Swagman Systems Design Inc.

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What you should know before contracting out

  • First, do your homework. Before entering into discussions with a subcontractor, develop your ideas in-house as much as possible. This will save you time and money in the long run and will enable you to define more clearly what it is that you want. It will also enable you to develop realistic expectations regarding deliverables and timeframes.

    The outside developer is not part of your organization and may very well deal with many different business environments. In this case the project request must include more clearly defined information than what might be necessary in-house. Presenting well thought out specifications to the subcontractor will help them to more fully understand your unique business practices.

  • The role of the sub-contractor is to analyze and synthesize the informationyou have provided and present you with clearly defined final specifications prior to the start of the project. If the specifications are not well defined and features and other changes are added during the development phase it could take longer to complete the project and cost more than initially budgeted.

    If you do not have experience in similar type of ventures, you may expect more than what was agreed upon in the application proposal. A well-defined proposal should tell you exactly what the project will and will not include.

  • Be realistic about your timeline requirements and allow yourself sufficient time for getting the product developed. Also, don't forget to include Beta testing in your estimate. It is an essential component of the development life cycle and is used to ensure that the product integrates seemlessly into your organization.

  • Having a good working relationship with the individuals involved in any project is essential for its’ optimum success. In order to assist in this process when contracting out, it is essential that an in-house contact person be assigned to manage the sub-contract relationship and be the "window" to all issues and inquiries that may arise. It is important that all decisions regarding the project go through the contact person. This will reduce the occurrence of mixed messages and contribute to the project's success.

  • It is critical that you develop realistic budget and cash-flow projections prior to the establishment of a project agreement. Not only will this contribute to a positive working relationship with your sub-contractor, more importantly it will also contribute to the success of your project.

    Frequently, more is involved in developing a custom application than initially thought. When doing your in-house planning, be realistic about what the project is liable to cost. If a subcontractor agrees to do the work for a price lower than is realistic, it could end up costing you more in the long run with changes and cost over-runs. A well thought out and detailed proposal should provide a realistic figure and tell you exactly how much your investment will be.

Before You Sign:

  • Source Code: Make sure that your entitlement to the source code is written into the project contract. Otherwise, it could become difficult if not impossible to make changes or upgrades to the software program in the future. Some developers may charge you more to provide the source code but consider how much it could cost you in the future if you elect not to obtain it.

  • Warranty: Be sure you are clear on the service you will receive if you should have problems or find bugs in the program after the project has been signed-off.


© Swagman Systems Design Inc. 2001 We develop B2B custom software solutions that are on time, on budget and deliver the results you need to improve your bottom line. In addition, we provide custom ACCPAC reports as an ACCPAC Development Partner, and offer a custom website promotion & submission service. Contact Us on this site or call 1-877-SWAGMAN (792-4626) for more information.