13 Crucial Points for A Robust Custom Software Development Agreement
Learn the ropes of creating a mutually beneficial custom software development agreement toward a less stressful project.
Are you recently hired as a custom software developer? Work out a legal contract to protect both you and your client’s interests.
Custom software development is complicated to manage. So the terms of the software development agreement may also take a complex turn. If not done right, it may cause problems as you go along with the software development project.
What is a custom software development agreement?
It’s a document that specifies your legal duties as a developer and vice versa. Ideally, it should be agreed upon and signed before starting the work.
A solid contract establishes relevant terms and conditions, such as the reasonable use of copyright, dispute resolution, and legal implications of sudden work withdrawal. It lessens the chances for misunderstandings and enables you to meet each other’s expectations.
We build custom software with modern solutions in mind for any business and sizes!
We build custom software with modern solutions in mind for any business and sizes!
13 Must-Have Points for A Foolproof Agreement
Knowing that no solution fits all, this article may not discuss all specific contract points. But the most significant points for a comprehensive custom software agreement are covered below.
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1. Design and Development Details
Even when development delivery methods vary, you may include these specifications.
- Timeline for project completion
- Special business requirements documents in writing as a project reference
- Process for a necessary change in the order
- Specific involvement of the developer within the development process
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2. Billing Arrangements
The billing arrangements after negotiation in writing.
- Fixed price of the project along with additional payment for tasks requested by the client
- Billing cycle
- Mode of compensation
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3. Metrics for Acceptance Testing
Metrics, time, and materials for testing should be expressed clearly.
- Tests to be used and its schedule
- Written evaluation criteria agreed by you and the client
- Conditions for the testing form
- Conditions to measure project success from you and the client
- Milestones on the development of the products, services, and overall project
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4. Language for Software and Project Management
Are you handling a multilingual product? Are you dealing with non-native English speakers? Cite the languages to be used during the partnership.
- The primary language of the software
- Arrangements for a multilingual software
- Language for communication to avoid misunderstanding
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5. Software Installation, Integration, and Tools
Explain the extent of your obligations as the developer before software installation, configuration, and migration with other systems.
- Plan for the installation, configuration, and integration
- Development tools necessary
- Source code repositories
- Plan for the bug tracking software
- The course of action for technical challenges and its cost
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6. Licensing and Copyright
To comply with intellectual property rights, you may assign the required licenses to the client.
- Types of intellectual property rights
- Open source or proprietary software classification
- Licensing model
- Specific license inclusions including limitations
- Explicit rights and limitations of the developer on the modification and access of the developed source code
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7. Warranties and Indemnities
Define the developer warranties and compensations for potential damages or losses to third parties
- Guarantees of the developer that software will not infringe any third-party intellectual property rights and its consequences
- Terms of warranty to its performance, stability, and security
- The standard warranty period of time
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8. Privacy Policy
Define the proper use of confidential information to be adhered to.
- List of proprietary data sets and information involved in the project
- Handling of private customer data
- Confidential work or customer information security protocols
- Legal consequences of any breach of the privacy policy and confidentiality
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9. Contract Termination
Prepare for an exit strategy in case the contract is terminated by either party.
- Circumstances where agreement termination are valid
- Conditions of licensing and granted rights
- Agreement provisions that will survive the termination
- Refunds and additional charges payable
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10. Dispute Resolution
Handle client disputes efficiently by putting a clause for the following terms.
- Design for dispute management
- Kinds of alternative dispute resolutions, such as mediation or expert determination
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11. Changes and Contract Variations
Carry out the variations in a formal way.
- Valid forms of contract and code changes
- Rights of the developer to deliver the changes in the software specification or agreement
- Action for accidental, unauthorized, or ill-considered changes
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12. Support Services Offered
It's important for both parties to have a clear agreement on support service:
- Mode of provided support (e.g., email, phone)
- Kinds of problems covered
- Limitations of the support service
- Support and situations that deem additional cost
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13. Training and Consulting Arrangements
If you offer services that involve training and consulting, then include these terms.
- Scope of software training services
- Payment for additional services
We build custom software with modern solutions in mind for any business and sizes!
We build custom software with modern solutions in mind for any business and sizes!
Closing Points
A clear agreement considers the behavioral implications of each project stage. It’s the only way to create a collaborative environment for success.
This is an idea that Laneways Software & Digital believes in. We value the importance of every agreement as we design, build, and support software solutions. Contact us for professional custom software development services.
Jerome Rault
Partner with a software development team one that's passionate about creating success
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