A letter of intent for software development is a preliminary arrangement that outlines a potential collaboration between a software developer and an interested client. It provides an initial framework outlining the proposed project’s scope, deliverables, and terms. It also clarifies both parties’ expectations and commitments.
What Comes After a Software Development Letter of Intent?
A software development letter of intent only initiates a project’s discussion. It’s not typically legally binding, nor does it serve as a final agreement.
After negotiation, parties can enter into a more formal agreement. This definitive agreement may take the form of an independent contractor agreement or service-level agreement.
Benefits of a Letter of Intent for Software Development
Here are some of the benefits of a letter of intent for software development:
- It instills confidence in the client. The software developer can write their qualifications, reassuring the client (or the client’s hiring manager) that they’re the right candidate for the impending software development project.
- It shows commitment. This letter can communicate that the software developer intends to work for only the client and no one else. They can express interest and show their dedication to the upcoming project.
- It establishes the parties’ intentions. This letter may provide information on the company’s mission and how the software developer plans to assist the company with its goals.
- It clarifies the project’s scope. It specifies the scope of the project, including the services the software developer will provide and what the final outcome may look like. When the developer can review a job description, they are more likely to meet the client’s expectations.
- It outlines essential details. This letter explains the basic terms, such as the developer’s pay and the length of the relationship. This information helps the client plan and budget properly.
- It minimizes risks for both parties. Even though this letter isn’t legally binding, it can set the precedent for minimizing legal risks.
What to Include in a Software Development Letter of Intent
Here are some of the key elements to include in a software development letter of intent:
- Date: Include the date that the parties draft the letter.
- Parties Involved: Record the information of the parties involved, including the client and the software developers.
- Developer’s Qualifications: State the developer’s qualifications to work on the project, including their education and work experience in creating software similar to the client’s ideal final product.
- Purpose: State the letter’s purpose, clarifying that you plan to enter an arrangement for the goal of developing software but aren’t doing so at this time. Include a non-binding clause for further clarity.
- Project Description: Provide a description of the services the developer will offer and the scope of work they will complete.
- Payment Terms: Explain the payment method and amount the developer will receive.
- Dates: Provide the anticipated start and end dates of the project and the client-developer relationship.
- Confidentiality Clause: As the professionals plan to develop software for a company, the client may want to include a confidentiality clause, ensuring the developers don’t share information with competitors. The parties may enter a separate confidentiality agreement.
Example of a Letter of Intent for Software Development
Here is an example of a letter of intent for software development:
Alexandra Carter
Head of Technology
Innovative Solutions Inc.
Springfield, IL 62704
(555) 987-6543
August 16, 2024
Jordan Lee
Senior Developer
TechCraft Solutions
Chicago, IL 60614
(555) 123-4567
Dear Jordan Lee,
I am pleased to confirm our intent to engage your services for the development of a custom customer relationship management (CRM) software (the “Project”) for Innovative Solutions Inc. (the “Client”). The purpose of this letter is to outline our mutual understanding regarding the potential development of the Project and to serve as the basis for further negotiation and a final agreement.
You will provide the design, development, testing, and deployment of a custom CRM software application tailored to the Client’s needs. The scope includes creating user-friendly interfaces, ensuring effective security measures, and integrating the CRM with existing systems.
The development of the Project is expected to commence on September 1, 2024 and be completed by March 1, 2025. A detailed timeline with milestones will be provided in the final agreement.
We propose that both parties commence detailed discussions with the aim of finalizing a definitive agreement by August 29, 2024.
Please sign, date, and return a copy of this letter to indicate your acceptance of the preliminary terms outlined for our intended collaboration. If you have any questions, please contact us.
Sincerely,
Alexandra Carter
Head of Technology
Innovative Solutions Inc.
Software Development Letter of Intent Sample
Download a software development letter of intent template in PDF or Word format below:
