Software Development Agreements

What is a Software Development Agreement?

Software development agreements are put in place to deal with the commercial relationship where one entity provides software (which is often bespoke) to a customer. As these developments become more bespoke and technical in their nature so do the legal issues surrounding these agreements.

Agreements are often entered into at the outset when the relationship begins but needs to take into account changes along the way as technical specifications change, making the software development agreement one of the most critical agreements seen in this area of commercial enterprise.   

Key Provisions in a Software Development Agreement

Essentially the software development agreement manages the entire relationship from concept through to after installation services such as warranties and staff training. The first issue that needs to be considered is the type of service that is being offered. For example whether bespoke software is being developed or whether these are actually off the shelf items that are being sold onwards.

Typical clauses deal with the scoping process which is identifying the exact needs of the client, testing that needs to be done both before installation and post installation as well as the way in which changes can be dealt with as the project progresses.

Scoping and Revising Estimates

One of the most substantial areas of drafting that need to be undertaken in any software development arrangement is dealing with the initial estimate and how this should be amended once the full scoping has been undertaken.

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For more information on:

  • Testing and Acceptance Processes
  • Other Points for the Agreement
  • Payment Schedules  
  • Staff Training
  • Other Commercial Considerations: