How to Write a Contract Proposal
A contract proposal has various interpretations depending on the purpose and profession. A salesperson interprets it as a document for closing business deals; a lawyer uses it to enter into an agreement, and business people may interpret or use it to outline business strategies. Regardless of your profession or purpose for the document, we can teach you how to write the perfect contract proposal with the following steps.
1. Curate the Executive Summary
The executive summary should perfectly encapsulate all the essential content of the entire proposal. It is best to write it after all the parts are written, edited, and finalized. Make sure to provide a clear summary as this section can either make or break your proposal.
2. Present the Methodology
Clients will only go for a service provider that has a clear idea of how to proceed with the project. Therefore, you should outline your methods or processes that will ensure you achieve the goals. If necessary, provide a complete breakdown of the process detailing every crucial step.
3. Provide a Clear Timeline
Aside from the methodology, you should also clearly outline the estimated project timeline and schedule. You should also explain if there are potential constraints or disruption with the project, but ensure that the client understands why they may occur. Ensure that you present in chronological order; you can also use tables to make the timeline more understandable.
4. Breakdown of the Estimated Costs
Transparency is essential in winning bids and deals. You should provide a clear breakdown of the project's total costs in your proposal. Make sure to label each item in a way that is easily understood by your client. A good tip is to use automated tables to ensure the accuracy of computations and easy attachment to the document.
What is the difference between a proposal and a contract?
A proposal is for negotiating and selling products or services. On the other hand, a contract is a binding agreement signed by both parties after the approval of the proposal. However, there are cases when both are used for proposing an official business contract, i.e., contract proposals.
How does a proposal become a contract?
A proposal becomes a legally binding contract if it explicitly states that the client needs to abide by the terms and conditions of the document; he/she signs it, dates it, and transfer funds for the execution of the proposed services.
What does a contract proposal contain?
The following are the most common contents of a contract proposal:
1. Executive summary
2. Scope and Exclusions of Work
3. Methodology or Process
4. Timeline and Schedule
5. Estimated Costs or Budget
Some businesses also include a cover letter for their contract proposals to provide a brief overview of the entire document.
What is the most crucial part of a contract proposal?
The most important part of a contract proposal is the executive summary. It summarizes all the essential points made throughout the entire document. Some consider it as the selling point of the proposal.