A 24-month partnership fits when your website, online store or app should keep evolving after the first release and you would rather spread the setup cost over the contract period. A conventional one-off delivery fits better when the scope is closed, someone else will take over operations, or the investment should be a single payment with a clear end. The technology is the same either way. The difference lies in how the work is planned and paid for.
This article explains how the two models work, which conditions should decide your choice, and what is worth checking in the contract before you sign, whether you work with Novamedia or anyone else.
Two routes to the same product
In a one-off delivery the scope is defined, the price is confirmed in writing and the work is carried out in visible phases until the product goes live. After that comes operations, either on an operations subscription or with an internal team or another provider. Further development is bought separately, on the hourly rate or through a monthly hours plan.
In a 24-month partnership the first release and ongoing development are planned together from the start. A setup fee funds part of the initial work, and the remainder, along with regular development, is spread over the contract. Development time is scheduled quarterly, so improvements arrive at a steady pace instead of piling up into a large redesign project a few years later.
What the partnership covers for a website, store or app
For a website, that means up to 80 hours for the first release and 12 hours per quarter for improvements. Twelve hours a quarter is not a lot at once, but it is enough for focused improvements such as a new content type, a better form, changes driven by analytics, or a new page based on an existing template. Over 24 months that adds up to eight quarters of regular development.
For an online store or an app the scope is larger, both for the first release and for ongoing development, since they involve more integrations, more frequent releases and changing requirements from payment providers and app stores. The exact scope is confirmed in writing for each project before work starts.
The same way of working applies to both routes: scope is confirmed before work begins, time and progress are recorded so you can see how the agreed frame is being used, and if new requirements change the scope, the impact is discussed before any additional work starts.
Delivery fits when the scope is closed
- You know what should go live and do not expect many changes after launch.
- An internal team or another provider will take over operations and development after handover.
- The investment should be a one-off payment with a clear end, for example because a budget has to be closed within a set period.
- The project is bounded, such as a campaign site, an internal tool with stable requirements, or an integration that does not need quarterly development.
Delivery remains the main route. It does not tie you in, and if your needs change you can always add an operations subscription or a monthly hours plan of 10, 20 or 40 hours.
A partnership fits when the product should evolve
- The product is part of how the business runs and has to keep up with changes in your offering, pricing or service.
- You want to learn from real usage and improve based on data rather than trying to anticipate everything up front.
- Spreading the cost over two years suits you better than paying a large sum at the start.
- You want the same team to build the first release and take responsibility for what happens next, with no hand-off between companies halfway through.
- You do not have an internal technical team that can take over, prioritize and carry development forward.
If more than one or two of these apply, the partnership is worth a closer look. If none of them do, a one-off delivery is almost certainly the simpler and more economical route.
What to check before you sign
A two-year contract is a commitment on both sides, and it is reasonable to read it carefully. This list works as a checklist for that conversation, whoever the provider is.
- What is included in the first release and what is left for ongoing development. Ask for the first-release scope in writing.
- How quarterly hours are prioritized and what happens to hours that are not used within the quarter.
- How hosting and operations relate to the contract, whether they are part of it or a separate operations subscription.
- What happens if your needs outgrow the contract, for example if you need a larger phase halfway through.
- How code handover and ownership are defined, both at the end of the contract and if it ends early.
- What comes after 24 months, whether that is an extension, an operations subscription or handover to another party.
An option, not a requirement
The client's data and content always remain theirs. Code handover and ownership are defined in the contract before the project begins. The partnership does not change those fundamentals, only how the work is planned and paid for. If a bounded project suits you better, that is still Novamedia's main route, and if one of our existing products solves the problem at lower cost, we will point you to it instead of a custom build.
Common questions
Is a partnership more expensive than delivery? Novamedia uses the same hourly rate, ISK 17,880 excluding VAT, for all work, whether discovery, design, development or operations. The best way to compare the two is to get an estimate for both on the same scope and look at the total cost over two years.
Can we start with a delivery and add development later? Yes. Development after launch can always be bought on the hourly rate or through a monthly hours plan, and operations subscriptions can be cancelled monthly with one month's notice.
What if the system already exists and someone else built it? Then the starting point is a fixed-price technical review, 4 hours or ISK 71,520 excluding VAT, so both sides know what is being taken on before operations or further development are discussed.
How to choose
The simplest approach is to ask for an estimate of both routes on the same scope and compare total cost, flexibility and accountability over two years. If the scope is still unclear, Discovery and planning is a good first phase. It costs a fixed ISK 214,560 for 12 hours and delivers prioritized recommendations, an indicative scope, phases and a cost estimate that are useful whichever route you choose.