Test Contract Documentation

functional_testing_scope:
  included_services:
    - Test planning and strategy development
    - Test case design and documentation
    - Manual test execution (regression, smoke, exploratory)
    - Defect logging and tracking
    - Test reporting and metrics
    - User acceptance testing support

  testing_types_covered:
    - Functional testing (UI, business logic)
    - Integration testing (API, system)
    - Regression testing
    - Smoke testing
    - Sanity testing
    - User acceptance testing (UAT)

  excluded_services:
    - Performance and load testing
    - Security and penetration testing
    - Mobile device testing (unless specified)
    - Accessibility testing
    - Localization testing
    - Production support and monitoring

  environments:
    - Development (dev) environment
    - QA/Testing environment
    - Staging/Pre-production environment
    - Production (smoke testing only)

  testing_hours:
    coverage: "Business hours (9 AM - 6 PM EST)"
    timezone: "Eastern Standard Time (EST)"
    weekends: "Not included (available at premium rate)"
    holidays: "Follows client holiday calendar"

automation_services_scope:
  deliverables:
    - Automation framework setup and configuration
    - Automated test script development
    - Test suite maintenance and enhancement
    - CI/CD pipeline integration
    - Automated regression suite execution
    - Test result analysis and reporting

  technologies_supported:
    web_automation:
      - Selenium WebDriver
      - Playwright
      - Cypress
    api_automation:
      - RestAssured
      - Postman/Newman
      - Karate DSL
    mobile_automation:
      - Appium
      - Espresso (Android)
      - XCUITest (iOS)

  automation_coverage_targets:
    year_1: "40% of regression test cases"
    year_2: "70% of regression test cases"
    year_3: "85% of regression test cases"

  maintenance_and_support:
    - Weekly script maintenance (flaky tests, updates)
    - Framework upgrades (quarterly)
    - New feature automation (within scope)
    - Documentation updates

## Testing Contract - In Scope

### Test Planning
- Test strategy document creation
- Test plan development
- Risk assessment and mitigation planning
- Resource allocation and scheduling
- Test environment requirements definition

### Test Design
- Test scenario identification
- Test case design and documentation
- Test data preparation strategy
- Traceability matrix creation
- Review and approval cycles

### Test Execution
- Manual test execution per agreed schedule
- Automated test execution (if contracted)
- Defect identification and logging
- Defect verification and closure
- Regression testing
- Re-testing after fixes

### Reporting and Communication
- Daily status updates (written)
- Weekly progress reports
- Test metrics and KPIs tracking
- Stakeholder meeting participation
- Exit criteria assessment
- Final test summary report

### Quality Assurance
- Test case peer reviews
- Quality metrics tracking
- Process compliance verification
- Best practices implementation
- Continuous improvement initiatives

## Testing Contract - Out of Scope

### Explicitly Excluded
- Requirements gathering and analysis (unless specified)
- Business analysis activities
- Application development or bug fixes
- Production deployment activities
- Production support (unless specified)
- Infrastructure setup (beyond test environments)
- Third-party tool procurement
- Training for client staff (unless specified)

### Change Request Required
- Scope expansion beyond agreed modules
- Additional testing types not contracted
- Testing outside agreed hours/days
- Additional environments not specified
- Tooling changes mid-contract
- Resource augmentation requests

## Testing Contract Milestones - Sample Project

### Phase 1: Setup and Planning (Weeks 1-2)
**Milestone:** Test Readiness
- [ ] Test strategy approved
- [ ] Test plan approved
- [ ] Test environment configured
- [ ] Team onboarded and trained
- [ ] Tools and access provisioned
**Payment:** 15% of contract value

### Phase 2: Test Preparation (Weeks 3-4)
**Milestone:** Test Design Complete
- [ ] Test cases documented (100%)
- [ ] Test data prepared
- [ ] Traceability matrix complete
- [ ] Test cases reviewed and approved
- [ ] Automation framework setup (if applicable)
**Payment:** 20% of contract value

### Phase 3: Test Execution - Sprint 1 (Weeks 5-6)
**Milestone:** Sprint 1 Testing Complete
- [ ] All planned tests executed
- [ ] Defects logged and triaged
- [ ] Test report delivered
- [ ] Regression tests passed
- [ ] Exit criteria met
**Payment:** 15% of contract value

