What to look for in a software proposal

Different prices can reflect different interpretations of the same brief. Before comparing totals, establish whether the proposals cover the same work and responsibilities.

Look for concrete scope

A proposal should describe the tasks the software will support. A label such as “user management” leaves room for interpretation. Describing how staff sign in, which records they can access and who manages permissions gives a clearer basis for discussion.

Look for assumptions and exclusions as well as features. They help explain where the quoted price could change.

Check the surrounding work

Depending on the project, the proposal may need to address:

• Interface design and responsibility for approving it
• Testing and acceptance criteria
• Data migration and validation
• Third-party services and integrations
• Training and documentation
• Hosting, backups, monitoring and maintenance

Some of this work may sit with your team or another provider. The important point is to make responsibility and cost explicit.

Separate ownership from access

Copyright ownership, licence terms and access to a repository are different questions. Having a copy of the code does not by itself establish what you are entitled to do with it.

Ask what you will own, what is licensed from third parties and what access is needed to maintain or move the application. These arrangements should be clear in the agreement.

Understand the pricing basis

For fixed-price work, check the scope, assumptions and treatment of changes. For time-and-materials work, check rates, estimates, spending visibility and how additional work is authorised.

Neither model removes uncertainty. The useful comparison is how each proposal handles it and what information you will have while the project is under way.

Include ongoing operation

Ask which costs continue after launch, what support covers and what response arrangements apply. Consider third-party subscriptions and usage charges as well as development and hosting.

An initial build price is only one part of the cost of operating the software.

Resolve differences before deciding

Ask suppliers to explain unclear items and identify gaps between proposals. A shared understanding of the scope makes both the price comparison and the eventual agreement more useful.

If you would like technical input on a proposal, contact us.