Development Service Agreement Template for New Zealand

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Key Requirements PROMPT example:

Development Service Agreement

"I need a Development Service Agreement for a fintech startup engaging a software development company to create a mobile payment application, with specific focus on data security compliance and source code ownership, planned to commence in March 2025."

Document background
The Development Service Agreement is essential for businesses and organizations in New Zealand seeking to engage external parties for development work, particularly in software, web, or application development. This contract type is designed to protect both service providers and clients by clearly defining project parameters, responsibilities, and expectations. It addresses crucial aspects such as intellectual property rights, confidentiality, data protection (especially under the NZ Privacy Act 2020), and service delivery standards. The agreement becomes particularly important in the context of New Zealand's growing technology sector and the increasing need for digital transformation across industries. It provides a robust legal framework that aligns with New Zealand commercial law while facilitating successful project delivery and risk management.
Suggested Sections

1. Parties: Identifies and provides details of the contracting parties - the service provider (developer) and the client

2. Background: Sets out the context of the agreement and the parties' intentions

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Services: Details the development services to be provided, including scope and deliverables

5. Project Management: Outlines the project governance, reporting structure, and communication protocols

6. Timeline and Milestones: Specifies the project timeline, key milestones, and delivery dates

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

8. Charges and Payment: Specifies fees, payment terms, expenses, and invoicing procedures

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

10. Confidentiality: Defines confidential information and obligations regarding its protection

11. Data Protection and Privacy: Sets out obligations regarding personal data handling and privacy compliance

12. Warranties: Details the warranties provided by both parties

13. Liability and Indemnities: Specifies liability limitations and indemnification obligations

14. Term and Termination: Sets out agreement duration and termination rights

15. General Provisions: Includes standard boilerplate clauses such as notices, assignment, and governing law

Optional Sections

1. Change Control: Procedures for managing changes to scope or requirements - recommended for larger or complex projects

2. Service Levels: Specific performance metrics and service levels - useful for ongoing development services

3. Security Requirements: Detailed security obligations - essential when handling sensitive data or developing secure systems

4. Business Continuity: Disaster recovery and business continuity requirements - important for business-critical development

5. Third Party Components: Provisions regarding use of third-party software or services - needed when external components are used

6. Source Code Escrow: Source code escrow arrangements - important for business-critical applications

7. Training and Documentation: Requirements for training and documentation delivery - relevant when knowledge transfer is required

8. Maintenance and Support: Post-development support obligations - needed when ongoing support is part of the arrangement

Suggested Schedules

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

2. Schedule 2 - Charges: Detailed breakdown of fees, rates, and payment schedule

3. Schedule 3 - Project Plan: Detailed project timeline, milestones, and resource allocation

4. Schedule 4 - Technical Requirements: Technical specifications and requirements for the development

5. Schedule 5 - Service Levels: Detailed service level specifications and measurement criteria

6. Schedule 6 - Acceptance Test Criteria: Detailed acceptance testing procedures and criteria

7. Schedule 7 - Key Personnel: Details of key team members and their roles

8. Appendix A - Form of Change Request: Template for requesting and documenting changes

9. Appendix B - Security Requirements: Detailed 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

Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Software Development

Digital Services

E-commerce

Financial Services

Healthcare

Education

Government

Telecommunications

Media and Entertainment

Manufacturing

Professional Services

Retail

Transportation and Logistics

Relevant Teams

Legal

Information Technology

Procurement

Operations

Risk and Compliance

Project Management

Product Development

Digital

Commercial

Software Development

Solutions Architecture

Vendor Management

Relevant Roles

Chief Technology Officer

IT Director

Development Manager

Project Manager

Legal Counsel

Procurement Manager

Software Developer

Solutions Architect

Contract Manager

Business Analyst

Technical Lead

Product Owner

Digital Transformation Manager

Operations Manager

Risk Manager

Compliance Officer

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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