how our custom software contracting works
Software contracting with Lenwerx generally utilizes one of two methods, hourly rate development and fixed price project contracting. Fixed price contracts are reserved for customers we have done business with in the past or who can provide exceptionally accurate project specifications and details unless negotiated otherwise. Due to the nature of software development projects, it is very difficult to provide extremely accurate bids that can encompass an entire project. In order to maintain the highest level of customer care, we prefer to operate on an hourly payment method.
Once a project is proposed there will be meetings conducted to solidify the project goals and to enlighten our developers of your specific business operations and needs. Upon gathering enough information that we understand the project, we can provide estimated hours required to accomplish your goals, as well as determine an hourly figure based on the expertise required. Following a decision on pricing per hour, we will provide a project proposal with an explanation of requirements as we understand them, general technical design ideas, and intended system requirements. If accepted, we will work with you to refine the initial concept and build a timeline to meet your goals.
Throughout the process we will provide invoices detailing hours and what aspects of the system we are currently developing. This assists us in keeping you in sync with our development schedule, as well as providing easier management of total project costs. If at any point there is an issue in development costs or scheduling, we can have a meeting to discuss changes or project scope adjustments that need to be made. If changes to the initial design are required the contract can be amended and we will provide adjusted time lines as well as estimated costs. Meeting time is billable, however, maybe waved at the discretion of Lenwerx. If not discussed before hand, the assumption is that all meeting time are billable once development has commenced.
Upon completion of the project, our staff will do several more thorough debugging passes through the system, ensure proper commenting and documentation, and provide the negotiated training for your staff. If there are issues discovered after completion of the project, Lenwerx will work closely with your staff to resolve them in an optimum fashion. Any errors or flaws directly the responsibility of Lenwerx will be corrected as soon as possible, and at our expense.
hourly rate
Hourly rate depends on the contractors involved, the complexity of the system, and the time frame the implementation is operating under. We also provide flexible pricing on a case by case basis.
hourly billing
Initial consultation for new projects, including meetings, teleconferences, and video conferences will generally be conducted free of charge. Exceptions to the rule would include cases of immediate need, forcing rescheduling of other clients, or excessive travel expense. Once a project has been approved by the customer we bill for analysis, design, application development, and implementation. Training and technical support can be purchased in either predetermined hourly blocks (a flat charge for a specific number of hours) or on an hours-consumed basis. Purchasing time in predetermined blocks will reduce the hourly rate, however, the time expires regardless of use at the end of the predefined time frame associated.
Prior to project initiation we provide an estimate of the hours expected to complete the project as well as estimated time tables for major phases of development. Once development begins, client initiated meetings and extended communications maybe subject to billable hourly rates. Should you expect an activity to not be billed we ask that you discuss this before expending our time.
fixed price contracts
Lenwerx allows for the option of fixed price contracts at our discretion. Before bidding on a fixed price we must have a detailed project specification which explicitly delineates all required interfaces, functionality, reports, schedules, and documentation. Fixed price contracts typically cost more than an hours expended type development due to contingencies that must be included to cover changes to the specification and undocumented requirements.
Fixed price contracts typically require a percentage of the total project cost before development will begin, as well as percentages for phases completed. The percentage value of these phases is dependant on the overall contract duration, number of major phases outline in the project, and resource commitments required by Lenwerx. Whatever portion of the total contract that has not been paid, will be due upon completion.
project invoicing
Invoicing generally occurs bi-weekly for hour based contracts, unless otherwise required by the client. This serves as a progress/status report to help the client manage their project. Due to the nature of project costs, we work with you to keep prices in check. If expenses appear to be exceeding what we believe the client has approved or is expecting, we will provide additional contact and information before proceeding with development. Other incurred expenses such as the cost of the airfare, hotel, meals, etc. will be itemized on the subsequent invoice.
