What Is A Software Development Agreement?

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Have an online business or online presence? If you are a business that requires an app, website or software, then you may need to engage a developer to create this for you.

This is where a Software Development Agreement comes into play. Essentially, a Software Development Agreement is a specific type of contract between your business and the developer who creates software for your business.

A Software Development Agreement has a multitude of uses in safeguarding your business. It can assist with protecting the confidentiality and intellectual property of your business, and ensures both parties are clear about exactly what work the developer will provide, how much it will cost, and the timeline for completion.

When Do I Need A Software Development Agreement?

Whenever you engage a developer to produce software for your business, it is wise to have a Software Development Agreement in place.

A Software Development Agreement ensures you receive what you’re paying for on time, and that the scope of the developer’s services is explicit. A Software Development Agreement for software is particularly crucial because it can be challenging to define the final product you envisage.

The Software Development Agreement might stipulate that you need to approve each phase of your business’ website development, for example. If you wish to make alterations along the way, this could incur additional costs or cause delays, so it is vital to be clear about how many changes you can request without extra charges, and within what timeframe you expect these to be implemented.

What Should I Include In A Software Development Agreement?

A Software Development Agreement should encompass the scope of work, specifications, and deadlines or milestones of your project.

For example, you should specify at which points in the development of your website the developer requires your approval before proceeding (also known as acceptance testing). You might also want to outline how many revisions the developer is prepared to undertake without additional cost. To ensure the software development adheres to your timeline, setting out development stages is also pivotal in a Software Development Agreement.

You should also incorporate clauses to protect your company’s intellectual property, non-compete, and confidentiality agreements, as well as warranties in case there are issues with using the software.

Need Help With Your Software Development Agreement?

We can draft a Software Development Agreement tailored to your requirements, with fixed-fee packages available. Contact our friendly team of legal consultants on 0800 002 184 or at [email protected] to discover how a Software Development Agreement could benefit your business.

Justine Wu

Justine is a legal consultant at Sprintlaw. She has experience in civil law and human rights law with a double degree in law and media production. Justine has an interest in intellectual property and employment law.

Amelia Abbott

Amelia is a commercial lawyer with a background in major projects, IP and IT outsourcing. Before joining the Sprintlaw team, Amelia worked at two national law firms and completed her studies in Law and Psychology at the New Zealand National University.