Generally speaking, when a contractor prepares a proposal they're competing with other contractors.
There are four primary factors a contractor should consider when setting the price of a proposal.
A contractor should overprice a proposed project to increase profits.
If a proposed project is under-priced, the contractor may lose money.
What is the most appropriate answer for this element of the proposal's Pricing Considerations?
The level of confidence that the total cost of a proposed project is complete and accurate.
What is the most appropriate answer for this element of the proposal's Pricing Considerations?
If the project hasn't been undertaken before, it may be necessary to include a large amount of reserve funds.
What is the most appropriate answer for this element of the proposal's Pricing Considerations?
A proposal shouldn't exceed what the customer has available.
What is the most appropriate answer for this element of the proposal's Pricing Considerations?
If many contractors are competing for a project, it may be necessary to submit a price that includes only a small amount of profit to win the contract.