The verdict in three sentences
A good requirements document for a business application fits in 15 sections and 15 to 30 pages, not 120 pages of frozen specifications. It must let three suppliers price the same scope, with an estimate between 30 and 120 person-days for an SME, plus a 20% contingency. The acceptance testing, reversibility and code ownership clauses matter as much as the feature list.
The 15 sections of the template
| No. | Section | Expected content | Suggested length |
|---|---|---|---|
| 1 | Context and objectives | Company, problem, 3 measurable goals | 1 page |
| 2 | Scope | What is in, what is out | 1/2 page |
| 3 | Users and roles | Profiles, numbers, permissions | 1 page |
| 4 | Current processes | Process map, pain points | 1 to 2 pages |
| 5 | Prioritised user stories | "As a…, I want…, so that…" + MoSCoW | 4 to 8 pages |
| 6 | Business rules | Calculations, validations, statuses | 2 pages |
| 7 | Data and volumes | Entities, volumes, history to migrate | 1 page |
| 8 | Interfaces and integrations | ERP, accounting, email, APIs | 1 page |
| 9 | Non-functional requirements | Performance, availability, accessibility | 1 page |
| 10 | Security and UK GDPR | Authentication, personal data, logs | 1 page |
| 11 | Hosting | Cloud, data location, backups | 1/2 page |
| 12 | Timeline and milestones | Target date, phases, constraints | 1/2 page |
| 13 | Budget and contingency | Envelope, 20% contingency | 1/2 page |
| 14 | Acceptance criteria | Test scenarios, thresholds, fix times | 1 to 2 pages |
| 15 | Contract clauses | Code ownership, reversibility, maintenance | 1 page |
Section 5 is the heart of the document. A well-written user story fits on one line and carries an acceptance criterion: "As a workshop manager, I want to see today's work orders sorted by priority, so that I can start production at 7 am. Criterion: the list loads in under 2 seconds for 300 orders."
Prioritising with MoSCoW to hold the budget
MoSCoW sorts each user story into four levels. It is the tool for trade-offs when the estimate exceeds the envelope.
| Priority | Definition | Suggested share of stories | Budget effect |
|---|---|---|---|
| Must have | Without it, the app is useless | 50 to 60% | Phase 1, mandatory |
| Should have | Important, workable without for a few months | 20 to 25% | Phase 1 if budget allows |
| Could have | Nice to have, marginal gain | 10 to 15% | Phase 2 |
| Won't have (this time) | Explicitly excluded | 5 to 10% | Out of scope, prevents misunderstandings |
The "Won't have" line is often forgotten. Yet it is what prevents the classic "I thought that was included" at the end of the project.
Estimating 30 to 120 person-days
With 30 to 60 well-written user stories, a serious supplier estimates the project within 15 to 20%. Here are 2026 ballpark figures for a UK or Irish SME, at an average day rate of €600 (about £500).
| Application type | Person-days | Budget ex VAT | With 20% contingency |
|---|---|---|---|
| Simple tool (forms, dashboards, 1 role) | 30 | €18,000 / £15,000 | €21,600 / £18,000 |
| Internal management (3 roles, approval workflow) | 50 | €30,000 / £25,000 | €36,000 / £30,000 |
| Business app with 1 ERP integration | 75 | €45,000 / £37,500 | €54,000 / £45,000 |
| Customer portal and back office | 95 | €57,000 / £47,500 | €68,400 / £57,000 |
| Multi-site app with several integrations | 120 | €72,000 / £60,000 | €86,400 / £72,000 |
The 20% contingency is not a supplier margin: it stays in your budget and covers discoveries along the way, such as a forgotten business rule or a spreadsheet messier than expected.
Acceptance, reversibility and code ownership
Three clauses protect the SME. Acceptance sets test scenarios and thresholds: for example zero blocking defects and no more than 5 minor defects to sign off, with a 5 working day fix window. Reversibility requires handover of the source code, database scripts and installation documentation, with 3 to 5 days of assistance if you change supplier. Code ownership must state an assignment of intellectual property rights, worldwide and for the full term; under UK and Irish law, without a written assignment the supplier generally keeps copyright in the code.
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Mini case study
Thomas runs a 45-employee industrial maintenance SME in Manchester. He wants to replace 6 technician scheduling spreadsheets. His document lists 42 user stories: 24 Must, 10 Should, 5 Could, 3 Won't. The three quotes received range from £40,000 to £51,000, while his envelope is £41,000 including contingency. By limiting phase 1 to Must and Should stories, he brings scope down to 68 person-days, or £34,000, plus £6,800 of contingency: £40,800, inside the envelope. The 5 Could stories move to phase 2, priced at £6,000 for the following year.
FAQ
How long does it take to write the requirements document?
Allow 5 to 10 days of internal work spread over 3 to 4 weeks. External workshop support usually costs £1,700 to £4,200 (€2,000 to €5,000).
Do you need detailed requirements in an agile project?
Yes, but shorter: the prioritised user story backlog replaces detailed specifications. It is still essential to get an initial budget within 20%.
Can you ask for a fixed price from this document?
Yes, if 80% of stories have an acceptance criterion. Otherwise the supplier will add 15 to 30% risk margin to the fixed price.
How many suppliers should you consult?
Three is a good number. Beyond five, reviewing responses often takes more than 3 days for little gain.
What goes into performance requirements?
Measurable thresholds: pages load in under 2 seconds, 50 concurrent users, 99.5% availability during business hours.
Let's scope your project. Send us your requirements document, even as a draft, and we will review it, price phase 1 in person-days and propose a phased plan. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
