Checklist Software Development Contract

Company Letterhead

{{company_name}} {{company_address}} Phone: {{phone}} Email: {{email}} Website: {{website}}

Software Development Vendor Due Diligence Checklist

**Date:** {{date}}

**Project Name:** {{project_name}}

**Potential Vendor Name:** {{vendor_name}}

**Prepared By:** {{preparer_name}}

This checklist is designed to guide the evaluation of potential software development vendors. Please complete all sections thoroughly.

Section 1: Company Information & Stability

1.1. Registration documents and business permits submitted? [Yes/No/N/A]

1.2. Company registration number: {{vendor_registration_number}}

1.3. Number of years in operation: {{vendor_years_in_operation}}

1.4. Current financial statements (last 2-3 years) reviewed? [Yes/No]

1.5. Evidence of financial stability (e.g., positive cash flow, profitability)? [Yes/No/N/A]

1.6. List of key management personnel and their experience provided? [Yes/No]

1.7. Any legal disputes or judgments against the company in the last 5 years? [Yes/No, if Yes, provide details: {{vendor_legal_disputes_details}}]

Section 2: Technical Capabilities & Experience

2.1. Portfolio of past projects relevant to our needs reviewed? [Yes/No]

2.2. References from at least 3 previous clients contacted and verified? [Yes/No, details: {{references_checked_details}}]

2.3. Does the vendor possess expertise in required technologies (e.g., {{required_technologies}})? [Yes/No]

2.4. Demonstrated experience with similar project scopes and complexities? [Yes/No]

2.5. Quality assurance (QA) and testing processes documented and understood? [Yes/No]

2.6. Software development methodologies used (e.g., Agile, Waterfall)? {{development_methodology}}

Section 3: Project Management & Communication

3.1. Clear project management methodology outlined? [Yes/No]

3.2. Dedicated project manager assigned to our project? [Yes/No, Name: {{project_manager_name}}]

3.3. Communication plan and reporting structure defined? [Yes/No, Details: {{communication_plan_details}}]

3.4. Tools used for project tracking and collaboration (e.g., Jira, Trello)? {{collaboration_tools}}

3.5. Availability for regular meetings and updates confirmed? [Yes/No]

Section 4: Data Security & Confidentiality

4.1. Data protection policies and procedures in place (e.g., POPIA, GDPR compliance)? [Yes/No/N/A]

4.2. Non-Disclosure Agreement (NDA) signed by vendor? [Yes/No]

4.3. Information security certifications (e.g., ISO 27001) provided? [Yes/No/N/A, if Yes, provide details: {{security_certifications}}]

4.4. Data backup and recovery procedures outlined? [Yes/No]

Section 5: Contractual & Legal Considerations

5.1. Draft contract reviewed by legal counsel? [Yes/No]

5.2. Clear intellectual property (IP) assignment clauses in favour of our company? [Yes/No]

5.3. Service Level Agreement (SLA) terms satisfactory? [Yes/No, Key terms: {{sla_key_terms}}]

5.4. Payment terms and schedule agreed upon? [Yes/No, Details: {{payment_terms}}]

5.5. Dispute resolution mechanism clearly defined? [Yes/No, Mechanism: {{dispute_resolution_mechanism}}]

5.6. Exit strategy and handover process documented? [Yes/No]

Section 6: Pricing & Value

6.1. Detailed cost breakdown provided? [Yes/No]

6.2. Pricing model understood (e.g., fixed-price, time & material)? {{pricing_model}}

6.3. Any hidden costs identified? [Yes/No, if Yes, details: {{hidden_costs_details}}]

6.4. Value for money assessed against other bids/market rates? [Yes/No]

Section 7: Overall Assessment & Recommendation

7.1. Strengths of the vendor: {{vendor_strengths}}

7.2. Weaknesses/Risks associated with the vendor: {{vendor_weaknesses_risks}}

7.3. Further information or clarification required from vendor: {{further_info_required}}

7.4. Overall recommendation: [Recommend/Recommend with Reservations/Do Not Recommend]

7.5. Justification for recommendation: {{justification_for_recommendation}}

Signature Block

_____________________________

{{approver_name}}

{{approver_title}}

Date: {{approval_date}}