If you are selling software development services beyond just straight staff augmentation you will need to put together a Professional Services Agreement [PSA] & Statement of Work [SOW] prior to engaging on the “Project“.
Putting together PSAs & SOWs can take a lot of time and that’s even if you have a good framework to start with. Areas a good PSA should cover at a minimum are:
- IP – Intellectual Property Rights
- Licensing – Open Source needs to be covered too.
- Payment Terms
- Term of Engagement
The SOW needs to include at a minimum:
- Description of work to be performed
- Milestone Payment Schedule
- Special terms beyond the PSA
You can find a PSA Template in the ETP Store that I’ve used for quite a few years. While documents like these always need to be modified somewhat depending on the precise use case, this is a great place to start. It will literally save you weeks of work per year.