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13 Crucial Points for A Robust Custom Software Development Agreement

Learn the ropes of creating a mutually beneficial custom software development agreement toward a less stressful project.

Are you recently hired as a custom software developer? Work out a legal contract to protect both you and your client’s interests.

Custom software development is complicated to manage. So the terms of the software development agreement may also take a complex turn. If not done right, it may cause problems as you go along with the software development project.

What is a custom software development agreement?

What is a custom software development agreement? | Laneways.Agency

It’s a document that specifies your legal duties as a developer and vice versa. Ideally, it should be agreed upon and signed before starting the work. 

A solid contract establishes relevant terms and conditions, such as the reasonable use of copyright, dispute resolution, and legal implications of sudden work withdrawal. It lessens the chances for misunderstandings and enables you to meet each other’s expectations. 

We build custom software with modern solutions in mind for any business and sizes!

We build custom software with modern solutions in mind for any business and sizes!

13 Must-Have Points for A Foolproof Agreement

Knowing that no solution fits all, this article may not discuss all specific contract points. But the most significant points for a comprehensive custom software agreement are covered below. 

  • Timeline for project completion 
  • Special business requirements documents in writing as a project reference
  • Process for a necessary change in the order
  • Specific involvement of the developer within the development process
  • Fixed price of the project along with additional payment for tasks requested by the client
  • Billing cycle
  • Mode of compensation
  • Tests to be used and its schedule
  • Written evaluation criteria agreed by you and the client
  • Conditions for the testing form
  • Conditions to measure project success from you and the client
  • Milestones on the development of the products, services, and overall project
  • The primary language of the software
  • Arrangements for a multilingual software
  • Language for communication to avoid misunderstanding
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  • Plan for the installation, configuration, and integration
  • Development tools necessary
  • Source code repositories
  • Plan for the bug tracking software 
  • The course of action for technical challenges and its cost
  • Types of intellectual property rights
  • Open source or proprietary software classification
  • Licensing model
  • Specific license inclusions including limitations
  • Explicit rights and limitations of the developer on the modification and access of the developed source code
  • Guarantees of the developer that software will not infringe any third-party intellectual property rights and its consequences
  • Terms of warranty to its performance, stability, and security
  • The standard warranty period of time
  • List of proprietary data sets and information involved in the project
  • Handling of private customer data 
  • Confidential work or customer information security protocols
  • Legal consequences of any breach of the privacy policy and confidentiality
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  • Circumstances where agreement termination are valid
  • Conditions of licensing and granted rights
  • Agreement provisions that will survive the termination
  • Refunds and additional charges payable
  • Design for dispute management
  • Kinds of alternative dispute resolutions, such as mediation or expert determination
  • Valid forms of contract and code changes 
  • Rights of the developer to deliver the changes in the software specification or agreement
  • Action for accidental, unauthorized, or ill-considered changes
  • Mode of provided support (e.g., email, phone)
  • Kinds of problems covered
  • Limitations of the support service
  • Support and situations that deem additional cost
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  • Scope of software training services
  • Payment for additional services

We build custom software with modern solutions in mind for any business and sizes!

We build custom software with modern solutions in mind for any business and sizes!

Closing Points

A clear agreement considers the behavioral implications of each project stage. It’s the only way to create a collaborative environment for success.

This is an idea that Laneways.Agency believes in. We value the importance of every agreement as we design, build, and support software solutions. Contact us for professional custom software development services.

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