The Software Development Services Contract is essential for organizations engaging external developers or agencies for custom software development in Indonesia. This agreement is designed to comply with Indonesian legislation, including Law No. 11 of 2008 on Electronic Information and Transactions (ITE Law) and related regulations. It is typically used when a company needs to outsource software development, establish clear deliverables and timelines, protect intellectual property rights, and ensure compliance with local data protection requirements. The contract covers crucial elements such as development methodology, acceptance criteria, payment terms, and warranty provisions, while addressing specific Indonesian legal requirements for electronic systems and transactions. It serves as a crucial tool for managing software development relationships and protecting both parties' interests within the Indonesian legal framework.
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1. Parties: Identification and details of the service provider and client
2. Background: Context of the agreement and general purpose of the software development services
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Services: Detailed description of the software development services to be provided
5. Development Methodology: Agreed development approach, project phases, and delivery methodology
6. Project Timeline and Milestones: Specific timeframes, deadlines, and key project milestones
7. Acceptance Testing: Procedures for testing, acceptance criteria, and approval of deliverables
8. Payment Terms: Fee structure, payment schedule, and related financial terms
9. Intellectual Property Rights: Ownership and licensing of developed software and related materials
10. Confidentiality: Protection of confidential information and trade secrets
11. Data Protection: Compliance with Indonesian data protection laws and data handling requirements
12. Warranties and Representations: Warranties regarding service quality, compliance, and performance
13. Limitation of Liability: Limits on liability and indemnification provisions
14. Term and Termination: Duration of agreement and conditions for termination
15. Force Majeure: Provisions for unforeseen circumstances affecting performance
16. Governing Law and Dispute Resolution: Application of Indonesian law and dispute resolution procedures
17. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Source Code Escrow: Optional provisions for source code escrow arrangements, recommended for business-critical applications
2. Third-Party Software: Provisions regarding use and licensing of third-party software components, needed if third-party tools are used
3. Service Level Agreement: Detailed service levels and performance metrics, recommended for ongoing maintenance agreements
4. Security Requirements: Specific security standards and compliance requirements, important for sensitive data handling
5. Change Management: Procedures for handling change requests and scope modifications, useful for complex projects
6. Knowledge Transfer: Provisions for training and knowledge transfer to client's team, important when client plans to maintain software internally
7. Disaster Recovery: Procedures for data backup and recovery, recommended for critical systems
8. Exit Management: Detailed transition provisions for end of contract, important for long-term strategic projects
1. Schedule 1 - Project Specifications: Detailed technical specifications and requirements for the software
2. Schedule 2 - Development Methodology: Detailed description of development approach, sprints, and delivery process
3. Schedule 3 - Acceptance Test Criteria: Specific criteria and procedures for accepting deliverables
4. Schedule 4 - Fee Schedule: Detailed breakdown of fees, payment milestones, and rates
5. Schedule 5 - Service Levels: Performance metrics and service level requirements
6. Schedule 6 - Project Timeline: Detailed project schedule with milestones and deadlines
7. Appendix A - Technical Infrastructure: Specifications of technical infrastructure and environment requirements
8. Appendix B - Security Standards: Required security standards and compliance requirements
9. Appendix C - Personnel: Key personnel and roles assigned to the project
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