Acceleration Of Software Development
Acceleration of Software Development
________________________, referred to as CONTRACTOR, and _____________________, referred to as OWNER, agree:
The parties have entered into an agreement for ___________________________, on _________________. Pursuant to this agreement, and any modifications thereto, substantial completion of the work is scheduled on _________________.
OWNER desires that the work be substantially complete on or before _________________.
CONTRACTOR, in consideration of an additional payment of $__________ (_____________________________ & _____/100) due on or before _________________, herewith agrees to complete all work in accordance with the plans and specifications of the original contract by _________________.
Time is of the essence in this contract. The parties agree that if the work is not completed within the time set forth in this agreement, the OWNER shall suffer damages, which shall be difficult of calculation. Accordingly, solely as liquidated damages and not as a penalty, the CONTRACTOR shall pay to OWNER the sum of $ __________ (_____________________________ & _____/100 dollars) per ______________ beyond the date specified for the completion of the work herein.
Other than those changes set forth herein, the original contract dated _________________ shall remain in full force and effect.
This is the entire agreement between the parties and this agreement may only be further amended in writing.
Dated: _______________
________________________________
________________________ By Owner
________________________________
_____________________ By Software DeveloperAcceleration of Contract Performance
Review ListThis review list is provided to inform you about this document in question and assist you in its preparation. Time is money, especially in the software business. This agreement can reward a contract with extra money for completing a job early. This can be used effectively in other business areas as well such as real estate construction.
1. Make multiple copies. Give one original to each party.
Frequently Asked Questions
What is an acceleration of software development agreement?
An acceleration of software development agreement is a contract between a contractor and an owner to expedite the completion of software development work. It modifies an existing agreement by setting a new, earlier substantial completion date. The contractor agrees to meet this date in exchange for an additional payment from the owner.
Why would an owner want to accelerate software development?
An owner may desire acceleration to achieve substantial completion of the work on or before a specific earlier date. This could be driven by business needs such as market windows or operational deadlines. The agreement explicitly states that the owner desires the work to be substantially complete by that date.
What does the contractor receive for accelerating the work?
The contractor receives an additional payment as consideration for agreeing to complete the work by the accelerated date. The exact amount is specified in the agreement, along with the due date for that payment. This payment is in addition to the terms of the original contract.
What happens if the contractor fails to meet the accelerated deadline?
If the work is not completed within the time set forth in the acceleration agreement, the contractor shall pay the owner liquidated damages. These damages are a specified sum per day (or other period) beyond the completion date. The agreement states that these are solely liquidated damages and not a penalty.
Are liquidated damages enforceable in an acceleration agreement?
The agreement specifies that the owner shall suffer damages that are difficult to calculate if the work is not completed on time. Therefore, the parties agree to liquidated damages as a fair estimate. The clause explicitly states that these are not a penalty, which supports enforceability.
What does 'time is of the essence' mean in this context?
In this agreement, 'time is of the essence' means that the completion date is a critical term of the contract. If the contractor fails to meet the deadline, it constitutes a material breach. This allows the owner to enforce the liquidated damages provision.
How is the acceleration payment amount determined?
The acceleration payment amount is mutually agreed upon by the contractor and owner and is specified in the agreement. It is additional consideration for the contractor's promise to complete the work earlier. The agreement includes the exact dollar amount and the due date for payment.
Can the acceleration agreement modify the original contract?
Yes, the acceleration agreement modifies the original contract by setting a new substantial completion date. It references the original contract and states that the contractor agrees to complete all work in accordance with the original plans and specifications by the accelerated date. Any modifications to the original agreement are subject to this acceleration clause.
What is the role of the owner in the acceleration agreement?
The owner desires the work to be substantially complete on or before a specified earlier date. The owner agrees to pay an additional sum to the contractor as consideration for the accelerated completion. The owner also benefits from the liquidated damages provision if the contractor fails to meet the deadline.
Is the acceleration agreement legally binding?
Yes, the acceleration agreement is a legally binding contract between the contractor and owner. It includes essential elements such as consideration, a clear completion date, and liquidated damages. The parties agree that time is of the essence, further solidifying the binding nature of the agreement.
