PREPARING A PROPOSAL/QUOTATION - Things you need to be aware of. (from my own experience)

Disclaimer: The following tips may not apply universally to every consultant or consultancy firm. However, many of the points highlighted here represent common industry practices, professional expectations, and generic fundamentals that consultants should generally be aware of.

Different consultants may have different approaches, methodologies, and working styles depending on their field, experience, and organisational culture. Nevertheless, there are also many similarities in terms of professional conduct, commercial practices, project management, client engagement, ethics, and risk management much of which is reflected in my own experience and practice.

"Do not be too proud or talk in an arrogant manner especially if you've invited into Board Meetings, remember you're just a Consultant, not a CEO or President of a major corporation"

(I’ve seen this mistake happen before, and it can be one of the most damaging ways to engage with clients. Always remain calm and composed, especially when being grilled with questions, the client is often testing your resilience, depth of knowledge, and how you handle pressure in a crisis situation. Remember that today’s knowledge can quickly become yesterday’s. It is important to continuously update yourself with current industry developments, especially in areas such as AI and emerging technologies, to stay relevant and effective.)

PREPARING A PROPOSAL AND QUOTATION

When preparing a proposal and quotation for consultancy services whether in construction, engineering, management, ICT, ESG, training, or any other industry, it is common practice to provide a proper breakdown of the scope of work, deliverables, phases, man-days, and the corresponding cost for each item before arriving at the grand total.

At the proposal stage, you normally do not provide a full detailed schedule or execution programme yet unless the quotation has been officially approved or awarded. The quotation stage is usually part of the commercial evaluation and negotiation process. Clients are expected to negotiate on pricing, scope, duration, or deliverables, so ensure that whatever you quote remains commercially reasonable, technically justifiable, and aligned with current market practices.

Do your homework properly. Conduct market surveys, understand prevailing industry rates, benchmark competitors where possible, and ensure the value you provide matches the fee you are charging. Sometimes providing a few additional value-added services, limited advisory support, or certain minor items on an FOC basis can strengthen client confidence and improve long-term relationships.

It is also common industry practice to request a mobilization fee or upfront payment upon award confirmation. This reflects the consultant’s initial commitment cost such as travelling, accommodation, manpower preparation, preliminary site visits, documentation, insurance, and operational readiness. In some projects, the client may separately cover OPE (Out-of-Pocket Expenses), but in many cases mobilization is necessary before any substantial work begins. From a business and risk management perspective, obtaining the mobilization fee first is important to ensure commitment from both parties.

Another important point, never simply “sub-out” the entire job using your own company name if you do not possess the required competency, technical capability, or experience in the field you are quoting for. But you can collaborate with other experts/consultants in the field that you do not possess the strength. Clients today commonly conduct background screening, capability assessments, financial reviews, and technical evaluations before appointing consultants. If your documentation, experience, certifications, and procedures are genuine, there is nothing to fear.

At the same time, consultants should also conduct their own due diligence on clients discreetly and professionally. Review their company background, annual reports, financial standing, project track record, litigation history if any, ownership structure, and identify who the actual decision makers or PICs are. This is part of proper commercial risk management.

Equally important is maintaining ethical boundaries. Be cautious of red flags that may expose you to bribery, corruption, kickbacks, or disguised “facilitation payments.” Some payments may appear harmless initially but can later create legal, contractual, governance, or reputational problems. Proper documentation, transparency, and compliance with company SOPs and anti-bribery policies are extremely important.

As for marketing commissions, there is a major difference between legitimate business development arrangements and unethical inducements. In my own practice, when a marketer successfully helps secure a project, I normally compensate them through an agreed marketing commission. More importantly, I encourage them to remain involved in the project execution itself so the commission reflects actual contribution and continuing value creation. Additional payments are then tied to actual involvement, phases completed, deliverables, or man-days contributed rather than hidden transactions.

Lastly, from experience, I would strongly advise consultants to be very careful about proceeding with consultancy work, training programmes, or project execution entirely using your own funds first with the intention to “claim later,” even if you have sufficient capital reserves. In reality, this often leads to prolonged disputes over claims, delayed payments, variation disagreements, documentation arguments, strained relationships, and in some cases escalation into legal disputes or court proceedings.

A good consultancy engagement is not only about technical capability. It is also about professionalism, documentation, ethics, commercial awareness, risk management, financial discipline, and protecting both parties through clear procedures and proper agreements from the very beginning.