How To Write a Contract Proposal? Free Template
OCT 09, 2024 | LAST UPDATED ON OCT 09, 2024 BY ANGELICA NAIDU
Getting a contract right in the given time can be a game changer for your business. This not only saves time, money, and effort but also creates a positive image, leading to a long-lasting relationship with your clients. However, most people are unaware that proposal creation does not have to be a hectic job. With a good starting point and reliable proposal templates, you can start on the right foot. A well-crafted proposal helps minimize future headaches by ironing out simple details, which can improve the entire contract proposal management cycle. This blog will help you understand how you should write a contract proposal, what are the main elements needed for a successful contract and how you can use a contract proposal template to minimize the proposal creation duration.
As the word suggests, a contract proposal is a mix of both a contract and a proposal. So, let’s break down both components and understand what they mean. A proposal is a document to pitch your ideas to someone ready or willing to invest. At the same time, a contract is a legally binding agreement between two parties.
So, a contract proposal is a document designed to enter into a contractual relationship with the intention of providing your product/services to a prospect who is ready to invest in your skills and resources. A contract proposal is drafted to create a contractual relationship between the two parties. Depending on the requirements, It can be an offer or a suggestion. A contract proposal can also be a starting point for negotiations. Sending out a contract proposal can also help you build trust, leading to the start of something big. To craft an affection contract proposal, here are a few components you should include:
- Introduction of the proposal
- Details about both the parties involved
- An in-depth explanation of anything and everything related to the project (Roadmaps, facts, rules, about the company, terms and conditions, etc.)
- Data representation if needed.
It could act as your final agreement/contract.
How to Write a Contract Proposal
Introduction
The intro is a starting point for your contract proposal, so make sure it’s engaging enough that the reader wants to proceed. An effective introduction is short, crisp, and to the point. You should write it in a way that gives an overview of what the proposal includes and highlights some major points that might attract your client. Keep in mind that this section is the start, so this is your opportunity to set the tone for the rest of the contract.
Read more about business proposal introductions.
Scope of work
This is where you highlight how you will deploy your skills to benefit the client. The scope of work section should include a detailed roadmap that showcases each and every task that you will be doing within this journey. Make sure the scope of work is as detailed and specific as possible. To make it more effective, include timelines, milestones, and deadlines that are realistic and ensure that your strategy aligns well with the client’s requirements.
Payment terms
The more transparent this section is, the more beneficial it will be for both parties. The payment terms should include anything and everything related to payments, from the cost breakup to the payment modes. Make sure to include all the terms and conditions that might apply to you and your client. This will include late fees, penalties, and what will happen if the payment has been made in advance and the client backs out. Every clause should be clearly mentioned. Remember, this section is not just to protect you but also your client.
Duration of agreement
As we know, a contract proposal is on a contractual basis, and for a limited period, it’s important to specify how long the proposed agreement will actually last. Here, you will have to include the start and end dates, the terms and conditions for extensions, and the proposal renewal.
Termination clause
Another important section to include in your contact proposal is the termination clause. Again, remember, a contract should be beneficial to both parties, not just you. So, keeping this in mind, termination clauses for both parties should be included. For example, what will happen if you’re unable to achieve the milestones? What actions can your clients take in this scenario? Termination clauses include reasons for termination that could be a breach of contract, force majeure, or failure to perform. Another step is to add what actions will be taken if any such things happen.
Intellectual property rights
Intellectual property rights are simply an agreement of things like software, designs, or other materials that you may use or create. This section is majorly created to specify who owns these properties and when and how they can be used. For example, you’re a marketing agency designing graphics for your client with elements that are originally yours. Now, it’s up to you if you’re ready to give them the right to use it outside the business or not and what action will be taken if they do.
Confidentiality and non-disclosure
If you’re dealing with a client where confidential information like trade secrets or customer data is shared, we highly recommend you include the confidentiality and non-disclosure section. This is to protect both parties equally. The section will highlight what information is confidential, the obligations of both parties to maintain confidentiality, and if there are any exceptions in the agreement.
