Chapter-3

What is a technical proposal?

A technical proposal is a type of document that outlines the precise details of a
proposed product or service.
This document may contain any of the following:
 Technical requirements
 Design considerations
 Functional specifications
 Bills of materials
 Overall cost estimation
Technical proposals are often tailored for specific projects and must be
comprehensive in order to be successful.
In addition to outlining the core elements of the project, a technical proposal
should also include supporting evidence such as data from research studies or
reports from industry experts.
By leveraging data and professional experience in a precise way, a technical
proposal introduces products and initiatives while also explaining how they
address the recipient’s problem and the company’s execution plan.
While this type of proposal is often brief, it can quickly become very complex.
While writing, remember that the proposal needs to explain a complex product in
relatively simple terms.

What is technical proposal writing?

Technical proposal writing is translating technical requirements into a customer-
facing proposal used to pitch your solution or offerings.
Considering the situation in which your proposal occurred and depending on its
nature, technical proposal writing might encompass only a small section of the
proposal — particularly regarding project execution, the intended scope of work,
and the equipment or materials involved.
However, that isn’t always the case.
Some business sectors and proposals are technical by nature from start to finish,
and this becomes more common as the cost of a project increases.
As you might expect, multimillion-dollar projects will be reviewed with far greater
scrutiny than small sales projects costing a few hundred dollars.
Keep in mind that different proposals require different methodologies and
concepts, depending on the nature of the project and its requirements.
Often, technical proposals will be guided by a request for proposal (RFP) from the
potential client or stakeholder.
The proposal writer will use the guidelines in the RFP to construct a technical
proposal that meets specific project requirements and explains how your
organization can meet those needs.

Technical proposal formatting: How

to format a technical proposal?
Quick tip before you start: If you don’t want to spend your time writing
technical proposals from scratch each time a project comes your way,
you can always turn to the technical proposal template. It’s a great
starting point, being both beautifully designed and arranged with a
framework that you expand into your own unique template.
Our technical proposal template covers many technical proposal sections you
need in a successful document of this type; in addition, we give you useful
information on how to fill it out effectively.
As you read through the rest of the article, bear in mind that the majority of
companies working up proposals do so using templates and similar fast formatting
tools.
To stay competitive, be prepared to write content for your technical proposal that
can be quickly copied and personalized to fit a new client.
With those essentials out of the way, here are essential elements of technical
proposal formatting.

1. Prepare your proposal introduction

Ensure that your introduction does all of the following (not necessarily in this
order):
 State that the memo contains a proposal for a specific project. (Quote an
RFP number or a project number if you have one.)
  Address the needs of the project, the company, and the stakeholders
directly and position the proposal content as a solution that meets the
requested criteria.
 Give an overview of the proposal’s content, what readers should expect,
and why you feel that your proposed solution is the best way forward.
 If your proposal is unsolicited, the introduction needs to convince the
reader that your proposal is an opportunity that should be explored.

2. Background information on the issue

A summary background often follows the introduction and outlines the necessity
for the project.
This section typically defines the problem, the opportunity for improvement, and
the scenario.
While the specified audience of the proposal may be familiar with the issue,
writing the background section helps demonstrate your unique perspective.

3. Project benefits and feasibility

Most proposals briefly explain the project’s benefits and its success
rate in the form of a pro-project argument. In an unsolicited proposal,
this section is critical to “sell” the project to the audience.

4. Proposed task description (results of the

project)
Most proposals must describe the final product. Proper technical proposal
formatting entails identifying the document’s audience and purpose, providing an
overview, and considering length, graphics, binding, etc.
Most proposals also explain how you will complete the work.This adds to your
persuasiveness and demonstrates you have done your homework. It also shows
that you know the field well enough to finish the project.

5. Schedule
Most proposals include a section detailing the project’s completion date, as well
as significant milestones.
If you’re working on a long-term project, the timeline will include due dates for
progress reports. If you can’t give dates, give time frames for each phase of the
project.

6. Resources and costs

Most proposals include a section on project costs and require you to include your
hourly rates, expected hours, equipment and supply prices, and so on before
calculating the final project cost.
If you need to run any Internal projects in order to fulfill your proposal, keep in
mind that those resources aren’t free.
You should still disclose the project costs: time spent on the project, equipment
and supplies used, and factor that in as an operating expense.

