Tenant Improvement Proposal Template: Win Build-Out Jobs Without Absorbing Design Changes, Permits, Access, and Owner Delays
A tenant improvement proposal template for general contractors and commercial remodelers. Covers scope, allowances, plans, permits, landlord approvals, access, exclusions, 3-tier pricing, change orders, payment terms, follow-up language, FAQ, and Propovio CTA.
Tenant improvement jobs are where small wording mistakes become expensive meetings.
A client says they need "a simple office build-out," "a light retail refresh," "a few walls and finishes," or "a quick clinic remodel before opening." Then the job starts collecting landlord approvals, permit comments, unknown existing conditions, finish substitutions, mechanical conflicts, electrical changes, fire/life-safety requirements, ADA corrections, after-hours rules, delivery constraints, and decisions that arrive late enough to ruin the schedule with a straight face.
If your proposal says "tenant improvement build-out - $42,000," the client may assume that includes design revisions, landlord delays, permit resubmittals, engineering, extra inspections, finish upgrades, utility work, change orders from the tenant's equipment vendor, and schedule compression.
That is not a proposal. That is a margin donation with drywall dust.
Use this tenant improvement proposal template for office build-outs, retail remodels, clinics, wellness studios, restaurants, light commercial renovations, landlord-required improvements, and commercial space conversions.
Why Tenant Improvement Proposals Go Sideways
1. The plans are not treated as the scope. If drawings, finish schedules, specifications, and landlord requirements are incomplete, the proposal needs to say what it is based on.
2. Allowances are vague. Flooring, paint, doors, hardware, lighting, plumbing fixtures, millwork, signage, and specialty equipment can swing the budget quickly.
3. Permits are underestimated. Plan review, comments, resubmittals, inspections, fire marshal requirements, health department review, and engineering can change the timeline.
4. Landlord and building rules are invisible. Freight elevator windows, insurance certificates, security, parking, noise rules, work hours, and shutdown approvals all affect cost.
5. Owner decisions arrive late. Every finish selection, layout tweak, vendor change, and equipment spec that comes late can create schedule and cost impact.
6. Existing conditions are treated like your problem. Hidden electrical, plumbing, HVAC, slab, framing, fireproofing, moisture, and code issues should not be silently included.
What Every Tenant Improvement Proposal Needs
A strong tenant improvement proposal should answer:
- What drawings, sketches, notes, or specifications is pricing based on?
- Which rooms, areas, walls, doors, finishes, fixtures, and systems are included?
- What allowances are included, and what happens if selections exceed them?
- Who is responsible for permits, landlord approval, drawings, and engineering?
- What access, work hours, building rules, and shutdowns are assumed?
- What existing conditions are excluded?
- How are change orders approved?
- What payment schedule protects cash flow?
- What schedule assumptions must hold for the completion date to be valid?
Include these sections:
- Project summary with space type, business goal, and included areas
- Basis of proposal listing drawings, notes, site walk, and assumptions
- Scope of work by trade and phase
- Allowance schedule for finishes and owner selections
- 3-tier pricing for essential build-out, recommended permit-ready build-out, and accelerated closeout package
- Client responsibilities for approvals, selections, equipment specs, and building access
- Exclusions for design, engineering, hidden conditions, landlord-driven changes, and owner vendors
- Change-order language that protects schedule and margin
Sample Tenant Improvement Proposal Template
TENANT IMPROVEMENT PROPOSAL
Prepared by: Summit Commercial Build Co.
License: General Contractor GC-71490
Insurance: General Liability $2,000,000 per occurrence | Workers' Comp: Active
Date: June 7, 2026
Proposal valid for: 14 days
Client: Luma Wellness Studio
Property: 1180 West 6th Avenue, Unit 204, Vancouver, BC
Contact: Priya Shah
Email: priya@example.com
Phone: (604) 555-0142
Project Summary
Provide tenant improvement work for a wellness studio build-out in an existing commercial suite. Scope includes selective demolition, interior partitions, door and hardware installation, finish carpentry, paint, flooring allowance, basic electrical coordination, plumbing fixture coordination, ceiling adjustments, cleanup, and closeout documentation as listed.
Recommended option is the Permit-Ready Build-Out Package because the project depends on landlord approval, selected finishes, permit timing, and coordinated trade work before opening.
This proposal separates the approved build-out scope from design revisions, engineering, landlord changes, permit comments outside scope, HVAC redesign, fire alarm changes, utility upgrades, specialty equipment, signage, and owner-vendor delays.
