Imagine two quotes for what looks like the same system: Gs. 10,000,000 and Gs. 80,000,000. The difference by itself doesn’t tell you which is better. It could be due to scope, team experience, proposed architecture, testing, integrations, support, or simply different cost structures. The useful question isn’t why one is cheaper, but whether both are actually quoting the same work.
If you’re still comparing proposals before deciding, the guide How to compare custom software quotes in Paraguay has the complete checklist. Here we focus on one specific risk: what’s worth reviewing before signing with the cheaper option, without assuming from the start that it’s a bad idea.
The most concrete risk: dependence on one person
A real risk can emerge when project knowledge and operations stay concentrated in one person—whether a freelancer working solo, an employee, a partner, or the only technical person a company assigned to the project. In software engineering this is studied through the concept of bus factor (or truck factor): the minimum number of people who would need to leave a project before its continuity is compromised. There is specific empirical research on this knowledge concentration risk (Jabrayilzade, Evtikhiev, Tüzün, and Kovalenko, “Bus Factor In Practice”, 44th IEEE/ACM ICSE-SEIP, 2022).
A freelancer can work with solid processes, clear documentation, and some form of backup. A company can just as easily distribute knowledge badly, with everything sitting in one person’s head despite the org chart. The label “freelancer” or “company” doesn’t determine the risk on its own—what matters is how continuity is protected: who else has code access, how well documented the system is, and what happens if that person becomes unavailable.
None of this means every freelancer is risky or every agency is safe. It means “who does the work, and with what backup” is a fair question to ask before signing, not after the project stalls halfway through.
The silent risk: what isn’t written in the quote
A McKinsey study in collaboration with Oxford University, Delivering large-scale IT projects on time, on budget, and on value, was based on a database of over 5,400 IT projects. For projects the study classifies as large-scale—those with an initial budget above USD 15 million—it reported an average of 45% over budget, 7% over timeline, and 56% less value delivered than expected. Those figures come from a very different universe of projects than a Paraguayan small business comparing quotes for a few million guaraníes, so they shouldn’t be read as an expectation of cost overrun for any project. They do make the case that comparing proposals on final price alone is a bad idea: the study recommends looking past cost to talent, scope, architecture, QA, migration, and project management.
There are line items worth checking explicitly in any quote—not because “they’re almost always missing” from the cheap option, but because when they’re missing, they change the project’s real cost:
- Migration of existing data. If your company already operates with spreadsheets, a legacy system, or paper records, migrating that information can involve analysis, cleanup, transformation, import, and validation. Check whether that work is included, excluded, or still pending estimation.
- Testing and separate environments. Building with automated tests and separate development, test, and production environments takes more time and effort than delivering something that simply runs. Ask what gets tested, with what tools, and who signs off on the results.
- Maintenance and post-delivery support. The cost of keeping a system alive—updating dependencies, fixing bugs that appear with real-world use, adapting functionality—varies by system, infrastructure, and agreed service level. FullScale, an industry vendor, publishes a rough rule of 15% to 20% of the original build cost per year, which is not a universal industry standard but does give you a sense of scale (FullScale). If that work will be needed and isn’t in the initial quote, clarify who will handle it and how it will be priced once the initial warranty or support period ends.
- User training and system documentation. These may be necessary depending on how complex the system is and how much turnover the team using it has. Check whether they’re included.
If an item doesn’t appear in the quote, that doesn’t necessarily mean your project needs it. But if it turns out later that you do, it will take extra time, work, or money. So settle it beforehand rather than assuming from the start that “something is being hidden.”
In Paraguay, check local integrations too
If the system needs to integrate with local services or requirements, verify that work is explicitly covered. One example is SIFEN: DNIT publishes specific technical documentation (e-Kuatia: Software Development, Technical Documentation) for systems that must interact with electronic invoicing, including the current Technical Manual and system technical notes. If your project needs that integration, ask for evidence of comparable past projects, ask how the provider works with that official documentation, and verify that the analysis, development, and testing involved are covered in the quote or quoted separately.
How to reduce risk before signing
The rule: same questions, same conditions, before comparing the total.
It’s not about automatically rejecting the lowest offer, but about requiring both quotes to answer the same questions before comparing the final number:
- Ask that scope, exclusions, and approved changes be documented through the project’s agreed mechanism.
- Ask directly what happens if the person developing the system becomes unavailable: who else has code access, and how well documented the system is.
- Confirm whether testing, data migration, training, and post-delivery support are included or billed separately.
- Ask for a line-by-line breakdown of what each proposal includes and excludes, rather than comparing just the total (Koud).
If you’re curious how this looks from the other side, in why Flexora quotes the way we do we explain what each stage of our own quotes includes.
If you’re evaluating a custom software development project, talk to our team. We ask for the scope in writing from the very first meeting.
Sources cited
- Koud: How to compare software development quotes
- McKinsey: Delivering large-scale IT projects on time, on budget, and on value
- Jabrayilzade et al.: Bus Factor In Practice (ACM DL, ICSE-SEIP 2022)
- FullScale: Software Development Cost Calculator
- DNIT e-Kuatia: Software Development
- DNIT e-Kuatia: Technical Documentation