5. Conclusions
The closing paragraph or portion of the proposal should remind readers of the
project benefits.
Your last section should entice them to contact you to discuss the project in detail
and perhaps make one last case for why you or your firm is the best candidate for
the job.
Always consider what more your audience would need to comprehend the
project, its necessity, its benefits, your position in it, and your qualifications.
Always ask yourself: What else does a potential client need to know in order to
approve the project, and what do you need in order to complete the work?

How long should a technical

proposal be?
Creating a great proposal is always a classic Goldilocks problem.
It can’t be too long or too short. It needs to be precisely the correct length.
Your pitch should be brief, but not so short that it omits important information.
It should not be excessively long, either, as this may cause your client to skim or
skip sections.
Proposals of 10 to 20 pages are typical, but some clients prefer short concept
notes, while others rather go for extensive proposals of 50 pages or more.
This is, however, merely a framework metric.
Often, you can get a good idea of the desired length based on the information
than an RFP is asking for.
If you don’t have an RFP to use as a guideline, any information you can gather
from the client about their needs will give you a better understanding of the
space you need to address the problem.

Types of technical proposals

There are four main types of proposals. When writing a technical proposal, the
type of proposal you intend to write will have a major impact on the technicalities
you should provide and the language you need to use in order to win the
contract.

1. Solicited proposals
Solicited proposals are proposals that have been requested from another party.
A potential client or project stakeholder has reached out to your team or business
and requested information on how you might solve a problem.

2. Unsolicited proposals
Unsolicited proposals are proposals that you have arranged and sent based on a
need or opportunity that you have discovered. Rather than being ask, your
business has approached an organization with the intent to provide a product or a
service.

3. External proposals
External proposals are sent to an individual or company external to your own
organization. These proposals will rely on details, information, and project
specifications from the external party and are usually done for profit.

4. Internal proposals
Internal proposals are used to pitch projects, ideas, and initiatives to stakeholders
within your own organization. These initiatives could include changes in policy,
new modes of business operation, or ventures into a new sector of business. They
are not usually done for profit, aside from budget allocations and financial
approvals within the company. Each of these proposals can be technical in nature,
depending on the type of business and the work that needs to be done. Often,
technical proposals are created in response to a request for proposal (RFP)
document, which outlines the need of the organization and the requirements or
specifications that any solution must entail. Internal requests don’t often contain
formal RFP documents, but proposals may be created in response to a summary
list of needs (sometimes sent via email or discovered through meetings and
internal conversations). In some sense, any kind of proposal you write has the
potential to be a technical proposal. However, some proposals will be more
technical than others.
Here’s a closer look at several common proposal types and how they may be
written in a technical way.

5. Business proposal or sales proposal

Sales proposals and business proposals are external documents delivered to
buyers or consumers outside of the company. They vary greatly in style and form,
ranging from short, one-page proposals to full-length, detailed documents that
offer much greater specificity. At the short end, these types of proposals can be
very simple. However, when the external organization requires very specific
solutions or the project is very competitive, a greater level of technical expertise
may be required to explain why your organization should win the contract. The
RFP for a project may also require technical documentation that demonstrates
how a solution will work, including details surrounding past successes, expected
results, and statements of work detailing what must be done. The stakeholder
may need to know about key personnel involved, the equipment or facilities you
intend to you to complete the project, and much more. As the requirements
begin to accumulate, you may find yourself supplying highly technical
documentation in the middle of your sales or business proposal!
However, though the documentation may be complex, it is often repeatable. In
fact, most organizations that rely on RFPs as a means of profit use proposal
template software tools to accelerate the speed at which proposals can be
compiled and sent.

6. Research proposals
A research proposal is a document outlining the scope of a project, including the
research questions or hypotheses to be answered, the methodology, and any
potential outcomes. It may also include a budget estimate for conducting the
research work and an indication of how much time it will take to complete. These
proposals are most common in academia and in the non-profit sector, where
funding may come from external sources like foundational or government grants.
In this case, the grant-providing organization will typically post a call for project
submissions based on a theme or initiative, then fund projects that further their
organizational directives.
Because of the competition surrounding these projects and the specific nature of
the research, these proposals can become very technical in very short order.

