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 including them in your SOW prevents disputes over finished work.

• Change Order

  Learn what a change order is, how it documents scope changes during a project, and why every service contract needs a process for handling them cleanly.

• Deliverable

  Learn what a deliverable is in project management, how deliverables are defined in proposals and SOWs, and why vague deliverables lead to scope disputes.

• Engagement Letter

  What an engagement letter is, how it formalizes a client relationship before work begins, and how it differs from a proposal, contract, or letter of intent.

• Force Majeure

  Learn what force majeure means in service agreements, what events it covers, how to draft the clause, and when it excuses non-performance under a contract.

• Indemnification

  Learn what indemnification means in contracts, how indemnification clauses allocate risk between parties, and why they matter in proposals and agreements.

• IP Assignment

  Learn what IP assignment means when proposals and contracts transfer ownership of creative or technical deliverables, and how to draft the clause correctly.

• Kill Fee

  Learn what a kill fee is, how it protects freelancers and contractors when a client cancels mid-project, and how to set the right amount in your contract terms.

• Limitation of Liability

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

• Master Services Agreement

  Learn what a master services agreement (MSA) is, how it sets the baseline terms for ongoing client work, and how individual SOWs and proposals attach to it.

• Milestone Payment

  Learn what milestone payments are, how they tie billing to completed project phases, and when to use them instead of hourly or fixed-price terms in proposals.

• Net 30

  Learn what Net 30 payment terms mean, how they set a 30-day payment window after invoicing, and when to use them versus milestone or upfront terms in contracts.

• Non-Disclosure Agreement (NDA)

  Learn what a non-disclosure agreement (NDA) is, when to use one before sharing sensitive information, and how mutual and one-way NDAs differ in practice.

• Proposal

  Learn what a business proposal is, how it differs from an estimate, quote, or contract, and what sections every proposal needs to win client approval.

• Proposal Scope

  Learn what proposal scope means, what it should include, and how clear scope keeps deliverables, exclusions, pricing, and approval expectations aligned.

• Request for Proposal (RFP)

  Learn what a request for proposal (RFP) is, how the RFP process works from issuer to vendor, and what to include in your response to stand out and win the work.

• Retainer

  Learn what a retainer is, how retainer agreements guarantee ongoing availability for a fixed monthly fee, and when to use one instead of project-based pricing.

• Scope of Work

  Learn what a scope of work (SOW) is, what it should include, and how a well-drafted SOW protects both clients and providers from scope disputes and overruns.

• Statement of Work

  Learn what a statement of work (SOW) is, how it structures project engagements under an MSA or standalone contract, and what sections it needs to be complete.

• Work for Hire

  Learn what work for hire means in service proposals and contracts, how it affects IP ownership of creative or technical deliverables, and when it applies.