Contract proposal

Rachel Lee
October 20, 2021

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Contracts are at the heart of every business. Getting a contract right as soon as possible helps save time and money. One way that a contract can be created more quickly is with a good starting point. A contract proposal that is crafted well can help minimize any future headaches a contract may cause. By ironing out simple details at the beginning, the entire lifecycle of creating a contract can improve. 

But what exactly is a contract proposal? And how can a contract proposal template be written to ensure that a contract proposal does not have to be written from scratch each time a contract is required? Here, we look at answering those questions to help your business create the best proposals and contracts as a result. 

Contract proposal definition 

A contract proposal can be both an offer and a suggestion as to what the details could be surrounding that proposed contract. It could be that you send an entire contract draft, or your contract proposal could simply be your intention to send a draft to develop into a final agreement. 

Bearing that in mind, a contract proposal to those it is being sent to can be seen as a starting point to negotiations. It is also a fantastic opportunity to start building trust with the other entity for the proposing side. Doing so can help in the immediate negotiations and work surrounding the potential contract and reap the rewards for the future business relationship. So, while a contract proposal may sound like a document with the potential to be dry and only outline a few details, it can be so much more than that.   

How to write a contract proposal 

Knowing how to write a contract proposal or how to write a contract proposal sample that is persuasive is a vital tool for any business. To be persuasive, you need to be clear and as concise as possible. A contract proposal is a time to sing your praises succinctly - doing so often makes what you are saying far more convincing too. 

To do so, think about how you structure your proposal. Make it easy to read by breaking up the text, so your potential client does not have to search too hard for all the essential facts. It will make it far more manageable to understand your proposal as a whole. 

Additionally, once you have structured your contract proposal properly, you will find a reasonable basis for a reusable contract proposal template. There is, most likely, a great deal of repeat information that you will want to include in any contract proposal that you send out. Obvious details like names and addresses will not change from proposal to proposal, but inserting past experience and clients will often not be an element you always need to change.  

Contract proposal sample 

The above are good pointers for how to write a business contract proposal or a good contract proposal template. But not what. Below are the elements we believe should always be in a contract proposal you send to potential clients. 

Identify who you are

Firstly, outline who you are and what you do. The details need to be stated quickly and clearly here. Be brief, but do be sure that you do not miss any information that may be an aspect of your firm that makes you more attractive to a potential client. 

Identify the problem

Outline what the problem is that you want to try to solve for your client. Given that this is a contract proposal, this section should not be long either. Remember, you are only trying to identify what you would ideally intend to include in a contract. But doing so here can help you reason why you are proposing what your fees are later in the proposal. 

Additionally, this is an excellent opportunity to highlight how well you know your potential client. Showing that you have done thorough research and due diligence on them is flattering to that firm. 

Identify the solution

Then, identify how that problem can be solved. Again, this section needs to be brief - particularly if you have gone over in previous correspondence with your potential client how you mean to resolve their issue. It is necessary to include, though, as a rationale for why your fees are what you have proposed. Additionally, and importantly, this is the opportunity to outline why you are the best solution for solving that problem. 

Identify any remuneration or compensation 

Finally, you need to identify what fees you would like to include and confirm in a final contract. Then, go over any important and necessary terms and conditions for that remuneration. And, how the contract can be terminated - on either side. 

Overall takeaways for contract proposals

A contract proposal is a fantastic opportunity to start negotiations for a contract that could be highly profitable for both parties - financially or in some other form of value. Plus, it can really help set the tone for those negotiations. However, to make a contract proposal a helpful tool when pitching for business, it is important that the process is as quick as it can be. While time and effort should be spent on it, leveraging technology in the form of automation or templates can be incredibly beneficial. 

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