### Phase 4: Test Execution - Sprint 2 (Weeks 7-8)
**Milestone:** Sprint 2 Testing Complete
- [ ] All planned tests executed
- [ ] Critical defects resolved and verified
- [ ] Updated regression suite executed
- [ ] Test report delivered
- [ ] Exit criteria met
**Payment:** 15% of contract value

### Phase 5: Regression and UAT Support (Weeks 9-10)
**Milestone:** UAT Support Complete
- [ ] Full regression testing passed
- [ ] UAT defects logged and tracked
- [ ] UAT test support provided
- [ ] Documentation updated
- [ ] Knowledge transfer complete
**Payment:** 20% of contract value

### Phase 6: Release and Closure (Week 11)
**Milestone:** Release Readiness Achieved
- [ ] All critical/high defects resolved
- [ ] Production smoke test plan delivered
- [ ] Final test summary report delivered
- [ ] Lessons learned documented
- [ ] Contract closure activities complete
**Payment:** 15% of contract value (final payment)

# Testing SLA Definitions
defect_response_sla:
  critical_severity:
    definition: "System down, no workaround, blocks testing"
    response_time: "1 hour"
    resolution_target: "4 hours"
    escalation: "Immediate to QA Lead and Project Manager"

  high_severity:
    definition: "Major functionality impaired, workaround exists"
    response_time: "4 hours"
    resolution_target: "24 hours"
    escalation: "After 8 hours to QA Lead"

  medium_severity:
    definition: "Functionality affected, acceptable workaround"
    response_time: "8 hours"
    resolution_target: "3 business days"
    escalation: "After 2 days to QA Lead"

  low_severity:
    definition: "Minor issue, cosmetic, documentation"
    response_time: "24 hours"
    resolution_target: "5 business days"
    escalation: "After 5 days to QA Lead"

test_execution_sla:
  test_case_execution_rate:
    target: "30 test cases per tester per day (manual)"
    measurement: "Average over sprint"
    penalty_threshold: "< 20 test cases per tester per day"

  defect_logging_timeliness:
    target: "Within 4 hours of discovery"
    measurement: "Timestamp between discovery and Jira creation"
    penalty_threshold: "> 8 hours delay"

  test_report_delivery:
    daily_status: "By 5 PM EST same day"
    weekly_report: "Every Friday by 12 PM EST"
    final_report: "Within 24 hours of test completion"
    penalty_threshold: "Missed deadlines > 2 times per month"

  automation_stability:
    target: "Flaky test rate < 3%"
    measurement: "Tests failing intermittently / total automated tests"
    penalty_threshold: "> 5% flaky rate sustained for 2 weeks"

communication_sla:
  email_response:
    business_hours: "Within 4 hours"
    after_hours: "Next business day"
    urgent_issues: "Within 1 hour"

  meeting_attendance:
    daily_standup: "95% attendance"
    sprint_planning: "100% attendance (QA Lead minimum)"
    retrospective: "100% attendance"

  status_reporting:
    frequency: "Daily written update by 5 PM"
    format: "Standardized template"
    distribution: "All stakeholders on distribution list"

# Quality Metrics Targets for Contract
class QualityMetricsTargets:
    def __init__(self):
        self.metrics = {
            # Test Coverage Metrics
            'requirement_coverage': {
                'target': 100,
                'unit': 'percentage',
                'measurement': 'Requirements with test cases / Total requirements',
                'penalty_threshold': 95,
                'description': 'All requirements must have associated test coverage'
            },

            'test_execution_coverage': {
                'target': 95,
                'unit': 'percentage',
                'measurement': 'Executed tests / Planned tests',
                'penalty_threshold': 90,
                'description': 'Percentage of planned tests executed per sprint'
            },

            # Defect Quality Metrics
            'defect_rejection_rate': {
                'target': 10,
                'unit': 'percentage',
                'measurement': 'Rejected defects / Total defects',
                'penalty_threshold': 20,
                'description': 'Defects rejected as not reproducible or invalid'
            },

