Talking About Money: Billing And Reporting At Amplified

Amplified helps build startups to make our clients’ work easier and more efficient. We want to help you build something new so that you can share it with the world. An essential part of working with you is how we will bill you for your project. While many developers charge a fixed cost, we do things a little differently, so we can provide better service that aligns with our values.

How We Bill Our Partners

At Amplified, we bill our clients hourly, instead of according to a fixed cost arrangement. Although we do provide an estimate of how many hours your project will likely take, we find that flexibility of hourly billing is more beneficial for us, our client, and our working relationship.

Why Bill Hourly?

Flexibility when changes come up: hourly billing allows us to handle change requests in the project as we go. With most software projects, changes are inevitable, and remaining flexible is vital to the success of the project.

Establishing trust: in a fixed-price arrangement, these change requests would prompt a renegotiation of the contracted price. Renegotiation can lead to a breakdown in trust between the two parties, as the client may feel we were dishonest with our initial price.

Dealing with bugs: in the process, there may be disagreements as to what qualifies as a bug. A client often expects the application to “just work,” but a vendor may look at the described behavior for a particular feature and interpret that as a new requirement that wasn’t previously communicated. This would lead to a change request, which once again will prompt a renegotiation of the price.

Delivering quality work: in a fixed-price engagement, the vendor has an incentive to cut corners. They may skimp on the testing and debugging phase, under-document and under-notate the code, or the underlying code base may not be as clean as expected. The product may “work” per se, but would not be as robust, performant, or friendly to future developers as it otherwise could be.

Hourly billing permits us to build a high-trust, and high-performing relationship with our clients. Just as hiring X team to work over Y period of time, hourly billing allows you to have a mobilized team you can adjust priorities and requirements with, without worrying about disturbing the contractual relationship with the team. You’ll get a better working process and a better end result.

How We Report Our Work

One of our primary values is honesty at all times. To that end, we report our hours through tracking apps on a weekly basis so that clients have consistent visibility into our work. We also invoice every other week, at the end of each sprint.

That said, we still provide estimates throughout a project. Estimation is useful to create budgetary alignment with the client, to thoroughly process the requirements for a project and force ourselves to consider nuances and edge cases, and to set internal goals for the team. Since software is hard to estimate, it’s important to track the actual hours worked and bill for those.

How We Track
  1. We meticulously track time using a third-party time tracking app. All hours worked are tracked to the second.
  2. Every week, an Amplified project manager prepares a Statement of Hours which breaks down how much time was spent on each function (design, PM, and development) and how much time was spent by each contributor. It also includes the individual time logs for each contributor, so you can see how their time was allocated across the tasks.
  3. The Statement of Hours is sent to the client weekly for review.

(If you ask for more frequent reporting, we will gladly oblige. However, keep in mind it adds time to the project planner.)

This process provides transparency, so that clients are never caught off-guard by our reported hours. If they feel like a certain contributor is trending too high, or too low, on a given task or in a given week, we can intervene early on and try to make adjustments.

Our Goals: Transparency and Quality

Hourly billing and our meticulous reporting ensure you receive personalized, top-quality service, and keeps you in the loop throughout the whole process. We have your best interests in mind to gain your trust and achieve the best outcome possible.