Proposal & contract glossary

Plain-language definitions of the terms you will run into when writing proposals, scoping projects, and signing contracts. Each entry includes an example and links to related templates and guides.

• Acceptance Criteria

  Learn what acceptance criteria are, how they define when a deliverable is complete, and why they belong in every SOW.

• Change Order

  Learn what a change order is, how it manages scope changes in a project, and why every contract should include one.

• Deliverable

  Learn what a deliverable is in project management, how deliverables are defined, and why they matter in proposals.

• Engagement Letter

  Learn what an engagement letter is, how it formalizes a client relationship, and how it differs from a proposal or contract.

• Indemnification

  Learn what indemnification means in contracts, how indemnification clauses work, and why they matter in service agreements.

• Kill Fee

  Learn what a kill fee is, how it protects freelancers and contractors, and how to include one in your contracts.

• Limitation of Liability

  Learn what a limitation of liability clause does, how it caps financial exposure, and why it belongs in every contract.

• Milestone Payment

  Learn what milestone payments are, how they structure project billing, and when to use them in proposals and contracts.

• Net 30

  Learn what Net 30 payment terms mean, how they work in invoicing, and when to use them in contracts and proposals.

• Non-Disclosure Agreement (NDA)

  Learn what a non-disclosure agreement (NDA) is, when to use one, and the difference between mutual and one-way NDAs.

• Proposal

  Learn what a business proposal is, how it differs from an estimate or quote, and what sections every proposal should include.

• Request for Proposal (RFP)

  Learn what a request for proposal (RFP) is, how the RFP process works, and what to include when responding to one.

• Retainer

  Learn what a retainer is, how retainer agreements work, and when to use one instead of project-based pricing.

• Scope of Work

  Learn what a scope of work (SOW) is, what it includes, and how it protects both clients and service providers.

• Statement of Work

  Learn what a statement of work (SOW) is, how it structures project engagements, and what it should include.