Unlike buying or developing a usual or common software program, it is more complicated to develop a custom software program. When an individual or a company hires a computer firm to develop a custom software program, they both create and sign a legal contract that is also known as the custom software development agreement. This agreement includes the expectations of the client with the developer, duration to complete and supply the software, warranties and maintenance along with the ownership of legal rights to the software, disclosure of intellectual property, distribution of the software with usage policies and finally, the compensation for the developer in exchange of his services.
Brief Description of Custom Software Development Agreement:
There are hundreds and thousands of types of software programs in the world that can be bought by as many customers as possible and most of the time, when companies and organizations want to implement specific software programs or technologies in their offices, they can easily get one from software providers but there are certain situations in which a company wants a unique kind of software. We also know these software programs as the custom built software programs in which the client or company provides specific guidelines and instructions to fulfill in the software for the ease of software developer. Unlike common software programs, this process of developing custom software programs is very sensitive and complicated and even a single misunderstanding can lead to a big conflict or issue in future.
For example, a company wants to acquire a software program that can produce counting of the units in storage, units in manufacturing process, units needed for shipment and customer’s orders and this is a technology that is unique with each manufacturer i.e. mobile manufacturer, automobile manufacturer, shoes manufacturer and garments manufacturer. In order to cope with their difficulties, they need custom software that includes all the facilities that they require or will need in future. When such client approaches the software developing company, they sign a legal agreement. This agreement includes the specific guidelines and instructions for the development of software program along with timeline in which the client wants the finished product and the transfer of the rights and full or partial ownership of the software so that the client can easily use it in whatever manner he wants without concerning the developer or obtaining license for use.
Here is preview of a Free Printable Custom Software Development Agreement Template created using MS Word,
Key Elements to add in the Custom Software Development Agreement:
- Name of the client/company that needs software
- Name of the software/services provider company
- Details and specification of the software required by the client
- Deadline and schedule for providing software
- Rates and payment/compensation in exchange for the software development
- Intellectual property rights of the software
- Ownership and legal rights of the software
- Warranty clauses by the developer for services and maintenance of the software
- Terms and conditions of the agreement
- Mutually agreed clauses of the agreement
- Termination and validation of the agreement
- Results of violation of the agreement
- Signature of client and software providing company