Software Engineercustom

SaaS Development Contract

For teams building SaaS products under contract - covers milestones, source code escrow, and post-launch support.

What's included

Milestone-Based Scope and Delivery Schedule

Defines the SaaS development scope, milestone deadlines, deliverables, acceptance criteria, and process for approving or rejecting completed work.

Fees, Invoicing, and Milestone Payments

Sets the total development fee, payment timing, invoice requirements, taxes, late payment consequences, and whether payments are tied to milestone acceptance.

Source Code Handover and Repository Access

Specifies repository access rights, timing of source code delivery, documentation handover, credentials transfer, and conditions for final code release.

Source Code Escrow

Provides optional escrow terms for periodic source code deposits, release triggers, escrow provider responsibilities, and access rights if the developer cannot perform.

Confidentiality and Data Security

Protects business information, technical materials, customer data, credentials, and product plans, and requires reasonable security practices during development.

Intellectual Property Ownership and Licensing

Allocates ownership of custom code, pre-existing tools, open-source components, third-party libraries, and licenses required to operate the SaaS product.

Post-Launch Maintenance Scope and Pricing

Defines included bug fixes, support windows, excluded enhancements, service levels, hourly rates, and the process for requesting paid maintenance after launch.

Termination, Dispute Resolution, and Risk Allocation

Addresses termination for convenience or breach, payment for completed work, transition assistance, limitation of liability, warranty disclaimers, and dispute resolution procedures.

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Frequently asked questions

What should a SaaS development contract include?

It should define the SaaS product scope, milestones, deliverables, acceptance criteria, payment schedule, intellectual property ownership, source code access, confidentiality, support obligations, termination rights, and dispute resolution procedures.

When should source code be handed over to the client?

The contract should specify whether code is shared during development, delivered after each milestone, deposited into escrow, or transferred after final payment and acceptance. Clear handover terms help prevent disputes over repository access, credentials, and deployment materials.

How should post-launch support be handled?

Post-launch support should be separated from core development work. The agreement should state any included bug-fix period, excluded enhancements, response times, hourly rates, and whether ongoing maintenance requires a separate agreement.

Who owns the SaaS product code after development?

Ownership depends on the contract terms. Many agreements transfer ownership of custom deliverables to the client after full payment while allowing the developer to retain pre-existing code, reusable tools, frameworks, and properly licensed third-party components.

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Templates/SaaS Development Contract