What’s the Difference Between a Proposal and a Contract for Freelancers?

When I first started freelancing back in 2009, I was quite clueless about how to properly send a proposal or draft a contract. Like many of us starting out, I thought a simple email summarising the project would suffice, and I didn’t see the need for formalities. However, it wasn’t long before I realised I needed something more solid to give my clients—a proper proposal and a formal contract.

I remember piecing together bits of proposals and contracts I’d found online, creating a Frankenstein-like document that I hoped would do the trick. I cringe thinking about it now. It wasn’t just a proposal; it was a jumble of everything from terms and conditions to my sales pitch. I learned the hard way when clients pushed back, questioning my professionalism and, at times, backing out of deals altogether.

But that’s how we grow, isn’t it? Through these uncomfortable mistakes. Over time, I refined my approach, learning that proposals and contracts are two very different beasts, each with its own purpose and place in the freelancer-client relationship.

The Lesson of Keeping Proposals and Contracts Separate

In 2016, after a few more years of trial and error, I finally realised that blending proposals with contracts was costing me potential work. That’s when I started presenting them as two distinct documents, and it’s a system I’ve stuck to ever since. Separating these two ensures clarity, professionalism, and a more fluid workflow with clients.

Now, I’ll walk you through the key differences I’ve learned between proposals and contracts—two documents that, together, can transform how you do business.

What Is a Freelance Project Proposal?

Let’s start with proposals. At their core, a proposal is your pitch—it’s how you present the final project to a potential client. A good proposal isn't just a sales tool; it’s a way of reinforcing why the client wants to work with you in the first place.

I like to think of it as a roadmap. When a client reaches out with a need, your job is to craft a solution that best meets their business goals and then present it as a proposal. But here’s the trick: nothing in that proposal should surprise them. You should have already discussed the project details—goals, budget, timeline—well in advance.

That was a game-changer for me. Once I started communicating better upfront, I noticed that my proposals rarely faced pushback. Clients weren’t encountering unexpected figures or unfamiliar project scopes. By the time they saw my proposal, they were already on board, ready to say “yes.”

Here’s what I now include in every proposal:

• A summary of the client’s problem or project need.
• A breakdown of the project goals.
• The solution I’m offering.
• Why I’m the best person for the job.
• Samples of my recent work or links to relevant projects.
• A clear scope of work, detailing what’s included and what isn’t.
• Pricing and payment terms, broken down into clear line items.
• An acceptance page for signatures.

What I don’t include are terms and conditions—that’s for the contract.

To learn more about creating effective proposals, check out this guide on writing winning proposals or this advice from seasoned freelancers.

The Role of a Freelance Project Contract

Contracts, on the other hand, serve a different purpose. This is where you lay out the legalities: the terms and conditions that will govern the project. While a proposal is there to convince the client to work with you, the contract protects both parties by setting clear expectations about deliverables, payment terms, and what happens if something goes wrong.

It wasn’t until I started working with larger clients that I realised the importance of having a well-drafted contract. Many of these clients sent my contracts to their legal teams, and I found myself fielding requests for revisions or clarifications. This was a whole new level of business, and it’s when I finally hired a lawyer to help me draft a proper contract.

Here’s an example of a clause from my web design contract:

Simple, clear, and to the point. Even though this is legally binding, the language is accessible to both parties, making it easy to navigate.

If you’re in the UK and unsure where to start with contracts, here’s a useful resource on the basics of contracts.

Connecting Proposals and Contracts

The next big question I faced was how to connect these two documents. Do I send them separately? Combine them? The solution turned out to be pretty simple: At the end of the proposal, I just include a statement like this:

“Subject to the Terms and Conditions attached hereto, which are expressly agreed to be part of our Contract.”

With that phrase, your proposal essentially becomes the prelude to the contract, making it easy for the client to sign off on everything in one go. If you’re using tools like DocuSign or HelloSign, it’s even easier to send both documents digitally and have them signed within minutes.

Finding Good Templates

I spent years trying to piece together decent proposal and contract templates, and I wish I’d invested in professional help sooner. After paying a solicitor about £1,200 to draft a solid contract, I finally had something I could rely on. And it was worth every penny.

My Freelancing Journey and Lessons Learned

Looking back, the shift from sending awkward, combined documents to separating proposals and contracts was one of the best things I did for my freelance business. It not only made me appear more professional but gave clients confidence in my services—and that meant I could charge more, knowing I had the tools to back it up.

If you’re still mixing your proposals with contracts or not using either at all, I highly recommend giving this approach a try. It’s not about creating more paperwork—it’s about building trust and setting yourself up for long-term success.

What about you? How have you handled proposals and contracts in your freelancing journey? Feel free to share your experiences or ask any questions in the comments!