Request for Custom Development Clause Samples

The Request for Custom Development clause outlines the process by which one party can formally request the creation or modification of software, features, or services tailored to their specific needs. Typically, this clause specifies the required format for such requests, the information that must be provided (such as desired functionality, deadlines, and budget), and the procedure for review and approval by the service provider. Its core practical function is to establish a clear, structured method for handling custom development requests, ensuring both parties understand the expectations and reducing the risk of misunderstandings or scope creep.
Request for Custom Development. (a) From time to time, the Owner may have requirements for custom Software (including, but not limited to, development of identified features or modifications to Software or Software Enhancements) or custom development of Products (including, but not limited to, development of identified features or modifications to Products or Product Enhancements) to be provided by the Vendor under this Agreement (the "Custom Material"). If the Owner has a requirement for Custom Material that is a specific enhancement or modification of a previously licensed feature or of previously purchased Products, the Owner will identify to the Vendor in writing a summary of any such proposed development of Custom Material. Such summary will provide a description of any proposed Custom Material sufficient to enable the Vendor to determine the general demand for, and its plans, if any, to develop the same or similar Products. The Vendor will respond to such summary within twenty (20) Business Days after receipt thereof and indicate if it has the ability to fulfill a subsequent Request for Proposal ("RFP") from the Owner for such development of Custom Material. (b) If the Vendor decides in good faith that it does not have the technical ability or the capacity to fulfill a RFP for such Custom Material development, the Vendor's response pursuant to subsection 7.9(a) will (i) provide the Owner an explanation of why it cannot fulfill such RFP and (ii) use reasonable diligence to work with the Owner to identify an alternative source for such development reasonably acceptable to the Owner. In determining whether the Vendor has the technical ability or the capacity to fulfill the RFP, the Vendor may consider the following factors: (i) the Vendor's likelihood of recovering the costs for performing such development; (ii) the impact of such development on the Vendor's actual outstanding commitments to perform work for other Customers and to pursue strategic development activities; and (iii) whether the Vendor can perform the work utilizing existing software development staff without stopping work underway.