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Software Development Subcontractor Agreement Template for Australia

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Key Requirements PROMPT example:

Software Development Subcontractor Agreement

"I need a Software Development Subcontractor Agreement for an Australian fintech company engaging offshore developers for a 12-month project starting March 2025, with strict IP protection and source code escrow requirements."

Document background
The Software Development Subcontractor Agreement is essential for businesses in Australia that need to engage external software development resources while maintaining clear contractual relationships and protecting intellectual property rights. This document is typically used when a main contractor needs to supplement their development capabilities or bring in specialized expertise through subcontractors. It comprehensively addresses key aspects including service scope, deliverables, payment terms, IP ownership, confidentiality, and compliance with Australian legislation such as the Independent Contractors Act 2006 and Privacy Act 1988. The agreement is particularly relevant in situations where software development work needs to be delegated while maintaining quality control and ensuring alignment with head contract obligations to end clients.
Suggested Sections

1. Parties: Identification of the main contractor and subcontractor, including ABN/ACN and registered addresses

2. Background: Context of the agreement, relationship to head contract, and purpose of the subcontracting arrangement

3. Definitions: Defined terms used throughout the agreement, including technical terms specific to software development

4. Scope of Services: Detailed description of software development services to be provided, including deliverables and acceptance criteria

5. Term and Termination: Duration of the agreement, renewal provisions, and circumstances for termination

6. Payment Terms: Rates, payment schedule, invoicing requirements, and payment methods

7. Intellectual Property Rights: Ownership and licensing of pre-existing and newly created IP, including code and documentation

8. Confidentiality: Protection of confidential information, trade secrets, and client data

9. Data Protection and Privacy: Obligations regarding personal data handling and compliance with privacy laws

10. Performance Standards: Quality requirements, coding standards, and performance metrics

11. Reporting and Communication: Progress reporting requirements, meeting schedules, and communication protocols

12. Warranties and Representations: Guarantees regarding service quality, compliance with laws, and authority to contract

13. Liability and Indemnification: Limitation of liability, indemnification obligations, and insurance requirements

14. Dispute Resolution: Process for resolving disputes, including mediation and jurisdiction

15. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law

Optional Sections

1. Non-Compete: Restrictions on working with competitors or clients - include when protecting market position is crucial

2. Source Code Escrow: Arrangements for source code custody - include when required by head contract or client

3. Security Requirements: Specific security protocols and compliance - include for sensitive or regulated projects

4. Performance Bonds: Financial security requirements - include for high-value or critical projects

5. Knowledge Transfer: Processes for transferring knowledge - include when continuity is critical

6. Business Continuity: Disaster recovery and business continuity requirements - include for mission-critical systems

7. Third-Party Code: Management of third-party libraries and open source - include when using external code

8. Remote Working: Provisions for remote work arrangements - include when remote work is contemplated

Suggested Schedules

1. Schedule 1 - Services Description: Detailed technical specifications and scope of development work

2. Schedule 2 - Fee Schedule: Detailed breakdown of rates, charges, and payment milestones

3. Schedule 3 - Service Levels: Performance metrics, response times, and quality standards

4. Schedule 4 - Project Timeline: Project phases, milestones, and delivery dates

5. Schedule 5 - Testing and Acceptance: Testing procedures, acceptance criteria, and sign-off processes

6. Schedule 6 - Personnel: Key personnel, qualifications, and replacement procedures

7. Appendix A - Technical Requirements: Detailed technical specifications and standards

8. Appendix B - Security Protocols: Security requirements, access controls, and compliance measures

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

















































Clauses









































Relevant Industries

Information Technology

Software Development

Financial Services

Healthcare Technology

E-commerce

Digital Services

Telecommunications

Professional Services

Technology Consulting

Manufacturing Technology

Relevant Teams

Legal

Procurement

Information Technology

Software Development

Project Management

Operations

Vendor Management

Compliance

Technical Operations

Contract Administration

Relevant Roles

Chief Technology Officer

Project Manager

Technical Lead

Software Development Manager

Procurement Manager

Legal Counsel

Contract Manager

IT Director

Software Engineer

Development Team Lead

Operations Manager

Vendor Manager

Chief Information Officer

Technical Project Coordinator

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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