Do I Need A Website Development Agreement?

Let’s say you’ve engaged someone to design a website for your business. It’s an exciting next step for your business venture, but you should consider the following things:

• How much should I charge?
• Should I charge a fixed fee, or by the hour?
• What is the scope of the work to be done?
• When do I want it to be completed by?
• How can I ensure I own the IP?
• How can I ensure that any information I provide the developer is protected?

These questions are common considerations when it comes to website development. This is where you would need a Website Development Agreement.

What Is A Website Development Agreement?

A Website Development Agreement sets out the key details in the relationship between you and your website developer. As one party is agreeing to provide a service in exchange for remuneration, there should be clear guidelines around the expected standards of work and relevant deadlines.

What Should The Agreement Include?

Like other agreements, a Website Development Agreement may vary depending on your specific requirements. Generally, the following points should be included in the contract:

• Payment – how will the developer be compensated for their services? Will there be a schedule for payment?
• Scope – what kind of work will they be providing?
• Deadlines – when should the work be completed?
• Reimbursements – will the designer/developer be reimbursed for any out-of-pocket expenses incurred to complete the service (for example, subscription fees for a particular platform)?
• Intellectual Property – how will the IP ownership rights be assigned to the business?
• Confidentiality – how can you ensure that the website developer does not share sensitive information with third parties?

Protect Your Intellectual Property

When it comes to having products created by external parties, there are several risks. After all, you’re allowing another party to access and utilise confidential information.

You want to ensure that you have well-drafted confidentiality clauses in your Agreement to limit their disclosure of any information they accessed during their engagement with you.

You also want to ensure that the final product that is created legally belongs to you. So, even if the developer created it, you both want to agree to transfer the ownership of that IP to you as soon as the project is complete. It’s crucial that you make this clear from the outset of your business relationship, otherwise there is a risk that the final product will not be yours to use and distribute as you wish.

Example Imagine you are hiring a web development agency to revamp your website and create the content for you. You explain your vision, and you share with them some drafts, sketches and confidential business strategy documents to help them understand your goals. Once you’ve provided the agency with this information, you’ll want to ensure that the agency doesn’t share this information with your competitors or anyone else. Moreover, you might want to ensure that they won’t take the website design, or any other content they create for you, and use it with other clients. A well-crafted Web Development Agreement can help address these concerns. It will include a confidentiality clause, which stipulates that any information you provide the agency cannot be shared with any third parties without your consent. It can also include an intellectual property clause, which prevents the web development agency from reusing your designs or your website code with any other client without your permission.

Need Help?

Collaborating with website developers and other external parties is a fantastic way to spark innovation and collaborative projects, but it also carries the risk of losing confidential information and IP.

Therefore, it’s essential that your Website Development Agreement is comprehensive. If you require a lawyer to draft a Website Development Agreement for your business, Sprintlaw has a team of lawyers who can assist you. Our package includes:

• A Website Development Agreement tailored to your business needs
• Phone consultations with a Sprintlaw lawyer who can address your legal queries
• A complimentary amendment to the final draft we provide to you

If you would like a consultation on your options moving forward, you can reach us at 0800 002 184 or [email protected] for a free, no-obligations chat.

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