Quote or proposal? What to include in each

Proposals · 7 min read

Not every job needs a long proposal, and not every job should get a one-line price. Here is how to tell a quote from a proposal, and what each one should contain.

What is the difference between a quote and a proposal?

A quote sets out what you will deliver and what it will cost, usually in one or two pages. A proposal does that and more: it explains the client’s situation, your recommended approach, the timeline and why your approach suits them. A quote answers “how much?”. A proposal also answers “why this, and why you?”.

When is a quote enough, and when do you need a proposal?

A quote usually suits work that is small, clearly defined, or for a client who already knows and trusts you. A proposal is worth the extra effort when the project is larger, involves several decision makers, is being compared with other providers, or needs your reasoning to be understood. You can also send a quote with optional add-ons, so the client can choose what they need.

What should a quote include?

• A quote number and the date you issued it.
• A “valid until” date, so the price does not stand forever.
• Your business details, including your ABN if you have one, and the client’s details.
• A description of each service or deliverable, with the quantity or basis for the price.
• The amounts, the subtotal, GST if you are registered for it, and the total.
• The timing: when you expect to start and finish.
• Conditions, such as that the quote is based on the scope described, that changed work may need a revised quote, and that late client input can affect timing.
• How the client accepts: who, when and by what method.

What should a proposal add?

Start with everything a quote contains, then add the parts that make your case:

• A short summary of the client’s situation and what they want to achieve.
• The objectives the project should meet.
• Your proposed scope and deliverables, in clear language.
• Your approach: how you will do the work.
• A timeline with milestones and review points.
• The investment, including any optional services kept separate from the core work.
• Assumptions, exclusions and dependencies.

Work out the price before you write the quote

A quote is the end of a calculation, not the start. Before you send one, work out the fee privately: list each piece of work with its hours and rate, add any extra costs, allow for contingency where it is warranted, and check the GST treatment. Decide the lowest fee you would accept before anyone asks for a discount, so you are not working it out under pressure.

Write down your assumptions and exclusions

Most quote disputes come from what was never written down. Spell out the assumptions behind your price, for example the number of revision rounds or that the client will supply content by a set date. List what is not included. Note any dependencies, such as approvals you need from the client. Doing this before the client accepts protects both sides.

A quick check before you send

• Names, dates, figures and totals are correct.
• The scope matches what you agreed in discovery.
• GST is treated correctly and the validity date is shown.
• Optional items are clearly separate from the core work.
• No internal notes or private calculations are left in the file.
• The file has a clear name and is saved as a PDF.

This is general information, not legal, tax or financial advice. For contracts, or if you are unsure how GST applies to you, speak to a lawyer or accountant.

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