How to Interview a Development Agency: Questions That Reveal Red Flag
72% of businesses rely on reviews when choosing a development partner, but asking the right questions reveals what reviews don't. Here's what to ask and what answers should worry you.
January 8, 2025 13 min read
72% of businesses rely heavily on client reviews and past results when choosing a development partner. 87% of clients prioritize relevant experience.
Reviews help. But they don't reveal how an agency handles your specific situation, technology stack, or constraints. The interview does.
Hiring a software development agency isn't a transaction. It's a partnership. By asking the right questions early, you protect your time, money, and vision. The wrong partner can burn six months and your entire runway. The right partner acts as your technical co-founder.
Here's how to separate agencies that will deliver from those that will disappoint.
Experience and Track Record: Beyond the Portfolio
Every agency has a portfolio. Not every agency has relevant experience.
Ask: "Show me projects similar to mine in scope, industry, and technology stack."
Generic portfolio pieces tell you nothing about their ability to execute on your specific project. You need evidence they've solved problems like yours.
Good answer: They show 2-3 projects with clear similarities. They explain technical challenges specific to your domain and how they solved them. They volunteer what went wrong and what they learned.
Red flag: They show beautiful work in completely different industries or tech stacks. They claim "we can build anything" without demonstrating domain expertise.
Ask: "What percentage of projects do you deliver on time and on budget?"
Given that 27% of projects run over budget on average, agencies with thoughtful approaches to budgeting and cost management can save your project.
Good answer: Specific numbers with context. "We deliver 85% of projects on time. The 15% that run over typically involve significant mid-project scope changes, which we discuss in our change management process."
Stop planning and start building. We turn your idea into a production-ready product in 6-8 weeks.
Red flag: Vague claims like "we always deliver on time" or "it depends on the client." Agencies that can't quantify their track record either don't measure or don't want to share the data.
Ask: "Can I speak with 2-3 references who built similar projects?"
Asking about past experience is critical. The answers tell you if they're the right fit.
Good answer: They provide references without hesitation. They proactively connect you with clients who built similar projects in similar industries.
Red flag: They hesitate, claim NDAs prevent sharing references, or only offer references for completely different project types.
Development Process and Methodology: How They Actually Work
Understanding an agency's development methodology is critical. Their process directly impacts your project's outcome.
Ask: "Walk me through your development process from kickoff to launch."
Modern, high-performance agencies should utilize Agile or Scrum methodology. This means projects broken into 1-4 week sprints with predictable, tested deliverables at each cycle's end.
Good answer: Clear explanation of their process with specific phases. They describe how requirements translate into user stories. They explain sprint planning, daily standups, reviews, and retrospectives. They specify what happens in each phase and who's responsible.
Red flag: Vague references to "Agile" without specifics. Claims they'll "figure it out based on your needs." Waterfall approaches for anything other than simple, fixed-scope projects.
Ask: "How do you handle requirements that change mid-project?"
With 90% of projects requiring changes during development, change management separates good agencies from bad ones.
Good answer: Clear process for evaluating changes, estimating impact, and adjusting scope or timeline. They explain how they prioritize ruthlessly to keep projects on track. They describe trade-offs transparently.
Red flag: Rigid resistance to changes. Vague "we'll handle it" without process. Immediate pivot to discussing change order fees without understanding the change.
Ask: "Show me examples of your sprint deliverables and documentation."
Agencies should produce tangible deliverables regularly, not disappear for weeks between updates.
Good answer: They show examples of sprint demo videos, release notes, user stories, and technical documentation. Deliverables demonstrate progress and enable meaningful feedback.
Red flag: They can't or won't share examples. Deliverables are sparse or non-technical. Documentation is an afterthought rather than core output.
Quality Assurance and Testing: Where Projects Break
QA directly impacts stability and reliability of your software.
Ask: "What's your QA and testing process?"
At minimum, the company should have a dedicated QA team. Ideally, they have continuous testing philosophy using right test methodologies. This ensures most bugs are detected and fixed early.
