EHR Contracts Untangled: Selecting Wisely, Negotiating Terms, and ...
Negotiating Software Contracts
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Transcript of Negotiating Software Contracts
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Negotiating a Software Contracts
Basanta Chapagain
MCA- 3rd
Semester
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Topic to cover
Introduction
Point to consider when negotiating contract
Steps of Software Contract Negotiation
Special negotiation issues
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Software contract negotiation
Software contract negotiation involves the process of discussing andcompromising on contract terms in order to reach final approved draftof a contract!
Main goal of contract negotiation is to ma"e an agreement that will #e
#eneficial to all involved parties! Contract negotiation process often involves upper level management
who have e$perience and authorit% to ma"e a decision a#outcontracts!& Some software companies have separate Contractnegotiation team' !
(inal goal is arrangement that is #oth fair and e)uita#le to eachpart%!
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Point to consider when negotiating contract
Specification and delivera#les
*eliver% schedule
Pa%ment terms
Testing and acceptance Support and maintenance & warranties'
*ocumentation
Software Modification
Scope of license
Termination of agreement
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Point to consider when negotiating contracts
Confidentialit%
Patent and cop%right
+is" of loss
Insurance
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Contract negotiation steps
Preparation
Conduct a ris" anal%sis
*evelop the negotiation strateg%
Assign negotiation team and roles Conduct Negotiation
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Preparation
,e%s area of preparation include
nderstand the #usiness need
nderstand the mar"etplace
Contact customer references
These steps ma% have #een performed earlier in theprocurement phase #ut revisiting them at this stage
will help in developing clear and complete negotiation
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Conduct a ris" anal%sis
Identif% potential pro.ect ris"s #ased on the selected proposals and+(P&re)uest for proposal' re)uirement!
Prepare &ris" mitigation wor"sheet' which provides a valua#le tool forensuring a comprehensive loo" at possi#le pro.ect ris" area to
negotiate around!
http://scm_chapter26.xls/#risk%20mitigation%20worksheethttp://scm_chapter26.xls/#risk%20mitigation%20worksheet -
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*evelop the negotiation strateg%
Bring the completed ris" anal%sis into the negotiation strateg%!
*etermine final scope/functionalit%
Confirm ma$imum #udget
Identif% those element of the +(P and selected proposal onwhich %ou can afford some degree of negotiation fle$i#ilit% andthose on which %ou can not!
*efine non-negotia#le negotia#le factor&proposed vs target'!
Prepare &Negotiation strateg% wor"sheet'
http://scm_chapter26.xls/#Negotiation%20strategy%20worksheethttp://scm_chapter26.xls/#Negotiation%20strategy%20worksheet -
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Assign negotiation team and roles
T%pical roles includes following
The SP0C&single point of contract ' will communicatewith supplier&S' and ma"e all agreements!
The #usiness lead will represent the pro.ect1s #usinessneeds!
The technical lead will represent the pro.ects technicalneeds!
The legal e$pert will validate legalit% of the agreements
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Conducting Negotiations
0nce the preparation ris" anal%sis negotiation strateg% andassignment of roles are complete it is time to enter into negotiations!
There are some common practices that should #e followed
Prepare an agenda for the meeting !
Negotiating with the right people!
Avoid )uic" and hurried negotiations
Confirms all re)uirements e$pectations!
se the agenc%1s approved contract form
se consistent terminolog%
2oc" down the scope of the wor" to #e perfromed
Strive for a win-win4 negotiation outcome!
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Special negotiation issues
Software licensing negotiations
+ights to use/access and use/access restrictions
*efinition of the parties entering into the licensing arrangement
Accurate definition of software to #e licensed
0perating s%stem and versions supported
Source code availa#ilit%
+ights to modif%
5arrant% period
+ight to cop% and distri#utes
Acceptance criteria definations
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Special negotiation issues
Technolog% pricing negotiations
6ardware
Software
Services Telicommunications
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7uestions8888
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Than" 9ou