            'defect_detail_completeness': {
                'target': 95,
                'unit': 'percentage',
                'measurement': 'Well-documented defects / Total defects',
                'penalty_threshold': 85,
                'description': 'Defects with steps, screenshots, logs, environment'
            },

            # Test Effectiveness Metrics
            'defect_detection_effectiveness': {
                'target': 90,
                'unit': 'percentage',
                'measurement': 'Defects found in testing / Total defects',
                'penalty_threshold': 80,
                'description': 'Effectiveness of testing in finding defects early'
            },

            'test_case_effectiveness': {
                'target': 25,
                'unit': 'percentage',
                'measurement': 'Test cases finding defects / Total test cases',
                'penalty_threshold': 15,
                'description': 'Balance between comprehensive and efficient testing'
            },

            # Automation Metrics (if contracted)
            'automation_coverage': {
                'target': 70,
                'unit': 'percentage',
                'measurement': 'Automated test cases / Total regression tests',
                'penalty_threshold': 60,
                'description': 'By end of contract period'
            },

            'automation_pass_rate': {
                'target': 95,
                'unit': 'percentage',
                'measurement': 'Passed automated tests / Total automated tests',
                'penalty_threshold': 90,
                'description': 'On stable builds, excluding environment issues'
            },

            # Productivity Metrics
            'test_execution_velocity': {
                'target': 30,
                'unit': 'test cases per day per tester',
                'measurement': 'Average manual test cases executed',
                'penalty_threshold': 20,
                'description': 'Measured over sprint, excludes complex scenarios'
            },

            # Process Compliance Metrics
            'test_case_review_completion': {
                'target': 100,
                'unit': 'percentage',
                'measurement': 'Reviewed test cases / Total test cases',
                'penalty_threshold': 95,
                'description': 'All test cases peer-reviewed before execution'
            },

            'documentation_currency': {
                'target': 100,
                'unit': 'percentage',
                'measurement': 'Up-to-date documents / Total documents',
                'penalty_threshold': 90,
                'description': 'Test artifacts updated within 2 days of changes'
            }
        }

    def evaluate_compliance(self, actual_metrics):
        """Evaluate if actual metrics meet contractual obligations"""
        results = {}

        for metric_name, config in self.metrics.items():
            actual_value = actual_metrics.get(metric_name)

            if actual_value is None:
                results[metric_name] = {
                    'status': 'NOT_MEASURED',
                    'message': 'Metric not provided'
                }
                continue

            target = config['target']
            threshold = config['penalty_threshold']

            if actual_value >= target:
                status = 'EXCEEDS'
            elif actual_value >= threshold:
                status = 'MEETS'
            else:
                status = 'BELOW_THRESHOLD'

            results[metric_name] = {
                'status': status,
                'actual': actual_value,
                'target': target,
                'threshold': threshold,
                'penalty_applicable': status == 'BELOW_THRESHOLD'
            }

        return results

## Acceptance Criteria for Test Deliverables

### Test Strategy Document
**Acceptance Criteria:**
- [ ] Aligns with project objectives and constraints
- [ ] Covers all in-scope testing types
- [ ] Defines clear entry and exit criteria
- [ ] Identifies risks and mitigation strategies
- [ ] Approved by stakeholders within 3 business days
- [ ] No more than 2 rounds of revisions required

### Test Cases
**Acceptance Criteria:**
- [ ] Traceable to requirements (via requirement ID)
- [ ] Clear preconditions, steps, and expected results
- [ ] Peer-reviewed with no critical findings
- [ ] Follows agreed template and naming conventions
- [ ] Test data requirements clearly specified
- [ ] Priority and severity appropriately assigned

### Defect Reports
**Acceptance Criteria:**
- [ ] Clear, concise title summarizing the issue
- [ ] Detailed steps to reproduce (numbered)
- [ ] Expected vs actual result clearly stated
- [ ] Screenshots/videos attached (for UI defects)
- [ ] Logs attached (for functional/API defects)
- [ ] Environment details specified
- [ ] Severity and priority appropriately assigned
- [ ] Assignee and component fields populated