Good answer: Detailed explanation of testing at multiple levels: unit tests during development, integration tests between components, end-to-end tests for user flows, performance tests under load. They describe when each type of testing happens and who's responsible.
Red flag: QA is treated as a final gate rather than continuous practice. No clear testing methodology. Developers do their own testing without independent QA. They can't explain their testing approach.
Ask: "How do you ensure code quality and consistency?"
Code quality determines long-term maintainability, not just immediate function.
Good answer: They describe code review processes, style guides, linting tools, and quality metrics they track. They explain how they prevent technical debt from accumulating. They discuss refactoring practices.
Red flag: Code quality is implicit rather than explicit. No defined standards. "We hire good developers so quality takes care of itself."
Communication and Collaboration: The Daily Reality
How you'll communicate determines whether you'll be aligned or frustrated.
Ask: "What communication tools and cadence do you use?"
Establishing communication practices is essential. You want to check in, ask questions, and know about challenges throughout the process.
Good answer: Specific tools (Slack for daily communication, Jira for task tracking, Loom for demos, weekly sprint reviews). Clear cadence (daily async updates, weekly syncs, monthly steering meetings). They explain escalation paths for urgent issues.
Red flag: Unwilling to establish open communication lines. Insistence on email-only communication. Weekly status calls as the only touchpoint. Resistance to using your communication tools.
Ask: "How do your developers integrate with my team?"
The best partnerships feel like extended team members, not external vendors.
Good answer: Developers join your Slack workspace, attend your standups, and use your project management tools. They explain how they balance being embedded while maintaining their own team coordination.
Red flag: All communication flows through project managers. Developers are unavailable for direct communication. They insist on keeping development separate from your team.
Ask: "What happens when we disagree on technical approach or priority?"
Disagreements will happen. How they're resolved determines partnership health.
Good answer: Clear process for technical discussions. They explain how they present trade-offs, discuss options, and ultimately defer to client priorities while flagging risks clearly.
Red flag: "The customer is always right" without pushback. Or worse, "we're the experts, trust us" without explanation. Either extreme prevents collaborative decision-making.
Cost discussions reveal how transparent and trustworthy an agency is.
Ask: "Explain your pricing structure in detail."
Understanding whether they use fixed price, time & materials, or hybrid models matters. Each has different implications for budget and flexibility.
Good answer: Clear explanation of pricing model with rationale for why it fits typical projects. Transparent about what's included and what's extra. They volunteer the trade-offs between pricing models.
Red flag: Vague "it depends" without structure. Pressure to commit to fixed price without clear requirements. Reluctance to discuss pricing until late in conversation.
Hidden costs destroy budgets. This question surfaces them upfront.
Good answer: Specific list of what's excluded (third-party API costs, design assets, content creation, post-launch support beyond X period). They explain typical additional costs clients encounter.
Red flag: "Everything's included" for complex projects. Vague boundaries on scope. Discovery of excluded items late in the process.
Ask: "Show me a sample contract and statement of work."
Contract terms reveal much about how the relationship will work.
Good answer: They share templates readily. Contract clearly states deliverables, timeline, payment schedule, IP ownership, and termination clauses. SOW is detailed enough to be meaningful.
Red flag: Resistance to sharing contract examples. IP ownership is ambiguous or retained partially by agency. Termination clauses heavily favor the agency.
Ownership and Intellectual Property: Your Future Freedom
IP ownership questions prevent expensive surprises later.
Ask: "Who owns the code and IP when the project is complete?"
Some agencies offer low upfront price but bury language retaining ownership of proprietary code.
Good answer: "Upon final payment, all code, assets, and IP transfer to you completely. Code lives in your private GitHub repo under your account from day one."
Red flag: Partial IP retention. "Joint ownership" of components. Code deliverable only at project end rather than continuous access. Licensing arrangements that restrict your future use.
Ask: "What happens to the code if we part ways mid-project?"
