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Contract Negotiation infoKit

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This infoKit is available for download as a printable version in pdf format. (The Adobe Acrobat Reader to allow viewing of pdf files is available for download here).

Introduction

Selecting the right IT system is only the first step in a successful implementation. It is equally important that you come to a suitable contractual arrangement with the supplier. You need to think about this at an early stage in the selection project. It is tempting to leave contractual matters to the very end and, after a possibly lengthy and tiring selection process, to want to get this stage out of the way as quickly as possible and get on with implementation. Everyone believes at this point that things will go well and the signed contract will go into a drawer never to be looked at again. In the real world this is all too often not the case. Cutting corners at this stage could be your biggest mistake. A well-drawn up contract should protect you (and the supplier) against unforeseen circumstances that throw your project off-track.

The issues involved in negotiating a contract are broadly the scope for any type of IT system and variations with regard to contracts for Virtual Learning Environments (VLEs) and other Management Information Systems (MIS) can be found in a table at the end of the infoKit.

The Freedom of Information Act (FOI) 2000 covers IT contracts. See the section on FOI and Contracts.

You will need to decide at the very start of the selection process what approach you will take to establishing contract terms. The answer to this question may depend on the size of the project and the extent to which you are undertaking any bespoke or developmental work. This does however have an impact on your procurement route especially where procurement is subject to EU regulations. Click on Procurement related information for more advice. You are advised to involve your Procurement Officer and Legal Adviser at an early stage. The options in relation to contract terms are:

  • Sign up to the company's standard terms. These are unlikely to be favourable to you.

  • Impose a standard university contract on them. It is unlikely you will have a standard contract that will cover the circumstances of your implementation without heavy revision.

  • Use a standard GCat contract. GCat is a catalogue based procurement scheme originally designed to provide public sector organisations with a simplified means of procuring and contracting for a wide range of IT and Telecommunications products and related services. In most cases the standard GCat contract will be tailored to suit the particular project. Use the following link to view information on standard GCat contract. You can also view a standard GCat contract from the same site.

  • Negotiate a contract. This is a complex and time-consuming process but it is the best way to come to an arrangement that covers the particular circumstances of your project and ensures give and take between purchaser and supplier. The extent to which you are free to negotiate on terms and conditions is determined to some extent by the procurement route you choose and what you specified in your Invitation to Tender. One of the aims of the JISC infoNet methodology is to put you in a good bargaining position at the end of the evaluation so you are advised to choose a route that allows you to negotiate after you have gained a thorough understanding of the product. Follow the link to view the infoKit on System Selection.

This infoKit attempts to help you chart a course through the minefield of contract negotiations. It is intended as a guide for the novice. If properly used it should be able to save you time and legal costs but it should not be taken as a definitive statement on legal issues. In all cases you are advised to seek professional legal advice at an early stage.


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