All invoices are due when received unless otherwise specified. If there are any questions about an invoice please contact us immediately. Excessively delinquent payments may impact project time lines or be subject to penalties.
project estimates
Estimates represent a honest effort on our part to provide as accurate view of expected costs as possible. Due to the nature of new projects and the unknowns involved, our estimates are always presented with a number range +/- 15%. In the rare occurrence that costs deviate beyond +15% the client will be notified as soon as the problem is identified and work will stop pending approval. This will give the client a chance to alter the scope or adjust the time frame the project is operating against, allowing better management of cost. Depending on the deadline and relationship with the client we may, in good faith, continue to work pending client approval. If work is continued and the client chooses to not accept it beyond the expressed 15% deviation, the work completed beyond that point will remain the property of Lenwerx and the client will not be billed.
Regardless of initial estimates, with the exception of fixed price contracts, we will only ever invoice for billable items such as time consumed, associated travel costs, and auxiliary costs such as required purchases to complete the project. We strive to keep our actual costs below estimated costs whenever possible.
verified quality
The only way to attain a perfect product is to dedicate immense time to testing, revisions, and collaboration. Due to the fact most clients do not have unlimited time tables to work with, we use a beta testing approach that involves your staff. In this approach we deliver working versions of the application to your designated testing staff at meaningful build levels so we get early client input on the application, catch discrepancies in the application specification early and deliver a product to the client that works the way they work. In many instances, we can even make changes while on the phone or on site. When problems are found, those due to our work will be fixed at our expense as quickly as possible. If problems arise that were beyond our control, we will do our best to minimize the impact to the client, however, further funding maybe required.
software ownership
Software developed by Lenwerx under contract is owned by the client with exception to the following: Client projects may contain techniques, methodology, software objects, and specific code derived from projects that we have previously completed or acquired from others, as well as systems developed for our internal uses. Re-use of such items allows us to be able to provide clients with the best technology at the lowest cost. We retain the right to re-use any and all techniques, code, objects, and processes delivered for client projects in all current and future development activities with other clients unless specifically negotiated otherwise. Any rights of material used in code or at runtime in the system that was provided by a third party under license is retained by the provider. Lenwerx makes no claim to posses authority to regulate rights over third party material.
Software we develop for a client may NOT be resold by the client nor by Lenwerx unless prior mutually agreed upon arrangements are made. Reasonable non-disclosure or non-compete agreements are a normal part of our client relationships in order to protect their software investment and competitive position in the marketplace. Any such contracts will be reviewed by legal counsel of Lenwerx at our sole discretion.
on/off site work
We perform software development work at various business locations as well as at client locations. Our workstations provide access to the tools we need on a regular basis as well as the latest hardware to meet our needs, however, it maybe necessary to do systems changes on site. We do charge for any travel beyond normal commute, and we also charge for any additional expenses incurred while working at locations other than our offices. We make extensive use of teleconferencing, videoconferencing, remote desk top, and other services to reduce travel cost. If the client has a preference for communication, we will do our best to accommodate.
technical support
Technical support and training for systems developed by Lenwerx should be negotiated before development. The price for technical support depends on the scope and quantity of time to be contracted. A similar system applies for training. Training and basic email technical support for one to five staff members is generally included in our contracting of most systems ranging from low to medium complexity. More complex systems or training involving large groups will require additional contracting or additional cost included in the original development price.
custom hosting
Custom product hosting can be arranged during the planning and development process of most custom software provided by Lenwerx. This hosting is a secondary service that ranges from a simple shared host solution to a dedicated physical host at one of our Co-Location facilities. We also offer managed hosting on Amazon AWS virtual systems when necessary. Pricing is based on the average monthly pricing for our service with additional amounts based on specialized service requirements. We attempt to tailor the solution to fit your business as closely as possible.
We require billing at the beginning of the service period for all hosting. Hosting fees are due at the 5th of every month with a 5 day grace period. Prepayment for service (paying yearly or bi-yearly) will result in a more flexible and negotiable pricing structure. If a prepayment agreement lapses there will be a 15% penalty to re-establish the contract. If payment is not received, our automated system will convert it back to a monthly system and increase the monthly total accordingly. Should you no longer require hosting, simply stop payment and the service will be terminated the 5th of the subsequent month without penalty. Contacts the fully lapse into a monthly default will only be reinstated at the discretion of Lenwerx.
