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Customer Development Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Customer Development Agreement

"I need a Customer Development Agreement for a mobile banking app development project starting March 2025, where my Saudi-based fintech company will engage a local software development firm, with specific emphasis on data protection and Central Bank compliance requirements."

Document background
The Customer Development Agreement is essential for businesses operating in Saudi Arabia that require custom software or technology solutions. This agreement type is particularly relevant in the context of Saudi Vision 2030's digital transformation initiatives and the kingdom's growing technology sector. It establishes the legal framework for development services, covering critical aspects such as project scope, methodology, intellectual property rights, data protection, and payment terms. The document ensures compliance with Saudi Arabian regulations, including Sharia law principles, electronic transaction laws, and data protection requirements. It's commonly used when a customer engages a development company to create bespoke software solutions, mobile applications, or other technical products, providing clear guidelines for project execution, deliverable acceptance, and risk management. The agreement is structured to protect both parties' interests while facilitating successful project delivery within the Saudi Arabian legal context.
Suggested Sections

1. Parties: Identification of the contracting parties with full legal names and addresses

2. Background: Context of the agreement and brief description of the parties' business relationship

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

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

5. Project Methodology: Development approach, phases, and methodology to be followed

6. Developer's Obligations: Specific responsibilities and commitments of the developer

7. Customer's Obligations: Customer's responsibilities including provision of access, information, and resources

8. Acceptance Testing: Procedures for testing and accepting deliverables

9. Change Control: Process for managing changes to scope or specifications

10. Intellectual Property Rights: Ownership and licensing of developed materials and pre-existing IP

11. Confidentiality: Protection of confidential information and trade secrets

12. Data Protection: Compliance with Saudi Arabian data protection laws and data handling procedures

13. Fees and Payment: Payment terms, milestone payments, and payment schedule

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

15. Warranties and Indemnities: Standard warranties for services and mutual indemnification provisions

16. Force Majeure: Provisions for unforeseen circumstances preventing performance

17. Dispute Resolution: Process for resolving disputes under Saudi law

18. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement

Optional Sections

1. Third-Party Software: Terms regarding use and licensing of third-party software components

2. Hardware Requirements: Specific hardware requirements for the development project

3. Service Level Agreement: Specific performance metrics and service levels for ongoing support

4. Security Requirements: Additional security measures beyond standard data protection

5. Training and Knowledge Transfer: Terms for training customer's personnel on developed solutions

6. Localization Requirements: Specific requirements for Arabic language support and local cultural considerations

7. Escrow Arrangements: Source code escrow provisions for critical applications

8. Business Continuity: Disaster recovery and business continuity requirements

9. Export Control: Compliance with Saudi export control regulations for technology

10. Local Content Requirements: Specific provisions for meeting Saudi Vision 2030 local content requirements

Suggested Schedules

1. Schedule 1 - Technical Specifications: Detailed technical requirements and specifications for the development work

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

3. Schedule 3 - Acceptance Criteria: Specific criteria for accepting deliverables

4. Schedule 4 - Commercial Terms: Detailed breakdown of fees, payment schedule, and commercial terms

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

6. Schedule 6 - Security Requirements: Detailed security protocols and requirements

7. Appendix A - Contact Details: Key contacts and escalation matrix

8. Appendix B - Required Documentation: List of documentation to be delivered with the solution

9. Appendix C - Third-Party Software: List of third-party software and associated licenses

10. Appendix D - Change Request Template: Standard template for requesting and documenting changes

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

Relevant legal definitions
















































Clauses




































Relevant Industries

Information Technology

Software Development

Financial Services

Healthcare

Government Services

Telecommunications

E-commerce

Manufacturing

Education

Oil & Gas

Real Estate

Retail

Banking

Insurance

Transportation & Logistics

Relevant Teams

Legal

Information Technology

Procurement

Software Development

Project Management

Commercial

Compliance

Digital Transformation

Operations

Technical Architecture

Contract Management

Risk Management

Relevant Roles

Chief Technology Officer

IT Director

Software Development Manager

Project Manager

Legal Counsel

Procurement Manager

Contract Manager

Chief Information Officer

Digital Transformation Director

Technical Program Manager

Solutions Architect

Business Development Manager

Commercial Director

Chief Digital Officer

Compliance Officer

IT Procurement Specialist

Legal Operations 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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