Software development contracts: 12 clauses to include before you sign

The twelve clauses

• Scope: modules, screens and integrations, attached to the contract.
• Delivery milestones: what ships at each stage and when.
• Payments: tied to milestones, not just dates.
• Acceptance criteria: how a milestone is accepted.
• Ownership of source code, designs and data.
• Confidentiality and data protection.
• Warranty period for free bug fixes.
• Post-warranty support: coverage and response times.
• Change requests: how they’re estimated and approved.
• Hosting and accounts: whose name they’re in.
• Documentation and training delivered.
• Termination: handover of completed work and code.

The two most neglected clauses

First: accounts. Store, hosting, domain and payment-gateway accounts must be in your company’s name, not the developer’s. Second: changes. Agree upfront that any change is estimated for time and cost and approved in writing before work — this alone prevents most disputes.