7. Real estate development

Designing even a single building can quickly become a multimillion dollar project,
so you won’t have to go very far in this field to begin feeling the pressure for
technical details. Real estate development proposals need to cover aspects of
construction, suppliers, government regulations, and more. It needs to have solid
construction timelines, specify what materials will be used, where those materials
will be sourced, how projects will be financed, and more. All aspects of a project
like this require a measure of technical expertise. Because these projects are
typically financed by a bank or similar third-party backer, major development
projects will be heavily scrutinized for flaws and cost-saving opportunities.

How to write a technical proposal

In this section, we’ll walk you through the process of preparing a technical
proposal one step at a time. We’ll cover every major section of your proposal,
what it should include, and how you should approach it.
Keep in mind that proposal formats may vary — both in RFP specifications and
due to the nature of your business — so use these steps as guidelines and tailor
your final proposal to the needs of your business.

1. Prepare an executive summary,

abstract, or cover letter
Provide a summary of your proposal in one page or less, presenting an overview
of the proposed work.
Make sure your proposal writing is carefully put together and covers all elements
and deliverables you plan to tackle:
Indicate that your memo content revolves around a proposal for a specific
project.
Develop at least one direct, to-the-point, motivating statement that will compel
the recipient to read on and consider supporting or approving the project.
Provide a brief overview of the contents of the proposal.
It is not necessary you lay things out in this order, but be sure to include each
element in your summary.
Follow the outlined workflow and formatting, and stay on point.
Make modifications where necessary to fit the needs of your business or project.
Here’s a good example of how you can put together an executive summary for a
website development proposal.

2. Put together a table of contents

A table of contents (TOC) shows readers what topics the technical proposal
covers, how the document is arranged, and where they can find specific sections
and subsections. A well-organized table of contents provides an at-a-glance way
of finding information in the proposal. In that sense, it is crucial you apply proper
formatting in your TOC design structure. Keep in mind that stakeholders may not
read your proposal from cover to cover.
They are likely to skip and skim sections and to consider the document in an
asymmetrical manner, with more time spent on solutions, costs, and other key
factors. When preparing your document, consider the following:
1. Levels of headings
If your proposed project is longer, consider including more than the top two levels
of headings. Your header structure will dramatically impact the look and feel of
your TOC and can keep it from becoming unwieldy or overwhelming.

2. Indentation, spacing, and capitalization

Make sure all levels of headings and page numbers are aligned with one other.
For capitalization, ensure that you follow the same heading structure on a per-
level basis. If your H1 headings are fully capitalized, be sure that all headings
designated as H1 follow this format.
The same is true for other header styles.

3. Vertical spacing
For increased readability of your entire proposal, format the first-level sections so
they have extra space above and below.
Work to keep the formatting and styling consistent throughout your document,
and use the automatically generated TOC to get a clear overview of your
document.

3. Technical background,
opportunity, or situation
Provide background that identifies the problem; discuss what has inspired the
need for the project, and provide motivation explaining why such a task would be
essential or beneficial. Reflect on the present opportunity to improve things in
your proposed project while explaining the basic situation. If you have an RFP, use
the information provided by the RFP document to build this section. Speak
directly to the needs indicated by the client documentation and use those
problems to explain the benefit of your solution. While most of the proposal’s
named audience may already be familiar with this very well, writing the
background section is valuable as it demonstrates your particular view of the
situation. If this is an unsolicited proposal, a background section is a must. You
will have to convince the audience that this is the right time for your proposal
assignment (as the opportunity exists) and that it should be addressed.

