Developer Contractor Agreement for Malaysia

Developer Contractor Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes a contractor relationship between a company and a software developer or development firm. This document outlines the terms and conditions for software development services, including project scope, deliverables, intellectual property rights, payment terms, and confidentiality obligations, while ensuring compliance with Malaysian contract law and digital regulations. It provides essential protections for both parties while maintaining the clear distinction between a contractor relationship and employment.

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What is a Developer Contractor Agreement?

The Developer Contractor Agreement is essential for businesses operating in Malaysia that need to engage external software development talent while maintaining clear contractual boundaries. This document is particularly relevant in today's digital economy where companies increasingly rely on flexible, project-based development resources. The agreement provides a legal framework under Malaysian law for engaging contractors for software development work, covering crucial aspects such as intellectual property rights, data protection, service delivery standards, and payment terms. It's designed to protect both the hiring company and the developer while ensuring compliance with relevant Malaysian legislation, including the Contracts Act 1950 and digital laws. This agreement is distinct from an employment contract and includes specific provisions to maintain the independence of the contractor relationship.

What sections should be included in a Developer Contractor Agreement?

1. Parties: Identification of the contracting parties - the company and the developer contractor

2. Background: Context of the agreement and brief description of the project or services required

3. Definitions: Definitions of key terms used throughout the agreement

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

5. Term and Termination: Duration of the agreement and circumstances for termination

6. Payment Terms: Fees, payment schedule, expenses, and invoicing procedures

7. Independent Contractor Status: Clear statement of contractor status and not employment relationship

8. Intellectual Property Rights: Ownership and transfer of IP rights in developed materials

9. Confidentiality: Protection of confidential information and trade secrets

10. Data Protection: Compliance with PDPA and data handling requirements

11. Warranties and Representations: Contractor's warranties regarding services and deliverables

12. Limitation of Liability: Limitations on liability and indemnification provisions

13. General Provisions: Standard boilerplate clauses including governing law, notices, etc.

What sections are optional to include in a Developer Contractor Agreement?

1. Non-Compete: Restrictions on working with competitors - optional based on project sensitivity

2. Source Code Escrow: Provisions for source code safekeeping - needed for critical applications

3. Performance Metrics: Specific KPIs and performance standards - for complex projects

4. Change Control: Process for managing changes to scope - for longer-term projects

5. Insurance: Requirements for professional indemnity insurance - for high-value projects

6. Dispute Resolution: Specific dispute resolution procedures - for international contractors

7. Third-Party Code: Rules regarding use of open source and third-party code - for complex development

8. Security Requirements: Specific security protocols - for projects involving sensitive data

9. Exit Management: Detailed exit procedures - for business-critical systems

What schedules should be included in a Developer Contractor Agreement?

1. Schedule 1 - Services Description: Detailed specification of development services and deliverables

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, milestones, and payment terms

3. Schedule 3 - Service Levels: Performance standards and response times if applicable

4. Schedule 4 - Technical Requirements: Technical specifications and requirements

5. Schedule 5 - Approved Third-Party Materials: List of approved third-party software and libraries

6. Schedule 6 - Testing and Acceptance: Testing procedures and acceptance criteria

7. Appendix A - Project Timeline: Detailed project milestones and delivery dates

8. Appendix B - Contact Details: Key contact persons and escalation procedures

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

Malaysia

Publisher

Genie AI

Cost

Free to use
Relevant Industries

Information Technology

E-commerce

Financial Services

Healthcare Technology

Education Technology

Manufacturing Technology

Digital Media

Telecommunications

Professional Services

Gaming and Entertainment

Retail Technology

Logistics and Supply Chain

Relevant Teams

Legal

Information Technology

Human Resources

Procurement

Operations

Digital

Product Development

Vendor Management

Compliance

Finance

Relevant Roles

Chief Technology Officer

IT Director

Project Manager

Technical Lead

Software Development Manager

Procurement Manager

Legal Counsel

HR Director

Operations Manager

Digital Transformation Manager

Product Owner

Contract Administrator

Vendor Management 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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