How to read a software development quote
A quote is only as good as its scope. Here is what to look for before you sign, and the questions that expose a weak one.
Two quotes for the same project can differ by a factor of five, and the cheaper one is not always the better deal. The price matters less than what the quote actually commits to. Here is how to read one.
Check the scope is written down
A good quote lists the features, screens and integrations it includes, ideally with a short description of each. "A mobile app for our customers" is not a scope. If the scope is vague, the price is meaningless: every missing detail becomes a change request later, usually at a higher rate.
Look for what is excluded
Strong quotes say what they do not cover: content entry, data migration, app store fees, hosting, third-party licences, training. If nothing is excluded, ask. Silence usually means the cost will appear later.
Understand how changes are priced
Requirements always change during a project. The quote should say how changes are estimated and approved, and at what daily or hourly rate. A fixed price with no change process is a warning sign. It either hides a large margin or leads to arguments halfway through.
Ask about testing, handover and support
- How is the work tested, and by whom, before you receive it?
- Do you get the source code, the documentation and the accounts (hosting, domain, app stores) in your company's name?
- What is covered after launch, for how long, and what does support cost after that?
Compare like with like
When you have several quotes, put them in one table with the same rows: scope items, exclusions, timeline, payment milestones, change rate, warranty and support. Quotes that looked very different on price often turn out to cover very different work.
Red flags
- Full payment up front, or milestones not tied to delivered work.
- No named people, or no way to talk to the developers doing the work.
- Source code and accounts held by the vendor.
- A timeline that does not mention your team's time for feedback and testing.
If a quote passes these checks, the price is usually a fair reflection of the work. If it doesn't, ask the vendor to fill the gaps before you compare it with anything else.