Journal

Why we charge for builds monthly

A lump sum pays the developer to call it finished. A monthly fee pays us for the site working. How the model works, what it is not, and who it suits.

We do not quote lump sums for builds any more. A new store, a portal, a site rebuild: the cost is spread over the first months as a fixed monthly fee, and when the build is paid off the fee continues as the retainer that hosts, runs and improves what was built. Clients asked us why often enough that it is worth writing down.

What a lump sum does to a project

A lump-sum build creates two bad incentives. The developer is paid for a deliverable, so the incentive is to call it finished and move on. The client has spent the budget, so the incentive is to avoid spending more, even when the site needs it. Both sides stop paying attention at the exact moment the site goes live, which is when it starts to matter. A year later there is an unpatched platform, a contact form nobody tested and a vendor relationship that ended at the final invoice.

A monthly fee reverses both incentives. We are paid for the site working, month after month, so we have every reason to build it to be run rather than to be handed over. The client has a known monthly cost that already includes keeping it current, so there is no budget conversation before a security patch.

How it works

  • The build is scoped and priced normally. We agree what is being built and what it costs. That does not change.
  • The build cost is spread across the first months, typically about six, as a fixed monthly amount. Work starts on the first payment, not on a deposit and a balance.
  • When the build is paid off, the fee continues as the retainer. The retainer covers hosting, monitoring, patching, backups, support and a steady allocation of development hours for improvements. It is all-inclusive, so the client is not metered per ticket.
  • Either side can end it with notice. The client owns the site, the code and the data throughout, and can take them elsewhere.

What it means in practice

For the client, cash flow is flat and predictable from the first month, and the build never becomes a capital decision that has to wait for a budget cycle. The monthly amount is in the same range as the retainer that would follow anyway, so there is no cliff when the build ends.

For us, it means we only take on work we are willing to run. A build we would not want to host and maintain is a build we should not be doing, and pricing it this way makes that test automatic.

What it is not

It is not a lease. The site is the client’s, and nothing is withheld if the relationship ends. It is not a way to hide the price; the build cost is stated and the monthly amount is the build divided by the months plus the retainer. And it is not a subscription to a platform we control. Everything runs on standard, open software that any competent developer can take over.

Who it suits

Businesses that will depend on the site: stores, portals, publishers, anyone for whom a day of downtime has a cost. Businesses that want a brochure site built once and left alone are better served by a fixed price and a hosting plan, and we will say so.

If you want a number, the conversation starts with the scope, and we will give you the build cost, the monthly amount and what the retainer includes in the same quote.

Got a similar problem? Talk to us.

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