Software Development Service Agreement Template for Saudi Arabia

The Software Development Service Agreement is essential for organizations in Saudi Arabia engaging external developers or technology providers for custom software solutions. This document is designed to comply with Saudi Arabian law, including the Electronic Transactions Law (Royal Decree No. M/18) and relevant cybersecurity regulations. It should be used when commissioning bespoke software development, establishing clear parameters for project execution, intellectual property rights, and service delivery standards. The agreement includes provisions for technical specifications, project milestones, acceptance testing, and payment terms, while ensuring compliance with local legal requirements and Sharia principles. It's particularly important for protecting both parties' interests in technology projects and establishing clear accountability for deliverables.

1. Parties: Identification of the contracting parties including full legal names, addresses, and commercial registration details

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

3. Definitions: Key terms used throughout the agreement including technical terminology

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

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

6. Payment Terms: Fee structure, payment schedule, and invoicing requirements

7. Intellectual Property Rights: Ownership and licensing of software, source code, and related materials

8. Confidentiality: Protection of confidential information and trade secrets

9. Client Obligations: Responsibilities and obligations of the client including provision of necessary information and resources

10. Developer Obligations: Responsibilities and obligations of the developer including quality standards and methodology

11. Acceptance Testing: Procedures for testing and accepting deliverables

12. Warranties and Representations: Guarantees regarding service quality, compliance with laws, and intellectual property rights

13. Term and Termination: Duration of agreement and conditions for termination

14. Liability and Indemnification: Limitations of liability and indemnification obligations

15. Force Majeure: Provisions for unforeseen circumstances preventing performance

16. Governing Law and Jurisdiction: Application of Saudi law and jurisdiction for dispute resolution

17. General Provisions: Standard contractual clauses including notices, amendments, and severability