How to Make a Software Development Contract?

software development contract template

A software development contract is a legal document that binds you and your developer to design and develop software for your company's system. Drafting one protects your company's intellectual properties and sets legal duties and responsibilities for both you and your developer. There is a lot of things to consider in your contract depending on the complexity of your project and the team you plan to employ. In research taken from the semanticscholar.org, Tovi & Muthama (2013) concluded that the "challenges of data protection continue to manifest in developing countries despite current mechanisms to alleviate them." Currently, the world relies on laws and on humanity's ethics and professionalism to keep things private by creating contract agreements to legally hold them liable on the information they have at hand.

1. Write Your Contract

Even if the law doesn't require you to have an official contract, having a written copy of it is less risky when things go sour with your developer. When writing a contract, keep it simple but precise. Create short but clear sentences with numbered paragraph headings that can alert your reader on what's in your service contract.

2. Identify Your Developer

Don't settle for less and choose the best software developer who is suited for the job. Make sure the person you choose has the skills and competencies to develop your company's software. Once you have, place their names on the business contract and clearly point out who is responsible for performing the project during the agreed period.

3. Specify the Details

Specify the details of your contract. Include your terms and conditions during their term of employment, the time and materials they need, the language they will use for your system, the tools, and processes for your system as well as its warranties. Agree on how you may apply your penalties for failure to complete their assigned task on time, reoccurring violations, and contract termination for their breach of contract.

4. Provide the Payment Obligations

Estimate your fixed cost and provide your payment obligations to your developers. Specify your terms of payment, payment Schedules, and how you plan to pay them. You may choose to pay them during the installment period of the software or when the work is completed to your satisfaction. Just make sure to settle things with your developer before making a final decision about making the Software Development Contract.

5. Include Your Privacy Policy

Software developers have the tendencies to be hired in a variety of companies to do the same service for them. Keep your intellectual property safe by establishing a privacy policy between you and your developer to keep everything confidential. Make sure this part of the contract is adhered to by your developer.

6. Sign Your Contract

Once everything is outlined in your sample contract, add a wide space for your signature area, and have it signed by you and your software developer. Consider adding witnesses for the contract and have it notarized by your lawyer to formally legalize your contract. Remember to keep a written copy of your contract for security purposes.