Proposal vs Contract

[DamonMirate]

Hello All,

Im Damon, Nice to meet you all.

I have a question:

What is the difference between a Proposal and a Contract? When would one be used over the other? I have seen many Proposals with all the info that I would expect just in doing construction. The contracts that I have seen are the same with a lot more legal lingo.

Any help would be appreciated.

Thanks

[Rich]

A proposal is a document or set of documents that you give to a potential client to show what you are going to provide and how much it will cost. I consider a proposal a step up from just giving an estimate.
The contract is given and signed by the client once they have accepted your proposal.
In some industries (service, handyman, repair, single HVAC, etc) a proposal can include the contract. Typically in small print on the back or by including some type of language contractually relating the 2 parties, but isn't in effect until both parties sign the document.