Software development contract

Sample Free Software Development Contract Templates

To help you grow your business, we've created a fairly simple yet reliable software development contract template in Word and PDF versions so you can use it over and over.

What's in this model?

• Intellectual property rights

• Intellectual property and moral rights

• Payment terms

What is a software development contract?

A software development contract is a legal document between a customer and a developer. The Customer prepares the contract with the Developer to create and deliver a particular software.

These types of contracts are mainly used in software companies where developers create software for commercial and private use. A software development contract describes the functions of the software, the duration of the development and the cost of such a project.

It is also important to specify the dates and type of delivery in a software development contract.

What is Software Development?

Software development is a software design activity that differs from computer design in that the software developed is intended for use by end users and not by technicians. This activity is often also called “Software Engineering”.

The term software includes both programs and associated technical documentation.

What are the types of software development contracts?

Software development contracts can be divided into three types. The first type is the standard software development contract, which includes a detailed description of the specific features you want the software development company to develop for you. The second is the serial software development contract, which includes a number of specific features and can be used for several customers at the same time. The third is the Adaptable Software Development Agreement, which includes a number of specific features, but can be tailored to suit your specific needs.

When is a software development contract necessary?

When you are a contractor and need a project to complete, you can hire a developer to complete part or all of the project.

A developer who agrees to complete the entire project must adhere to the terms of the development contract.

But if you're not a developer and just want to design the website, then. you do not need to sign a software development contract.

Important Terms

What should a software development contract contain?

The software development contract should include the following:

Work phases: a work phase specifies when your software team will complete a certain task. It understands the software development process. The questions you should keep in mind when preparing an agreement are:

• How will the software specification be agreed or developed?

• How will changing the software specification affect fees and other contract terms?

• What will be the customer's involvement in the design and development process?

• What is the software development schedule?

Deadline and amount of payments: the payment due dates and the amount to be paid must be clearly mentioned in the contract.

He understands:

• The fixed price is a price paid for the whole project.

• The time and materials your client will pay you for the time spent and the cost of materials.

Intellectual property and moral rights: The agreement should clearly state who will own the intellectual property right, which in the case of the software development project will be your development team. Moral rights are the rights of creators of copyrighted works. You must mention ownership of the moral rights to the project in your contract.

Open source software: when you compile an agreement, you must add the details about the open-source software if you use it for your project. It will keep your customer informed.

Guarantee: A warranty is the assurance that a product will perform in a particular way for a specific period of time. Software warranties typically last from 90 days to one year.

Developer and customer tests: the software development agreement should highlight the required testing. You must add the details if your client requested a reduction of the test phase. You should report the results if your client fails to test something you asked them to.

Installation and integration of software: a good software development contract should clearly state whether you are providing DevOps on top of the software.

Ongoing support:  Your agreement should describe the channels open for support. Common support channels typically include phone, email, or a dedicated channel in Slack.

Maintenance Services: your contract should clearly specify what constitutes general maintenance and what constitutes additional work.

Termination: Termination terms are a very important part of every agreement. You should keep the following questions in mind when preparing the termination clause of your contract:

• How can termination occur?

• What happens to the money owed?

• How much written notice is required?

• Should your customer stop using your code?

• Do your developers have to submit code?

• What provisions of the software development agreement should survive termination?

Dispute Resolution: It is very important to add the dispute resolution section in your contract to manage the situation in case of dispute. You must describe all the laws and rules to settle the case.

Source code escrow: source code escrow provides maintenance and security in the event of a breakdown between the developers and your customer.

Adding a source code escrow section to your agreement will show your concern for the long-term success of the project.