Approval does not complete the terms
A signature can identify the accepted version and approval date. You still need to state what happens next: the start condition, responsibility for each delivery, how a milestone is verified, when payment is due and how scope changes are handled.
These terms do not guarantee collection or replace legal or tax advice. Their practical purpose is to reduce conflicting interpretations. Before drafting them, review what belongs in the proposal and how to set deposits and milestones.
Illustrative US example
Quote #C-2026-052 from Lakeshore Event Services in Chicago for a venue installation. The subtotal is $7,500.00 USD, with an illustrative 8% sales tax and a $8,100.00 USD total. The rate is not a universal US rule; check state and local requirements.
| Term | Example wording |
|---|---|
| Start | The schedule begins when the agreed deposit clears |
| First milestone | Equipment reservation documented and confirmed by the client |
| Second milestone | On-site setup reviewed against the signed scope |
| Balance | Due after the delivery and acceptance defined in the quote |
| Changes | Additional work requires a written price and approval |
The example uses a deposit and milestone payments, but it does not recommend a universal percentage. Each amount should reflect the project’s costs, risk and verifiable deliveries.
Common mistakes
Treating signature as payment
The signature records acceptance. Payment depends on the method, date and condition that were agreed. Write those three variables separately.
Starting before the agreed condition is met
If the document says the schedule begins when the deposit clears, do not use the signature date automatically. Record the event that activates the timeline.
Defining milestones without evidence
“Intermediate progress” is open to interpretation. Describe a delivery, installed quantity, review or document that both sides can verify.
Changing scope through loose messages
A change approved in messaging can become separated from the quote. Issue a revision or addendum with scope, price and schedule impact.
Steps
1. Identify the approved version
Use a reference number, date and version. A simple electronic signature can record acceptance, but check whether your agreement requires another formality.
2. Write the start condition
State whether work begins with signature, cleared deposit, delivery of inputs or another verifiable condition.
3. Connect each payment to a milestone
Describe the amount, due date or term, payment method and evidence of progress. Avoid milestones that depend only on subjective judgment.
4. Define delivery, balance and changes
Explain how delivery is accepted, when the balance is due and how a change is quoted. If the client asks to lower the total, review scope and value before changing terms verbally.