Business Proposal
A Business Proposal is a document that sets out the business relationship between a client and a business.
4.5 (11 reviews)
Last updated December 19, 2024
under 10 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
A Business Proposal is a document that sets out the business relationship between a client and a business. Framed as a letter, it serves as a binding agreement between the two parties on the terms of their engagement. This includes details on the services being offered, client responsibilities, deadlines and compensation. In addition, the document outlines the nature and limitations of the services being provided.
Having a set of defined expectations and terms to which both parties are satisfied with is highly advantageous. This will help limit the potential for disputes and misunderstandings to arise with your client in the long term.
This letter is general and best suited for businesses that need a general proposal template sent out early in a business relationship.
Use this Proposal Letter If:
You’re entering an agreement to provide services to a client
You want to establish the terms and expectations of the relationship prior to commencing
What does this Proposal Letter Cover?
Purpose and scope of services
Client responsibilities
Period of engagement
Confidentiality
Estimated pricing
Professional fees
Terms of trade
The Legal Risk Score of a Business Proposal Template
Our legal team have marked this document as low risk considering:
- The document imposes strict confidentiality obligations on the service provider, which could limit their ability to share potentially necessary information with other parties unless legally obliged or expressly permitted by the client.
- The pricing estimates provided are not binding and may vary, potentially leading to unexpected costs for the client if the scope of the service changes or if additional work is required beyond the initial estimate.
- The terms of payment are strict and include penalties for late payments, which could impose financial strain or unexpected liabilities on the client if they fail to meet these strict deadlines.
Business Proposal Checklist
Complete your free Business Proposal with our checklist
Sign and Return the Proposal
After reviewing the terms, sign the enclosed copy of the proposal letter and return it to the office to signify acceptance.
Clarify Any Doubts
Contact the office immediately if there are any aspects of the proposal that are unclear or require further discussion.
Monitor Engagement Terms
Keep a vigilant eye on the scope of services and the fee arrangement, especially if circumstances change, necessitating a new quotation.
Maintain Confidentiality
Ensure that all confidential information received during the engagement is handled according to the confidentiality terms stated in the proposal.
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