The Developer Contractor Agreement is essential for businesses in the Philippines engaging external software development talent or companies. This document is specifically designed to comply with Philippine legal requirements while incorporating international best practices in software development contracting. It's particularly crucial given the growing technology sector in the Philippines and the increasing need for clear contractual frameworks in digital services. The agreement covers critical aspects such as intellectual property rights, data privacy compliance under RA 10173, contractor classification under the Labor Code, and electronic commerce provisions under RA 8792. This comprehensive contract should be used whenever engaging independent developers or development firms to ensure proper legal protection, clear deliverable specifications, and appropriate handling of intellectual property and confidential information.
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1. Parties: Identifies the contracting parties - the client company and the developer contractor, including their complete legal names and addresses
2. Background: Explains the context of the agreement, including the client's need for development services and the contractor's capabilities
3. Definitions: Defines key terms used throughout the agreement, including technical terms, 'Services', 'Deliverables', 'Intellectual Property', etc.
4. Scope of Services: Details the development services to be provided, including specific responsibilities and deliverables
5. Term and Termination: Specifies the duration of the agreement and conditions for termination by either party
6. Compensation and Payment Terms: Outlines the payment structure, rates, invoicing process, and payment schedule
7. Independent Contractor Status: Clearly establishes the relationship as independent contractor, not employment
8. Intellectual Property Rights: Addresses ownership and transfer of IP rights in developed works, including pre-existing IP
9. Confidentiality: Protects confidential information shared during the project
10. Warranties and Representations: States the contractor's warranties regarding their services and capabilities
11. Data Protection and Security: Ensures compliance with data privacy laws and security requirements
12. Limitation of Liability: Sets boundaries on the parties' liability under the agreement
13. Dispute Resolution: Specifies procedures for resolving disputes, including jurisdiction and governing law
14. General Provisions: Includes standard clauses like notices, amendment process, and severability
1. Non-Compete: Restricts the contractor from working with competitors - only used when necessary and must be reasonable in scope
2. Performance Metrics: Defines specific KPIs and performance standards - used for longer-term or complex projects
3. Source Code Escrow: Arrangements for source code safekeeping - used for business-critical applications
4. Training and Knowledge Transfer: Requirements for training client staff - used when knowledge transfer is crucial
5. Insurance Requirements: Specific insurance coverage requirements - used for high-value or high-risk projects
6. Third-Party Software: Provisions regarding use and licensing of third-party software - used when third-party tools are involved
7. Disaster Recovery: Procedures for backing up and recovering work - used for critical system development
8. Security Clearance: Requirements for security clearances or background checks - used for sensitive projects
1. Schedule A - Service Specifications: Detailed technical specifications of the development work to be performed
2. Schedule B - Project Timeline: Milestone dates, delivery schedules, and project phases
3. Schedule C - Rate Card: Detailed breakdown of rates, charges, and payment terms
4. Schedule D - Acceptance Criteria: Specific criteria for accepting deliverables and testing requirements
5. Schedule E - Technical Requirements: Detailed technical requirements, including platforms, languages, and frameworks
6. Appendix 1 - Data Processing Agreement: Specific terms for handling personal data in compliance with privacy laws
7. Appendix 2 - Security Protocols: Detailed security requirements and procedures
8. Appendix 3 - Approved Third-Party Software: List of approved third-party software and associated licenses
Relevant legal definitions
Clauses
Relevant Industries
Technology
Financial Services
E-commerce
Healthcare
Education
Manufacturing
Retail
Telecommunications
Professional Services
Media and Entertainment
Banking
Insurance
Government and Public Sector
Logistics and Transportation
Relevant Teams
Legal
Procurement
Information Technology
Human Resources
Project Management Office
Software Development
Vendor Management
Contract Administration
Technology Operations
Digital Transformation
Information Security
Relevant Roles
Chief Technology Officer
IT Director
Project Manager
Software Developer
Legal Counsel
Procurement Manager
HR Director
Technical Lead
Development Manager
Contract Administrator
Chief Information Officer
Chief Digital Officer
Vendor Manager
Technology Procurement Specialist
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