TECHNOLOGY AGREEMENTS - THEY ARE NOT JUST ABOUT PRICE
 

You need to ask yourself the following questions: 

Should you be satisfied negotiating only the price of technology services and products.

If a lawyer is asked to review a vendor’s standard form contract, would you be making a cost effective decision. 

If you retained a lawyer during the negotiating stage would you have a better chance of obtaining the safeguards needed to protect your investment.

Is important to you to reduce your exposure to unanticipated costs, unacceptable delays, and failed implementations.

For your protection some of the issues which are appropriate to address are as follows: 

• meaningful vendor’s representations and warranties and appropriate remedies in the event of breach 

• appropriate service level / response time requirements and remedies in the event such obligations are not met 

• protection to allow you to mitigate the risk of paying for deficient products or service 

• protection from product obsolescence and “sunsetting”

• addressing the management and implementation of projects including clear delivery dates and milestone dates 

• attractive payment terms; capping price increases; tying payment to acceptance testing of a product and/or milestones; mandatory upgrades; training at no cost; penalties for vendor non-compliance with contractual obligations; 

• business downturn protections

• alleviation of risk associated with the insolvency or bankruptcy of a vendor  

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