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Build vs. Buy Guide

10 questions to ask before hiring a custom software firm

The answers to these ten questions tell you more than any portfolio. Ask them of every firm you talk to, including us. For each one, here is what a good answer sounds like and how True Cedar answers it.

Updated September 2026 · Stephen Backholm, Founder

Questions 1–5

People, Price, Scope, Dates, and Visibility

1. Who Will Actually Do the Work?

Good answer: named, experienced people, and a clear account of who is accountable from start to finish. Ours: all the work is done by the True Cedar team and completed by US-based resources. We do not outsource any of the work, and Stephen Backholm, the founder, is personally involved in every engagement and sees it through to completion and delivery.

2. Is the Price Fixed or Hourly?

Good answer: a clear basis for the price and a clear account of what happens if the work takes longer. Ours: a fixed price for each statement of work, so the risk of the work taking longer is ours rather than yours.

3. Exactly What Is in Scope, and What Is Not?

Good answer: specific inclusions and exclusions in writing, before you commit. Vague scope is where budgets go to die. Ours: the statement of work sets out what is being delivered, and the pricing page shows what each tier includes and excludes.

4. Is There a Committed Delivery Date, and What Happens If It Slips?

Good answer: a real date and a real consequence. Ours: every statement of work names a delivery date, and late delivery carries monetary penalties on terms set out in the statement of work.

5. How Often Will I See Working Software?

Good answer: frequently, and working rather than described. Ours: typically twice a week, so you never have to ask where the project stands.

True Cedar figures and commitments here are examples to help you plan, not a quote, an offer, or a contract. Every engagement is governed by its own written statement of work and agreement.

Questions 6–10

Ownership, Changes, AI, Security, and Cost After Launch

6. Who Owns the Code, the Data, and the Accounts?

Good answer: you do, stated plainly and in the contract. Ours: you own the source code, the data, and the infrastructure accounts, with the code in a repository you control. See who owns the code for what to check.

7. How Are Changes Handled?

Good answer: changes are priced and approved before work starts, never discovered on an invoice. Ours: anything outside the statement of work is quoted as a fixed-fee change order and does not start until you approve it.

8. How Do You Use AI, and Who Reviews What It Produces?

Good answer: a specific account of where AI speeds things up and who checks the result. Ours: AI compresses implementation work such as scaffolding, forms, and integration glue. Experienced engineers make the architecture, data modeling, and security decisions, and direct and review the work.

9. How Will Our Data Be Protected?

Good answer: specifics about sign-in, access control, and encryption, and compliance requirements scoped explicitly rather than assumed. Ours: security is designed in from the start, and compliance scope such as HIPAA or GLBA is scoped in the statement of work before anything is built.

10. What Will It Cost to Keep Running After Launch?

Good answer: a realistic annual figure, not silence. Ours: budget roughly 5 to 20 percent of the build cost each year for maintenance, plus hosting.

True Cedar figures and commitments here are examples to help you plan, not a quote, an offer, or a contract. Every engagement is governed by its own written statement of work and agreement.

Warning Signs

Answers That Should Give You Pause

None of these automatically disqualifies a firm, but each one is worth a follow-up question before you sign anything.

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