TABLE OF CONTENTS Each day thousands of proposals are being written by engineering organizations to bring in new business with an ultimate aim of making profit. This means that proposals are one of the most crucial factors in the success or failure of engineering companies, and they must be prepared in such a way that they can win contracts for organizations at the most profitable terms and conditions. A proposal may simply be described as a document comprised of an offer from the bidder or contractor to the customer or owner to perform certain work by a stated time at a defined quality level for a certain sum of money by using its own facilities and manpower [1 3].
A contract may simply be called a legally enforceable promise, and in today's society contracts are an essential component to the conduct of business [4]. They provide information such as expectations from the parties signing the contract document, essential dates (e.g., project start and completion), and methods of payment for the services.
Usually, the law governing a contract is determined by the place where it was originally signed, unless it is otherwise clearly stated in the contract document. For a contract to be enforceable through the law, it must possess elements such as lawful subject matter, competent contracting parties, formulation as per the provisions of the law, and valid considerations given to all involved parties [5]. This chapter presents directly or indirectly the important management-related aspects of proposals and contracts.