3.1 Justification, benefits, and feasibility of the

proposed work
How you approach the justification for the work will vary based on the nature of
the proposal. For proposals responding to an RFP, project stakeholders have
already decided to undertake a project and won’t need an explanation of why the
project is good or feasible for their business operations. However, they will expect
a justification for why your solution is the best option compared to your
competitors.
Use results from past projects, technical data regarding your equipment, and
similar information that makes your solution stand out. If you are submitting an
unsolicited proposal, take the extra time to discuss your justifications for the
project, why the client should undertake such a venture, and what the likely
outcomes will be. Unsolicited proposals often hit a roadblock in this area because
the company has not yet made the internal decision to spend money. You may be
selling to a company that lacks the budget or initiative to fund a project. It’s also
possible that, even if you uncover a need, the organization may only hire through
a competitive process. This section is often the largest and tends to contain
numerous subsections such as:

1. Theory and proof

This section may tackle your argument or reasoning regarding the

benefits of your proposed work and provide data that supports your
solution as the best option available to potential clients.

2. Past results

Often, this section is used to offer outcomes from past results (case
studies, measurable improvements, etc.) from previous projects with
similar needs.
3. Predicted outcomes

This category, often tailored to fit the needs of the business or speak to
a specific set of problems, tries to give realistic expectations (and
supporting data) that stakeholders can use to set expectations and
gauge ROI.

4. Critical needs

Here, writers often highlight critical needs that should be addressed as

part of the work. This section may address the needs put forward in an
RFP, but it can also cover the critical needs of the project or
unforeseen needs that the client has overlooked.

5. Timeliness

This section aims to justify the project based on timeliness. A common

argument is that the industry is changing or evolving, and a specific
solution is needed to ensure business longevity. The “why now?”
argument is answered here, and the concept of “future-proofing” is
often a topic of discussion.

4. Technical approach, resources,

and costs required
Most proposals contain a section resembling a progress report
detailing the approach to the projects, resources, objectives, and costs
required. This may require a detailed list of costs of equipment and
supplies, your hourly rates, projected hours, and so forth, and then
calculate the total cost of the entire proposal. Though often less
formal, this approach may also be true for internal proposals,
especially if you require a budget allocation or need to convince
internal stakeholders to invest time and effort into a major initiative.
Internal projects are often misconstrued as “free” projects, but they
incur costs in resource, labor, and opportunity. Here is a part of the
proposal that is typically included in this section:
4.1 Objectives

Pinpoint the specific things you plan to achieve with this project. This
section might exact changes you intend to make, equipment you
intend to install, or processes and workflows that may need to be
optimized, or work that you intend to perform. If your goals are metric-
based, such as lowering a specific metric or improving performance in
a given area, this section should detail those targets and why they
matter.

4.2 Statement of work

The statement of work (SOW) is a document that covers and defines all
components of a project’s scope of work. It is legally binding and notes the
project’s activities, deliverables, and timeline. It’s a very detailed work contract
that establishes the framework for the project plan. Keep in mind that a
statement of work is almost a document unto itself. The SOW is one of the first,
and most important documents you’ll create before planning and executing a
project. Writing one can be intimidating due to the quantity of detail required.
You can learn more about statements of work and how to write them over here.
4.3 Project tasks
Provide a detailed list of itemized tasks (Task 1, Task 2, etc., with sub-tasks (if
any), numbered Task 1.1) that need to be performed for the objectives listed
above to be met. Each task and subtask should come with a brief description.
You can also include additional information about which tasks can be
performed simultaneously and which tasks must be performed
chronologically.

4.4 Project calendar/schedule

Especially important for long-form projects, a project calendar or schedule will
provide timelines regarding overall project completion. Often, the final dates are
dictated by the RFP. Depending on their own deadlines and initiatives, the client
may have some flexibility. In some instances (particularly if the RFP is based
around time-limited funds or resources), the proposed deadline may be inflexible.
Your schedule will need to align with those proposed deadlines.

4.5 Expected costs

Determine costs per each task and the overall project completion. Include
estimates for all labor involved as well as any supply and equipment costs.
Overages and deviations from the budget price aren’t necessarily a deal breaker.
Stakeholders may not have properly estimated the work required to complete the
project. Keep in mind that if your estimates are higher and every other proposal
comes in at a lower cost, you could still lose the project.

