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Custom Software Development Agreement Template for New Zealand

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Key Requirements PROMPT example:

Custom Software Development Agreement

"I need a Custom Software Development Agreement for a healthcare software project where my company will engage a developer to create a patient management system, with strict data privacy requirements and staged delivery milestones starting from March 2025."

Document background
The Custom Software Development Agreement is a vital legal instrument used when a business or organization engages a software developer or development company to create bespoke software solutions under New Zealand law. This agreement is essential for projects where standard off-the-shelf software products do not meet specific business requirements. It covers crucial aspects such as project scope, development methodology, intellectual property rights, acceptance testing, warranties, and support obligations. The document ensures compliance with New Zealand's legal framework, including the Contract and Commercial Law Act 2017, Fair Trading Act 1986, and relevant intellectual property legislation. It provides a structured framework for managing the development process, protecting both parties' interests, and establishing clear deliverables and success criteria.
Suggested Sections

1. Parties: Identifies the contracting parties - typically the software developer/company and the client, including their full legal names and registered addresses

2. Background: Sets out the context of the agreement, including the client's need for software development services and the developer's expertise

3. Definitions: Defines key terms used throughout the agreement to ensure clarity and consistent interpretation

4. Scope of Services: Details the software development services to be provided, including development methodology and high-level requirements

5. Project Management: Outlines project governance, reporting structures, and communication protocols

6. Development Process: Describes the software development lifecycle, including planning, design, development, testing, and deployment phases

7. Deliverables: Specifies all items to be delivered, including software, documentation, and source code

8. Timeline and Milestones: Sets out the project schedule, key milestones, and delivery dates

9. Acceptance Testing: Details the acceptance criteria and testing procedures for deliverables

10. Payment Terms: Specifies fees, payment schedule, expenses, and invoicing procedures

11. Intellectual Property Rights: Addresses ownership and licensing of pre-existing IP and newly developed software

12. Confidentiality: Protects confidential information exchanged during the project

13. Warranties and Representations: Sets out warranties regarding service quality, code quality, and compliance with specifications

14. Liability and Indemnification: Defines liability limitations and indemnification obligations

15. Term and Termination: Specifies contract duration and circumstances for termination

16. General Provisions: Includes standard legal clauses such as force majeure, dispute resolution, and governing law

Optional Sections

1. Source Code Escrow: Include when source code needs to be held in escrow for client protection

2. Third-Party Components: Include when the solution will incorporate third-party software or open-source components

3. Data Protection and Privacy: Include when personal data processing is involved in the project

4. Service Level Agreement: Include when ongoing performance metrics need to be maintained

5. Change Management: Include for projects likely to require scope changes

6. Security Requirements: Include when specific security standards or compliance requirements apply

7. Training and Knowledge Transfer: Include when client staff training is part of the deliverables

8. Maintenance and Support: Include when post-deployment support is part of the agreement

Suggested Schedules

1. Schedule 1 - Functional Specifications: Detailed technical specifications and requirements for the software

2. Schedule 2 - Project Plan: Detailed timeline, resources, and delivery methodology

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

4. Schedule 4 - Fee Schedule: Detailed breakdown of fees, payment milestones, and rate cards

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

6. Schedule 6 - Personnel: Key personnel and their roles in the project

7. Appendix A - Technical Environment: Details of the technical environment and infrastructure requirements

8. Appendix B - Security Standards: Security requirements and compliance standards

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions










































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Relevant Industries

Information Technology

Financial Services

Healthcare

Retail

Manufacturing

Professional Services

Education

Government

Telecommunications

E-commerce

Gaming and Entertainment

Insurance

Transportation and Logistics

Relevant Teams

Legal

Information Technology

Procurement

Finance

Operations

Risk and Compliance

Project Management Office

Software Development

Quality Assurance

Business Analysis

Commercial Operations

Technical Architecture

Vendor Management

Relevant Roles

Chief Technology Officer

IT Director

Software Development Manager

Project Manager

Legal Counsel

Procurement Manager

Contract Manager

Business Analyst

Technical Architect

Development Team Lead

Chief Information Officer

Chief Financial Officer

Operations Director

Commercial Manager

Risk Manager

Compliance Officer

IT Procurement Specialist

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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