A sign-off sheet with empty checkboxes and a pen beside a laptop and a desk calendar on a meeting room table at dusk
    Engagement Models

    Milestone based software development pricing and engagement models

    Pay for software when it passes the checks you agreed, not when the hours run out. Agnotic Technologies writes down the scope and acceptance checks for each milestone, shows progress in weekly demos and asks you to accept each deliverable before it is invoiced.

    Pay for accepted deliverablesScope agreed in writingWeekly demosCode in your accounts

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    Fundency
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    Lera
    One Minute
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    What is milestone based software development pricing?

    Milestone based software development pricing means you pay for each agreed deliverable once it passes the acceptance checks written before work starts, not for hours logged. Agnotic Technologies breaks a build into milestones, prices each one from its written scope, demos progress weekly and invoices a milestone only after you accept it.

    The price follows the scope. A milestone with more user roles, integrations or compliance work costs more than one without, and the estimate is shared once that scope is written down.

    Milestones are one of several ways to work with Agnotic. The table below shows the other engagement models and when each one fits better.

    Step by step

    How does a milestone payment work?

    The same six steps repeat for every milestone, from the first release to later phases.

    1. Write the milestone down

      We agree the features, the definition of done and the acceptance checks for the milestone, and list what is out of scope.

    2. Price it from the scope

      The estimate comes from the written scope and the assumptions behind it, and you approve it before any build starts.

    3. Build with weekly demos

      You see working software every week, so a misunderstanding is caught while it is still cheap to change.

    4. Run the acceptance checks

      When the milestone is complete, the agreed checks are run with your team on the agreed environment.

    5. Accept or list the gaps

      You accept the deliverable, or list where it misses the written checks. We fix those and run the checks again.

    6. Invoice and start the next one

      The accepted milestone is invoiced and the next milestone starts from its own written scope.

    Checklist

    What counts as an accepted deliverable?

    A milestone is accepted when it meets the checks written before work started. Opinions formed later become change requests, not reasons to hold acceptance.

    We use this checklist when writing each milestone, so both sides know what acceptance will look at.

    Decision table

    Which engagement model fits your project?

    Milestones suit work whose scope can be written down. When it cannot, another model fits better. Many clients move between rows as the product grows.

    Engagement modelFits whenHow the cost is setWhat you accept
    Product discovery sprintThe idea is clear but the scope, architecture and risks are not written down yetScoped as its own first milestone, before any build estimateA written scope, architecture notes, risks and a milestone plan for the build
    Fixed-scope first releaseThe features for a first release can be listed with a definition of donePriced per milestone from the written scopeEach milestone, against acceptance checks written before work starts
    Dedicated product teamThe product needs many releases and the scope will change every sprintSet by the team's shape, reviewed with you every monthYour product owner accepts each release
    Staff extensionYour own team leads delivery and needs more engineers or a missing skillEngineers' time, directed by your teamYour team reviews and accepts the work in its own process
    Fractional leadershipYou need senior technical or product decisions before a full-time hireA set number of days or hours per week, scaled to your stageDecisions and documents: architecture, hiring and vendor choices

    A fixed-scope first release often becomes a dedicated team after launch. Milestone pricing can return for any later phase whose scope is stable.

    Scope drivers

    What drives the cost of a milestone?

    We do not publish prices. The estimate for each milestone moves with these factors.

    User roles and workflows

    Each role brings its own screens, permissions and tests.

    Platforms

    Web, iOS and Android each add build and test work, even with shared code.

    Integrations

    Every external system, such as payments, an EHR or an ERP, is one integration to build and test.

    Data migration

    Moving records from an old system adds mapping, cleaning and checks.

    Compliance requirements

    HIPAA-ready engineering, audit logging or data residency add design and test work.

    Existing code

    Rescuing a prototype starts with a code review that decides what stays and what is rebuilt.

    Failure points

    Where do milestone contracts go wrong?

    Most disputes come from how a milestone was written, not from the code.

    Challenge

    A milestone defined by a date

    Agnotic approach

    Each milestone is a deliverable with checks. A date tells you when to expect it, not what you are paying for.

    Challenge

    Acceptance criteria nobody can test

    Agnotic approach

    Every check is written so a person on your team can run it and see a pass or a fail.

    Challenge

    No window for acceptance

    Agnotic approach

    The contract sets how long the acceptance review takes, so a finished milestone does not wait indefinitely.

    Challenge

    Changes absorbed silently

    Agnotic approach

    New ideas go on a change list with an estimate, and you decide whether each replaces scope or waits.

    Challenge

    Inputs from your side arrive late

    Agnotic approach

    Content, credentials and decisions the milestone depends on are listed in its scope with the date they are needed.

    Challenge

    Milestones that are too large

    Agnotic approach

    Large releases are split, so each milestone can be demoed and accepted on its own.

    Who it suits

    Who chooses milestone payments?

    Buyers who need to know what each payment buys before they approve it.

    Founders with a set budget

    A first release split into milestones, each approved before the next one starts.

    Enterprise teams and procurement

    One approved amount per written scope, with acceptance records for every payment.

    Teams rescuing a prototype

    A code review as the first milestone, then fixed-scope milestones for the production release.

    Regulated product teams

    Acceptance checks that include security and audit requirements, with evidence kept per milestone.

    Teams changing vendors

    A handover review first, so the new milestones start from what really exists.

    Standards

    Which standards do milestone checks use?

    Acceptance checks for security and accessibility refer to published standards, chosen per milestone.

    NIST SP 800-218OWASP ASVSWCAG 2.2
    Facts and sources

    What does US federal acquisition guidance say about milestone payments?

    The Federal Acquisition Regulation is written for government buyers, but it sets out the same principles a commercial milestone contract relies on.

    • FAR 32.1002 allows performance-based payments on the basis of performance measured by objective, quantifiable methods, the accomplishment of defined events, or other quantifiable measures of results.

      Source: FAR 32.1002, 48 CFR (eCFR)
    • FAR 32.1004 says each event or criterion that triggers a payment, such as a milestone, must be identified in the contract with a description of what counts as successful performance, and that signing the contract or the passage of time are not such events.

      Source: FAR 32.1004, 48 CFR (eCFR)
    • Under FAR 46.501, acceptance constitutes acknowledgment that the supplies or services conform with the contract's quality and quantity requirements.

      Source: FAR 46.501, 48 CFR (eCFR)

    Frequently Asked Questions

    It depends on the scope of each milestone: user roles, platforms, integrations, data migration and compliance work. We do not publish prices. We share an estimate once the scope of the first milestone is written down, and you approve it before work starts.