Why two quotes for the same project differ by 3×

It is rarely hourly rates. It is what each team assumed you meant. How to read and compare software development quotes properly.

An antique brass balance scale silhouetted against warm light

You send the same brief to three development companies and get back three prices. One is roughly three times another. The natural conclusion is that one team is expensive, or one is cheap, or someone is trying to take advantage.

Sometimes that is true. Much more often, the teams are not pricing the same project. Each one has read your brief, filled in the gaps with its own assumptions, and priced what it imagined.

Where the difference actually comes from

Rates are the smallest factor. Rates differ between regions and companies, but rarely by enough to explain a threefold gap on their own. The big differences come from scope interpretation.

“User management” can mean anything. One team reads it as a login page and a password reset. Another reads it as roles, permissions, invitations, audit logs and single sign-on. Both are reasonable readings of two words. The second is several times the work.

Integrations hide the most variance. “Connects to our ERP” might be a nightly CSV export or a real-time, two-way sync with conflict handling. A team that has been burnt by an ERP before prices the second.

Non-functional requirements are often unpriced. Performance under load, security reviews, accessibility, backups and monitoring. One quote includes them; another assumes you will ask later.

Design fidelity varies. A quote based on a UI kit and a quote based on custom product design are not comparable, even if both say “design included”.

QA, environments and project management. Some quotes include test automation, a staging environment and a project manager’s time. Others count only development hours.

Risk padding. When a brief is vague, experienced teams add contingency because they know vague briefs grow. That padding is invisible in the total but can be a large share of it. A low quote on a vague brief is often a team that did not add padding — and plans to recover the difference through change requests.

The cheap quote is not always cheap

A low number feels safe until the first change request. If the lower quote excluded things the higher one included, those things usually come back during the project as additional costs — priced after you have lost the option to go elsewhere.

That does not mean the most expensive quote is right. It means you cannot compare totals until you know what each total contains.

How to compare quotes properly

1. Send a written scope, not a brief. The single most effective step is to give every bidder the same detailed document: features per user role, integrations, non-functional requirements, and explicit assumptions and exclusions. The more of the interpretation you do up front, the less variance you get back.

2. Ask every bidder for their assumptions. Request a written list of what each team assumed about anything the document did not settle. Comparing assumption lists is often more revealing than comparing prices.

3. Normalise the line items. Put quotes side by side in the same structure: design, development per feature area, integrations, QA, infrastructure, project management, contingency. Gaps become obvious.

4. Ask each team to price the others’ assumptions. If the cheapest quote assumed a one-way nightly import, ask the others what that would cost them too. You will often find the gap shrinks dramatically.

5. Ask how changes are priced. A reasonable total with an unreasonable change process can end up the most expensive option.

A quote is a reflection of the brief

When quotes differ wildly, the most useful conclusion is rarely about the companies. It is that the brief left too much open. Fix the document and the prices converge — and the one you choose will be much closer to what you actually pay.

This is why ANASBRENT scopes every project in writing before any partner prices it: the quote you receive is calculated against a document you have already approved. If you have quotes on the table that you cannot make sense of, send them to us with your brief and we will show you where they differ.

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