Each project is made for customer satisfaction. Therefore a project proposal must include a description of how the project activities will satisfy the customer needs. Its basic purpose it to convinced the customer that the proposal is viable proposition and worthy of support. It is the device used to seek financial source/support for the proposed project. Donor agencies, loan provider provide the loan after the proper evaluation of project proposal. Therefore, it is important for the donor agency, loan provider, customer and the organization who are directly or indirectly related with the outcome of the project proposal.
Project proposal is the grouping of project activities. It may be brief or extensive. It is prepared for both corporate and development project. It is usually divided into two parts i.e. (i) Technical Part (ii) Financial Part. Technical part of project proposal deals with technical details and financial part deals with financial details including total cost.