### Test Execution Reports
**Acceptance Criteria:**
- [ ] All planned test cases execution status recorded
- [ ] Pass/Fail/Blocked status clearly indicated
- [ ] Defects linked to failed test cases
- [ ] Execution dates and tester names recorded
- [ ] Summary statistics provided (pass rate, coverage)
- [ ] Delivered on time per SLA

### Automation Framework
**Acceptance Criteria:**
- [ ] Executes successfully in target environment
- [ ] Documentation provided (setup, execution, maintenance)
- [ ] Follows coding standards and best practices
- [ ] Integrated with CI/CD pipeline (if required)
- [ ] Sample test suite demonstrating capabilities
- [ ] Source code delivered with version control
- [ ] Training provided to client team (if contracted)

### Test Summary Report
**Acceptance Criteria:**
- [ ] Comprehensive overview of testing activities
- [ ] All key metrics and KPIs included
- [ ] Defect summary with trend analysis
- [ ] Risk assessment for release
- [ ] Testing scope vs actual coverage comparison
- [ ] Recommendations for future improvements
- [ ] Sign-off section for stakeholder approval

# Sprint Exit Criteria - Testing Contract
sprint_exit_criteria:
  test_execution:
    - All planned test cases executed (100%)
    - Pass rate >= 95% for executed tests
    - All blocked tests documented with blocker details

  defect_status:
    - Zero critical defects open
    - Zero high severity defects open (or approved waiver)
    - Medium defects <= 3 open (with remediation plan)
    - All low severity defects triaged

  automation:
    - New features automated (per agreed coverage target)
    - Regression suite executed with >= 95% pass rate
    - Flaky tests fixed or quarantined

  documentation:
    - Test results documented and reported
    - Known issues documented
    - Traceability matrix updated
    - Test summary report delivered

  stakeholder_approval:
    - QA Lead sign-off obtained
    - Product Owner acceptance
    - Release readiness review completed

# Release Exit Criteria - Testing Contract
release_exit_criteria:
  comprehensive_testing:
    - Full regression testing completed (100% execution)
    - Integration testing completed and passed
    - User acceptance testing completed
    - Production smoke test plan prepared

  defect_resolution:
    - Zero critical defects
    - Zero high severity defects
    - All medium defects assessed for release risk
    - Known issues documented in release notes

  quality_metrics:
    - Test coverage >= 95% of requirements
    - Defect detection effectiveness >= 90%
    - Automation coverage meets contracted target
    - No unresolved test environment issues

  compliance:
    - All contractual deliverables submitted
    - All SLAs met (or penalties acknowledged)
    - Sign-off from all required stakeholders
    - Handover to production support complete (if in scope)

# Contract Penalty Structure
penalty_framework:
  sla_violations:
    calculation_period: "Monthly"
    penalty_cap: "Maximum 10% of monthly contract value"

    missed_deadlines:
      threshold: "2 missed deadlines per month"
      penalty: "2% of monthly value per additional miss"
      max_penalty: "6% monthly value"

    quality_metric_failure:
      threshold: "Below penalty threshold for 2 consecutive weeks"
      penalty: "3% of monthly value per metric"
      max_penalty: "9% monthly value"

    response_time_sla:
      threshold: "SLA missed 3 times in a month"
      penalty: "1% of monthly value per occurrence beyond threshold"
      max_penalty: "5% monthly value"

  critical_failures:
    missed_release:
      description: "Testing delays cause release postponement"
      penalty: "5-10% of total contract value (case-by-case)"
      cap: "Not subject to monthly 10% cap"

    major_production_defect:
      description: "Critical defect escapes to production due to testing gap"
      penalty: "Determined based on business impact"
      remediation: "Root cause analysis, process improvement plan required"

    data_breach_security:
      description: "Test data mishandling or security incident"
      penalty: "As per data protection clauses, potentially contract termination"

  penalty_calculation_example:
    monthly_contract_value: "$20,000"
    scenario: "3 missed deadlines, 1 quality metric below threshold"
    calculation:
      missed_deadlines: "3 misses - 2 allowed = 1 × 2% = 2%"
      quality_metrics: "1 metric failure × 3% = 3%"
      total_penalty: "5% of $20,000 = $1,000"

