Agile Software Development Contract Template
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PandaTip: Agile development is built on 12 key principles. Outlining them here clearly defines your approach and methodology, and sets client expectations for the entire project.
This document is a contract for the following software project: [Project.Name]
As a member of the Agile Alliance, [Sender.Company] takes an approach to software development parts from the standard processes you may be familiar with. These processes and methods are designed to encourage a healthy, productive relationship between [Client.Company] and [Sender.Company], leading to mutual benefit and satisfaction.
In short, we follow an agile software development process that adheres to the following 12 principles:
- Customer satisfaction is the #1 priority at all times.
- Welcome changes throughout the project, and support a flexible project design and timeline.
- Deliver final, functioning software as early as possible, and deliver functioning prototypes at key stages during development.
- Encourage open communication between business and technical staff on a daily basis.
- Assign motivated, qualified individuals to the project team, and equip them with the environment and tools that are necessary for success.
- Recognize the benefit of face-to-face communication, and use it on a daily basis.
- Functioning software is the primary measure of progress and final success.
- Implement processes that make it possible to sustain consistent and reliable progress.
- Remain dedicated to technical and design excellence.
- Focus on simplicity, reducing the steps necessary to complete each task.
- Include the execution team in the planning process, valuing their input regarding architecture, requirements, and design.
- Regularly review performance and results, with an eye on improving processes and methods regularly.
In short, you can expect our software development process to be more fluid, adaptable, and lean than is common in the software development industry. This will allow you to realize a final product that meets or exceeds your expectations, and prevents you from being held financially responsible for software that does not help you reach your objectives.
PandaTip: Most software projects have a detailed requirements document completed before a contract is in place. Attach that to this contract template so that it’s part of the initial agreement between you and your client.
[Sender.Company] will develop software matching the following description:
For additional details regarding deliverables and other project details, refer to the attached project outline document.
One of the keys to Agile Software Development is an insistence on a fluid development cycle that allows for and adapts to outside input and project changes during every phase of the project. As a result, we do not offer completion dates. Instead, we focus on completing each phase during a given software development project as quickly as possible, while maintaining a strong focus on design and technical excellence.
This project will be segmented into the following phases:
- Requirements Gathering
- Technical & Design Specifications
- Design Mockups
The following personnel will be involved in this software development project:
Please note that while this is the projected core project team, [Sender.Company] reserves the right to substitute or supplement members of this team as necessary in order to complete the software development process in a timely manner without sacrificing technical or design excellence.
This project will be billed monthly on a time-and-materials basis. Each month, [Client.Company] will receive a net-30 invoice for services rendered during the previous 30 day period, accompanied by a detailed breakdown of hours utilized by each member of the [Sender.Company] team.
The table below includes the hourly rates for each role within our agile software development team:
PandaTip: If the team roles for your software development process are different than what you see here and in the table on the previous page, simply click inside each table to modify them to fit your needs.
The terms of this agreement are designed to be simple to understand and reasonable to all involved parties. Should any disagreements arise that are not clearly governed by the terms of this agile software development contract, both parties agree to resolve those disagreements in accordance with generally accepted contract law, and the laws of [Sender.State].
PandaTip: Contract terms don’t have to be detailed to be effective. This template’s terms are designed to address the most common issues that are of concern during an agile software development project, while deferring to the laws of your state for any additional issues.
Both parties agree that the requirements listed in this contract and it’s attachments serve only as a starting point, and are subject to modification throughout the project, up to acceptance and final approval by [Client.Company].
This project will be billed on a time-and-materials basis. Final project costs are not projected or guaranteed, a result of the agile software development approach that allows for changing requirements, methods, and designs throughout a project.
In addition to time and materials billed for software development purposes, [Sender.Company] will invoice [Client.Company] for any pre-approved travel-related costs at cost, and will make a reasonable effort to secure travel and related accomodations at affordable rates.
Reporting & Delivery
[Sender.Company] agrees to deliver weekly project summary reports to [Client.Company], and will include full per-hour breakdowns with each invoice. [Sender.Company] agrees to provide all necessary documentation and credentials to [Client.Company] upon project completion.
PandaTip: PandaDoc’s electronic signatures are easy to use and legally binding, making them perfect for a software company’s contracts. Once you’ve finished customizing this template, send it to your client and they’ll be able to view and sign from their computer or mobile device.
By signing below, both parties agree to the terms of this contract, and indicate their intent to move forward with the software development project immediately.