Software development contract for companies: which clauses protect you and which are traps

A poorly written software development contract can turn a promising project into a legal, operational, and financial problem. Knowing which clauses to demand and which to reject is as important as choosing the right vendor.

• •Clauses you must always demand: IP ownership of code to client from first commit, repository and documentation delivery at project end, production incident response SLA, and documented process for scope changes with their cost.
• •Dangerous clauses that favour the vendor: 'cost and timeline are indicative subject to revision' (= no price ceiling), 'client accepts deliverables within 5 business days or they are considered accepted' (= no real review time), 'post-delivery maintenance subject to availability' (= no commitment).
• •Contracting models and their risks: fixed price (low client risk, requires closed specification), time and materials (flexible but no price ceiling without contractual cap), and milestone by modules (the best balance for complex evolving projects).

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