Estimate vs. Proposal: What's the Difference?

Proposals

A proposal is a detailed document that outlines a plan for completing a specific project or set of tasks. We submit a proposal to you (the Client) in response to a request for services. A proposal will include:

  • Project scope and objectives
  • Methodology and approach
  • Timeline and milestones
  • Budget and pricing information
  • Risks and assumptions

The purpose of a proposal is to instill confidence in our Clients that they need in order to know that team has the skills, expertise, and resources necessary to complete the project successfully. A well-crafted proposal helps you stand out from competitors and demonstrates your understanding of the client's needs.

You can view and manage all of your proposals in the Client Area under the Proposals tab.

Estimates

An estimate, on the other hand, is a quantitative assessment of the time, materials, and costs required to complete a specific task or set of tasks. It's usually based on historical data, industry standards, and expert judgment. Our estimates will usually include:

  • Task breakdown into smaller, manageable pieces
  • Time and labor requirements for each task
  • Material and equipment costs (if applicable)
  • Overhead and indirect costs (e.g., supervision, training)

The purpose of an estimate is to provide a realistic, dollar-based projection of the resources required to complete a project or set of tasks.

You can view and manage all of your estimates in the Client Area under the Estimates tab.

Key differences:

Purpose: A proposal aims to win the business and demonstrate expertise, while an estimate focuses on providing a detailed cost breakdown.

Scope: A proposal covers project scope, methodology, timeline, budget, and risks, whereas an estimates are more simple and focus on specific products, services or tasks, and pricing.

Format: Proposals are more formal and comprehensive, while estimates are often presented in a much more simple fashion, similar to an invoice.

In summary, a proposal is a comprehensive plan for completing a project, while an estimate is a detailed cost breakdown of the resources required to complete specific tasks or activities. Both are essential tools for project managers and professionals seeking to win business or deliver projects successfully.

If you have any questions, you can always submit a support ticket email us directly at [email protected].

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