## Remediation Process for Contract Non-Compliance

### Identification Phase
1. **SLA Violation Detected**
   - Automated monitoring flags violation
   - OR manual review identifies non-compliance
   - Violation documented with evidence

2. **Notification (Within 24 hours)**
   - Vendor notified of violation
   - Specific SLA/metric cited
   - Evidence provided

### Response Phase (48 hours)
3. **Vendor Response Required**
   - Acknowledge violation
   - Provide explanation/context
   - Propose remediation plan

4. **Root Cause Analysis**
   - Identify underlying cause
   - Assess if systemic or one-time issue
   - Document findings

### Remediation Phase
5. **Remediation Plan Execution**
   - Immediate corrective actions
   - Process improvements implemented
   - Additional resources allocated (if needed)

6. **Monitoring (2-4 weeks)**
   - Close monitoring of affected metrics
   - Weekly check-ins
   - Progress reports

### Resolution Phase
7. **Compliance Verification**
   - Metrics return to acceptable levels
   - Sustained compliance for 2+ weeks
   - Documentation updated

8. **Penalty Assessment**
   - If remediation successful: Penalty may be waived/reduced
   - If remediation insufficient: Full penalty applied
   - Chronic violations: Escalation to contract termination discussions

## Escalation Matrix

| Level | Trigger | Who is Notified | Timeline |
|-------|---------|----------------|----------|
| **Level 1** | First SLA violation | Team Leads (both sides) | Immediate |
| **Level 2** | 2nd violation in 30 days | QA Manager + Project Manager | Within 4 hours |
| **Level 3** | 3 violations in 30 days | Director of QA + PMO Lead | Within 8 hours |
| **Level 4** | Contract-threatening issue | VP Engineering + Vendor Executive | Within 24 hours |

## Performance Improvement Plan (PIP) Template

### Trigger Conditions for PIP
- 3+ SLA violations in a single month
- Consistent failure to meet quality metrics (2+ months)
- Critical client escalation
- Sustained below-threshold performance

### PIP Structure

**Duration:** 30-60 days (based on severity)

**Phase 1: Assessment (Week 1)**
- Comprehensive performance review
- Gap analysis against contract requirements
- Root cause identification
- Stakeholder input gathering

**Phase 2: Plan Development (Week 1-2)**
- Specific improvement targets defined
- Milestones and checkpoints established
- Resource needs identified
- Process changes documented

**Phase 3: Execution (Weeks 2-8)**
- Weekly progress reviews
- Metrics monitored closely
- Adjustments made as needed
- Transparent communication maintained

**Phase 4: Evaluation (Week 8-12)**
- Performance assessment against targets
- Decision on continuation or contract modification
- Lessons learned documentation

### PIP Success Criteria
- [ ] All critical metrics above threshold for 4 consecutive weeks
- [ ] Zero SLA violations during PIP period
- [ ] Stakeholder confidence restored
- [ ] Process improvements documented and implemented
- [ ] Future risk mitigation plan in place

### PIP Outcomes
- **Successful:** Resume normal operations, PIP lifted
- **Partial Success:** Extended monitoring period, renegotiation
- **Unsuccessful:** Contract termination with transition plan

# TESTING SERVICES AGREEMENT

## 1. SCOPE OF SERVICES

1.1 **Testing Services.** Vendor shall provide software testing services as detailed in Schedule A (Scope of Work), including but not limited to:
   (a) Functional testing of the Application
   (b) Regression testing
   (c) Test automation development and maintenance (if selected)
   (d) Defect management and reporting

1.2 **Deliverables.** Vendor shall deliver the testing artifacts specified in Schedule B (Deliverables), including test plans, test cases, test reports, and defect reports.

1.3 **Service Levels.** Vendor shall meet or exceed the Service Level Agreements defined in Schedule C (SLAs).

## 2. TERM AND TERMINATION

2.1 **Term.** This Agreement shall commence on [START DATE] and continue for [DURATION], unless terminated earlier as provided herein.

2.2 **Termination for Convenience.** Either party may terminate this Agreement with 30 days written notice.

