What Is A Software Development Agreement?

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

A Software 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 Software Development Agreement?

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

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

The Software 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 Software Development Agreement?

A Software 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 Software 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 Software Development Agreement?

We can draft a Software 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 Software Development Agreement could be useful for your business.

Justine Wu

Justine is a legal consultant at Sprintlaw. She has experience in civil law and human rights law with a double degree in law and media production. Justine has an interest in intellectual property and employment law.

Amelia Abbott

Amelia is a commercial lawyer with a background in major projects, IP and IT outsourcing. Before joining the Sprintlaw team, Amelia worked at two national law firms and completed her studies in Law and Psychology at the Australian National University.