Answer to Question #99155 in Software Engineering for Areeba Qureshi

Question

Is it ethical for a company to quote a low price for a software contract knowing that the requirements are ambiguous & that they can change o high price for subsequent changes requested by the customer?

Answer 1

Offering too low prices is never a good idea. This may lead to price damping, monopoly accusations and a decrease of efficiency. It is not ethical in the described situation too because the software developing company can start having trouble if it turns out that the customers require too much, the company can become bankrupt, and low prices for ambiguous projects will motivate customers to want too much or sacrifice quality for low prices.