Leads and pending projects should be placed in 1 Projects / zPending.
These are projects which have no modeling or design data with them. E.g., proposals only.
When a pending project actually begins, create the project folder as normal. Drag any documents in the pending folder to the new project folder. The proposal belongs in '3 Contract & Correspondence / Proposal'. (Old location: 6 Documents) Trash the project's 'pending' folder.
If a project does not go forward, move it to 5 Past Projects / Defunct.