As A Freelancer, contractor or consultant, starting with a proposal and leading up to a contract is the best starting point you can give yourself and your client, as this will wipe away any doubts.
The difference between a proposal and a contract is that a proposal is often what the project is about, how you want to solve it, how long it’ll take, and the price. A contract is something you craft once your client has accepted the proposal. This ensures a great starting point.
I always start with a proposal to guide the direction of how I see a collaboration or a project going, and if my client agrees on that, then I craft up a contract that states the terms of the project or collaboration.
What Is The Purpose For A Proposal?
You send a proposal right after the first meeting if your client agrees to see the proposal to you. When you reach the point where you send a proposal, then it doesn’t mean you’ve secured the job. This is just a step closer.
A proposal lines out the project, I always try to include the following points:
- Scope the project very detail to avoid confusion
- Describe how I want to solve the project
- Describe how long I expect each module of the project to take
- Make a timeline and a time plan for the project
- Give a scope price, and mention everything beyond the scope comes at an extra price
- Add a deadline for when the project needs to be finished
- Add a deadline for when the proposal expires.
A proposal is there to avoid any confusion before starting. If you’ve been a freelancer for some time, you have 100% met a client who asked for something extra, believing that it was part of the initial project. This is why you need a proposal and, later, a contract.
It’s a good idea to mention your first meeting as well, and add everything you discussed at that meeting, because your proposal is the foundation for the contract, and the contract is signed by both you and your client.
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What Is The Purpose For A Contract?
Now with the proposal accepted by your client, you can now start to draft out a contract. A contract is very much like a proposal; it contains many of the same elements, but you have to include some elements, such as payment terms, rights, etc.
A contract protects you and your client and ensures smooth collaboration. You will both sign the contract, and the contract states what the project is about, the deadline and more.
To write a good contract, I usually include the following elements:
- Everything in the proposal
- Contact details on you and your client
- Ensure the project description of what needs to be done is detailed enough to avoid confusion
- How will revisions be handled? At the end? During the project? And how many are allowed
- Payment terms, is it per module, per month or split? (Read more about invoice types)
- What happens if you exceed the deadline
- Who owns the rights to the finished project
- Signature from both you and your client
- Cancellation terms
- Equipment and expenses (If you need a tool, for instance, who pays for it?)
- And lastly, legal terms
These elements are super essential to ensure a smooth collaboration with your client, and the more detailed you are, the easier your project will be.
This will ensure your client gets a great experience working with you, so don’t be afraid to draft up the contract and show initiative; your client is most likely used to signing contracts for everything.
Read this guide if you want more information on how to write a freelance contract with free templates.
How Does A Proposal Support A Contract?
So as you now know the difference between a proposal and a contract, you can also see they support each other.
A contract is much easier to craft if you start with a proposal. And a proposal seems less intimidating for your client as they haven’t decided to work with you just yet, so starting out with a contract can scare some clients away.
Remember to keep your proposal to the point and detailed, and leave out all fluff. The more detailed your proposal is, the easier it is for your clients to find mistakes and missing pieces early in the collaboration than when you send the contract.
Following these 2 steps creates an excellent experience for your client, who will remember you for just this.
Once it’s time to invoice for the first part of the project, or the entire project depending on your payment terms, then I’ve made the ultimate guide on how to invoice as a freelancer.
FAQ
Do you need a proposal and contract?
No, you don’t need a proposal and a contract. Some work easily together without any of these, but it does help to have at least a contract.
A contract will help you with legal issues and ensure you create a smooth experience with your client.
A proposal is a document that can help you smooth into the contract without seeming intimidating.
What is a proposal for a contract?
A proposal is a step before a contract. It’s a lighter contract, and it’s great in situations where your potential client hasn’t decided whether they will work with you.
It’s still important to keep it detailed, but keep it lighter and leave out legal terms until the contract is okay.
Is a proposal a starting point for a contract?
Yes, it absolutely is. A proposal is a light contract that gives your potential client an idea of how you’ll solve the project, how you’re working and if they can see themselves working with you.
A contract to begin with, without knowing each other, can seem intimidating, and that’s why it’s great to start with a proposal. Once accepted, you almost already have your contract as well.
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