Writing a quotation for a contract requires more rigor than a standard service quote. The document may be evaluated against competing submissions, reviewed by legal teams, and incorporated directly into a formal agreement. Here’s how to structure it correctly.
When a contract quotation is required
A quotation for a contract is typically required when:
- A company or government entity issues a Request for Quotation (RFQ)
- You’re submitting a tender or bid for a project
- A client requires a formal pricing document before signing a contract
- The project is large enough that the pricing document itself becomes part of the agreement
In these situations, a one-page service quote is usually insufficient. The contracting party needs enough detail to evaluate your proposal against alternatives and to have a clear basis for the contract terms.
The structure of a contract quotation
Cover page or header
- Your business name and logo
- The title: “Quotation” or “Quotation Submitted in Response to [RFQ Reference]”
- Reference number: [Your Quote No.]
- Client reference: [Their RFQ or tender number]
- Date of submission
- Valid until date
- Submitted by: [Your name and title]
- Submitted to: [Client name, company, and contact]
Executive summary (1–2 paragraphs)
For larger contract quotations, a brief summary states what you’re quoting for, your proposed approach in one or two sentences, and the total quoted price. This helps decision-makers scan quickly.
“This quotation is submitted in response to RFQ-2026-114 for the development of [Client]‘s internal project management portal. The proposed solution includes [brief approach description]. Total quoted price: $XX,XXX, inclusive of all deliverables specified in Section 2.”
Scope of work
This is the most critical section. For contract quotations, the scope must be unambiguous and detailed enough that both parties can later verify delivery against it.
Include:
- A description of each deliverable
- Technical specifications if applicable
- What is explicitly excluded
- Dependencies on client input, data, or approvals
- Assumptions the quote is built on
Weak scope:
“Development of project management software.”
Strong scope:
“Development of a web-based project management portal with the following features: user authentication (single sign-on via existing Active Directory), project dashboard with Gantt chart view, task assignment and tracking, document attachment (up to 10MB per file), and notification system (email). Built on [specified stack]. Excludes mobile applications, third-party integrations beyond Active Directory SSO, data migration from existing systems, and training services. Assumes client provides access to current Active Directory configuration within 5 business days of contract signing.”
The scope section of a contract quotation is the document that gets examined when something goes wrong. Write it as if an uninvolved third party will need to assess whether you delivered what you said you would.
Pricing breakdown
Itemize by deliverable, phase, or work category. For contract quotations, more granularity is better:
| Deliverable / Phase | Description | Price |
|---|---|---|
| Phase 1: Discovery & Architecture | Requirements documentation, system architecture design, database schema | $8,000 |
| Phase 2: Core Development | Authentication, dashboard, task system | $22,000 |
| Phase 3: Testing & Deployment | QA, UAT support, production deployment | $6,000 |
| Documentation | Technical documentation and user guide | $3,000 |
| Total | $39,000 |
Add separate line items for expenses if applicable (travel, hosting, licenses).
Delivery schedule
A contract quotation should include a timeline:
| Milestone | Deliverable | Target Date |
|---|---|---|
| Project kickoff | Requirements sign-off | Week 1 |
| Phase 1 delivery | Architecture documentation | Week 4 |
| Phase 2 delivery | Working application | Week 12 |
| Phase 3 delivery | Tested, deployed application | Week 16 |
Include any dependencies on client action (e.g., “Phase 2 start assumes Phase 1 sign-off within 5 business days”).
Payment terms
For contract work, milestone-based billing is standard:
- 30% ($11,700) upon contract signing
- 30% ($11,700) upon Phase 2 delivery and sign-off
- 40% ($15,600) upon final delivery and acceptance
Specify the invoice payment period (e.g., “Each milestone invoice is due within 30 days of issue date”).
Validity
This quotation is valid for 30 days from the date of submission (until [date]). If the contract is not awarded within this period, a revised quotation may be required.
Terms and conditions
For formal contract quotations, include or reference your standard terms:
This quotation is subject to [Business Name]‘s standard terms and conditions, available at [URL] or attached as Appendix A. Key provisions include intellectual property assignment, limitation of liability, change order process, and dispute resolution.
Tips for writing a contract quotation
Use the client’s language. If their RFQ describes the project in specific terms, use those same terms in your quotation. This signals that you’ve read the brief carefully.
Match the format they specify. If the client provides a template or format requirements, follow them exactly. Deviating from a specified format can disqualify your submission in formal procurement processes.
Verify numbers independently. Have someone else check your pricing arithmetic. An error in a contract quotation is embarrassing at minimum and financially damaging if the contract is awarded at an incorrect price.
Date and sign the document. Formal contract quotations are typically signed. Include a signature block and date at the end.
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