The most expensive software problems usually start after launch, not during the build. A developer stops replying, the server bill arrives in their name, or a small change turns out to need the original programmer. Asking the right questions before you sign prevents most of this.
Here are eight questions to ask every software developer or agency, and what a good answer sounds like.
1. Who will own the source code?
The source code is the system itself. If you do not have it, you cannot move to another developer.
Under section 26(2) of Malaysia’s Copyright Act 1987, copyright in a commissioned work is deemed to be transferred to the person who commissioned it, subject to any agreement between the parties. That last part matters. A contract can change who owns the code, so read it.
Good answer: “You will own the code for your system, and we will hand over the full repository at the end of the project.” Ask them to write this into the contract, and ask which parts are licensed rather than owned, such as their own reusable frameworks.
2. Where will the system be hosted, and in whose name?
Servers, domains and cloud accounts should be registered to your company, with the developer given access. If the account is in the developer’s name, you depend on them to keep paying and keep it running.
Good answer: “We will set up the hosting account under your company and add ourselves as users.”
3. What exactly do we receive at handover?
A proper handover usually includes:
- Full source code in a repository you control
- Admin logins for the hosting, domain, database and any third-party services
- Documentation on how to install, deploy and back up the system
- A list of all paid services and their renewal dates
Good answer: A written handover list, agreed before the project starts.
4. Who will actually build it?
Some agencies pass work to freelancers or overseas teams. That is not always a problem, but you should know who is writing your code and who you can call when something breaks.
Good answer: Names and roles of the people on your project, and one person responsible for communication.
5. How do you handle changes to the scope?
Every project changes. The question is how changes are priced and approved.
Good answer: “We log each change, estimate the time, and only start once you approve the cost in writing.”
6. How and when do we pay?
Be careful with full payment before any work is delivered. A common structure links payments to milestones, such as design approval, a working first version, and final launch.
Good answer: A payment schedule tied to things you can see and test.
7. What support do you give after launch, and what does it cost?
Bugs appear after real users start. Security updates keep coming. Ask:
- How long is the warranty period for bug fixes?
- What is the monthly or yearly support fee after that?
- How fast will they respond to an urgent problem?
Good answer: A written support plan with response times and a clear price.
8. How do you protect our data?
If your system stores customer names, phone numbers or IC numbers, you have duties under the Personal Data Protection Act 2010. Your developer should know how to store that data safely.
Good answer: A clear explanation of how data is stored, who can access it, how backups work, and what happens if there is a breach.
Warning signs
Be careful if a developer:
- Will not put code ownership in writing
- Registers the hosting or domain in their own name only
- Asks for full payment before showing any work
- Cannot show similar systems they have built
- Gives a price without asking questions about your business
A simple way to compare developers
Put these eight questions in a table with one column for each developer you are considering. For what moves the price itself, see what drives the cost of custom software in Malaysia. Fill in their answers. The cheapest quote often looks less attractive once the handover, ownership and support answers are side by side.
Hiring for a website instead? Most of these checks still apply, and our guide on how to choose a reliable web design service adds a few more. If you are planning a system and want clear answers to all eight questions, talk to our custom application development team.
Frequently Asked Questions
Who owns the source code in Malaysia, the client or the developer?
Under section 26(2) of the Copyright Act 1987, copyright in a commissioned work is deemed transferred to the person who commissioned it, subject to any agreement between the parties. Your contract can change this, so confirm ownership in writing.
Should the hosting account be in my company’s name?
Yes, where possible. Register hosting, domains and cloud accounts to your company and give the developer access, so you are not dependent on one person to keep the system running.
How much should I pay upfront for software development?
Avoid paying the full amount before work is delivered. Link payments to milestones you can see and test, such as approved designs and a working first version.
What should a software handover include?
Source code in a repository you control, admin logins for hosting and services, documentation for deployment and backups, and a list of paid services with renewal dates.
Does my system need to follow the PDPA?
If it stores personal data such as names, phone numbers or IC numbers of customers, the Personal Data Protection Act 2010 applies, and your developer should build with that in mind.
