What makes a software quote different
Unlike a physical product, software development is often quoted by phase or in blocks of hours, with a scope that may evolve during the project. Clear phases and exclusions are particularly important.
Steps
1. Divide the project into phases or modules
Discovery, design, development, QA and deployment are typical phases. Quoting by phase makes it easier to approve work and adjust scope without rewriting the entire document.
2. Estimate hours per phase, not just a single total
Showing estimated hours for each block gives the client transparency and helps protect you if the scope grows during the project.
3. Make technical exclusions explicit
Third-party integrations, ongoing maintenance and out-of-hours support are often outside the base scope. Say so explicitly.
4. Set milestone-based payments
A deposit at the start, a payment when design is completed and a final payment on production delivery is a common structure that reduces risk for both parties.
Software quote example
Quote #Q-2026-031 for “Booking platform”, client Hotel Delmar. Amounts are in USD, with an illustrative 16% tax:
- Discovery and architecture — 20 h × $45.00 = $900.00
- UI/UX design (10 screens) — 30 h × $45.00 = $1,350.00
- Frontend + backend development — 120 h × $45.00 = $5,400.00
- QA and deployment — 16 h × $45.00 = $720.00
- Subtotal: $8,370.00 · Example tax (16%): $1,339.20
- Total: $9,709.20 USD · Excludes: payment integrations and ongoing maintenance