Basis of Proposal
| Source | Used For Pricing | Limit |
|---|---|---|
| Site walkthrough | Existing suite layout, access, visible conditions | Concealed conditions excluded |
| Client sketch dated June 5 | Room layout and desired use | Not a stamped construction drawing |
| Landlord work rules | Work hours, loading, insurance, elevator access | Additional rules may affect price |
| Finish discussion | Flooring, paint, doors, trim, basic millwork | Final selections must stay within allowances |
| Trade assumptions | Electrical/plumbing/HVAC coordination | Engineering and major system redesign excluded |
Basis limit: Pricing is based on the information listed above. Updated drawings, landlord comments, permit corrections, engineering requirements, finish upgrades, or owner-requested changes may require a written change order.
Scope of Work
| Phase | Included Work |
|---|---|
| Preconstruction coordination | Confirm site access, work hours, landlord rules, client selections, and schedule assumptions |
| Selective demolition | Remove listed non-structural finishes and partitions only where approved |
| Framing and drywall | Build listed non-load-bearing partitions, drywall, tape, sand, and prepare for paint |
| Doors and hardware | Install listed interior doors, frames, locksets, and basic hardware allowance |
| Electrical coordination | Coordinate listed outlet, switching, and lighting adjustments with licensed electrical trade allowance |
| Plumbing coordination | Coordinate listed fixture rough-in or connection allowance where accessible |
| Finishes | Install flooring, base, paint, and finish items within listed allowances |
| Ceiling and access | Adjust accessible ceiling grid/tiles only where listed |
| Cleanup | Construction debris removal and broom-clean turnover |
| Closeout | Provide warranty summary, approved change-order log, and punch-list completion notes |
3-Tier Tenant Improvement Pricing
| Tier | Best For | Included Scope | Example Price |
|---|---|---|---|
| Essential Build-Out | Simple refresh with clear scope and minimal approvals | Selective demo, listed partitions, basic paint, flooring allowance, limited trade coordination, cleanup | $38,500 |
| Permit-Ready Build-Out Package | Most office, wellness, retail, and light commercial tenant improvements | Essential package plus permit coordination allowance, landlord access coordination, expanded finish allowances, trade scheduling, punch-list closeout | $62,800 |
| Opening-Ready Closeout Package | Clients with firm opening date and higher documentation needs | Permit-ready package plus priority scheduling, enhanced closeout binder, finish protection, expanded punch-list support, after-hours coordination allowance | $88,400 |
Recommended option: Permit-Ready Build-Out Package. It gives the client a realistic commercial build-out structure without pretending landlord approvals, permits, selections, and trade coordination are free.
Allowance Schedule
| Item | Included Allowance | Notes |
|---|---|---|
| Flooring material | $7.50 / sq. ft. material allowance | Upgrade cost billed by change order |
| Wall paint | Standard commercial-grade paint | Specialty coatings, murals, and brand colors requiring extra coats excluded |
| Doors and hardware | Standard hollow metal or solid-core interior allowance | Access control and specialty hardware excluded |
| Lighting fixtures | Basic fixture allowance where listed | Decorative, specialty, emergency, and title-24/energy-code changes excluded |
| Plumbing fixtures | Standard fixture allowance where listed | Specialty fixtures, commercial kitchen, medical, spa, or lab equipment excluded |
| Millwork | Basic reception/storage allowance if selected | Custom shop drawings and premium finishes excluded |
Allowance language:
Allowances are budget placeholders for selections not finalized at proposal approval. If final selections exceed the listed allowance, the difference in material, freight, handling, schedule impact, and labor adjustment will be approved by written change order before ordering.
Client Responsibilities
Client is responsible for:
- approving layout, finish selections, and equipment locations before ordering or construction
- providing landlord approval, lease requirements, building rules, and access contacts
- confirming work hours, freight elevator windows, loading dock access, and parking rules
- providing final specifications for owner-supplied equipment, signage, furniture, IT, security, and specialty vendors
- approving change orders before added work begins
- responding to selection and clarification requests quickly enough to protect schedule
When the client owns the decision, the proposal should say so. Otherwise every late answer looks like your delay.
Permit and Landlord Approval Language
Use wording like this:
Proposal includes permit and landlord coordination only as listed in the selected option. Permit fees, plan review fees, engineering, stamped drawings, health department review, fire marshal requirements, landlord-requested changes, resubmittals, and inspection corrections outside the listed scope are excluded unless included in writing.
