Writing inclusions, exclusions and qualifications that hold up

Inclusions say exactly what your price covers, exclusions say what it doesn't, and qualifications (or clarifications) state the assumptions the price depends on. Write them specifically — naming spec sections, product codes, quantities, conditions and who is responsible — so a GC can level your number and a dispute after award has a written answer. Vague lines like “standard exclusions apply” protect nobody.

By Michael Reddy, IntelBid

After this lesson you can

Write inclusions tied to spec sections and finish codes
Build an exclusions list that covers flooring's common risks
Phrase assumptions so changed conditions become change orders

What's the difference between the three?

Section	What it does	Example
Inclusions	Defines what your price covers	“Carpet tile CPT-1 and LVT-1/LVT-2 per the finish schedule, 4-inch rubber base RB-1, transitions at material changes, and attic stock per Section 09 68 13.”
Exclusions	Defines what your price does not cover	“Moisture mitigation, testing or abatement of hazardous materials, and furniture moving.”
Qualifications	States the assumptions and conditions behind the price	“Price assumes normal working hours, Monday through Friday, and three mobilizations.”

What makes a line hold up?

Specific, not generic. “Floor prep beyond patching up to 5% of floor area” holds up; “floor prep by others” invites an argument about what prep means.
Tied to the documents. Name spec sections, finish codes, sheet numbers and the addenda your price includes.
Limited by a number. Mobilizations, patching percentage, working hours, submittal review time — numbers turn a disagreement into a count.
Clear about who does it. When you know the responsible party, say so: “furniture moving by owner,” “temporary HVAC by GC.”
Consistent with your price. Never exclude something you actually priced, and never include something you didn't.

Your exclusions only protect you if they reach the contract

The GC's subcontract usually replaces your proposal. Before signing, make sure your proposal — or at least your exclusions and qualifications — is attached or referenced. See bid day to subcontract.

A starter exclusions list for flooring

Risk	Example exclusion or qualification	Lesson
Concrete moisture	Mitigation above manufacturer limits excluded; unit price offered	Moisture qualifications
Floor flatness and prep	Prep limited to a stated amount; grinding and leveler beyond it at unit prices	Flatness and prep
Hazardous materials	Testing, abatement and disposal excluded	Existing conditions
Existing flooring	Removal limited to one layer of a stated material	Existing conditions
Furniture and equipment	Moving, disconnecting and reconnecting by owner	Existing conditions
Building conditions	Permanent or temporary HVAC, lighting and power by others before installation	Flooring specifications
Schedule	Normal hours; stated number of mobilizations; premium time as a change	Mobilization and site conditions
Protection	Protection after turnover and damage by other trades excluded	Existing conditions
Bonds, permits, tax	Bond cost excluded unless requested; state whether sales tax is included	Material, freight and tax

Keep them in a library, not in the last proposal

Copying exclusions from whatever proposal someone can find spreads mistakes. Keep one maintained list, and when a job teaches you something expensive, add the lesson once so every future bid carries it.

How do GCs read your qualifications?

During bid leveling, a GC estimator adds a plug number for every exclusion that a competitor included. A long list of exclusions for normal scope makes your leveled number go up. The balance: exclude the risks that are genuinely unknowable or not yours, and price the ordinary scope a competent flooring contractor is expected to carry.

What is the difference between an exclusion and a qualification?

An exclusion names work your price doesn't cover. A qualification, or clarification, states an assumption your price depends on, such as working hours, number of mobilizations or a substrate condition.

What should a flooring subcontractor exclude?

Commonly moisture mitigation above manufacturer limits, floor prep beyond a stated amount, hazardous material testing and abatement, furniture moving, temporary building conditions, protection after turnover and premium-time work — adjusted to what the documents require and what you actually priced.

Do exclusions on a proposal apply after award?

Only if they become part of the contract. A GC's subcontract usually replaces proposal terms, so ask for your proposal or its exclusions to be attached or referenced before signing.

Key points

Inclusions define the price, exclusions limit it, qualifications state its assumptions.
Specific, document-tied, numbered lines hold up; generic ones don't.
Make sure your exclusions end up in the signed subcontract.

In IntelBid · Settings → Documents, and Notes in each builder

Inclusions and exclusions on every document

Your standard inclusions and exclusions are set once in Settings → Documents and print on every proposal. Each proposal and change order also has Notes for this job's qualifications — a moisture limit, a plan-set date, the prep your price includes — printed right above those lists, so your qualifications travel with every number you send.

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About the author. Michael Reddy builds IntelBid, bid management software for commercial flooring subcontractors. These lessons come from the bid desk: how the work is priced, won and paid for.