2.3 **Termination for Cause.** Either party may terminate immediately upon written notice if:
   (a) The other party materially breaches this Agreement and fails to cure within 15 days
   (b) The other party becomes insolvent or files for bankruptcy
   (c) Performance failures as defined in Schedule D (Penalties and Remediation)

## 3. FEES AND PAYMENT

3.1 **Fees.** Client shall pay Vendor the fees specified in Schedule E (Pricing) according to the milestone schedule.

3.2 **Payment Terms.** Invoices are payable within 30 days of receipt. Late payments accrue interest at 1.5% per month.

3.3 **Penalties.** Client may deduct penalties from monthly invoices as specified in Schedule D for SLA violations.

## 4. CONFIDENTIALITY AND DATA PROTECTION

4.1 **Confidential Information.** Each party shall protect the other party's Confidential Information with the same degree of care used to protect its own confidential information, but no less than reasonable care.

4.2 **Test Data.** Vendor shall handle all test data in accordance with Client's data protection policies. Production data shall not be used without explicit written approval and appropriate masking.

4.3 **Data Breach.** Vendor shall notify Client within 24 hours of any suspected or actual data breach involving Client data.

## 5. INTELLECTUAL PROPERTY

5.1 **Work Product.** All test artifacts, documentation, and automation scripts created under this Agreement shall be the exclusive property of Client.

5.2 **Pre-existing IP.** Vendor retains ownership of pre-existing tools, frameworks, and methodologies, granting Client a license to use them during the term.

5.3 **Open Source.** Any open source components used shall be disclosed and approved by Client.

## 6. WARRANTIES AND REPRESENTATIONS

6.1 **Services Warranty.** Vendor warrants that services will be performed in a professional and workmanlike manner consistent with industry standards.

6.2 **Resource Qualifications.** Vendor warrants that all personnel have appropriate skills, training, and background checks.

6.3 **Compliance.** Vendor warrants compliance with all applicable laws, regulations, and industry standards.

## 7. INDEMNIFICATION

7.1 **Vendor Indemnification.** Vendor shall indemnify Client against claims arising from:
   (a) Vendor's negligence or misconduct
   (b) Breach of confidentiality
   (c) Intellectual property infringement
   (d) Violation of laws or regulations

## 8. LIMITATION OF LIABILITY

8.1 **Cap on Liability.** Except for breaches of confidentiality or data protection, neither party's liability shall exceed the total fees paid under this Agreement in the 12 months preceding the claim.

8.2 **Excluded Damages.** Neither party shall be liable for indirect, consequential, or punitive damages.

## 9. GENERAL PROVISIONS

9.1 **Entire Agreement.** This Agreement constitutes the entire agreement and supersedes all prior agreements.

9.2 **Amendments.** Amendments must be in writing and signed by both parties.

9.3 **Governing Law.** This Agreement shall be governed by the laws of [JURISDICTION].

---

**SCHEDULES:**
- Schedule A: Scope of Work
- Schedule B: Deliverables
- Schedule C: Service Level Agreements
- Schedule D: Penalties and Remediation
- Schedule E: Pricing and Payment Terms

## Contract Health Monitoring

### Monthly Reviews
- [ ] SLA compliance scorecard
- [ ] Deliverables tracking (on-time, quality)
- [ ] Defect metrics analysis
- [ ] Budget vs. actual spending
- [ ] Stakeholder satisfaction survey
- [ ] Open issues and escalations log

### Quarterly Business Reviews
- [ ] Overall contract performance assessment
- [ ] Strategic alignment check
- [ ] Process improvement opportunities
- [ ] Resource adequacy evaluation
- [ ] Relationship health discussion
- [ ] Forward-looking planning (next quarter)

### Annual Contract Review
- [ ] Comprehensive performance evaluation
- [ ] ROI analysis
- [ ] Contract renewal considerations
- [ ] Pricing renegotiation (if applicable)
- [ ] Scope adjustment discussions
- [ ] Long-term partnership strategy

## Red Flags to Watch
- Frequent missed deadlines or SLA violations
- High turnover in vendor team
- Declining quality of deliverables
- Poor communication or responsiveness
- Resistance to feedback or improvement
- Chronic "not in scope" disputes