IT Contract Negotiation

Mar 14, 2019

Agente

Digital Strategy

IT Contract Negotiation

In my experience, IT contract negotiation can be considered successful only if both parties - a client and a vendor - are confident with the results and believe they’ve reached a win-win agreement. On the contrary, when at least one of the parties is not quite comfortable with some terms but signs a contract for the sake of closing a deal, it’s a wake-up call telling there’s room for improvement.

Tip 1. Get all bases covered before you get down to IT contract negotiation.

This is probably the best way to get to contract signing with no conflict or losses. I believe it’s essential to discuss and most importantly reach the full mutual understanding on all key terms of the agreement before we actually get down to paperwork.

To make sure an IT contract fulfills project objectives and reflects the requirements and expectations on both ends, we go through all the terms in advance.

Usually, the terms are discussed as early as at the presale. At this stage, we conduct a series of calls and introductory meetings. Thus, we can agree upon the project timeline, scope and plan of work, teams, communication methods, payment terms, guarantees, as well as data security and intellectual property terms. Thus, we make sure to avoid surprises at the contract negotiation stage and minimize paperwork time for the good of the project.

Here’re some tips on how to hold a successful IT contract negotiation and get a win-win deal at the outcome. simple

Tip 2. Make a reasonably detailed project description.

In fact, what to consider being a reasonably detailed project description depends on the case. In my experience, the clients who have burned on unfortunate deals before prefer having a very detailed contact where every minute term is taken into consideration. Often, such contracts include extensive development plans, strict timeframes and milestones, team description and the penalty terms for the missed deadline

Let’s discuss your project

Your Name *

Your Email *


Your Message





We use your information to reach back and reply to your query. Please, read our Information Governance Policy to learn more.


We use your information to reach back and reply to your query. Please, read our Information Governance
Policy
to learn more.
changing project requirements

Read more
The exception rather than the rule. And it’s not likely to work out in the real world. In fact, the most efficient approach to project development today is agile methodology. Agile implies dynamic iterative project flo

Tip 3. Make a reasonably detailed project description.

In fact, what to consider being a reasonably detailed project description depends on the case. In my experience, the clients who have burned on unfortunate deals before prefer having a very detailed contact where every minute term is taken into consideration. Often, such contracts include extensive development plans, strict timeframes and milestones, team description and the penalty terms for the missed deadlines.

However, this is the exception rather than the rule. And it’s not likely to work out in the real world. In fact, the most efficient approach to project development today is agile methodology. Agile implies dynamic iterative project flow, two or four week-long sprints and changes in a project scope from sprint to sprint. In this environment, any project scope recorded in a contract may become obsolete after the very first sprint.

In most cases, a reasonably detailed IT contract includes generic terms of the project - scope, project budget, payment terms, development methodology, approach to discussing and approving change requests, high-level development plan, acceptance criteria, team structure, milestones and a deadline.

Instead of the detailed specifications, the focus is shifted to project scope, objectives and stakeholders’ goals. Using this approach, we still specify what is considered to be a working product at delivery and how we plan to get there. Though we omit unnecessary details that may change over the course of development.

Let’s discuss your project

Your Name *

Your Email *


Your Message





We use your information to reach back and reply to your query. Please, read our Information Governance Policy to learn more.


We use your information to reach back and reply to your query. Please, read our Information Governance
Policy
to learn more.