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

This is where a Development Agreement comes in. Put simply, a Development Agreement is a specific type of contract between your business and the developer who creates software for your business.

A Development Agreement has a range of uses in protecting your business. It can help with protecting the confidentiality and intellectual property of your business, and ensures both parties are on the same page about specifically what work the developer will provide, how much it will cost, and the timeline the work has to be completed within.

When Do I Need A Development Agreement?

Any time you employ a developer to make software for your business, it is prudent to get a Development Agreement.

A Development Agreement ensures you get what you’re paying for on time, and that the scope of the developer’s services is clear.  A Development Agreement for software is particularly important because it can be difficult to articulate the final product you want.

The Development Agreement might specify that you need to approve each stage of your business’ website development, for instance. If you want to make changes along the way, this could cost extra or cause delays, so it is important to be clear about how many changes you can make without incurring extra costs, and what time frame you expect these to be made within.

What Should I Include In A Development Agreement?

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

For instance, you should clarify at which stages in the development of your website the developer will need your approval before they can move on (otherwise known as acceptance testing). You might also want to specify how many changes the developer is willing to make without incurring additional cost. To ensure the software development sticks to your deadline, development stages are also important in a Development Agreement.  

You should also include clauses to protect your company’s intellectual property, restraint of trade, and confidentiality, as well as including warranties in case there are problems using the software.

Need Help With Your Development Agreement?

We can draft a Development Agreement tailored to your needs, with fixed-fee packages available. Get in touch with our friendly team of legal consultants on 1800 730 617 or at team@sprintlaw.com.au to see how a Development Agreement could be useful for your business.

About Sprintlaw

Sprintlaw is a new type of law firm that operates completely online and on a fixed-fee basis. We’re on a mission to make quality legal services faster, simpler and more affordable for small business owners and entrepreneurs.

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