For schedule:
Proposed schedule assumes timely client selections, landlord approval, permit release, inspection availability, trade access, material availability, and no changes to the approved scope. Delays caused by approvals, inspections, owner vendors, material substitutions, building access, or client decisions may extend the completion date.
Exclusions
Not included unless specifically added in writing:
- Architectural drawings, engineering, stamped plans, code consulting, accessibility consulting, or permit expediting
- Structural work, slab cutting, utility upgrades, service upgrades, major HVAC redesign, fire alarm, sprinklers, or life-safety system changes
- Health department, restaurant, lab, medical gas, specialty clinic, or food-service requirements unless listed
- Owner-supplied equipment installation, furniture, IT/data, security, signage, branding, appliances, or specialty vendor coordination
- Hazardous materials, asbestos, mold, moisture remediation, lead paint, fireproofing repair, or hidden damage
- Patching or repair beyond listed finishes, exterior work, roof penetrations, landlord base-building defects, or work by others
- Added costs caused by late selections, revised drawings, landlord comments, failed inspections outside contractor scope, or owner-requested acceleration
Exclusions do not make the proposal less professional. They make the job survivable.
Change-Order Language
Use this:
Any work not specifically included in this proposal requires written change-order approval before proceeding. Change orders may affect price, schedule, material lead time, permit status, inspection timing, and completion date.
For late changes:
Changes requested after ordering, demolition, framing, rough-in, finish installation, or inspection scheduling may require rework, restocking fees, additional labor, rescheduling, and schedule extension.
For owner vendors:
Delays, damage, extra work, or schedule impact caused by owner vendors, equipment suppliers, IT/security providers, signage vendors, furniture installers, or landlord contractors are excluded and may be billed by change order.
Payment Terms
| Milestone | Amount |
|---|---|
| Approval and scheduling | 30% deposit |
| Demo/framing start | 25% progress payment |
| Rough-in / major trade coordination complete | 25% progress payment |
| Substantial completion | 15% progress payment |
| Punch list / closeout | 5% final balance |
Example language:
Materials, allowances, permit fees, specialty items, and change orders may require payment before ordering or scheduling. Final payment is due at substantial completion except for mutually agreed punch-list holdback listed in writing.
Follow-Up Message
Use this after sending the proposal:
Hi Priya, I sent the tenant improvement proposal for the wellness studio build-out. I recommend the Permit-Ready Build-Out Package because it includes the construction scope plus the coordination pieces that usually decide whether a TI job stays on schedule: landlord access, permits, finish allowances, trade scheduling, and punch-list closeout. I also separated owner selections, engineering, landlord changes, and hidden conditions so the approved scope is clear before we start.
Use this after a client asks why the proposal has so many assumptions:
The assumptions are there to protect the opening date and avoid surprise costs. Tenant improvements depend on approvals, selections, access, permits, and existing conditions. Listing those now keeps the job cleaner for both sides.
FAQ
What should a tenant improvement proposal include?
It should include project summary, basis of proposal, scope by trade, allowance schedule, permits, landlord approval assumptions, access requirements, exclusions, change-order terms, schedule assumptions, payment milestones, and closeout details.
How should allowances be written in a TI proposal?
Each allowance should name the category, dollar amount or unit amount, what it covers, and how overages are approved. Finish upgrades should trigger a written change order before ordering.
Who handles permits for tenant improvements?
It depends on the proposal. Some contractors coordinate permits, but fees, drawings, engineering, resubmittals, and authority-required changes should be defined separately.
What exclusions matter most in tenant improvement work?
Major exclusions include design/engineering, structural work, fire alarm, sprinklers, HVAC redesign, utility upgrades, hazardous materials, owner vendors, signage, furniture, hidden conditions, landlord changes, and late selections.
How do contractors protect schedule on build-out jobs?
Tie the schedule to clear assumptions: timely approvals, final selections, landlord access, permit release, inspection availability, material availability, and no owner-requested scope changes.
How Propovio Helps Contractors Quote Tenant Improvements
Tenant improvement proposals repeat the same margin-risk pieces: plans, allowances, permits, landlord approvals, owner selections, access, existing conditions, trade coordination, exclusions, payment milestones, and change orders.
Propovio helps contractors turn rough build-out notes into client-ready proposals with:
- clear scope by phase and trade
- 3-tier pricing options
- allowance schedules
- permit and landlord approval language
- client responsibility sections
- exclusions that protect margin
- follow-up emails that make approval easier
If you want to win commercial build-out jobs without absorbing every late decision and hidden condition, start with a proposal that makes the real scope visible.
Try Propovio at propovio.com
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