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Assessing Website Development Costs
Written by Paul Holmes, September, 2003
A major concern for companies procuring a website is making sure the price is fair. When you receive a quote for website development, here are some questions that might help you.
- What is the base hourly price for the work being done?
Website development is a professional service. But a simple mathematical equation of costs (less additional services and licensing fees) divided by hourly rate will give you an idea of how many hours your website design company thinks your project will take. Does the number of hours seem unreasonably high? Does the hourly price seem unreasonably high? If so, ask the company to explain why they believe it will take so long.
- Is there a rate guarantee?
Our company guarantees a maximum price (as long as the client does not change the requirements, as laid out in detail in our proposals). Is there a similar guarantee in your proposal, or is there any mention of cost/time overruns?
- What is the company’s history and future?
There is plenty of turnover in the web-development business. How long has the company been in business? Are they a team or a one-person show? How long will they remain in business? This is important, as you will almost certainly require updates to your website as time goes on. Ideally, this work is completed by the company that is most familiar with your website – the one that developed it in the first place.
- Are there any software licensing fees included in the cost? Are there any recurring costs for software?
Some companies will use proprietary content management systems (CMS) to develop your website. This is not necessarily bad – although you should be careful that the programs being used are standard enough that you can change web hosting companies easily, and are able to call on other professionals to update your websites easily. You do not want a solution that is so proprietary that you are “stuck” with your original provider forever (or, if they go out of business, that you are completely “left in the lurch”). Also consider that the cost may include the first year’s license fee, but you may be looking at additional fees in future years (don’t be afraid to ask about this!).
- Does your price include any additional services, such as hosting or domain name registration?
It is our policy to show all the costs on our proposals so there are no surprises, however different companies might use different methods (or make assumptions about your knowledge of additional costs). Make sure there are no costs that are “added on” later, or find out what they are and how much they will cost. When comparing quotes, be sure to keep these extra costs as a consideration.
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