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Custom Software Development Contract

Custom Software Development Contract Template for Indonesia

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Key Requirements PROMPT example:

Custom Software Development Contract

"I need a Custom Software Development Contract for a mobile banking application project in Indonesia, where we'll be working with an offshore development team, requiring strict data security provisions and compliance with Indonesian banking regulations, with development scheduled to begin in March 2025."

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Document background
The Custom Software Development Contract is essential for businesses operating in Indonesia who require bespoke software solutions. This document is specifically designed to comply with Indonesian legal requirements, including the Civil Code (KUHPerdata), Electronic Information and Transactions Law (UU ITE), and relevant data protection regulations. It should be used when engaging external developers or development companies to create custom software solutions, providing comprehensive coverage of project specifications, intellectual property rights, development methodologies, and delivery requirements. The contract ensures proper risk allocation between parties and includes necessary provisions for data protection, source code ownership, and dispute resolution under Indonesian law. It's particularly important given Indonesia's growing digital economy and the increasing need for customized software solutions across various industries.
Suggested Sections

1. Parties: Identification and details of the contracting parties (developer and client)

2. Background: Context of the agreement and general purpose of the software development project

3. Definitions: Detailed definitions of technical and legal terms used throughout the agreement

4. Scope of Services: Detailed description of the software development services to be provided

5. Project Timeline and Milestones: Development schedule, delivery dates, and key project milestones

6. Payment Terms: Fees, payment schedule, expenses, and payment conditions

7. Intellectual Property Rights: Ownership and licensing of pre-existing and newly developed IP

8. Acceptance Testing: Testing procedures, acceptance criteria, and remedy for non-conforming deliverables

9. Warranties and Representations: Technical and legal warranties provided by both parties

10. Confidentiality: Protection of confidential information and trade secrets

11. Data Protection and Privacy: Compliance with Indonesian data protection laws and privacy requirements

12. Term and Termination: Duration of agreement and circumstances for termination

13. Force Majeure: Provisions for unforeseen circumstances preventing contract performance

14. Dispute Resolution: Process for resolving disputes under Indonesian law

15. General Provisions: Standard legal provisions including notices, amendments, and governing law

Optional Sections

1. Source Code Escrow: Optional provisions for source code escrow arrangements, recommended for business-critical applications

2. Third-Party Software: Provisions regarding use and licensing of third-party software components, needed if third-party tools are used

3. Training and Knowledge Transfer: Requirements for training client staff, necessary if ongoing maintenance will be handled internally

4. Security Requirements: Specific security standards and compliance requirements, essential for sensitive data handling

5. Service Level Agreement: Specific performance metrics and support requirements, needed for ongoing maintenance agreements

6. Change Management: Procedures for handling change requests, recommended for complex projects

7. Disaster Recovery: Procedures for backup and recovery, important for critical systems

8. Geographic Restrictions: Restrictions on development location and data storage, necessary for sensitive projects

Suggested Schedules

1. Schedule A - Functional Requirements: Detailed specifications of software functionality and features

2. Schedule B - Technical Requirements: Technical specifications, architecture, and technology stack

3. Schedule C - Project Timeline: Detailed project schedule with milestones and deliverables

4. Schedule D - Acceptance Test Criteria: Specific criteria and procedures for acceptance testing

5. Schedule E - Payment Schedule: Detailed breakdown of payments linked to milestones

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

7. Appendix 1 - Project Team: Key personnel and their roles in the project

8. Appendix 2 - Development Environment: Specifications of development and testing environments

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Acceptance Criteria
Acceptance Tests
Affiliate
Applicable Law
Background IP
Business Day
Change Request
Confidential Information
Contract Price
Defect
Deliverables
Development Environment
Documentation
Effective Date
Final Acceptance
Force Majeure Event
Foreground IP
Good Industry Practice
Implementation Schedule
Intellectual Property Rights
Key Personnel
Milestone
Object Code
Payment Schedule
Personal Data
Project Manager
Project Plan
Project Specifications
Service Levels
Software
Source Code
Specifications
Statement of Work
System Requirements
Technical Requirements
Term
Third-Party Software
Time for Completion
User Acceptance Testing
Work Product
Clauses
Scope of Work
Payment Terms
Intellectual Property Rights
Confidentiality
Data Protection
Warranties
Indemnification
Limitation of Liability
Force Majeure
Term and Termination
Acceptance Testing
Change Management
Project Management
Service Levels
Source Code
Documentation
Training
Maintenance and Support
Security Requirements
Dispute Resolution
Governing Law
Assignment
Third-Party Rights
Compliance with Laws
Insurance
Subcontracting
Audit Rights
Performance Standards
Notices
Entire Agreement
Relevant Industries

Information Technology

Financial Services

Healthcare

E-commerce

Manufacturing

Education

Telecommunications

Government

Retail

Banking

Insurance

Transportation

Logistics

Energy

Professional Services

Relevant Teams

Legal

Information Technology

Procurement

Operations

Finance

Compliance

Risk Management

Project Management

Business Development

Software Development

Relevant Roles

Chief Technology Officer

IT Director

Project Manager

Legal Counsel

Procurement Manager

Software Development Manager

Contract Administrator

Chief Information Officer

Business Development Manager

Technology Consultant

Operations Director

Risk Manager

Compliance Officer

Technical Lead

Chief Financial Officer

Industries
Indonesian Civil Code (KUHPerdata): Fundamental contract law principles governing formation, validity, and enforcement of contracts in Indonesia
Law No. 28 of 2014 on Copyright: Regulates copyright protection for software, source code, and related documentation
Law No. 13 of 2016 on Patents: Governs protection of technical inventions in software that may qualify for patent protection
Law No. 11 of 2008 on Electronic Information and Transactions (ITE Law): Regulates electronic transactions and systems, including software development and implementation
Government Regulation No. 71 of 2019 on Electronic Systems and Transactions: Implementing regulation for ITE Law, providing detailed requirements for electronic system operations
Law No. 8 of 1999 on Consumer Protection: Provides protection for end-users of software products and services
Law No. 13 of 2003 on Manpower: Relevant for determining contractor relationships and avoiding misclassification of employment
Minister of Communication and Information Technology Regulation No. 20 of 2016: Regulations concerning personal data protection in electronic systems
Government Regulation No. 82 of 2012 on Electronic System and Transaction Operation: Guidelines for electronic system operations and data center requirements
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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