Jane, Software Company Inc. has sent you the following proposal to review.

Software Development Proposal

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At its heart, the aim of software development is to solve problems. Often, a commercial off-the-shelf (COTS) solution is available, but sometimes novel, personalized software is necessary. No matter what needs your organization has, our experienced software developers can help meet them through custom software development.

We consider software development an iterative process and will work with you to understand your organization’s particular preferences and expectations. Efficiency, suitability, quality control, and cost-effectiveness are our main concerns when developing your custom software.

This software development proposal was designed to meet your organization’s specific needs and budget. Please feel free to contact us by email at {email address} or phone at {phone number} with any questions.

Thank you for your consideration. We are eager to form a partnership with your organization and begin collaboration on this project.  


Click each service to view a more detailed description.

On Acceptance

The first stage of software development involves understanding user expectations. A thorough assessment period is crucial to the success of any project. During this phase, we will be in frequent communication with your team using any or all of the following methods:

  • Interviewing users and other stakeholders
  • Designing brief surveys for distribution to stakeholders
  • Building use cases to understand the specific actions to be taken by users
  • Developing prototypes for testing with users

 The goal of each of these approaches is to complete a detailed analysis of the user requirements. At the end of the assessment stage, the information that has been gathered will be documented in a requirements report. This information will guide all future steps in the software development process.


Immediately following assessment, our software architects and developers will begin designing the software application. They will use the requirements report to determine how the application will be written. They will also develop an additional technical requirements document detailing the database, transactional, security, and hardware and software needs of the project.

The software design process is dominated by three major tasks:

  • Risk analysis – Understanding threats and vulnerabilities from other systems and in the code
  • Functional specification development – Defining the data fields, workflow, and audit trail
  • Non-functional specification development – Gathering information on capacity, updates, performance, and response time, and understanding resource constraints

After the design phase is completed, coding will begin. Developers will begin writing and testing the actual code, ensuring that it remains flexible enough for future changes and updates. Documentation of the internal design of the software will take place throughout development. 


Throughout implementation, our developers will test the software to locate bugs, to ensure that it is fit for use, and to check that it meets the requirements gathered during the assessment phase.

 Any defects will require additional analysis, design, and coding. Deployment will only begin upon sign-off from the client.

 Deployment will include installation, testing, and continued evaluation. Depending on the nature of the software application, it may occur in stages. Deployment may also require training for users and operations and information technology (IT) staff.

 We recommend ongoing maintenance and continuous improvement of the software to address future enhancements, newly discovered faults, and to fix bugs. 

Payment Details *

Charges will appear on your statement from 987654321.

Mastercard ···· 2345 05/23
Jane Banner
Bank ···· 4905 08/21
Jane Banner
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Review, Sign & Accept

To electronically sign, type your name, accept the terms and click accept proposal.

This letter confirms our understanding of the terms of our engagement and the type and limitations of the services that we will provide.

Purpose, Scope, and Deliverables

 We will provide software development services, including assessment, design and coding, and implementation and deployment.

Project Period of Performance

 The project start date will be (insert date). It will be completed by (insert date). No work will take place outside of these dates unless formally decided and formally agreed upon by both parties.


 Any information we acquire from the client will be subject to strict confidentiality requirements. Information will not be disclosed to other parties except as required by law or with the client’s written consent.


 The fee is based on the amount of time and the level of staff expected to complete the software development services as agreed. This fee arrangement will be subject to change if the following should occur: {list circumstances which may change the costs of providing the services}.

Liability Limitation

Our liability is limited by a scheme approved under the Professional Standards Legislation. Further information on the scheme is available from the Professional Standards Councils’ website.

Deliverable Ownership

All original documents obtained from the client shall remain property of the client. However, we reserve the right to keep a reasonable number of copies of the originals for our records.

Any deliverables produced under this contract, including hard copy and electronic documents, will be provided to the client but will remain the property of the consulting firm.

Terms of Service


  • The client agrees to provide confidential access to staff for interviews and surveys.
  • We will retain all source code as our property. The client will receive the deliverable in object code only.
  • We will provide basic training in the use of the software for users, IT staff, and operations staff.
  • We will provide basic support on the deliverable for the first X months after delivery.
  • Any additional work resulting from this engagement will be arranged under a separate contract and proposal.

Design and Coding

  • We will retain all source code as our property. The client will receive the deliverable in object code only. 

Deployment and Ongoing Maintenance

  • We will provide basic training in the use of the software for users, IT staff, and operations staff.
  • We will provide basic support on the deliverable for the first X months after delivery.

Confirmation of Terms of Service

Please sign and return a copy of this letter to indicate your agreement with and understanding of the arrangements. This contract is effective from the date of signing unless any change is communicated.


{insert name}

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I accept the above terms and payment terms.

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Post Comment

Will the software be mobile friendly? We need a responsive solution.

Software Company Inc.

Yes, of course! Your app will be responsive and usable across all devices.

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