Web development contract: How to guide

Web development focuses on the technical side of website creation, such as coding, testing, and debugging. Web developers bring the websites to life and keep them up and running. They are responsible for designing, developing, and updating web applications.

When providing such services, a web development contract is an important document to safeguard the interests of both parties involved in the business. In this guide, we will discuss a web development contract, its importance, and how to create one.

What is a web development contract?

A web development contract is an agreement established formally between a client and a website developer, whether an individual or a company. It outlines the relationship between the web developer and client and becomes enforceable under the governing laws when duly signed by both parties. The contract defines:

• The project scope
• Deadlines
• Deliverables
• Other essential details that both parties agree upon
• Confidentiality obligations
• The applicable laws of the state, such as severability, cancellation, and termination clauses

Why is a website development contract important?

As a web developer, navigating the various aspects of website projects can be challenging. Without a web development contract, some circumstances may emerge, which may include:

• The client adds excess elements to the project scope and expects web developers to execute the same.
• The client asks to revisit their website framework and requests further testing even though the delivery date is approaching, which can create unfavorable circumstances between the parties.
• The client refuses your fees and payment terms.
• The client holds the web developer liable for the website not gaining exposure and leading to a loss of revenue.

Establishing a web development contract can help you prevent such situations. Moreover, in a highly technical field like web design, having a website contract is essential for potential clients to understand the terms and feel confident in the partnership.

What are the key elements in web development contracts?

The contract terms may vary depending on the complexity of the project. A web development contract often includes legal and regulatory considerations. Please consult an attorney for the proper assistance to ensure your web development contract complies with local and state regulations.

Here are the standard key components of a web development contract:

Scope of work

This section outlines the primary responsibilities of a web developer as agreed upon by the client.

• It ensures that performance standards are met and knowledge gaps are avoided.
• It prevents the client from making significant changes to the project that exceed the agreed-upon scope of work.

It's recommended that both parties obtain written consent for any changes to the project's deliverables here.

Timing

In this section, developers must declare their operating hours and provide estimated business days to complete the website. 

Payment

Use this section to define a payment schedule, the accepted payment modes, hourly rates, and charges for extra modifications to the deliverables. You may add the late fee clause if applicable.

Intellectual property rights

This section clarifies who owns intellectual property rights, and such rights should only be transferred with written consent. 

Relationship of parties involved

This clause establishes the relationship between the web developer and the client, clarifying that the web developer operates as an independent contractor, not as the client's employee or partner.

Confidential information

During the contract period, both parties may need to share their trade secrets, know-how, records, roadmaps, and other private information. This section ensures that neither party discloses such information to third parties and keeps it confidential even after the contract ends.

Indemnification

This clause protects the parties in a contract by specifying mutual indemnity obligations. It outlines the obligations of one party to compensate the other party for any losses, damages, or liabilities incurred as a result of specified events. 

Term

This section defines the effective date and termination date so that both parties are clear about the expected time of this business association. 

Termination

This clause lists the reasons due to which the contract may be terminated, for example: 

• The developer fails to fulfill all the services agreed upon in the contract.
• If either party breaches any clause of the agreement.
• If there is a mutual agreement between the parties involved to end the contract.

Also, if either party terminates the contract, they must notify the other party in a timely manner with written notice. It's good practice to list the reasons for the termination and any relevant details about the decision. The notice may also include information on any procedures or actions to be taken following the termination to ensure a smooth transition and resolution of outstanding matters.

Arbitration

Arbitration is like an out-of-court dispute resolution where an impartial third party, known as an arbitrator, hears evidence and provides a ruling. This section states that any disputes between the parties occurring due to or connected to the contract are resolved by this provision.

Representation and warranties

This clause mentions the web developer's responsibilities under the agreement, meaning they agree to fulfill the conditions listed in this section and enter the contract based on such agreement.

Force majeure

This clause releases a party from its obligations under this contract if its performance is made impossible for reasons beyond its control, e.g., fire, flood, earthquake, strikes, war, a pandemic, act or order of a public authority, and other acts of God during the event. 

Modification

This clause states that the contract is non-negotiable and can only be modified in writing. If a modification is required, it must be signed by both parties.

Use LegalZoom's web development contract template

LegalZoom provides professional and customizable templates to generate documents with a well-defined structure quickly and efficiently. To get started, use the web development contract template provided on this page, answer some simple questions, and download the contract for free as a .pdf document. You may also print a hard copy for correspondence purposes.

With LegalZoom's user-friendly rich editor, you can customize your web development contract template according to your client's design expectations. You can edit the present information or add new details by adding text, tables, and images. 

Use LegalZoom's eSignature service to get signatures on your web development contract. 

Please note that while the initial template is free, the rich editor and eSignature service are paid features available in subscription plans.

Frequently asked questions

Why do companies hire web developers?

Companies hire web developers to build or enhance their websites, which helps them achieve their business goals. 

What is the difference between a web developer and web designer?

Web developers build a web page whereas web designers make it visually appealing and engaging for users. For example, a developer creates the framework of a mobile app (with software like Java and JQuery), and a web designer plans its style (with codes like HTML and CSS) and creates the website design.

What are some technical jargons in web hosting services?

Some technical jargon you may need to know includes HTML, JavaScript, CSS, PSD files, hosting, domains, and plugins.