Managing Your Dev Agency Relationship: An Honest Guide
How to work effectively with a development agency. Clear expectations, communication cadences, feedback cycles, and what to do when things go wrong.
October 27, 2024 9 min read
Hiring a dev agency is the easy part. Managing the relationship so you actually get what you need—that's where most founders struggle.
Agency relationships fail for predictable reasons: unclear expectations, poor communication, scope disagreements, and misaligned incentives. Most of these problems are preventable if you know what to watch for and how to structure the engagement.
This guide covers how to manage agency relationships effectively, from kickoff through delivery and beyond.
Setting Expectations Before Work Begins
The foundation of a good agency relationship is set before any code gets written.
What Should Be Crystal Clear
Before signing anything, ensure alignment on:
Deliverables: What exactly will be built? List features, not just concepts
Timeline: When will milestones happen? When is final delivery?
Definition of done: What does "complete" mean for each deliverable?
Communication structure: Who talks to whom, how often, through what channels?
Change process: How are scope changes handled and priced?
Ownership: Who owns the code, designs, and documentation?
Vague agreements create disagreements later. "We'll build your MVP" is not enough. "We'll deliver user authentication, product listing with search, checkout flow, and admin dashboard by October 15" is better.
The Discovery or Scoping Phase
Good agencies insist on a discovery phase before committing to price and timeline. This phase should produce:
Stop planning and start building. We turn your idea into a production-ready product in 6-8 weeks.
Detailed specification: Every screen, feature, and user flow documented
Technical architecture: How the system will be built
Timeline with milestones: When each phase delivers
Risk identification: What could go wrong and how you'll handle it
If an agency quotes you a fixed price after a 30-minute call, be skeptical. They either have a very templated product (which might be fine) or they're guessing (which isn't).
Most agency relationship problems are communication problems in disguise.
Establish Cadence Immediately
Set recurring touchpoints:
Weekly status calls: 30 minutes, same time, every week. Non-negotiable.
Demo sessions: Every 1-2 weeks, see working software
Written updates: End of week summary of progress, blockers, next steps
Emergency channel: How to reach the team for urgent issues
Who Should Be Talking
Define communication channels clearly:
Primary contact: One person from your side, one from theirs
Escalation path: Who to contact if primary relationship isn't working
Technical questions: Can you talk to developers directly, or only through a project manager?
Direct developer access matters for technical founders. If you're technical and the agency only lets you talk to account managers, that's friction you'll feel throughout the project.
What Good Communication Looks Like
Agency should proactively share:
Progress against milestones
Blockers or risks emerging
Decisions they need from you
Timeline adjustments (before they impact delivery)
You should consistently provide:
Quick responses to questions (aim for same-day)
Timely feedback on deliverables
Clear prioritization when trade-offs arise
Advance notice of scope changes
Warning Signs in Communication
Delayed responses: Emails taking days to get answered
Status updates that say nothing: "Work is progressing well" without specifics
Surprises: Learning about delays when deadlines arrive
Defensive reactions: Pushback when you ask questions
These patterns suggest relationship problems brewing. Address them directly before they compound.
Managing Scope and Changes
Scope changes happen. How you handle them determines whether the project stays on track.
Expect Change, Plan for It
Your first spec won't be your final spec. User feedback, market changes, and implementation discoveries will require adjustments.
Build change handling into your agreement:
Change request process: How new requests are submitted
Impact assessment: Agency estimates effort for changes before you commit
Approval authority: Who can approve changes and associated costs?
Documentation: Written record of what changed and why
The Scope Creep Trap
Scope creep kills projects. Common patterns:
"While you're in there...": Small additions that compound
Undocumented verbal agreements: Features discussed but never formally added
Moving goalposts: Redefining "done" as delivery approaches
Gold plating: Building more than necessary
Protect against scope creep:
Every addition goes through the change process
Don't approve changes without written estimates
Be willing to cut scope when timeline is threatened
Accept "good enough" for MVP features
When You Need to Change
If you need significant scope changes:
Be direct about what changed and why
Ask for an impact assessment before committing
Discuss trade-offs (delay timeline? cut other features? add budget?)
Document the new agreement in writing
Good agencies handle changes professionally. If your agency reacts to change requests with frustration or excessive friction, that's a relationship warning sign.
Giving Feedback That Works
Feedback quality affects what you receive.
Be Specific, Not General
Bad feedback: "This doesn't feel right."
Good feedback: "The checkout flow needs fewer steps. Users should go from cart to payment in two clicks, not four."
Specific feedback gets implemented. Vague feedback leads to interpretive mismatches and revision cycles.