5. Personnel and equipment

This section defines the qualifications and expertise that your team brings to the
project. Particularly when stakeholders are reviewing similar projects, the
experience and history of your organization and its people will play a major factor
in the client’s assessment of risk. Typically, this section is broken into two major
parts:

a. Key personnel
This section includes the members of your team who would be assigned to the
project, along with their relevant expertise in a given field, any qualifications they
might have, and what they can offer.
You won’t need to list every single team member, but the individuals in charge of
the project (or those with valuable expertise) should be included.

b. Equipment or facilities
In this section, you’ll want to include any specialized equipment or unique
facilities that will help you meet the project requirements. If you have unique
tools or a specialized shop to manufacture and modify components, these factors
can help to set you apart from competitors.

6. Anticipated benefits
Here, you’ll want to focus on the benefits that the client can expect from your
work. This could include improved safety, increased efficiency, long-term cost
savings, and a positive environmental impact. The purpose of this section is not
only to further justify the time and expense of carrying out this project but also to
confirm that your project is superior to similar solutions offered by competitors.
Take the time to write a concise list of benefits and advantages that demonstrate
the value of your project. In doing so, this section can do the following:

Set yourself apart from the competition

The most significant goal of a project proposal is to showcase the advantages of
your company over competitors. A project proposal helps you clearly articulate
these benefits and impact the potential client’s decision if your organization offers
cheaper costs, stronger processes, or better-projected outcomes.

Ensure that everyone is on the same page about

the project
Project proposals ensure that both parties understand what the project includes
by stating the project’s goal and scope. This shared understanding improves
communication in the future and builds trust between a client and a sponsor.

Establish trustworthiness
A well-written project proposal explains how the vendor plans to execute the
project and meet the client’s expectations. Project proposals may also identify
potential dangers and provide ways to mitigate them.This high degree of
communication persuades potential clients to know what goes into a project and
what it takes to complete it.

Draw attention to a problem

Project proposals can also be utilized to draw attention to a problem that a
corporation was previously unaware. Your document could describe why a client’s
problems are urgent and why they need to be resolved in the shortest time frame
possible.

Propose a budget and a timetable for the

project
Although a project proposal isn’t a legally binding contract, it establishes the
budget and timeline for a project’s completion. Vendors and stakeholders can use
the document to reach a preliminary agreement on the resources and time
required to complete a project.
Assist with project planning
The project proposal serves as an outline to assist you schedule resources and
decide on a strategy to meet the project’s objectives once you’ve signed a
contract with a client. Developing project proposals is an unavoidable part of any
project manager’s job, but it doesn’t have to be tough or time-consuming. You
can make that procedure a lot easier if you look for it. Yes, you’ve guessed it –
templates! The project proposal template does more than just provide you with
some ready-to-use language.

Benefits of using a project proposal template:

It also helps you:

 Make your document structure obvious so that the prospect can
easily explore your grasp of the client’s problem, your proposal,
approach, skills, schedule, and additional activities.
 Establish the proper, identifiable graphics that would prompt
your prospect to engage you for the next project, too.
 Have the right, cohesive tone that makes it easy for the prospect
to see you are already involved with them and are ready to solve
their problem.
 Save a lot of time so you may concentrate on more important
things.
 Reduce/eliminate rework time because you’ve already got a ready-
to-use template on standby.

7. Conclusion
The conclusion of a technical proposal is the final paragraph or section of the
proposal and is designed to bring readers back to the central idea of the proposal.
This final section should, once again, list all positive aspects of the project. If you
want to end your proposal on a solid note, urge the reader to contact you to work
out project details further, remind them of this project’s benefits, and maybe
remind them why you (and your team) are the right person to lead this project.

8. References and sources

References section lists resources cited in the body text and diverts readers to
those sources should they need additional reading or checking of facts. This tends
to be more useful if you aren’t submitting electronic documents and can be used
as a replacement for document footnotes. However, if you can hyperlink stats,
statistics, white papers, etc., this section may not be necessary. Often, writers
include documents and data here in the event that the proposal is printed and
handled as a physical document.

9. Appendices
Nonessential but potentially helpful, an appendix contains supplementary
material that provides a more comprehensive understanding of the
research/topic at hand. Appendices sections usually contain relational or technical
information that is too complex or off-topic to be included in the body of the
paper. Often, this hyper-specific information may be more of interest to subject
matter experts on the client side than project stakeholders who are more
interested in a holistic view of your project or initiative.