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Custom Software Development Contract for Australia

Custom Software Development Contract Template for Australia

This document is a comprehensive Custom Software Development Contract governed by Australian law, designed to establish the legal framework for software development projects. It outlines the responsibilities, deliverables, intellectual property rights, and commercial terms between a software developer/development company and their client. The contract incorporates Australian legal requirements, including provisions from the Copyright Act 1968, Privacy Act 1988, and Australian Consumer Law, while addressing specific technical requirements, project methodology, acceptance criteria, and ongoing maintenance considerations.

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What is a Custom Software Development Contract?

The Custom Software Development Contract is essential for organizations engaging in bespoke software development projects in Australia. This document is typically used when a client requires custom-built software solutions and needs to establish clear legal and operational parameters with a development provider. The contract addresses crucial aspects including project scope, methodology, deliverables, intellectual property rights, data protection, and compliance with Australian legislation. It's particularly important in protecting both parties' interests while ensuring clear communication of technical requirements, timelines, and commercial terms. The document includes provisions for various development methodologies (such as Agile or Waterfall), quality assurance processes, and ongoing support and maintenance arrangements, all within the framework of Australian law.

What sections should be included in a Custom Software Development Contract?

1. Parties: Identification and details of the developer/supplier and the client

2. Background: Context of the agreement and brief description of the project objectives

3. Definitions: Detailed definitions of technical and legal terms used throughout the agreement

4. Scope of Services: Detailed description of the software development services to be provided

5. Project Methodology: Development methodology to be used (e.g., Agile, Waterfall) and associated processes

6. Deliverables: Specific outputs and deliverables to be provided during the project

7. Timeline and Milestones: Project schedule, key milestones, and delivery dates

8. Acceptance Testing: Procedures for testing and accepting deliverables

9. Payment Terms: Fees, payment schedule, and payment conditions

10. Intellectual Property Rights: Ownership and licensing of pre-existing and newly created IP

11. Confidentiality: Protection of confidential information and trade secrets

12. Warranties: Warranties regarding the software and services provided

13. Liability and Indemnification: Limitation of liability and indemnification obligations

14. Term and Termination: Duration of the agreement and termination provisions

15. General Provisions: Standard legal provisions including governing law, dispute resolution, and force majeure

What sections are optional to include in a Custom Software Development Contract?

1. Source Code Escrow: Provisions for source code escrow arrangements, typically used for business-critical applications

2. Security Requirements: Specific security standards and requirements, important for sensitive data handling

3. Change Management: Procedures for handling change requests and variations to scope

4. Service Level Agreement: Performance metrics and service levels for maintenance phase

5. Data Protection: Specific provisions for handling personal or sensitive data

6. Third-Party Components: Management of third-party software, libraries, and dependencies

7. Knowledge Transfer: Requirements for training and documentation transfer to client's team

8. Disaster Recovery: Procedures for backup and recovery in case of system failure

9. Non-Solicitation: Restrictions on hiring each other's employees

10. International Considerations: Specific provisions for cross-border development work

What schedules should be included in a Custom Software Development Contract?

1. Schedule A - Technical Specifications: Detailed technical requirements and specifications for the software

2. Schedule B - Project Plan: Detailed project timeline, resources, and delivery schedule

3. Schedule C - Acceptance Criteria: Specific criteria for accepting deliverables and testing procedures

4. Schedule D - Price Schedule: Detailed breakdown of fees, costs, and payment milestones

5. Schedule E - Service Levels: Detailed service level requirements and metrics

6. Schedule F - Personnel: Key personnel and their roles in the project

7. Schedule G - Security Requirements: Detailed security specifications and compliance requirements

8. Appendix 1 - Change Request Template: Standard form for requesting and documenting changes

9. Appendix 2 - Testing Procedures: Detailed testing methodologies and procedures

10. Appendix 3 - Documentation Requirements: Specifications for technical and user documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Ƶ

Sector

Cost

Free to use
Relevant legal definitions









































Clauses



































Relevant Industries

Information Technology

Financial Services

Healthcare

Retail

Manufacturing

Professional Services

Education

Government

Telecommunications

Energy and Utilities

Media and Entertainment

Transportation and Logistics

Relevant Teams

Legal

Information Technology

Procurement

Finance

Risk and Compliance

Project Management Office

Quality Assurance

Information Security

Operations

Commercial

Relevant Roles

Chief Technology Officer

IT Director

Software Development Manager

Project Manager

Legal Counsel

Procurement Manager

Contract Manager

Software Engineer

Technical Architect

Business Analyst

Product Owner

Quality Assurance Manager

Information Security Officer

Risk Manager

Commercial Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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