I have to provide a quote for a 12 month subscription to my SaaS app to a large company. The company wants Single Sign On integration. I will have an item in the quote for this work, but I'm wondering what's the best term to use to call this "Custom development work at $xx per hour" is what I'm thinking. Is there a better way to communicate it?
Make sure the line item for the SaaS subscription specifies the months terms so they know its a revolving amount. Then I would use the line item "Thier Company Name Custom Integration - $125/h" as the description so that they know its a special customized integration built for them specifically. In the notes I would make sure to outline exactly what is begin built so that they do not scope creep you. WATCH OUT FOR SCOPE CREEP. Also in the note specify a standard hourly rate for any additional work yet to be specified. As you get going they might want more and you need to be clear that it is not included in the initial integration point originally quoted.
For accounting this can be accounted for under misc labor or software development.