Software Development projects are generally filled with uncertainties.

Because the timeline for them is never generally accurate.

That's why the use of a Contract is even more important.

If you are running a software development agency, you should always be specific about what you're providing.

And limit your liability as much as possible.

Let me tell you why that's important with this case study!

Our client was running a Software Development Agency that was engaged by another company to provide IT services.

And also providing Software Development for their in-house processes.

The client came to us to draft a Contract to facilitate this engagement.

But also make sure there are little to no issues during their engagement.

Problems:

1) Flexibility Matters:

The Agency wanted to have a flexible contract if there were changes in the course of the project.

Because the timeline could change, or requirements could be modified.

So the Contract should be able to handle that.

2) Revisions Without Payments:

The Agency, in the past, had issues where the client would ask for endless revisions.

And that too without the release of milestone payments they had in place.

That ultimately delayed the project and their payment, making everyone unhappy.

3) Keep the Worst at Bay:

The Agency wanted to limit and exclude their liability in a worst-case scenario.

No one wants to be on a sinking ship.

But who says you can't have lifeboats on that ship?

Solutions:

1) Scope And Acceptance Criteria

We had to lay out the project roadmap to provide clarity for all parties involved.

The First Step was to provide the development specifications (including functional specifications) and work phases with clarity.

The Second Step was to provide the number and scope of revisions the client can request, along with the acceptance criteria.

We also included Deemed Acceptance to limit project delays and release of agency’s payments.

2) Covering Risks and Protections

We added some strong clauses in the Contract to exclude indirect and consequential costs, loss of profits, loss of opportunity, etc.

We also covered “wasted expenditure” in the exclusion clause to limit the recovery of payments made to the agency to date.

Overall, we provided a safety net with a cap on the liability.

3) Flexibility

Software projects rarely go strictly as per agreed timelines.

And it could be due to multiple reasons, including the client not providing any sought information.

Or taking excessive time to accept a milestone.

Or changing scope midway.

So we made sure to be prepared for such situations.

We added extensions of project completion date IF occurring due to the client’s cause, to prevent any allegation of breach of contract.

Through this Contract, our client was prepared for:

1) Revisions

2) Extended Timeline

3) Loss of Payments

The three areas where they suffered problems in the past were now covered in a Single Contract.

The overall project was a success.

The extra clarity that comes with a Contract never hurts.

Because during the Contract Drafting phase, we ask Clients some questions they might have missed.

Or questions they might not want to face early on.

And that's why the end draft ensures every expectation is met!

I hope you enjoyed this week's case study!

If you ever need a custom solution like this, don't hesitate to reach out! :)

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Have a great rest of the Sunday!

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