Custom Software Development Contract Template Checklist

A contract for custom software development is a legally binding document that sets out the terms of the relationship between the customer and the supplier. It helps both parties to avoid risks while achieving the expected results. A strong contract ensures good project quality and a positive experience working with the development team.

Software development contract template

Types

Time and material

This is the most typical sort of custom software development outsourcing arrangement. By signing a time and material contract, you commit to paying the developers for their time spent on your project.

Fixed budget

A fixed-price agreement requires a high level of certainty on all dimensions of a project, from design to technical solutions for both parties. It involves an assessment of all stages of the project and is more suitable for engaging suppliers to perform minor tasks. The fixed price agreement favors the client by providing certainty as to the cost of the project.

Custom software development contract template checklist

Services and resources to be provided

The main types of services to be provided under a software development contract are design, programming, quality assurance, and sometimes workshops. The contract may go beyond stating the type of services to be provided, to specifying the expected deliverables.

Deliverables and acceptance criteria

To avoid misunderstandings and arguments the criteria for job acceptance should be written in plain language. Prior to initiating the process of developing custom software a software supplier and a customer collaborate to define acceptance criteria for the required application based on its system specs.

Pricing and payment terms

This section defines the payment terms of the contract, depending on the type of contract. In a fixed budget contract, this section defines the lump sum to be paid payment is to be made upon achievement of defined milestones, and the timeline for the project.

Conclusion

In building trust with a vendor, the custom software development contract should clearly set out the terms of collaboration. The cost of the services means, and frequency of payment should also be stated in the contract.