Project Proposal vs. Project Contract: What’s the Difference?
If you’re a service-based business owner, WillowSpace is a beautiful, intuitive CRM where you can create digital contracts and proposals that feel as good as your work. With simple tools for e-signatures, branded templates, and automated reminders, you can move clients through the onboarding process with ease—without ever sending a follow-up email. 🙌 But first, let’s break down the key difference between two essential client documents: proposals and contracts.
Article written by
Danielle
Processes
What’s a Project Proposal?
A proposal is a marketing document you send to a potential client (a lead, if you will) before a project officially begins. It’s your opportunity to outline what you’re offering and why you’re the best fit for the job—while keeping things visually aligned with your brand.
Your project proposal might include:
A summary of the client’s goals or project brief
Deliverables and timelines
Your proposed packages or options
Investment and payment schedule
Your process or approach
Case studies or past work
Branded design elements like your logo and colour palette
Proposals should feel polished, professional, and client-focused. They’re not just a formality—they’re a conversion tool.
When should you send one?
Send a proposal after a consultation call (to make sure the lead is qualified and that you have all the information you need for a proper proposal), in response to an RFP, or anytime you want to summarize your offer before finalizing an agreement. At Function (our design studio), we always send ours after a discovery call, and it’s one of the reasons we convert so many leads into paying clients.
✨ Want a deeper dive? Read our post on What to Include in a Design Proposal.
What’s a Project Contract?
Unlike a proposal, a contract is a legally binding agreement. It formalizes the project terms, sets expectations, and protects both parties if things don’t go as planned. This is where you want to be thorough and clear—without overwhelming your client.
A typical contract includes:
Finalized deliverables and deadlines
Project budget and payment schedule
Terms for revisions, scope changes, or delays
Legal clauses (like confidentiality, termination, and ownership)
Signatures from both parties
This isn’t just a document—it’s your safety net. It helps prevent scope creep, missed payments, and miscommunications by putting everything in writing.
When should you send one?
Send the contract after the proposal has been accepted and once you’ve confirmed client details. At Function, we send a brief onboarding/intake form to collect accurate contact info, then generate the contract in WillowSpace before sending the first invoice.
💡 If you’re starting from scratch, check out template providers like The Contract Shop (affiliate link) to get legally sound language you can customize.
Why You Need Both a Proposal and a Contract (and How WillowSpace Makes This Easy)
Proposals help you win projects. Contracts help you run them well.
With WillowSpace, you can:
Create beautiful, branded proposals using our drag-and-drop builder
Upload custom PDFs if you already have a design you love
Let clients accept or decline proposals with a click
Build digital contracts your clients can sign securely—no printing required
Set up automated reminders so nothing falls through the cracks
✨ Learn how to level up your onboarding flow in our post on How to Get More Client Referrals Without Feeling Pushy
Let WillowSpace Help You Streamline Every Step
When your proposals look good and your contracts are easy to sign, clients are more likely to say yes—and say it faster. That’s exactly why we built WillowSpace.
Ready to simplify your process and impress your clients from day one?
✨ Start your free trial here and start sending beautiful, branded proposals and digital contracts today.
