Which contractual issues must I consider when choosing a supplier?
Contracting is not an area to muddle through; if you are inexperienced you must get expert help...
Software Source, 26 Jun 2002
Contracting is not an area to muddle through; if you are inexperienced you must get expert help.
If you are buying an off-the-shelf package, your supplier will probably offer a range of contracts. Be clear on what is included in each, and what is not; what is available as standard, and what carries an extra charge.
Key areas are:
• documentation - and will it be tailored to your organisation;
• training - off-site or in-house, tailored or standard;
• software upgrades - frequency, quality-assured;
• help desk - availability, response times;
• point of contact - whether there will be a named supplier contact or account manager;
• fault procedures - and agreed timescales.
If your supplier is writing a bespoke package, or customising a system, the contract will be more complex. Points to consider include responsibility for testing; arrangements for signing off software as acceptable; timescales and staged payment systems; ownership of the system; and penalty clauses and get-out clauses if things go wrong.
If you outsource project management, ensure that both you and the external project manager have clear, written agreements and timescales. You may insist on a guarantee that the individual who manages your project will stay until it is finished, rather than move on to another project.
If the project is handled internally, you will need to work out a service level agreement (SLA) with other departments. When the system goes live you will need to work out whether its managers need an SLA with the IT or personnel department to cover day-to-day requirements.
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