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20-40 hours per page is ridiculously high. They must be incredibly slow and it makes my doubt their design skill.

To design a web app is incredibly easy because there is no marketing element to it--it is all about functionality. If you are bring on a designer to do work on a webapp his job should be to make it pretty, but also to make it usable. If all you are getting is better color selection then you are wasting your money.

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That includes an estimate of the time spent negotiating with the client. I worked as an architectural draftsman for a while, my employer spent at least twice as much time (usually more) negotiating with clients and getting their approvals than I spent producing the drawings. And most businesses are worse, because more people and approvals are involved.

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