Software contracting with Lenwerx generally utilizes one of two methods, hourly rate development and fixed price project contracting. Fixed price contracts are reserved for customers we have done business with in the past or who can provide exceptionally accurate project specifications and details unless negotiated otherwise. Due to the nature of software development projects, it is very difficult to provide extremely accurate bids that can encompass an entire project. In order to maintain the highest level of customer care, we prefer to operate on an hourly payment method.
Once a project is proposed there will be meetings conducted to solidify the project goals and to enlighten our developers of your specific business operations and needs. Upon gathering enough information that we understand the project, we can provide estimated hours required to accomplish your goals, as well as determine an hourly figure based on the expertise required. Following a decision on pricing per hour, we will provide a project proposal with an explanation of requirements as we understand them, general technical design ideas, and intended system requirements. If accepted, we will work with you to refine the initial concept and build a timeline to meet your goals.
Throughout the process we will provide invoices detailing hours and what aspects of the system we are currently developing. This assists us in keeping you in sync with our development schedule, as well as providing easier management of total project costs. If at any point there is an issue in development costs or scheduling, we can have a meeting to discuss changes or project scope adjustments that need to be made. If changes to the initial design are required the contract can be amended and we will provide adjusted time lines as well as estimated costs. Meeting time is billable, however, maybe waved at the discretion of Lenwerx. If not discussed before hand, the assumption is that all meeting time are billable once development has commenced.
Upon completion of the project, our staff will do several more thorough debugging passes through the system, ensure proper commenting and documentation, and provide the negotiated training for your staff. If there are issues discovered after completion of the project, Lenwerx will work closely with your staff to resolve them in an optimum fashion. Any errors or flaws directly the responsibility of Lenwerx will be corrected as soon as possible, and at our expense.
hourly rate
Hourly rate depends on the contractors involved, the complexity of the system, and the time frame the implementation is operating under. We also provide flexible pricing on a case by case basis.
hourly billing
Initial consultation for new projects, including meetings, teleconferences, and video conferences will generally be conducted free of charge. Exceptions to the rule would include cases of immediate need, forcing rescheduling of other clients, or excessive travel expense. Once a project has been approved by the customer we bill for analysis, design, application development, and implementation. Training and technical support can be purchased in either predetermined hourly blocks (a flat charge for a specific number of hours) or on an hours-consumed basis. Purchasing time in predetermined blocks will reduce the hourly rate, however, the time expires regardless of use at the end of the predefined time frame associated.
Prior to project initiation we provide an estimate of the hours expected to complete the project as well as estimated time tables for major phases of development. Once development begins, client initiated meetings and extended communications maybe subject to billable hourly rates. Should you expect an activity to not be billed we ask that you discuss this before expending our time.
fixed price contracts
Lenwerx allows for the option of fixed price contracts at our discretion. Before bidding on a fixed price we must have a detailed project specification which explicitly delineates all required interfaces, functionality, reports, schedules, and documentation. Fixed price contracts typically cost more than an hours expended type development due to contingencies that must be included to cover changes to the specification and undocumented requirements.
Fixed price contracts typically require a percentage of the total project cost before development will begin, as well as percentages for phases completed. The percentage value of these phases is dependant on the overall contract duration, number of major phases outline in the project, and resource commitments required by Lenwerx. Whatever portion of the total contract that has not been paid, will be due upon completion.
project invoicing
Invoicing generally occurs bi-weekly for hour based contracts, unless otherwise required by the client. This serves as a progress/status report to help the client manage their project. Due to the nature of project costs, we work with you to keep prices in check. If expenses appear to be exceeding what we believe the client has approved or is expecting, we will provide additional contact and information before proceeding with development. Other incurred expenses such as the cost of the airfare, hotel, meals, etc. will be itemized on the subsequent invoice.
