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Software Maintenance Agreement
"I need a software maintenance agreement for ongoing support and updates of a bespoke application, including bug fixes, security patches, and minor enhancements, with a monthly retainer of £500 and additional work billed at £75 per hour, with a 30-day termination notice."
What is a Software Maintenance Agreement?
A Software Maintenance Agreement sets out how a provider will support and maintain software after its installation. It spells out the services you'll receive, like bug fixes, security updates, and technical help - plus what you'll pay for them. Think of it as an ongoing care package for your software systems.
Under English law, these agreements protect both parties by clearly defining service levels, response times, and problem-solving procedures. They're especially important for businesses that rely on specific software to operate, as they guarantee continued support and establish clear paths for resolving issues. Most agreements run for fixed terms of 12-24 months and include provisions for early termination and fee adjustments.
When should you use a Software Maintenance Agreement?
Put a Software Maintenance Agreement in place before deploying any business-critical software systems. This agreement becomes essential when you're investing in specialized software that your operations depend on, like accounting platforms, customer databases, or manufacturing control systems.
The right time to implement it is during your initial software purchase negotiations - not after problems arise. For UK businesses, it's particularly crucial when handling regulated data or when software downtime could breach service commitments to clients. Having this agreement ready before system deployment helps avoid costly disputes and ensures continuous access to necessary updates, patches, and technical support.
What are the different types of Software Maintenance Agreement?
- Basic Support Agreements: Cover essential maintenance like bug fixes and security updates, ideal for standard software packages
- Premium Service Level Agreements: Include 24/7 support, guaranteed response times, and priority issue resolution
- Comprehensive Maintenance Plans: Bundle support, upgrades, training, and customisation services into one agreement
- Pay-Per-Use Agreements: Offer flexible maintenance pricing based on actual usage or support incidents
- Managed Service Agreements: Combine software maintenance with broader IT infrastructure support and monitoring
Who should typically use a Software Maintenance Agreement?
- Software Vendors: Create and offer maintenance agreements, provide technical support, updates, and bug fixes according to agreed service levels
- Business Customers: Sign and rely on these agreements to ensure their software remains operational and secure
- IT Directors: Review terms, negotiate service levels, and manage the ongoing relationship with vendors
- Legal Teams: Draft, review, and modify agreement terms to protect their organization's interests
- Technical Support Staff: Deliver the maintenance services outlined in the agreement and track compliance with service levels
How do you write a Software Maintenance Agreement?
- Software Details: List all software products covered, including version numbers and integration points
- Service Levels: Define response times, support hours, and maintenance windows that match your business needs
- Technical Requirements: Document system specifications, supported platforms, and any compatibility needs
- Support Scope: Outline included services like updates, patches, helpdesk access, and training
- Payment Terms: Specify maintenance fees, payment schedules, and any additional service costs
- Contact Information: Gather key contacts from both parties, including technical and administrative leads
What should be included in a Software Maintenance Agreement?
- Service Definition: Clear description of maintenance services, support levels, and response times
- Term and Renewal: Agreement duration, renewal conditions, and termination rights
- Payment Terms: Fee structure, payment schedule, and rate adjustment mechanisms
- Performance Standards: Measurable service levels, uptime guarantees, and quality metrics
- Data Protection: GDPR compliance measures and data handling procedures
- Liability Limits: Caps on damages and exclusions under UK law
- Dispute Resolution: Governing law, jurisdiction, and resolution procedures
What's the difference between a Software Maintenance Agreement and a Software Development Agreement?
A Software Maintenance Agreement differs significantly from a Software Development Agreement in both scope and purpose. While both deal with software services, they serve distinct business needs and carry different legal obligations under English law.
- Timing and Duration: Maintenance agreements are ongoing relationships focused on post-deployment support, while development agreements cover a specific project with a defined end date
- Service Scope: Maintenance focuses on updates, bug fixes, and technical support for existing software; development agreements cover creating new software from scratch
- Payment Structure: Maintenance typically involves recurring fees based on service levels, whereas development agreements often use milestone-based payments
- Performance Metrics: Maintenance agreements measure response times and system uptime; development agreements focus on meeting specifications and delivery deadlines
- Risk Allocation: Maintenance liability usually centres on service availability, while development agreements deal with intellectual property rights and deliverable acceptance
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