Vendor Contract Considerations

Abstract

Once vendors have been selected, organizations need to have contracts that protect their corporate interests while at the same time are fair to the vendors. Vendors typically have standard contracts or skeleton agreements for organizations to work from, but there are significant issues that must be covered such as indemnity, access to source code, a process of communication if there are problems, warrantees and guarantees, and support. The purpose of this chapter is to provide guidance on the relevant stages, considerations, and content of the contract agreement. In this context, it is important that both the buyer and seller feel protected. The question really becomes how to provide an agreement where both sides feel it is fair.