Proposal vs contract

A proposal is a non-binding pitch outlining a suggested approach, timeline, and price to win the work; a contract (or signed SOW) is the legally binding agreement both parties are actually bound by once signed.

Example

A proposal estimates a project at "approximately $10,000–$14,000, pending discovery"; the signed contract that follows locks in a specific $12,000 price and a precise deliverables list, and is the only document either party can hold the other to.

Why it matters for agencies

Scope language in a proposal doesn't bind either party the way the eventual signed contract does — a common source of disputes is a client pointing back to loose language in the original proposal to argue for something the final signed SOW doesn't actually include.