How to write a winner contract proposal

There are numerous stories in the business world about companies and owners suffering massive losses due to a flawed or improperly drafted contract. A single misplaced punctuation mark, such as a comma, can wreak havoc. This is why it is critical to issue a contract proposal before reaching an agreement and making its terms binding. The proposal sets the tone for the agreement, and any perceived issue can be worked out within the context of the proposal before reaching a final agreement. Unfortunately, many business owners and independent professionals only learn the value of a well-written contract proposal after a bad experience. This doesn't have to be you. Workee experts have put together this quick and effective guide to teach you how to write an error-free contract proposal.

But let's begin with what a proposed contract is.

What are contract proposals?

People enter into other agreements and contracts daily with partners, clients, colleagues, etc. Typically these agreements are preceded by a contract proposal to specify and determine the terms of the agreement.

In essence, a contract proposal is a document that outlines the terms and conditions of a proposed agreement between two or more parties. It is used in business and legal contexts to outline the specific details of a proposed agreement, such as the scope of work to be performed, the cost of the work, the payment terms, and the timeline for completion. 

The proposal may include details about the parties' qualifications and relevant legal considerations. The purpose of a contract proposal is to provide a clear and detailed description of the proposed agreement to facilitate negotiation and ultimately lead to the signing of a legally binding contract.

Why you need to start writing a contract proposal

Small business owners and independent professionals often downplay the importance of writing and issuing a well-drafted contract proposal; however, this is a critical part of a business agreement, and everyone must learn to apply it in their dealings.

Do you want to know why? Let's find out.

  1. Provides clarity and eliminates assumptions: Assumptions should never be a part of business processes, whether it's an insignificant decision. Never assume what your partner or clients want; it leads to conflicts. A contract proposal lays out the terms and conditions of a proposed agreement, reducing the chance of misunderstandings or confusion.

  2. Serves as a reference document: you can never be too sure when and if you'll need the details of an agreement. A contract proposal serves as a point for future reference to the agreement details. It is also useful in the event of any legal disputes.

  3. Provides a clear scope of work or deliverable:  A contract proposal outlines the work that will be done and what the deliverable will be. This is important to prevent disputes and misunderstandings in the course of working.

How to write a proposal for a contract

Not writing a contract proposal can be detrimental to your business relationships but beyond that, writing a defective one is as bad as not writing one. In essence, you must learn how to write a contract proposal that suits every circumstance and deal.

Here are important steps to help you draft good contract proposals

1. Understand the purpose of the proposal

Before you begin writing, it is important to understand the purpose of the proposal and what you hope to accomplish. This will help you determine what information to include and how to present it. Different agreements would require a different contract proposal, so the proposal must reflect the exact situation rightly. You may use online contract templates and fill in the necessary details. But if you must use a template, ensure it's an editable version.

2. Identify all parties involved

Identify all parties involved in the proposal, including their names and contact information. This will help ensure everyone is on the same page and that the proposal is directed to the right people.

3. Outline the terms and conditions

Clearly outline the terms and conditions of the agreement, including each party's specific obligations or responsibilities. Be sure to include details such as payment terms, delivery schedules, and any other relevant information.

4. Include supporting documents

 Depending on the nature of the proposal, you may need to include supporting documents such as diagrams, timelines, or financial projections. Include relevant information to help the other party understand the proposal and make an informed decision.

5. Be clear and concise

Keep your proposal as clear and concise as possible. Avoid jargon or technical terms that may be difficult for the other party to understand. Be sure to proofread your proposal for errors or inconsistencies before submitting it. Sometimes, grammatical errors or improperly placed punctuation marks can convey a different meaning or elicit a different interpretation from what was originally intended.

6. Review and negotiate

Finally, review the proposal with the other party or parties and be open to negotiation. This will help ensure that both parties are satisfied with the terms of the agreement and that the proposal is legally binding.

Contract proposal essentials

While every contract proposal may have slightly different components, here is a general overview that would help you draft one.

  • Subject/header: this is a topic or the subject of the contract proposal that briefly establishes the purpose of the contract proposal. For instance, "a contract proposal for the establishment of a joint venture."

  • Introduction: This section provides an overview of the proposal and identifies all concerned parties.

  • A detailed description of the agreement: This section provides a detailed description of the intentions of the agreement, including expectations, obligations, and intentions. This section is important because it will form the basis for the final agreement.

  • Terms and conditions: This section outlines the legal terms and conditions of the contract, including any warranties or guarantees.

  • Acceptance: This section outlines the process for accepting the proposal and entering into the contract.


A contract proposal is crucial in any business relationship and demands utmost care and due diligence while drafting. Any thug that is omitted in the proposal may go on to affect the final contract. Following this guide, you can create a clear and effective proposal that sets the stage for a successful agreement. Remember to be clear and concise and review the proposal with the other party to ensure that everyone is satisfied with the terms of the agreement.

Ihor, CEO at Workee

Excited to start with Workee? Schedule a demo with our Manager!


Keep updated about latest industry insights and subscribe to our newsletter

Follow Us

  • facebook
  • instagram
  • linkedin
  • tiktok
  • twitter
  • youtube

This site uses cookies. By continuing to browse the site you are agreeing to the use of cookies.

Find out more here.