Master service agreement: software development according to the rules

Petro Krasnomovets
By Petro Krasnomovets,
16th December |
49

Conceptualizing and building software is something technology companies deal with daily. However, when the project is ready for implementation and presentation to clients, its launch is complicated by some legal and bureaucratic aspects. For example, the conclusion of contracts, which must be consistent and clear, contain all necessary and principled clauses for regulating relations between the software development company and its client.

The contract is signed (and, upon completion of cooperation, must be terminated) with each client. If you need to gain experience in paperwork, concluding a general contract for providing software development services may be the optimal solution.

Let’s talk about all the features and advantages of such a document.

All models of cooperation are combined in one contract

Companies can work according to different principles and methods. The following can be considered the most common:

  • with a fixed price;
  • with payment for a certain period;
  • according to the outstaffing model.

Moreover, contracts for all these three options can be templated and contain introductory provisions for regulating the most common situations. To not worry about whether all the necessary conditions are in the document you signed with the client, it is better to use an MSA. The General Agreement is conditionally divided into two components:

  1. Directly the contract for the provision of software development services. This is the central part, where the basic standard requirements for the two parties are placed, and the cooperation between the developer and the client is regulated. This part raises issues of intellectual property, the confidentiality of information, etc. are raised.
  2. Addition. It specifies those provisions that are not included in the main contract. It can be the price, the principles of interaction in this or that business model, or the term of use of the software.

This way, you can customize the contract, adding clauses regulating customer interaction and guaranteeing productive, problem-free cooperation.

Ability to quickly review the contract

During the cooperation, situations may arise when the contract for the provision of services will have to be revised, excluding its individual requirements or adding new ones. The use of a master agreement significantly simplifies this process. This happens for some reasons:

  • The main essence of the contract and the primary deal usually stay the same. Changes to the provisions are made only in the appendices.
  • Even if the general agreement needs to be changed, it can also be fixed in the appendix without correcting the main document.

One contract for all clients

If there is a general agreement on the provision of services, no documents are required for each client. No matter what business model you cooperate with. The main thing is to note some changes in applications.

So, for each client, there will be a separate application of 3-4 pages, which you can view and change if necessary. And the central part (which is more than 20 pages) of the contract will be unchanged for all your clients.

Optimization of work

A well-thought-out general agreement on providing services allows you to optimize all processes and significantly reduce unpleasant and complicated paperwork. Moreover, such an agreement is relevant not only for software developers but also for other areas of business. Thanks to applications, most processes can be fully automated. The main thing is to pre-set the specifics of working with clients using the MSA template.

The contract between software developers and their customers must be considered to the smallest detail. This allows you to avoid further conflicts and disputes and create comfortable conditions for both parties, making cooperation productive and pleasant.