Imagine you ask two companies for a quote on what you describe as “the same system” and one proposal costs several times more than the other. That alone doesn’t prove one is expensive or the other is a bargain: first you need to verify whether they’re actually quoting the same thing.
If what you want is to understand how custom software gets priced in Paraguay, we explain how much custom software development costs in Paraguay and what public data exists—and what doesn’t—to estimate it. Here we focus on something else: how to compare two specific proposals you already have on the table.
Before comparing prices, verify the quotes include the same things
There’s no valid comparison if the proposals start from different scopes, assumptions, activities, quality levels, or responsibilities. Two numbers that claim to cover “the same system” can be describing different work: one quote based on a brief conversation and another based on a documented requirements review are not the same exercise, even if the end result is called by the same name.
Requirements can change as the project advances and details emerge that weren’t defined at the start. That’s why an estimate improves when it begins with documented scope, explicit assumptions, and a clear mechanism to manage changes.
A McKinsey study, Delivering large-scale IT projects on time, on budget, and on value, examined large-scale IT projects (defined there as projects with initial budgets above USD 15 million) and found that on average they exceed budget by 45%, exceed schedule by 7%, and deliver 56% less value than planned. These figures apply to large-scale IT projects and shouldn’t be applied quantitatively to a small business or small development. They do illustrate why scope, assumptions, and project management must be part of a serious estimate, regardless of size—a principle also reflected in the cost estimation guidance from the GAO, a standard reference for documented scope, assumptions, and risk.
What to examine in each proposal
The gap usually comes from several factors stacking up.
Scope and assumptions
A quote built on a conversation and one built on a documented review of use cases, roles, and permissions are not comparable as-is. Quote-comparison guides consistently recommend going through line by line to see what each proposal includes and excludes (Koud). If an item doesn’t appear in the proposal, ask the provider to confirm in writing whether it’s included, excluded, or pending estimation.
Data migration is a good example of an item worth checking explicitly. If you already have information in spreadsheets, databases, or another system, ask whether cleaning, transforming, importing, and validating that data is included or quoted separately.
Who executes the work and what controls exist
Price also depends on who executes the work and what controls surround it. An individual provider can have solid processes and a company can depend on a single key person; the label alone isn’t enough. Ask who will actually develop the system, who reviews changes, how it’s tested, what documentation remains, and what happens if a key person becomes unavailable.
An inexperienced team, or one with no review process, raises the risk of rework, especially on complex systems, and that holds whether you’re hiring a freelancer or a company.
What happens after delivery
Cost doesn’t end when the system goes live. After launch come bug fixes, dependency updates, infrastructure changes, improvements, new integrations, and adjustments as the business changes. That’s why the quote should explain what support is included, for how long, and how future work is quoted, including what happens once the warranty or the included support runs out.
Estimation methodology
Ask the provider to explain how they arrived at the number, what information they used, what assumptions they made, and what level of uncertainty exists. Formal methods like COCOMO (developed by Barry Boehm at the USC Center for Systems and Software Engineering) or function points (IFPUG standard) can provide a quantitative foundation in contexts where they fit, but what matters for comparing proposals is that the estimate is explainable, documented, and consistent with the scope.
Code, data, and dependence on the provider
Who will own the code developed specifically for the project? Will you have access to the repository and documentation you need to continue with another provider if necessary? Are there third-party components, licenses, or services with different terms?
An auditable quote: the idea that makes comparison possible
The real question isn’t “which is cheaper” but “which can I verify.”
A software quote is auditable when it lets you verify what’s included and excluded, what assumptions support the estimate, how changes are managed, what responsibilities fall to each party, what happens after delivery, and what assets the client receives when the project ends.
Before signing, ask each provider to confirm this in writing:
| What to compare | Proposal A | Proposal B | What should be clear |
|---|---|---|---|
| Functional scope | What processes, modules, and roles it covers | ||
| Integrations | Which systems/APIs are included and excluded | ||
| Data migration | Cleanup, transformation, loading, validation | ||
| UX/UI design | Templates, custom design, or not included | ||
| Testing | What gets tested and who approves | ||
| Security | Requirements and controls addressed | ||
| Infrastructure | Hosting, cloud, domains, external services | ||
| Documentation | Technical, functional, and user | ||
| Implementation | Going live and training | ||
| Warranty | Duration and scope | ||
| Maintenance | Model and cost after warranty expires | ||
| Code and data | Ownership, access, and exit terms | ||
| Scope changes | How they’re approved and quoted |
If a quote doesn’t answer these questions clearly, it isn’t yet comparable to one that does, even if the final number looks similar.
When a low price is the signal, not the exception
Not every low quote is a risk. A low price becomes a red flag when nobody can explain it. If a proposal costs considerably less, the useful question isn’t “what’s wrong with it?” but “what assumptions, scope, or service level are different?” A price difference can be entirely legitimate if the provider can explain it.
We go into the specific signals that make a price gap worth a closer look in the real risks of choosing the cheapest developer.
If you want to see a concrete example of how a provider can document their pricing logic, we publicly explain how Flexora builds its quotes and what each stage includes.
What to do before choosing a provider
A quote that details scope, assumptions, team, and what happens after delivery gives you something to work with if things go wrong. One that’s just a number doesn’t.
At Flexora we build each custom software development quote from an actual review of the process you’re trying to solve. If you’re evaluating options, it’s a useful benchmark for what the proposals already on your table do, and don’t, say.