How to Evaluate a Software Development Proposal: 10 Questions
You received three proposals and the prices differ by a factor of three. Which one is right? Comparing software proposals on the total alone is the most common — and most expensive — mistake, because proposals rarely price the same work. These ten questions help you compare like with like.
Scope and process
1. Is the scope written down in detail? "Enterprise web application" is not a scope. A good proposal lists screens, user roles and integrations — and explicitly lists what is excluded.
2. Is there a discovery phase? A vendor that prices without analysis has either hidden the risk in the price or will say "that was out of scope" halfway through.
3. When will you see working software? A single delivery after six months surfaces misunderstandings after six months. Working releases every two to three weeks catch risk early.
Ownership and quality
4. Who owns the source code? If the answer is not "you", you are permanently tied to the vendor. Transfer of code, documentation and infrastructure access belongs in the contract.
5. How is testing done? Look for automated tests, code review and an acceptance-testing process. Untested software returns its cost as post-launch bugs.
6. How are security and data protection handled? Authorisation, logging, data masking and security testing must be part of the design, not add-ons.
Cost and risk
7. Are payments tied to milestones? Paying for each stage after seeing its output shares risk fairly.
8. How are change requests handled? New needs appear — that is normal. What matters is that pricing and approval of changes are defined up front.
9. What happens after launch? Warranty length, post-warranty support pricing and defined response times (SLA) determine the true cost of ownership. See our approach to software support.
10. Can you speak to a client? Ask for a short call with a real client in a similar industry. It tells you more than any presentation.
Conclusion
The cheapest proposal is often the one that covers the least. The most expensive is not automatically the best. The right proposal has a clear scope, shares risk and is transparent about long-term cost. Our own models are on the pricing page, and our process is described under custom software development.