A development contract is a written agreement between a business and its client whereby the business is utilising the services of the client for a specific time period and for a mentioned amount. The type of development that the client will be undertaking as part of the contract with the business needs to be clearly mentioned as any deviation to the work mentioned may lead to breach of agreement and an eventual termination of the contract.

Points to be kept in mind while preparing a development contract:

  • The development contract should start with the business information and the client name who is undertaking the development work. The details should include the business name, client name, address, email ids, phone, etc.
  • Then should follow the kind of development work that the client will undertake and the time period of the start and finish of the task.
  • The scope of work should be included so that the client is able to provide the required services and the business is getting billed on the same.
  • The payment terms, dates, and conditions should be mentioned. The business should agree to pay the required amount to the client within the mutual agreed upon date.
  • The parameters for performance of the client should be written down in the development contract. E.g. Turnaround times, reducing duplication, saving time, etc. can be some of the parameters of performance.
  • Any additional services that can come in the framework of the contract should be mentioned in the development agreement document.
  • Any warranties and post-sales support services as applicable also need to be mentioned.
  • Cancellation terms and contract termination terms are also a necessary part of the development contract as a significant amount of money is at stake for the company and a significant commitment of resources are given by the client.
  • The development contract can end with a signature by both the parties showing mutual agreement on it.

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