Indemnification
This section of your contract proposal outlines the terms and conditions of what will happen in case of any legal claims or disputes. The entire agreement will state who is responsible for any damages, legal fees, or other costs related to legal claims. However, keep in mind that it should focus on both parties.
Governing law and jurisdiction
If you’re dealing with clients across borders, this section becomes necessary as it states which state or country’s law will be applied in case any legal action is taken. It should mention clearly which state’s laws will be applied if any dispute arises.
Handwritten or electronic signatures
Finally, your contract proposal should have a legally binding e-signature that both parties will sign. This way you both will agree to the terms and conditions that are mentioned above in your contract. You can easily include e-signatures in your contract with super proposal’s legally binding signatures.
Essential Elements of Contract Proposal
Now that you’ve understood how to write a contract proposal, understanding what elements to include is also important. Below we have given a detailed description of what elements are needed to design a contract proposal.
1. Identify who you are
Elaborate a bit about who you are, what you do, and what makes your product or services unique. This information should be mentioned in a way that instantly attracts your clients and forces them to understand you better by reading the further document. Do not make the mistake of missing out on anything that might grab the attention of your prospect.
2. Identify the problem
Now comes a preeminent part of your business contract proposal. Understanding and presenting the problem you’re trying to solve. This section is supposed to be detailed but short and crisp because here, you are just identifying the problem. Keep in mind that this section can be added to support your fee structure later. Also, presenting the problem exactly as the client is facing can bring in brownie points and show how deeply you understand their concerns.
3. Identify the solution
You have identified the problem and presented it to the client, and it’s time to showcase your skills and come up with a solution that justifies your experience and fees. Make sure to keep this section brief yet detailed, explaining how you would be solving the problem the client is facing and how you’ll be giving them their desired results. Again, this section will act as a rationale for whatever fees you are charging and help understand the client if it’s worth it. This is your space to prove why you are best for the job. Make sure you utilize it optimally.
4. Identify any remuneration or compensation
Lastly, identify and mention all the fees and charges that may be included according to your solution and draft a final contract accordingly. Make sure you justify anything and everything mentioned in the fee structure. Further in this section, you will also include the terms and conditions of the payments and if the termination clauses for both parties. Again, remember it should be equally beneficial for both.
Importance of writing a contract proposal
A contract proposal is created to attract prospects by pitching your ideas and plans that can help them solve problems through your skills and resources. While this document is essential for pitching, it’s also important to clearly understand the client’s needs and offer an effective solution. Doing this would help your client know that you genuinely appreciate their concerns and have the right resources to solve their problems. A well-researched proposal will definitely bring a positive impact to your company’s brand and values. Doing this will definitely increase your chances of closing this deal, saving a lot of time and effort in negotiations.
As we saw above, a contract proposal includes a lot of agreements. So, another primary importance of this document is to minimize misunderstandings and prevent both parties from future disputes. A contract is not the final step. You can make amendments at later stages until the agreement is legally binding. You’ve now understood the importance of writing a contract proposal and how effective it can be to persuade clients.
Which is the perfect proposal creation & tracking software for your contract proposal?
What potential does proposal creation and tracking software have? How can it benefit you? We know your doubts, but wait until we explain how proposal software can help you increase conversion rates by 40%. Here are a few features super proposal offers to make that happen:
Impress Clients with the best Editing Features
Super proposal offers the industry’s best editing and styling features that let you customize proposals that reflect your brand’s identity. We also offer pre-designed templates that have resulted in higher conversion rates. Our templates offer a very clean and clear layout, which is appealing to your clients. Our reusable contract proposal template is 100% customizable, so you can tailor it according to the client’s specific needs and preferences.
