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Software Development Contract for Philippines

Software Development Contract Template for Philippines

A comprehensive legal agreement governed by Philippine law that establishes the terms and conditions for software development services. This contract outlines the scope of work, development methodology, deliverables, intellectual property rights, payment terms, and compliance requirements with relevant Philippine legislation, including the Data Privacy Act and E-Commerce Act. It provides a structured framework for managing software development projects while protecting the interests of both the developer and client, ensuring clear accountability and risk allocation throughout the development process.

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Software Development Contract

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What is a Software Development Contract?

The Software Development Contract is essential for businesses and organizations engaging software development services in the Philippines. This document is typically used when a client requires custom software development, whether for internal use, commercial distribution, or specific business operations. The contract addresses crucial aspects such as project specifications, development methodologies, intellectual property rights, data protection, and compliance with Philippine regulations including the Data Privacy Act, E-Commerce Act, and Intellectual Property Code. It provides necessary legal protection for both parties while ensuring clear project guidelines, deliverables, and success criteria. The document is particularly important in the Philippine context where technology outsourcing is a significant industry and requires careful attention to local legal requirements and business practices.

What sections should be included in a Software Development Contract?

1. Parties: Identification and details of the contracting parties (developer and client)

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

3. Definitions: Definitions of key terms used throughout the agreement

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

5. Project Timeline and Milestones: Development phases, deadlines, and delivery schedules

6. Payment Terms: Fees, payment schedule, invoicing, and payment methods

7. Intellectual Property Rights: Ownership and licensing of the developed software and related materials

8. Confidentiality: Protection of confidential information and trade secrets

9. Data Protection and Privacy: Compliance with Philippine Data Privacy Act and data handling procedures

10. Acceptance Testing: Testing procedures, acceptance criteria, and sign-off requirements

11. Warranties and Representations: Warranties regarding service quality, compliance with specifications, and legal compliance

12. Limitation of Liability: Limits on liability and indemnification provisions

13. Term and Termination: Contract duration, renewal terms, and termination conditions

14. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

15. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

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

1. Source Code Escrow: Provisions for source code escrow arrangements, used when client requires security of access to source code

2. Third-Party Materials: Provisions regarding use and licensing of third-party software or materials, included when project involves third-party components

3. Service Level Agreement (SLA): Detailed service levels and performance metrics, used for projects with ongoing maintenance requirements

4. Change Management: Procedures for handling change requests, included for complex projects with likely modifications

5. Security Requirements: Specific security standards and compliance requirements, used for projects with heightened security needs

6. Personnel Requirements: Specifications about development team composition and qualifications, included when specific expertise is required

7. Training and Documentation: Requirements for user training and system documentation, used when knowledge transfer is crucial

8. Business Continuity: Disaster recovery and business continuity provisions, included for mission-critical applications

What schedules should be included in a Software Development Contract?

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

2. Schedule B - Project Plan: Detailed project timeline, milestones, and deliverables

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

4. Schedule D - Fee Schedule: Detailed breakdown of fees, payment milestones, and pricing structure

5. Schedule E - Service Level Requirements: Detailed service levels, response times, and performance metrics

6. Appendix 1 - Change Request Template: Standard form for requesting and documenting changes to the project scope

7. Appendix 2 - Security and Compliance Requirements: Detailed security standards and compliance requirements

8. Appendix 3 - Personnel and Resources: List of key personnel, roles, and required resources

Authors

Alex Denne

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

Jurisdiction

Philippines

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions











































Clauses






































Relevant Industries

Information Technology

Financial Services

Healthcare

E-commerce

Education

Manufacturing

Government

Telecommunications

Retail

Professional Services

Media and Entertainment

Transportation and Logistics

Real Estate

Energy and Utilities

Non-profit Organizations

Relevant Teams

Legal

Information Technology

Procurement

Operations

Software Development

Project Management

Compliance

Risk Management

Business Development

Technical Operations

Quality Assurance

Systems Architecture

Vendor Management

Contract Administration

Relevant Roles

Chief Technology Officer

IT Director

Software Development Manager

Project Manager

Legal Counsel

Contract Manager

Procurement Manager

Technology Consultant

Business Development Manager

Operations Director

Chief Information Officer

Software Engineer

System Architect

Product Owner

Technical Lead

Compliance Officer

Risk Manager

IT Procurement Specialist

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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