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Software Development Consulting Agreement Template

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software development consulting agreement is a contract between a company and a software developer in which the developer agrees to provide technical advice to the company in exchange for a fee. The agreement may be project-based or ongoing, depending on the scope of the work and the type of consulting services required. The consultant’s role is generally to assess a company’s needs, offer software solutions, and if needed, to train staff. By signing the contract, both parties become legally bound to its terms and liable to fulfill their responsibilities.

Contents

What is a Software Development Consultant?

A software development consultant is an expert in one or more fields of software development, such as IT, cyber security, software engineering, app development, and website design, who is hired to apply their knowledge and experience to improve a company’s performance in the area of software and technology development. When working for a software company, the work will involve some combination of advising, planning, designing, and coding the development of new software. For non-software companies, the consultant will work on the company’s website, IT department, mobile app, online security, or the implementation of new software applications.

Software developers operate as independent contractors when working as a consultant, which means they will need to operate independently from the company, declare their income, and pay taxes as a self-employed individual. Although consulting usually implies that the developer is working in an advisory role, they may also be hired to carry out non-advisory contract work under the title of consultant.

What Should be Included

The following information will need to be included in the contract:

  • The name and address of the consultant
  • The name and address of the client
  • The services that the consultant is hired to provide
  • The term (duration) of the agreement
  • The compensation that the consultant will receive
  • The method of payment
  • The retainer that the client guarantees (if applicable)
  • The consultant’s contingency fee (if applicable)
  • The division of expenses
  • The address where legal notices can be sent
  • The consultant’s independent contractor status

Once the document has been completed and both parties agree to its terms, they will need to sign and date the document to make it legally binding.

Typical Services

The clients of software developers will generally be either software or mobile app companies, or companies that require consulting on the use and application of software for their organization. Some of the typical services for which clients will hire software developing consultants are as follows:

  • App Development – Applying expert skills and experience to consulting or working directly on the development of mobile or computer applications.
  • Cyber Security – Auditing web security and providing recommendations or services to improve the company’s setup.
  • Modernizing Software – Planning the redesign and updating of software.
  • Process Analysis – Analyzing an organization and providing software solutions to improve workflow, communication, and profits.
  • Software Assessment – Evaluating and auditing software performance and offering advice for improvements.
  • Software Selection – Advising clients on software vendors and applications that best suit their needs.
  • Team Augmentation – Providing tools, organization, and training to a company’s development team.

Frequently Asked Questions

How should developers charge their clients?

When working as a consultant, software developers will usually charge an hourly rate. The amount that a consultant can expect to be paid will vary depending on their work experience and training level.

How can a developer get into consulting?

Prior to pursuing a software development consulting career, individuals will generally need a degree in IT, software engineering, computer science, or other relevant education, as well as their work experience. With the necessary training and experience, applications can be made to work for a consulting firm or the individual may directly proceed to seeking clients as an independent software development consultant.

Should developers require a retainer?

It is recommended that developers demand a retainer to guarantee a certain number of billable hours, providing financial stability, deeper client relationships, and project familiarity. However, a retainer may be less desirable if the consultant desires more flexibility in their schedule and workload.