Software Development Quotation Template: Sample and Scope

Most software projects that go wrong do so on paper first: a quote that said "Mobile app - $20,000" without saying which features, which platforms or what happens when the client asks for one more screen. A good software development quotation template turns the conversation into a scope, a price, a timeline and a change process that both sides sign. This guide covers what to include, a filled sample for a small web application, and how to choose between fixed price and time and materials.

What goes in a software development quotation

1. Header and reference

Your company details, client details, quotation number, date and validity (30 days is common for software because team availability changes). If the client's procurement team needs it, include their RFQ or reference number.

2. Project summary

Two or three sentences in the client's language: the problem, what you will build, and for whom. For example: "A customer portal where wholesale buyers log in, view price lists, place orders and download invoices, connected to the client's existing inventory system."

3. Scope of work

List features or user stories, the platforms (web, iOS, Android), and integrations. A scope table with "In scope" and "Out of scope" columns prevents more disputes than any other section.

4. Estimate by phase and role

Break the project into phases and show estimated hours by role (project manager, designer, developers, QA). This makes a fixed price defensible and makes a time and materials estimate transparent.

5. Pricing model, payment schedule and terms

Fixed price or hourly, milestone payments, change requests, warranty period, hosting and third-party costs, IP ownership, confidentiality and validity. Our quotation terms and conditions guide has wording you can reuse.

Software development quotation template: filled sample

Quotation: SDQ-2026-018   Date: November 12, 2026   Valid until: December 12, 2026
Client: Harbor Wholesale Ltd
Project: B2B ordering portal, responsive web app
Model: Fixed price based on the scope below

Scope

In scope	Out of scope
User login, password reset, two user roles (buyer, admin)	Native mobile apps
Product catalog with customer-specific price lists	Payment gateway (orders are on account)
Cart, order placement, order history	Data migration beyond one CSV import
Invoice PDF download from existing system via API	Changes to the client's inventory system
Admin panel for users and price lists	Content writing and translation

Estimate and price

Phase	Roles	Hours	Rate ($/hr)	Amount ($)
Discovery and specification	PM / analyst	24	90	2,160
UX and UI design (12 screens)	Designer	48	80	3,840
Front-end development	Developer	110	85	9,350
Back-end, API and integration	Developer	130	85	11,050
Testing and QA	QA engineer	40	60	2,400
Deployment and handover	Developer	12	85	1,020
Project management	PM	30	90	2,700
	Subtotal	394		32,520
	Risk buffer 10%			3,252
	Fixed price (excl. tax)			35,772

Math check: 24 x 90 = 2,160; 48 x 80 = 3,840; 110 x 85 = 9,350; 130 x 85 = 11,050; 40 x 60 = 2,400; 12 x 85 = 1,020; 30 x 90 = 2,700. The subtotal is 32,520 and 10% contingency adds 3,252, for 35,772. Many firms round this to a clean figure such as $35,750 on the final quote.

Payment milestones

Milestone	Acceptance evidence	Share	Amount ($)
Project start	Signed quotation	25%	8,943
Design approved	Client sign-off on clickable prototype	20%	7,154.40
Beta delivered	All in-scope features on staging	35%	12,520.20
Go-live	Production launch and handover	20%	7,154.40

Our guide to milestone payments explains how to word acceptance so that silence after a set number of days counts as approval.

Key terms in the sample

• Timeline: 12 weeks from start, assuming client feedback within 3 working days at each review.
• Changes: requests outside scope are estimated in writing and billed at the rates above once approved. See how to handle scope creep with a change order.
• Warranty: defects against the agreed specification fixed free for 60 days after go-live.
• Third-party costs: hosting, domains and paid APIs billed to the client directly.
• IP: source code ownership transfers on full payment; open-source components remain under their licenses. Our article on the intellectual property clause covers the options.

Fixed price vs time and materials

	Fixed price	Time and materials
Best for	Clear, stable scope	Evolving products, ongoing work
Who carries overrun risk	Developer	Client (often with a cap)
What the quote shows	Total price, milestones, scope	Rates per role, estimated range, billing cycle
Typical billing	By milestone	Monthly from timesheets

A time and materials version of the sample would show the same phases as an estimate range, for example 360 to 430 hours, billed monthly at the role rates, with a not-to-exceed figure the client must approve before you go beyond it. If you are setting rates for the first time, our article on web developer hourly rates gives reference ranges.

How to prepare the quote

1. Run a discovery call and write down goals, users, must-have features and deadlines.
2. Write the scope as features, each small enough to estimate.
3. Estimate in hours per feature and role, ideally with two people estimating independently.
4. Add contingency based on uncertainty and integration risk.
5. Choose the pricing model and convert hours into price.
6. Define milestones with clear acceptance evidence.
7. Add terms for changes, warranty, IP, third-party costs and validity.
8. Send it as a PDF with a short covering email; see how to send a quotation by email.

Assumptions and client responsibilities

Every software estimate rests on assumptions. Writing them down turns hidden risk into an agreed list, and if one turns out to be wrong, the change request process has something to point to. Typical assumptions for a project like the sample:

• The client's inventory system provides a documented API with test credentials by week 2.
• The client supplies all product data and copy in the agreed CSV format.
• Two rounds of design revisions are included; further rounds are billed hourly.
• The portal supports the latest two versions of major browsers; older browsers are out of scope.
• Expected load is up to 500 active users; higher volumes may need additional performance work.
• The client names one decision-maker who can approve milestones.

Client responsibilities belong next to the assumptions: providing access, content, test data and timely feedback. Tie the timeline to them, for example "the 12-week schedule assumes feedback within 3 working days; delays extend the schedule by the same period."

Support and maintenance after launch

Separate the free warranty period from paid support. A short table works well: the warranty covers defects against the agreed specification for 60 days; an optional support plan, for example 8 hours a month at a fixed monthly fee, covers small changes, updates and monitoring; anything larger is quoted as a new project. Clients appreciate knowing the cost of ownership before they sign, and it gives you a natural route to ongoing work.

Discovery-first quotes

If the requirements are too vague to estimate, quote a paid discovery phase first, for example two weeks for a fixed fee, with a written specification and a fixed or capped build quote as the deliverable. You can credit part of the discovery fee against the build if the client proceeds.

Tax on software quotes

Show prices excluding tax and add tax according to where the client is. In the UK, VAT-registered developers add the standard 20% rate listed on the GOV.UK VAT rates page for UK business clients; services to overseas business clients are often outside the scope of UK VAT under the place of supply rules. In the US, custom software development services are not taxed in most states, but some states tax certain software and digital products, so check your clients' states. This is general information, not tax advice.

Common mistakes

• No out-of-scope list. Anything not excluded tends to be assumed included.
• Milestones without acceptance criteria. "Phase 2 complete" can be argued for weeks.
• Ignoring client dependencies. State that delays in feedback, content or API access move the timeline.
• Leaving support undefined. Separate the free warranty from paid maintenance.
• Quoting a single number for uncertain work. Use a range or a discovery phase first.

When the quote is accepted, our software development invoice template shows how to bill each milestone, and the web design quotation template is a lighter version for website projects.

You can create the quotation in our invoice generator by changing the title to "Quotation", entering each phase as a line, and adding your scope and terms in the notes. It is free, needs no sign-up, and exports straight to PDF.