Understanding ownership during development, not just after, protects you.
Good answer: "You own all work product as it's created. If we part ways, you have immediate access to all code, documentation, and assets completed to that point."
Red flag: They retain code until final payment. Transitional arrangements that require negotiation. Lack of clarity about work-in-progress ownership.
Technical Approach: The Foundation of Your Product
Technical decisions made early determine what's possible later.
Ask: "Why do you recommend this technology stack for my project?"
The stack they propose should align with your needs, not their expertise alone.
Good answer: Clear rationale tied to your specific requirements, scale needs, and constraints. They explain trade-offs between options. They discuss long-term maintainability and hiring considerations.
Red flag: "We always use X" without justification. Stack choices driven by what's trendy rather than what's appropriate. No discussion of alternatives or trade-offs.
Ask: "How does your proposed architecture scale?"
If your app starts small but succeeds, can the technology grow with demand?
Good answer: Specific explanation of how architecture supports horizontal scaling. They discuss database scaling strategies, caching layers, and infrastructure flexibility. They acknowledge current scale targets and future migration paths.
Red flag: "We'll worry about scale when you get there." Over-engineered architecture for an MVP. No coherent scaling strategy.
Ask: "How will you future-proof the codebase for our team to maintain?"
Eventually you'll hire internal developers or switch agencies. The codebase should enable that transition.
Good answer: They discuss code documentation, architecture decision records, readme files, and knowledge transfer processes. They write code for maintainability, not just speed. They explain their approach to technical debt.
Red flag: "We'll maintain it for you" as the only plan. Proprietary approaches that lock you in. No consideration for handoff scenarios.
Post-Launch and Support: When Reality Hits
What happens after launch determines whether you have a product or a problem.
Ask: "What post-launch support do you provide?"
Once projects launch, who responds to issues? Who handles updates and security patches?
Good answer: Clear support tiers with specific SLAs. They explain bug fix windows, security patch processes, and how feature additions work post-launch. They offer both support-only and ongoing development retainers.
Red flag: "Support is extra" without detail. No clear bug fix policy. Immediate pivot to selling ongoing retainers without explaining what's covered.
Ask: "How do you handle critical bugs discovered after launch?"
Every product has bugs. Response time and ownership matter.
Good answer: Critical bugs get immediate attention with specific SLA (e.g., 4-hour response, 24-hour fix target). They include reasonable bug fix period in initial contract. They distinguish between bugs and new features clearly.
Red flag: All post-launch issues are billable immediately. No warranty period. Vague definitions of what constitutes a bug.
Ask: "Who hosts the application and what happens if I want to move?"
Hosting arrangements can create lock-in or freedom.
Good answer: "We deploy to infrastructure under your account (AWS/Vercel/etc). You control access. You can move or take over management anytime." Or if they host: "We host initially but provide full handoff documentation and support migration whenever you want."
Red flag: They host on their infrastructure with no migration path. Vendor lock-in through proprietary hosting. Unclear ownership of infrastructure.
Interview questions reveal what reviews and portfolios can't.
Focus on experience with similar projects, not generic capabilities. Evaluate development process details, not claims of "Agile." Assess QA and testing rigor, not just feature development. Clarify communication patterns and tools upfront. Understand pricing structures completely, including what's excluded. Verify IP ownership transfers fully and immediately. Question technical approach rationale and scalability. Define post-launch support explicitly before signing.
Red flags that should end conversations: unwillingness to provide references, resistance to transparency, guaranteed unrealistic timelines, lack of process rigor, vague quality standards, unclear IP ownership.
Great agencies interview you as thoroughly as you interview them. They ask about success criteria, constraints, and internal capabilities. They're evaluating fit, not just pursuing revenue.
The interview isn't about finding the perfect agency. It's about finding the right partner for your specific situation, stage, and constraints.
Ready to discuss your project with an agency that acts as your technical co-founder? Talk to NextBuild about our approach to startup MVP development with fixed pricing and transparent process.
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