This agreement is executed when software development services are being ordered. The agreements vary in length and content depending on the complexity of the project. Commonly negotiated provisions are:
• Whether a developer is to create a new code or customize existing software
• Which party is to own intellectual property rights to the software
• Whether the customer is to receive the software's source code
• Allocation of risk and liability
• The quality of the services and deliverables
• The extent of the representations and warranties in regards to the viruses and other malicious code as well as non-infringement of third-party rights, including IP rights
• Fees and expenses
• Timeline for delivery of the work product
• Incorporation of open source and other third party software
• Testing and acceptance conditions
These and other relevant issues should be addressed as early as possible in the negotiation process.