous section will be achieved. This is the first section of the proposal that details the course of
action to remedy the problem and is meant to prove that adequate research has been done for this decision.
To start, outline the methodology being used, the population being addressed, and establish the process for
reaching your objectives. This section is typically broken into three parts:

1. The Project Approach Summary Use a few sentences to describe the overall approach to the project.
This includes how the team will be organized, what tools will be used, and how changes will be addressed
during execution.

2. Task Breakdown and Time Estimates This is the section of the proposal where a detailed project
schedule is presented. To start, make a list of tasks that are required for the project as well as an
estimation of the hours required to complete each one. From there, you can take a look at your resource
pool and allocate your team accordingly. The purpose of this section is to establish the time and steps it
will take to achieve the solution, as well as the resources involved in each section. Here is where you
start to see ideas turn into action. A project proposal will often include a Gantt chart outlining the
resources, tasks, and timeline.
3. Project Deliverables This is where you list out all the deliverables you expect to see after the project is
closed. For example, this could be products, information, or reports that you plan to deliver to a client.
Ensure that each deliverable has an associated estimated delivery date.

Section 4: Project Risk Management

This section is dedicated to managing change during project execution. Clients know that a proposal rarely
covers everything that is required to achieve the given project, so change management techniques are
required. Establish how you will monitor project success throughout its entire life cycle to show clients that
when and if change occurs, the project will not go haywire. This section is broken into two parts:

1. Risk Management Plan A detailed plan of action to minimize the chance of risk or change during the
project lifecycle.
2. Risk Register A line-item list of risks and potential counter efforts that will be used to counteract these
risks.

Section 5: Project Costs

This section is dedicated to estimating the overall cost of the proposed project and is broken into three major
parts:

1. Project Budget This should be a detailed, line-item budget broken up by different project categories,
such as travel, salary, or supplies. Ensure all overhead or indirect costs are also included in the budget.

2. Budget Narrative This is a brief list of commentaries on the budget if any further clarification or
justification is needed.

3. Additional Financial Statements Some projects, depending on complexity, will require additional financial
statements like a profit and loss statement, a tax return, or funding sources.

Section 6: Conclusion
The conclusion section of a project proposal intends to be a brief review of all the points already discussed.
This is your last chance to win over your audience, so ensure that you incorporate the most important
evidence to receive approval. This is also the final moment to prove you have adequately researched all
solutions and your proposed method is the best for business.

Section 7: Appendix
This section is dedicated to any additional charts, graphs, images, or reports that were cited in the proposal.
Many times, referenced material will go into the appendix as it does not naturally fall into the main body copy
of the proposal.

Final Thoughts:
• Determine your project proposal type first for an effective presentation.
• Make sure your proposal targets your audience and clearly defines the problems it will solve.
• Follow the seven sections of a proposal to more effectively convince your audience.
Project Proposal Outline (sample-02)
The following is a sample outline for a project proposal. Note that all questions for a section may not apply
to your proposal, and should be used as a general guide only.

1. Introduction (1 or 2 paragraphs)
o Motivation Sentence
o Summarize the problem (1 or 2 sentences)
o Summarize the solution (1 or 2 sentences)
o Describe format of rest of proposal (sections, etc.)
2. Motivation (1 to 3 paragraphs)
o What is the history of the problem?
o Why is this problem interesting?
o When and why does the problem occur?
o Is the problem already solved? What is done now?
o Are there any similar systems or solutions to the one you propose? If so, reference and
very briefly explain them.
o Are there are possible improvements to current solutions?
3. Project Summary (1 paragraph)
o What in general will this project achieve? (Do not delve into details or timelines.)
4. Project Details
o Architecture and Environment (2-3 paragraphs + figures)
 Describe the project environment (software, hardware, languages, organizations,
etc.)
 Diagrams and figures are useful here if appropriate.
 What software, hardware, or tools will you use?
o Implementation Issues and Challenges (2-3 paragraphs)
 What will be the most difficult issues and challenges in the implementation?
 How are you using or extending current tools/systems for your problem?
 What makes your project unique?
o Deliverables (3-5 paragraphs - point-form may be used for some of the description)
 What will the project produce? (program, report, etc.)
 Describe in relative detail the features of each of the project's products.
 You may wish to separate deliverables into phases and indicate optional
components given time.
 Emphasize what your project contributes or achieves!
o Timeline (1 paragraph - point-form is suitable)
 Provide an estimated timeline of project deliverables and important dates.
5. Conclusion (1 paragraph)
o Summarize the project including the problem, motivation, and proposed solution, and re-
state important (planned) contributions.
6. References
o List references used to compile proposal and references that will be used for project (if
already known).

In SHORT, a project proposal may contain the followings:

 Project title  Beginning of operations

 Goals and objectives of the project  Resource allocation
 Project SWOT 1, STEEPLE 2, TECOP 3,  Project personnel
SPECTRUM 4 etc. analysis,
 Description of project activities  Detailed project budget
 Description of expected project results  Other technical means (e.g. vehicles)
 Project implementation plan  Division of financial sources (equity, loan, grant
etc.)

1 Strength, Weakness, Opportunity, Threat

2 Social, Technological, Environmental, Economic, Political, Legal, Ethical
3 Technical, Environmental, Commercial, Operational, Political
4 Socio-cultural, Political, Economic, Competitive, Technological, Regulatory, Uncertainty, Market factors