How to Estimate a Software Project (Without Getting It Wrong)
How to Estimate a Software Project (Without Getting It Wrong)
Software estimates are famously unreliable. Projects run over budget. Timelines slip. Features get cut. And yet, every project needs a starting point.
Here's how we approach estimation at Technicate, and how to use our Project Estimator to get a realistic starting range for your build.
Why Most Estimates Are Wrong
The most common estimation mistake is anchoring on development time only.
Development is typically 40–55% of total project effort. The rest comes from:
- Admin & PM (10–15%): communication, coordination, and sprint planning
- Design & Architecture (15–25%): wireframes, system design, and data modeling
- QA & Testing (10–15%): regression tests, edge cases, and validation
- Contingency (15–20%): because something always takes a little longer than expected
When you only estimate the dev hours, you're automatically underestimating by 45–60%.
The Estimation Framework We Use
Every estimate we build includes:
We apply hourly rates to each category based on the work involved:
- Senior / Architecture: $185/hr
- Development: $170/hr
- Mobile Development: $170/hr
- UI/UX Design: $155/hr
- QA / Testing: $120/hr
- Project Management: $146/hr
- AI Orchestrator: $230/hr
When to Include AI Orchestration
AI Orchestration adds value when:
- The project is complex or data-heavy
- Speed and rapid iteration are critical
- The system involves automation, AI workflows, or large-scale logic modeling
A typical AI Orchestration allocation runs 10–25% of total hours, at $230/hr. For a 1,000-hour project, that might add 150–250 hours of AI Orchestrator time, while reducing overall development hours by a comparable amount.
A Real Example
Let's say you're building a web-based inspection platform with a mobile field app.
A rough breakdown might look like:
At blended rates, that's a project in the $350K–$420K range. That sounds large until you consider what it's replacing: manual processes, multiple disconnected tools, and ongoing workarounds that cost time and money every single day.
Use Our Estimator
You can run your own rough estimate using our Project Estimator. It uses the same framework above, applied to your specific service selections and complexity level.
It's not a formal quote. Think of it as a starting point for a real conversation.
Run an estimate or talk to our team to get a scoped proposal.
Ready to build?
Technicate builds custom software for real businesses. Get a free estimate or start a conversation with our team.