Efficient Tracking That Maximizes Conversions
With Super Proposal, you get real-time insights into when your client views or comments on the proposal. You also get a real-time notification when the client actually signs the contract to ensure you stay in the loop for follow-ups. Another amazing feature we have is you can get approval from clients and interact with them to enhance collaboration and build a better relationship with your clients. With these amazing features, what’s stopping you from boosting your conversion rates?
Free contract proposal template by Super Proposal
Use and download our free contract proposal template to simplify your work. Start customizing the contract proposal template according to your client’s requirements and your brand’s voice. With our templates, you can add pricing tables, e-signatures, and more. Ready to close deals like a pro? Get a 15-day free trial today!
Conclusion
Writing a contract proposal that is ready to present to clients requires a mix of creativity, clarity, and research. By having a clear understanding of the essential elements, structure, and importance of a contract proposal, you’re ready to win over your prospects. Remember, it’s never about getting the job done but more about building brand value and trust with your clients to ensure a fruitful long-term relationship. With the right tools, like Super Proposal, you can increase your conversion rate by 40% or more. So get a 15-day free trial today and close deals like a pro!
Contract Proposal FAQs
What are some common mistakes to avoid when writing a contract proposal?
When drafting a contract proposal, there are several common blunders that individuals make. However, it is astonishing how many individuals make the same mistakes. Here is a list of frequent errors to avoid.
- Talking mostly about you and not the client is a big mistake. Most people feel that it’s important to share their skills and about them. No doubt that’s important, but focusing on the client should be a priority.
- Failing to add values is another big mistake made by proposers. Make sure the solution you are providing actually provides to your clients, and they get a genuine solution to their problems.
- Copying the content of the contract is a HUGE mistake. Your content needs to be unique and personalized according to the client’s requirements.
- Not having someone else review the submission usually leads to minute errors like grammar issues. This shows you haven’t invested enough in the contract and you’re not serious about it.
- Not requesting feedback is another big mistake; always ask for feedback, so whenever you create the next contract, you keep the feedback in mind and keep improvising.
Is an online contract proposal legal and valid?
Yes, according to the e-sign act any document that is signed electronically is legal and valid. However both parties should have signed the document to maintain its validity. If that doesn’t happen the document is considered invalid.
How to Write a Contract Proposal for a Government Contract?
Winning a big government contract is a huge win for any business. However, we all know it isn’t that easy; you have to bring in something extraordinary even to get noticed. So here’s how you should write a contract proposal that lets you be unique:
- Consider and understand the requirements of the project.
- Understand the situation at hand and provide a solution accordingly.
- Address Project Goals to show that you have understood the requirements clearly.
- Ensure that you bid the project competitively.
- State your company’s methodology to align with their requirements.
- Mention the project’s benefits to your company as well to showcase that you have the right resources to accomplish the project’s goals.
What are the contents of a contract proposal?
The contents of a contract proposal generally include:
- A catchy and engaging introduction
- Details of all the parties involved in the contract proposal (Investor/customers, writers)
- Facts and details such as roadmaps, fees, rules, resources and benefits, etc.
- Presentation of data if required.
Is a contract proposal binding?
A contract proposal in itself is not legally binding, it’s rather a presentation of what you’ll be delivering. However you can make it legally binding through e-signatures.
What is the difference between a proposal and a contract?
A proposal is a document where you pitch your product/ services to your client and present it in a persuasive way. Whereas a contract is something that is legally binding and protects the interests of both parties.
How long does it typically take for an online contract proposal to be accepted or rejected?
The duration of acceptance or rejection is highly dependent on the complexity of the proposal and the responsiveness of both parties. However, it should not take more than a few days or a maximum of a week to finalize the proposal.
What legal considerations should I be aware of when submitting a contract proposal online?
When you are submitting a proposal, note that it is important to ensure that the contract has all the necessary elements to make it a legally binding document. Here are all the things you need to include in your proposal:
- Mutual assent
- Considerations
- Capacity to contract
- Jurisdiction and governing law.
Read more: How to write a proposal executive summary
Read more: How to write a technical proposal
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