How to compare custom software development quotes
Do not compare custom software development quotes by the total. The ten items every quote must include, how to level them, and three questions before signing.
Three quotes for custom software development almost never describe the same job. So do not compare them by the total but by the document: what is included, what is not, and which assumptions the price rests on. The cheapest quote is usually the one with the smallest scope, and the difference gets paid later, as change requests.
Why the quotes cannot be compared
Every agency reads your brief differently: one includes user administration and an Excel export, another treats them as extras.
The consequence is measurable. According to PMI’s Pulse of the Profession 2018, 52 % of projects experienced uncontrolled scope creep, up from 43 % five years earlier. That is why PMI advises writing down what is outside the scope, not only what is inside it.
Ten items every quote must include
| Item | What to check |
|---|---|
| Price type | Estimate, fixed price or a cap? |
| Feature list | Written per screen or role, not in one sentence |
| Out of scope | An explicit list of what is not included |
| Assumptions | Who supplies data, copy, access to other systems |
| Revision rounds | How many are in the price |
| Hosting and licences | Who pays and whose name they are in |
| Warranty and maintenance | How long and what it covers |
| Code ownership | Whether and when it transfers to you |
| Payment plan | By phase or up front |
| VAT and deadline | Is VAT included and what the deadline depends on |
If an item is missing, ask in writing. Pricing models: fixed price vs time and materials; ownership: who owns custom software you paid for.
How to level the quotes
- Send everyone the same brief. One or two pages, as in how to commission custom software.
- Ask them to fill in the same table - the ten rows above.
- Compare the first year, not the build. Add build, hosting, licences and maintenance; the maintenance share is in software maintenance and support cost.
If the gap stays large, the cause is usually team size: freelancer or small team.
Three questions that expose the cheapest quote
- What exactly is not included?
- How is a change we discover during the build charged?
- What does the first year after launch cost us?
A quote that answers all three concretely is worth more than a cheaper one that answers “we will work it out”.
When comparing makes no sense
If one quote came after a paid discovery phase and the others after one meeting, they are not the same kind of document: the first is a calculation, the rest are estimates. The same goes for a job of a few days: talking to one supplier is faster than collecting three quotes.
Frequently Asked Questions
Is it fine to ask three agencies for a quote? Yes, if you send them all the same brief and tell them you are comparing.
Should we drop the most expensive quote straight away? No. First check whether it is the only one listing testing, warranty and code transfer.
How long should a quote take? For a small project a few days; for a larger system a serious quote needs a conversation or a paid analysis.
What if a quote is just one number? Ask for a breakdown by phase. Without it you do not know what you are paying for.
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- Custom software cost in Croatia
- What is custom software development?
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