5 Reasons why you need a Website Development Agreement

In today’s world, a website is the single most important digital asset a company can have. An attractive website can attract or repel customers to/from your business. However, very few have the skills and capacity to build their websites so they outsource this work to skilled professionals known as website developers.

Often, the companies that outsource this work suffer setbacks when the website that is delivered is either substandard or takes too long to be created costing the company both time and money. On the other hand, sometimes web developers finish developing a website and struggle to get the client to pay them for their hard work. This is mostly caused by the absence of a contract governing the relationship between the companies and the website developers which leads to frustration and anger on both sides.

This is why it is important to always get into a Website Development Agreement (WDA) before you get a developer to build your site. A Website Development Agreement is a contract between a company/business and the web developer outlining the responsibilities and tasks of the web developer, the timelines for developing the website and the responsibility of the company to pay the developer when they complete the task.

Why is it important to have a Website Development Agreement?

  1. It ensures that the work is done on time

One of the benefits of having a website development agreement is that you can introduce strict timelines for when the website should be up and running. You can also include several milestones that enable both the company and the developer to keep track of the progress.

2. It protects confidential information

When a company hires a website developer they share a lot of confidential information with the web developer. These can include some of their trade secrets, their marketing strategies and other information that they would not want to land on the desk of their competitor. A good contract ensures that the web developer is restricted from sharing this confidential information with other parties that would harm the company’s interests.

3. It ensures that you are clear on ownership rights

A good WDA will make it clear who will have ownership of the website and all its elements once it has been developed. This is why it is important to enter into this agreement so that it can be clear that the company owns the website and its elements as this is pivotal in protecting the company’s interests.

4. It makes it clear when and how much is to be paid

A good website development agreement removes uncertainties in terms of fees and payments and makes it clear how much the developer is owed and when they should be paid. In case the company fails or delays paying, the developer can file a case against them for breach of contract.

5. It provides a way to resolve disputes that might occur

Human relationships are complex and sometimes the company and developer might get into a dispute on payment or the quality of the website developed. Instead of going to court for an expensive litigation process, a good agreement provides for easier and less expensive ways to solve disputes such as mediation.

Have you ever gotten into a Website Development Agreement? Let’s talk

Published by masibolaw

We help ambitious entrepreneurs to overcome legal and regulatory obstacles while growing their businesses.

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