All invoices are due when received unless otherwise specified. If there are any questions about an invoice please contact us immediately. Excessively delinquent payments may impact project time lines or be subject to penalties.
project estimates
Estimates represent a honest effort on our part to provide as accurate view of expected costs as possible. Due to the nature of new projects and the unknowns involved, our estimates are always presented with a number range +/- 15%. In the rare occurrence that costs deviate beyond +15% the client will be notified as soon as the problem is identified and work will stop pending approval. This will give the client a chance to alter the scope or adjust the time frame the project is operating against, allowing better management of cost. Depending on the deadline and relationship with the client we may, in good faith, continue to work pending client approval. If work is continued and the client chooses to not accept it beyond the expressed 15% deviation, the work completed beyond that point will remain the property of Lenwerx and the client will not be billed.
Regardless of initial estimates, with the exception of fixed price contracts, we will only ever invoice for billable items such as time consumed, associated travel costs, and auxiliary costs such as required purchases to complete the project. We strive to keep our actual costs below estimated costs whenever possible.
verified quality
The only way to attain a perfect product is to dedicate immense time to testing, revisions, and collaboration. Due to the fact most clients do not have unlimited time tables to work with, we use a beta testing approach that involves your staff. In this approach we deliver working versions of the application to your designated testing staff at meaningful build levels so we get early client input on the application, catch discrepancies in the application specification early and deliver a product to the client that works the way they work. In many instances, we can even make changes while on the phone or on site. When problems are found, those due to our work will be fixed at our expense as quickly as possible. If problems arise that were beyond our control, we will do our best to minimize the impact to the client, however, further funding maybe required.
software ownership
Software developed by Lenwerx under contract is owned by the client with exception to the following: Client projects may contain techniques, methodology, software objects, and specific code derived from projects that we have previously completed or acquired from others, as well as systems developed for our internal uses. Re-use of such items allows us to be able to provide clients with the best technology at the lowest cost. We retain the right to re-use any and all techniques, code, objects, and processes delivered for client projects in all current and future development activities with other clients unless specifically negotiated otherwise. Any rights of material used in code or at runtime in the system that was provided by a third party under license is retained by the provider. Lenwerx makes no claim to posses authority to regulate rights over third party material.
Software we develop for a client may NOT be resold by the client nor by Lenwerx unless prior mutually agreed upon arrangements are made. Reasonable non-disclosure or non-compete agreements are a normal part of our client relationships in order to protect their software investment and competitive position in the marketplace. Any such contracts will be reviewed by legal counsel of Lenwerx at our sole discretion.
on/off site work
We perform software development work at various business locations as well as at client locations. Our workstations provide access to the tools we need on a regular basis as well as the latest hardware to meet our needs, however, it maybe necessary to do systems changes on site. We do charge for any travel beyond normal commute, and we also charge for any additional expenses incurred while working at locations other than our offices. We make extensive use of teleconferencing, videoconferencing, remote desk top, and other services to reduce travel cost. If the client has a preference for communication, we will do our best to accommodate.
technical support
Technical support and training for systems developed by Lenwerx should be negotiated before development. The price for technical support depends on the scope and quantity of time to be contracted. A similar system applies for training. Training and basic email technical support for one to five staff members is generally included in our contracting of most systems ranging from low to medium complexity. More complex systems or training involving large groups will require additional contracting or additional cost included in the original development price.
custom hosting
Custom product hosting can be arranged during the planning and development process of most custom software provided by Lenwerx. This hosting is a secondary service that ranges from a simple shared host solution to a dedicated physical host at one of our Co-Location facilities. We also offer managed hosting on Amazon AWS virtual systems when necessary. Pricing is based on the average monthly pricing for our service with additional amounts based on specialized service requirements. We attempt to tailor the solution to fit your business as closely as possible.
We require billing at the beginning of the service period for all hosting. Hosting fees are due at the 5th of every month with a 5 day grace period. Prepayment for service (paying yearly or bi-yearly) will result in a more flexible and negotiable pricing structure. If a prepayment agreement lapses there will be a 15% penalty to re-establish the contract. If payment is not received, our automated system will convert it back to a monthly system and increase the monthly total accordingly. Should you no longer require hosting, simply stop payment and the service will be terminated the 5th of the subsequent month without penalty. Contacts the fully lapse into a monthly default will only be reinstated at the discretion of Lenwerx.