Customer Development Agreement for Australia

Customer Development Agreement Template for Australia

An Australian-law governed agreement that establishes the terms and conditions for the development of custom software, products, or solutions for a customer. This comprehensive agreement covers project scope, development methodology, intellectual property rights, acceptance testing, payment terms, and service provider obligations. It ensures compliance with Australian contract law, consumer protection legislation, and privacy regulations while providing a clear framework for the development process, deliverables, and the parties' respective responsibilities.

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What is a Customer Development Agreement?

The Customer Development Agreement is essential for businesses engaging in custom software or product development projects in Australia. This agreement is used when a customer requires bespoke development services and needs to establish clear terms with the development provider. It addresses key aspects such as project scope, methodology, intellectual property rights, acceptance criteria, and payment terms, while ensuring compliance with Australian legislation including the Australian Consumer Law, Privacy Act 1988, and relevant intellectual property laws. The agreement is particularly important for protecting both parties' interests in development projects and establishing clear deliverables, timelines, and responsibilities.

What sections should be included in a Customer Development Agreement?

1. Parties: Identifies and provides details of the contracting parties

2. Background: Sets out the context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Services: Details the development services to be provided and project objectives

5. Project Methodology: Outlines the development approach, phases, and delivery methodology

6. Customer Obligations: Specifies customer responsibilities, including provision of materials and approvals

7. Acceptance Testing: Details the acceptance criteria and testing procedures

8. Intellectual Property Rights: Addresses ownership and licensing of pre-existing and newly created IP

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

10. Confidentiality: Covers protection of confidential information and trade secrets

11. Data Protection: Addresses handling of personal data and privacy compliance

12. Warranties: Sets out warranties regarding services, deliverables, and performance

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

14. Term and Termination: Specifies contract duration and termination rights

15. General Provisions: Includes standard boilerplate clauses like notices, governing law, and dispute resolution

What sections are optional to include in a Customer Development Agreement?

1. Third-Party Software: Include when third-party software or components will be used in development

2. Source Code Escrow: Include when source code needs to be held in escrow for customer security

3. Service Levels: Include when specific performance metrics need to be maintained

4. Change Control: Include for complex projects where formal change management is required

5. Business Continuity: Include when service continuity is critical to customer operations

6. International Data Transfers: Include when data will be transferred across borders

7. Security Requirements: Include when specific security standards or certifications are required

8. Training and Documentation: Include when customer training and detailed documentation are part of deliverables

What schedules should be included in a Customer Development Agreement?

1. Schedule 1 - Services Specification: Detailed technical specifications and requirements for the development work

2. Schedule 2 - Project Plan: Timeline, milestones, and delivery dates

3. Schedule 3 - Pricing and Payment Schedule: Detailed breakdown of fees, costs, and payment milestones

4. Schedule 4 - Acceptance Criteria: Specific criteria for accepting deliverables and testing procedures

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

6. Schedule 6 - Personnel: Key personnel and roles assigned to the project

7. Appendix A - Technical Environment: Details of the development and deployment environment

8. Appendix B - Security Requirements: Specific security standards and requirements

Authors

Alex Denne

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

Jurisdiction

Australia

Publisher

Genie AI

Sector

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Software Development

Financial Services

Healthcare

Retail

Manufacturing

Professional Services

Telecommunications

Education

Government

E-commerce

Media and Entertainment

Relevant Teams

Legal

Information Technology

Procurement

Software Development

Project Management

Product Development

Commercial

Operations

Risk Management

Compliance

Business Development

Relevant Roles

Chief Technology Officer

Product Manager

Project Manager

Legal Counsel

Software Development Manager

Procurement Manager

IT Director

Chief Information Officer

Contract Manager

Business Development Manager

Technical Program Manager

Solutions Architect

Development Team Lead

Chief Digital Officer

Commercial Manager

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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