A Legal Guide To TECHNOLOGY TRANSACTIONS A COVID-19 Update…

NEGOTIATE RELEVANT DELIVERY SCHEDULES/MILESTONES

You can quickly lose control over the costs of a large-scale system implementation project, especially if the work is paid for on a time and materials basis and not a fixed bid project. Performance milestones can help establish checkpoints to ensure progress towards a successful implementation and allow both parties to monitor progress and address problems early in the implementation. It is important to maintain a good relationship between the technology vendor and the information technology personnel who are employees of the business or organization acquiring the technology. It is however also important to make sure that the vendor personnel are held accountable for their performance and those managing the project can assert relevant controls. The business should be willing and able to continuously question the performance or resulting deliverable and not wait until too many problems escalate and too much money is spent. Letting problems and issues remain and escalate in a software implementation is a recipe for disaster and litigation. Finally, it may be helpful to consider how the contract will be used as a tool to manage activities after it has been signed. The agreement can be more than just a means to enforce specific remedies or pursue litigation.

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