What is a software development agreement?
A software development agreement is a contractual agreement between a developer and a customer regarding the design and development of software for that customer. It outlines the specifics of how the software will be built, the development timeline, and any additional services provided by the supplier, such as hosting the software.
Why document the development of software using this software development agreement template?
Record a mutual understanding of deliverables: For customers engaging in software development, it is crucial to clearly define the expectations for the software. By incorporating a detailed specification within the software development agreement, both parties can agree on the functionalities, features, and performance criteria of the software. This ensures alignment and reduces the risk of misunderstandings.
Clear ownership and intellectual property: Using a software development agreement template establishes and clarifies ownership rights and intellectual property when it comes to the software. This software development agreement template ensures that the customer has full rights to the developed software, including source code and prevents any disputes or limitations on the customer's usage or distribution of the software.
Document agreed development methodologies: This software development agreement template can include “ways of working”, which are methods and procedures that the parties agree at the outset will apply to the development process. The ways of working will apply to the development of the software and the parties working relationship. There are two main methodologies in the software development industry, and you can choose which one is most suitable for your project:
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Agile - Agile is an adaptable approach, allowing for evolving requirements, frequent feedback, and continuous improvement throughout the project. It offers flexibility and fluidity, accommodating changes in the software and development processes over time. With this methodology, customers can be more involved in the development process; or
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Waterfall - Waterfall is well-suited for projects with stable requirements, a clear scope, and a sequential approach. It follows a more rigid structure, with key decisions made before the development process begins to ensure a structured development process from the outset.
What information does a software development agreement template include?
Key provisions: This software development agreement template contains key provisions in relation to:
- the scope of the software development services to be provided, including the option for an agile or waterfall methodology to be adopted in relation to the software development. Find out more about waterfall vs agile here;
- acceptance process - so there is a clear process for agreeing whether or not the software is ready to go live;
- optional warranty - if you are the customer, a warranty can be included to ensure that the software continues to comply with the agreed specification after it is built;
- intellectual property right protections - to ensure that the customer’s ability to use the software on an ongoing basis is unrestricted;
- the charging structure and payment terms - flexibility is offered here, to allow for fixed one-off fees or ongoing payment structures;
- caps on liability - to limit the supplier’s potential financial exposure in the event of a claim under the software development agreement; and
- clear termination rights - so both parties know exactly when the agreement can come to an end.
You can also include ongoing services: The software development agreement template also contains optional clauses to cover the provision of ongoing hosting, support and maintenance services in relation to the software, by the developer to the customer, if required. These services may include:
- Hosting services e.g. hosting the software via the supplier's servers;
- Support services e.g. responding to app users’ queries and issues when using the software; or
- Maintenance services e.g. ongoing planned maintenance of the software and repairs when unexpected issues arise.
This software development agreement template assumes that the parties are contracting B2B, that they are incorporated in the UK, and that English law applies.
Fully customised to meet your requirements
Tailored to protect your interests: This software development agreement template contains alternate clauses depending on whether you are the software developer / supplier of the services or the customer purchasing the software, so that your interests are fully protected.
What are the differences: For example, the provisions relating to achieving key dates (as well as the indemnities included in the software development agreement template) are automatically drafted depending on which party to the software development agreement you are, so they are drafting in your favour and with your interests in mind.
Related templates
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Mobile application development: If you are embarking on the development of mobile applications, our mobile app development agreement template would be a more appropriate template to use. It covers all the essential aspects of the agreement, ensuring clarity and protection throughout the development process. Whether you are hiring a developer or undertaking the development yourself, this template will provide a solid foundation for your mobile app project.
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Website development: If you are diving into website development, our website development agreement template would be a great template for you. Whether you are engaging a developer or taking on the development yourself, this template will help you define the scope of work, ownership rights and terms of collaboration. It ensures that all parties involved are aligned and protected, facilitating a smooth and successful website development journey.
Why Docue?
So easy to use: With Docue, you can create a top-quality software development agreement in minutes. The service includes model clauses designed by tech lawyers to help you draft the contract yourself and tailor it to your specific needs and requirements.
Full contracting process: Signatures can be collected electronically, and all contracts you make are saved in your company's own contract account in Docue Drive. This means all your contracting needs are taken care of in one place.
Transparent pricing: At Docue, we believe in transparent and cost-effective pricing without any hidden fees. Check out our pricing here.
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Tags: software development agreement template, software development agreement, software contract, software design agreement, software maintenance agreement, software application development agreement template
