Software Development Contract Template

Preface
This documents purpose is to provide both parties (${client} and ${contractor})

involved in ${project name} with goals and parameters. It serves to strengthen
the relationship by laying out expectations for all parties involved. By reading and
signing this document, signers agree to adhere to these expectations in order to
foster a strong business environment and to better understand the goals of the
work done. This document works to protect all parties.

Intro
This agreement entered into today, ${date}, between ${contractor}, and its client,
${client}

Whereas ${contractor} is being hired by ${client} to create or modify custom
software.

NOW THEREFORE in consideration of the mutual covenants herein contained,
and other good and valuable consideration, the parties hereto mutually agree as
follows:

Payment
${client} agrees to pay ${contractor} according to the customized attached
payment plan (referred to as Milestones or Project Milestones). ${contractor} will
send periodic invoices to the client and payment is due upon receipt of the
invoice unless otherwise documented in writing. The schedule of these periodic
invoices is dependent upon the pre-determined Project Milestones

These Milestones were determined by ${client} to represent significant junctions
in the software development process. They ensure that the agreed upon scope of
this project is progressing in a satisfactory manner to all parties.

Late Payment
Failure to make payments on time, without written prior consent by ${contractor},
will result in the assessment of late fees for any additional processing that will be
required. The late fees are as follows:
An initial late fee (10% of the amount invoiced) will be assessed if the payment is
31 days late.
A second late fee (15% of the amount invoiced) will be assessed if the account is
61 days late.
For this contract, email correspondence will be considered written consent for
this agreement.

Non-payment
Failure to make payments will also subject the client to possible legal action in
order for ${contractor} to collect on any outstanding balances. Any legal fees
incurred by ${contractor} may become the responsibility of ${client}.

Incomplete Project and Kill Fee
Because ${contractor} is creating (or working on) a customized website for
${client}, ${client} is liable for paying ${contractor} for all work done for ${client},
regardless if the client fails to utilize the code. At the time of termination, ${client}
is entitled to any code that has already been written by ${contractor} that was
specifically created for this project.

If ${client} cancels the project, they are still liable for hours already worked by
${contractor} plus any expenses incurred for the project. In addition to these fees,
a kill fee (10% of the total estimated project cost) will be paid by ${client}.

Timetable and Client Responsibilities
Both ${client} and ${contractor} must abide by the attached projected timetable
outlined in the project milestones, unless both parties agree to changes in
writing. Email correspondence between the parties constitutes in writing for the
purposes of this contract.

${client} understands that all projects created by ${contractor} will not be
available for delivery or pick-up until payments are received for the projects. See
project milestones timeline and payment schedule for dates if provided.

${client} is responsible for adhering to all deadlines set by ${contractor}. Any
delays in the project schedule by ${client} are billable by ${contractor}.
${contractor} is responsible for informing ${client} of all deadlines and the billable
amount if the deadline is not met.

Intellectual Property
${contractor} retains the right to re-use, sell, or modify the code written for this
project.

Revisions and Technical Support
${client} understands that ${contractor} is being hired to code a custom piece of
software. Technical problems associated with hosting, legacy browser testing,
hardware, or any additional problems associated with running this code in an
unapproved environment is not the responsibility of ${contractor}. If ${client}
wishes to hire ${contractor} for additional technical support or training following
this project, a new contract may be created.

${client} understands that ${contractor} is not responsible for revisions or updates
to this project once the final agreed upon deliverable has been sent. If ${client}
wishes to hire ${contractor} for additional coding or development following this
project, a new contract may be created.

Changes in Scope
If changes are made to the scope of this project, these changes must be agreed
upon by both parties and must be made in writing. If significant changes are
being made, either by ${client} or ${contractor}, a new contract will be reissued.

In witness thereof, the parties, intending to be legally bound, have executed this
agreement as of the date first above written.

_________________________________________
Client Signature

_________________________________________
Contractor Signature

_________________________________________
Date Signature

Software Development Contract Template

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Preface

This documents purpose is to provide both parties (${client} and ${contractor})

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