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Development Service Agreement

As a freelancer, you would be aware of the various advantages of entering into a development service agreement with your client before working with them. Since several of your clients will be coming to you for similar services, it is easier for you to have a draft contract in place that you can use every time you need to finalize a contract. A draft contract is the template of a contract that consists of all the standard terms and conditions related to your services. 

Once you have a draft contract in place, you can use this template as a starting point for your negotiations with your client. This allows you and your client to finalize the details of your agreement. After finalizing the details, you can make the appropriate changes to the template and then sign the contract with your client. This makes a legally binding relationship between you and your client, leaving no room for surprises at a later date. 

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Take a look at some of the important reasons to sign an agreement with your client. 

1. It helps you get paid 

As a freelancer, you will have worked with clients who do not pay on time or try to pay less than what was agreed. This is one of the most common hazards of being self-employed in today’s marketplace. You might have set out your terms and payment rate over the phone, but the client can always disagree with something that was said over the phone. It would be best if you tried to avoid such a situation as much as possible. 

This is where having a development service agreement comes in handy. A contract is written proof of the terms that have been agreed, and it is much harder to argue against. The contract comes with legal backing, which means that you are sure to receive your payments. Even if you don’t end up taking your client to court, a development service agreement has a lot of persuasive value. You will find that getting paid the full amount and getting paid on time is much easier when you have a contract in hand.

2. It avoids confusion 

A development service agreement will clearly state your responsibilities and duties to your client. The scope of work is a clause that limits and clarifies the exact work that you will be doing for your client. Hence, you and your client will be on the same page in  regard to what is expected of you. There can be no confusion at a later date. The client cannot ask you to do more work for them without paying extra. This can save you from a lot of disagreements that may occur at a later date.

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3. It defines your relationship 

A development service agreement will cover all the clauses that you need to have a functioning working relationship with your client. This agreement will have your scope of work, your payment terms, the deadlines to be followed, what happens if the agreement is breached, etc. 

The development service agreement will also clarify your responsibilities as an independent service provider or a freelancer, as opposed to being an employee or an agent. Having this clarity is important since it may have tax implications for you. 

Essential clauses to include in your development service agreement 

Before you finalize your template, you should make sure that it contains a few important clauses. Every template needs to have all the standard clauses that make it legally enforceable and are part-and-parcel of almost every contract. 

Apart from the standard clauses, you should ensure that your template has the terms of payment, the scope of work, the timelines to be followed, breach of contract, consequences of a breach of contract, renewability of contract, and termination of the contract. 

Keeping a development service agreement template can save you a lot of time and effort in the long run. It can ensure that you have a good working relationship with each of your clients.

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