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Web Development pricing?

Posted on 2006-11-13
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Last Modified: 2010-04-07
Hi All,

We are in the process of selecting a group of Developers (3 deveopers and one project manager) for the creation of a new site.
This site is pretty much an ecommerce site which is pretty entailed. The team has come up with an estimation of 500hrs to complete this project.
We are now trying to agree on the hourly rate up front. They have suggested $50/hr and I am not sure if this is the standard and if we should be asking for a lower price since there are so many hours involved. All of the individuals involved have 9 to 5 jobs so they plan on doing this as a side project.
We were hoping to get some knowledgable asnwers and input from others?
Thanks in advance.
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Question by:PCLANTECHS
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CWS (haripriya) earned 250 total points
ID: 17936767
Hi PCLANTECHS,

I don't agree with hourly based payment. Person A will take 1 Hr to finish a job and person B takes 2 Hrs to finish the job. Now will you pay $50 to A and $100 to B for the same work? Fix the payment for the whole project . Find out what is the market price for doing the whole website with all the required features. Get the quote from 2 or 3 companies and then decide.

Good Luck
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by:Bob Bender
Bob Bender earned 250 total points
ID: 17961052

You say you "are in the process of selecting a group of Developers" for this project.  
and "the team has come up with an estimation of 500hrs to complete this project".

I am assuming that this means you are asking for bids from any group of 4 people.
Your only group gave you an estimate in # of hours?  Kind of odd. Go ask them for
a price!  Then, you look at other people/teams and make comparisons.  

Look for a portfolio from them.  See what other work they have done.  

Next, what type of deadline do you have?  Up and running in 3 Months?  6 months?
You need to gauge if they can complete the contract.  3 developers on the site, 500 hours part time.  About 125 hours per person.  They have 40 hour a week jobs, will
they work 20 hours/week?  Or 2 hours a weeknight, and 10 hours on Sat, with one day off?  Or some other maniacal schedule?

Try searching Google for "Web Developer Contract" or "Web Development Guidelines",
or some combination thereof.  

Go with a flat $ site cost for the whole shebang.  Just be sure to cover your bases and get it in writing as for expectations.

It may seem that I am rambling, but it is food for thought.

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