There are three types of software development contracts – Fixed Price, Time & Material (T&M), and Dedicated Team.
You may need a lawyer for software agreements. These agreements can be complex, as they protect the right content creator’s rights and assign other rights to a licensee. To this end, having a lawyer who can help negotiate these agreements is important.
A software agreement is a document that sets forth legally binding guidelines between two parties – typically a business and a software developer.
The agreement sets forth the terms and conditions of the relationship between the parties, including:
- The use and distribution of the software
- The definition of end users applies to the agreement
- The party’s right to one or more copies of the software
- What happens to a violating party of the agreement
- Any copyright is included under the agreement
Let’s turn to the different types of software development contracts to see the type you need.
Fixed Price
This is the ideal contract type for projects that last up to two months and are clearly defined. The project has clear documentation, a defined project scope, terms and conditions, and, of course, a deadline. As your contract lawyer, I can help draw up the terms to specify the exact scope to avoid any potential change requests and avoid disputes.
Time & Material
In this type of contract, the client pays the software developer based on the actual time and resources expended on the project, along with the cost of materials or any additional expenses incurred.
This type of contract is suitable when the project requirements are uncertain or likely to change, as it allows flexibility in adjusting the scope and resources during development. It is important to establish clear billing rates, tracking mechanisms, and approval processes for additional work to ensure transparency and manage costs effectively.
Dedicated Team
Dedicated team contracts involve engaging a dedicated team of software developers, typically employed by a software development company, to work exclusively on a client’s project.
The client retains control and oversight while benefiting from the expertise and resources of the dedicated team. This type of contract is useful for long-term projects or when there is a need for ongoing development and maintenance. The contract should clearly define the roles, responsibilities, and reporting lines for the dedicated team members.
How much does a contract review solicitor cost?
Enlisting the help of a lawyer who specialises in contract law or intellectual property law when negotiating and drafting software agreements is key. Providing expert guidance, I help protect your rights, ensure compliance with applicable laws, and address any specific requirements or concerns related to software development contracts.
Engaging a lawyer with expertise in the field can help safeguard your interests and mitigate potential legal risks associated with software agreements.
The best advice is to get contracts done early and ideally before work starts! Contract lawyers know that many clients come for advice once there’s a problem, and that will almost always work out much more costly to litigate on that it would be to have a commercial contract written.
Steven prefers to work on a fixed fee basis, but it’s a challenge to provide a quote without seeing the contract. We, therefore, ask you to call in or email a copy of the contract if possible, so an accurate fee can be given.
Generally, you should be budgeting for a minimum of £500 plus VAT for a simple 1-2 page contract, up to maybe £1500-3000 plus VAT or more for a bespoke legal document. Business Purchases/Sales cost more.
There is of course a difference between drafting contracts and reviewing contracts, but in terms of price, they are often not too dissimilar.
If you’re unsure on the question of fees, or on any aspect of contract law or business law and need to speak to a solicitor, then call Steven Mather your contract lawyer in Leicester.
Call: 0116 3667 900
