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In this video, the tutorial demonstrates how to create a new bid within the proposal program. By selecting "new" under the file menu, the user is prompted to choose the company for which the estimate is being done. The next step involves selecting a customer from the list, with the option to add a new customer if necessary. The user can also select a project from planner or image editor if available, or opt not to use a project for quoting on non-design related tasks such as tear out work.