Separate Polish from Function
There's a difference between:
Functional issues: It doesn't work correctly
UX issues: It works but is confusing
Polish issues: It works and is usable but could be prettier
Address functional issues first. Debate polish issues last. Mixing them creates priority confusion.
Written Over Verbal
Document your feedback in writing:
Screenshots with annotations
Screen recordings showing the issue
Written lists organized by priority
Links to specific pages or features
Verbal feedback gets forgotten or misunderstood. Written feedback becomes the record.
The Feedback Cycle
Establish a feedback rhythm:
Agency delivers a build
You review within 24-48 hours
You provide written feedback, prioritized
Agency acknowledges and schedules fixes
Next build incorporates fixes
Repeat
Delays in your feedback delay everything downstream. Build review time into your schedule.
When Things Go Wrong
Even well-managed relationships hit problems. How you handle them matters.
Addressing Issues Early
If something seems off:
Raise it immediately, not at project's end
Be direct about the specific concern
Ask for their perspective
Seek a concrete resolution
"I've noticed the last two milestones were delivered a week late. What's happening and how do we get back on track?" is better than pretending things are fine.
The Escalation Conversation
When direct communication fails:
Summarize the issue in writing
Request a call with leadership on their side
Present specific instances, not general complaints
Propose what you need to continue
"We've had four bugs in production this month that weren't caught before deployment. I need to understand your QA process and see a specific plan for improvement."
Knowing When to Cut Losses
Some relationships can't be saved. Consider ending early if:
Multiple missed deadlines without reasonable explanation
Quality repeatedly below acceptable standards
Trust has broken down
The team has changed and expertise left
Ending early is painful but sometimes necessary. The sunk cost of money spent shouldn't trap you in a failing relationship.
If you do end early:
Get all code, documentation, and credentials
Ensure deployment can continue without them
Document the state of work for whoever takes over
Handle it professionally—you may cross paths again
Getting Value Beyond Code
Good agencies provide more than development labor.
Technical Guidance
Leverage their expertise:
Architecture recommendations
Technology choices and trade-offs
Security and scalability considerations
Build vs. buy decisions
You're paying for experience. Use it. Ask questions. Get their recommendations.
Process Improvement
Observe how they work:
What development practices do they follow?
How do they manage quality?
What tools make them effective?
These observations help when you eventually build internal capability.
Documentation and Handoff
Ensure you receive:
Code documentation and README files
Architecture decisions recorded
Deployment procedures written down
Access credentials transferred
Knowledge transfer sessions
The project doesn't end at launch. You need the ability to maintain and extend what was built.
Transitioning Off an Agency
Most agency engagements end. Plan the transition.
Before You Start Transitioning
Have answers for:
Who will maintain the code?
Who handles bugs and urgent fixes?
Who will build the next features?
Options include:
Internal hire: Hire developers to take over
Different agency: Hand off to another vendor
Continued maintenance contract: Reduced engagement with current agency
The Handoff Process
A proper handoff includes:
Knowledge transfer sessions: Agency walks through code and architecture
Documentation review: Ensure all necessary documentation exists
Shadowing period: New team works alongside agency briefly
Support window: Agency available for questions post-handoff
Maintaining the Relationship
Even after the main engagement ends:
Stay in touch for future work
Provide references if appropriate
Keep doors open for consultation
The agency you worked with knows your codebase. That's valuable even after the engagement ends.
What Good Agency Relationships Look Like
Signs you've got a healthy relationship:
Mutual respect: Both sides treat each other professionally
Open communication: Problems discussed early, not hidden
Shared ownership: Agency cares about project success, not just completing tasks
Constructive conflict: Disagreements lead to better outcomes
Reliability: Commitments are kept or renegotiated honestly
Signs of trouble:
Defensiveness: Pushback on any feedback
Opacity: Can't get clear answers about status or issues
Churn: Team members changing frequently
Surprises: Learning about problems at the last minute
Blame: Problems are always someone else's fault
Key Takeaways
Managing an agency relationship effectively requires proactive attention.
Set clear expectations upfront: Deliverables, timelines, communication, and change processes defined before work begins
Establish communication cadence: Weekly calls, regular demos, written updates
Give specific, written feedback: Annotated screenshots, prioritized lists, clear descriptions
Address problems early: Don't wait for project completion to raise issues
Plan the transition: Know how handoff will work before you need it
Agency relationships are like any working relationship—they require attention, clear communication, and mutual investment. The founders who get the most from agencies are the ones who engage as active partners, not passive customers. For warning signs to watch for, see red flags when hiring a dev agency.
At NextBuild, we structure our engagements for transparency and founder involvement—weekly updates, direct engineer access, and clear documentation from day one. If you're planning an MVP and want an agency that operates as partners, let's talk.
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