Agile Software Development Agreement Template

Description

Agile Software Development Agreement Template, Editable Instant Download

This Agile Software Development Agreement template is a legal contract between a client (often called the “customer”) and a developer or development company (referred to as the “supplier”). Unlike traditional waterfall-based agreements that focus on fixed deliverables, Agile agreements are designed to support flexible and iterative development.

In software development, Agile methodologies have taken centre stage, offering iterative progress, adaptive planning, early delivery, and continuous improvement. Whether you are a startup commissioning your first product or an enterprise expanding your digital ecosystem, Agile promises flexibility and responsiveness. However, that very flexibility can backfire if there is no solid agreement in place to define expectations, responsibilities, and legal protections. That is where an Agile Software Development Agreement template becomes critically important.

Features of this Agile Software Development Agreement Template

Discovery Phase for Clear Understanding: The Discovery Phase ensures both parties collaboratively explore the project’s goals, scope, technical feasibility, and user needs before development begins. This phase allows the Customer and Supplier to align expectations, document initial requirements, identify success criteria, and establish working practices. Without this upfront clarity, Agile projects risk confusion, rework, or misaligned deliverables. This phase is especially crucial in agile contexts, where flexibility and clarity are key. It sets a solid foundation for subsequent phases, enabling a smoother iterative process and better chances of achieving high-quality, business-aligned outcomes.

Iterative Acceptance and Feedback Cycles: Each iteration under the agreement concludes with formal Acceptance Testing, ensuring that developed features meet agreed quality and functionality standards. This iterative approach allows the Customer to provide real-time feedback, reducing the risk of major rework at the end. It also promotes early detection of issues, improves software quality, and maintains alignment with business goals. Embedding acceptance within the development cycle ensures agility is maintained without compromising accountability. This feature is essential for building trust and maintaining transparency throughout a dynamic software development process.

Scope Change and Flexibility Management: The Scope Change clause is vital in accommodating changes without disrupting delivery. Agile projects evolve, and this agreement offers a structured mechanism to modify features, priorities, or requirements collaboratively. It prevents either party from unilaterally altering effort estimates or deliverables already in progress, safeguarding both cost and progress. This clause ensures adaptability while keeping all parties accountable. Without it, scope creep, disputes, and delivery delays can jeopardise project success. It aligns with the agile mindset while retaining the legal and financial discipline needed in commercial engagements.

Defined Roles and Governance Structures: The Agile Software Development Agreement template defines roles like Product Owner, Agile Coach, Development Team, and Designated Representatives. These roles come with specific responsibilities that promote accountability and effective collaboration. By clearly assigning tasks such as backlog management, team communication, and methodology enforcement, the agreement ensures a coherent development process. This clarity avoids duplication of work, internal conflicts, and role confusion. Especially in cross-functional agile teams, such governance is vital for decision-making and delivery. This feature strengthens project execution and ensures continuous engagement from both customer and supplier teams.

Agile-Aligned Payment and Cost Models: The Charges section includes flexible pricing models—capped costs, unit-based pricing, and target cost incentives—tailored to Agile delivery. These models help align financial commitments with incremental delivery and evolving scope. The Agile Software Development Agreement template also defines billing dates, cost reconciliation, and adjustment mechanisms based on actual vs. target costs. This approach supports financial transparency, reduces risk, and motivates performance. By ensuring that value delivery and cost are continually reviewed, the feature balances flexibility with commercial certainty, making it indispensable for Agile projects where outcomes, timelines, and priorities can shift.

Template Sections

Definitions · Statement of Requirement · The Services · Discovery Phase · Project Planning · Release Planning · Development of Deliverables · Scope Changes · Acceptance · Designated Representatives · Product Owners · Development Team · Agile Coach · Charges · Confidentiality · Data Protection · Warranties · Intellectual Property · IPR Indemnity · Limitation of Liability · Insurance · Term and Termination · Dispute Resolution · Entire Agreement · Notices · Announcements · Force Majeure · Further Assurance · Variation · Assignment · Set Off · No Partnership or Agency · Severance · Waiver · Third Party Rights · Non-Solicitation · Conflicts Within Agreement · Counterparts · Governing Law · Jurisdiction · Schedule 1 Statement of Requirement · Schedule 2 Supplier Proposal · Schedule 3 Charges · Schedule 4 Roles & Responsibilities · Schedule 5 Data Protection · Schedule 6 Project Development Methodology

Further Information about the Agile Software Development Agreement Template

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