App Developer Contracts: What to Negotiate Before Signing
Hiring an app developer is a significant investment. A well-drafted contract protects both parties and prevents disputes over ownership, deliverables, and payment.
Key Provisions to Include
- IP ownership: Clearly state who owns the finished app, source code, and any custom components. If you are the client, ensure full IP assignment upon final payment rather than a license. If you are the developer, consider retaining rights to reusable components and libraries.
- Source code and repository access: The contract should specify that the client receives access to the source code repository (e.g., GitHub) throughout development, not just at the end. This protects you if the relationship breaks down mid-project.
- Milestone-based payments: Structure payments around completed milestones (wireframes, prototype, beta, launch) rather than time-based billing. Each milestone should have defined acceptance criteria.
- Technology stack and specifications: Document the agreed-upon tech stack, platforms (iOS, Android, web), and functionality. Changes should go through a formal change order process.
- Warranty and bug fixes: Include a warranty period (30-90 days post-launch) during which the developer fixes bugs at no additional cost. Define what constitutes a "bug" versus a new feature request.
- Third-party licenses: Identify any third-party libraries, APIs, or services used in the app and clarify licensing obligations and ongoing costs.
Red Flags
- No IP assignment clause or IP remains with the developer permanently
- No source code access until project completion
- Vague deliverables with no acceptance criteria
- No warranty or bug fix period
- Payments entirely front-loaded before meaningful deliverables
When to Consult a Lawyer
For apps expected to generate revenue or handle sensitive user data, consider having a technology attorney review the contract. IP disputes over software can be extremely costly and difficult to resolve after the fact.
This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.