Software Quote Templates
Many companies do not have the internal IT skills to complete their own software development. Instead, they hire IT, consultants to develop software to enhance their business processes, update existing software and provide support to operations. IT consultants can be expensive, and it is important for the business’s survival to hire competent, skilled IT/Software firms at competitive rates to ensure continuous business operations.
As an IT software developer, providing quotes to your clients is an important activity. It takes time to prepare quotes, and using a template to prepare your quotes can save time. Quote templates also ensure consistency in your quoting process and enable multiple software engineers to prepare quotes with the same level of quality.
- 1
- 2
What Is an IT/Software Quote?
An IT/Software Quote is an estimate of the cost to develop software for a client meeting specified requirements negotiated with the client. This is one of the most important documents since it spells out what you, the developer, are providing the client in terms of software and hardware specifications, completion dates for delivery of the untested software, testing requirements, and delivery of the final product.
The IT/Software Quote must cover everything discussed with the client and ensure that both parties have the same clear picture of what will be delivered, what testing criteria will be met to deem it an acceptable solution, and of course, the pricing.
The final IT/Software Quote will have locations in the document for you and the client to sign off, indicating the final agreement and requests that you begin the project. Clients routinely modify their requirements as they reach a better understanding of what can be developed. After the first quote is delivered, there may be several rounds of adjustments and negotiations before the final quote is acceptable to both parties.
The budget for the project can often be an issue for a client. They may not yet have approval for the project and need a firm quote before they can seek final approval within their company to proceed. In addition, they may also have a limited budget to work with. Most IT consultants will attempt to understand how large a budget there is available and at what approval stage the project is in. before committing to complete any work other than preparing the quote. Consultants should always confirm funding for the project.
Since you may be preparing IT/Software Quotes for many customers, sometimes even several for the same customer, an IT/Software Quotation template can help to ensure consistency in your quotes and also save time for you and your company.
What Is an IT/Software Quote Template?
An IT/Software Quotation template is a document that any of your software engineers can use while preparing an IT/Software Quotation for a client. The template contains all of the standard information that should be found in a quote in a format that has been approved by your company’s management team. Your engineers can focus on the details of the quote and how they will meet the client’s expectations instead of the company’s letterhead format, legal requirements for payment and terms, etc.
The IT/Software Quotation template contains all of the standard sections and subsections of the document your management team is expecting to see in a quote. Details such as milestones, scheduled delivery dates, testing schedules, and pricing can be filled in by the software engineers working on the project.
Several major benefits of using an IT/Software Quotation template include major saving of time spent on preparing the quote, and all quotes will follow a standard professional format. Many companies prepare several quotations for various projects for the same client. The client knows what to expect and only needs to review the standard legal terms once. They save time too, which is appreciated.
How to Write an IT/Software Quote Template?
Every IT/Software Quote should contain the following headings and information, with space left for customizing the quote based on the client’s requirements. Use your company’s logo and letterhead to create a professional look for the document.
- Your Company’s Information
- The Clients Information
- Relevant Dates and Reference Numbers
- Project Description
- Milestones and Description
- Terms and Conditions
- Professional Summary & Closing
- Your Company’s Information – including Company legal name, registration numbers, Tax numbers, full address, website address, contact information, e.g., physical address including email, phone number for the primary contact person in your company.
- The Client’s Information – their company’s legal name, registration numbers, full business address, and contact information, including email address, phone number, and the name of the contact person responsible for negotiating and signing the quote.
- Relevant Dates and Reference Numbers – include the date the quote is effective and the expiry date if applicable. Reference numbers are unique to each quote and help to distinguish between quotes, especially if there are several ongoing for the same client. Use standard reference numbers for your company – Initials of client’s name – unique serial number – revision number – ABC-20230401-00
- Project Description – this section is left blank on the template and is filled in for each separate project.
- Milestones and Description – most IT/Software projects will be split into separate deliverables or milestones with due dates, testing requirements, and billing based on client acceptance. Large projects may have many detailed milestones, while smaller ones may have only one or two milestones. Each milestone should include detailed pricing and taxes.
- Terms and Conditions – may be common across all IT/Software quotes. Payment terms as specified by your company, legal terms covering how disputes are handled and in which state, methods for handling foreign currencies, delivery specifications, etc. The terms and conditions will depend on the client and the type of software under development.
- Professional Summary & Closing – summarize the quote, thank the client for considering your quote and allow space for the client to sign off on the document indicating acceptance. Provide space for the person authorized in your company to sign off on the quote. Once both parties sign off on the document, it indicates acceptance and approval by both parties and is considered legally binding.
Frequently Asked Questions
The following are a few of the typical frequently asked questions many of our readers have related to IT/Software Quotation templates.
A quote summarizing all of the information you have learned about the project from the client is one of the best forms of communication with your client. It should include all of the details about your project, including deliverables, time frames, terms, and the total cost of the project. If changes are needed once the project has begun, they can be handled using documented change orders agreed to by your engineers and the client.
All payment details should be included. Progress payments, taxes, penalties, and performance-related details should be included so that both parties understand the financial aspects of the project. Don’t forget to include how the client can pay your fees – bank transfer, credit card, PayPal, etc.
The vendor always prepares the quotation. The quote may be in response to several detailed meetings with the client discussing their needs or in response to a detailed request for a quote from a client. The vendor should have one person in charge of coordinating the preparation of the quote, drawing on the renounces in your company as needed.
No, the invoice is a request by the vendor to the client to pay the specified amount on the invoice for work completed based on the terms expressed in a contract agreed to by the vendor and the client. A quote is a document that describes everything about the project, including deliverables and payment details. The client is requested to sign the quote document agreeing to the project before work can begin.
A good quote includes and summarizes everything your client requires based on your understanding from discussions with the client or an RFQ. Components to include are:
ᐅ Your company’s official information – address, contact details
ᐅ The client’s information – – address, contact details
ᐅ Milestones delivery dates, including testing schedules
ᐅ Pricing – including progress payments and taxes
ᐅ Work schedule
ᐅ Payment terms and legal conditions
ᐅ Space for signatures by both parties approving the project
ᐅ Change order protocols
ᐅ Business details that are not included in the above.
Key points, Conclusion, or Final Thoughts
Every IT Software project for a client should utilize an IT/Software Quotation template to ensure consistency and professionalism and save time for both the vendor and the client. A template ensures all of your quotes have the same look and feel for your clients, especially if they receive more than one quote from your company. Using standard formatting with your company’s letterhead communicates professionalism and ensures that all of the details have been included. Finally, your software engineers can focus on the details of the project, saving them time as well.
An IT/Software Quotation should include all of the details you understand about the project and the client’s requirements based on conversations, detailed specifications discussed with the client, or based on RFQs from the client. The quote is your understanding of what you will deliver to the client in terms of specifications, timing, and cost. Once the client signs off on the document, work can begin. Changes required later on can be handled by a change order process outlined in your quotation. A well-written quote and agreement avoid any future misunderstandings and difficulties.
An IT/Software Quotation template can also be used for internal software development projects since it encourages clear communication and agreement between the parties in different departments of your company.