The Critical Roles of the Systems & Software Professional
in the MIS/IT Contracting Process:
Where Lawyers Fear to Tread! Or SHOULD…
For USC Graduate School Classes:
Fall 2010
Part I. Why Systems Fail?
Part II. The IT Contract & the Systems Life Cycle
Part III. IT Related Contract Clauses
Warren S. Reid, Managing Director
WSR Consulting Group, LLC
Management, Technology & Litigation Consulting
E-mail: wsreid@wsrcg.com
Website: www.wsrcg.com
Office: 818/986-8842
©
2006-2010 by Warren S. Reid All Rights Reserved
1
Warren S. Reid: Background
16 years as IT consultant Partner
Designed/implemented/contracted myriad systems
1988, founded:
WSR Consulting Group, LLC
Testifying expert/expert witness in matters re:
The root causes of system failure
ERP project/sw: development; implementation; estimating;
scheduling; resourcing; project mgt
Systems Development Life Cycle (SDLC) issues
Systems/software testing & acceptance
IT contract intention, meaning & interpretation
SW QA evaluation & fitness/usability purpose
Software requirements elicitation & control
Valuing IT assets, systems and companies
Consultants/Experts in Computers & Software
Projects have included:
Helping launch FEO for Pres. Carter in 75 days
Oversaw acceptance of CA’s Lotto in 100 days
Helped resolve MESDAQ: day 1 failure.
Extensive industry experience including:
Retail industry, grocery, fast food
POS systems of all kinds
E-business and e-commerce systems
Health care, hospital and HIPAA systems
Robotics and smart buildings, and more
MS & MBA: Wharton Grad School Finance
Developed seminal “IT Success Models”
2m
Testify: Mediations, Arbitrations; State/Fed
Courts; Court of Fed Claims
Expert Witness for “Who’s Who” of
international business including:
Guest Lecturer at USC’s grad school programs
Lecturer in law school programs in IT Contracting
Many peer-reviewed articles/book co-author
Developer/co-presenter of video for Attorneys
"IT Litigation and Bad Contracts that Foster Failure" (3.5 hrs MCLE
credit)
U.S. Dept of Justice & Pres. William Clinton
An Asian Stock Exchange; Pepsico; Harrahs
Entertainment; B-to-C Internet companies
Her Royal Majesty, the Queen of England;
Compuserve; Fortune 500 retailers; Robotics
manufacturing; Distribution companies; POS cases;
Big -8 Consulting Firms
ERP software developers; Large grocery store chains;
International ticketing companies; CHLA; DOD, & more.
© 2006-2010 by Warren S. Reid All Rights Reserved
2w
Standish Group: Chaos Study Results 2004+
CHAOS
Summary 2009:
+ success = 34% (delivered on time, budget, on target)
+ challenged = 44% (late, over budget, < required F&F)
+ failed = 24% (cancelled before complete; delivered & never used)
“… numbers represent downtick in success rates from previous study, and significant increase in
number of failures … low point in last five study periods & highest failure rates on over a decade.
3m
© 2006-2010 by Warren S. Reid All Rights Reserved
3w
Standish Group: Chaos Study Results 2004+
http://www.infoq.com/articles/InterviewJohnson-StandishCHAOS;jsessionid=EC1E99A30C95AED4B93
60D061F8E1980
2m
© 2006-2010 by Warren S. Reid All Rights Reserved
4w
What is the Purpose of “Contract”??
TO ALLOCATE RISKS
3m
© 2006-2009 by Warren S. Reid All Rights Reserved
5s
CONTRACTS ALLOCATE RISKS
http://www.wsrcg.com/SoftwareFailXpert.php
Adapted From Dr.
Barry Boehm’s
MBASE model
4m
© 2006-2009 by Warren S. Reid All Rights Reserved
6w
It’s the Same in Virtually Every Litigation … All Over the World!
“He Said … She Said”
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
System doesn’t work
We can’t use it
System failed in field
Fundamental flaws
They s/have told us
System is full of bugs
Limited functionality
Developer failed @ SIPM
Poor advice
Unqualified personnel
Wrong devel process
We/they in Over Heads
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Customer changed mind
Client people not trained
Client did not do BPR
Only “two more months”
They wouldn’t listen
Bad data/conversion
Customer kept change scope
Customer failed @ SIPM
Poor cust decision-making
Wrong client people
Poor client support
We/they in Over Heads
Oftentimes, BOTH sides are right & contribute to failure – but at different %s
SMART: Specific, Measurable, Attainable, Relevant, Trackable
16m
© 2001-2010 by Warren S. Reid All Rights Reserved
7w
“Requirements Elicitation:
Why So Difficult – Still?”
8
Customer Requirements: … Still Critical!
Standish
Group –
1995:
“18% of all
sw projects
fail due to
unclear
objectives &
incomplete
reqmts &
specs”
Would
you
think it’s
more, or
less,
today?
3m
9s
© 2006-2009 by Warren S. Reid All Rights Reserved
A STORY: The Same Old Story!!
► Customer asks supplier to bring a rock. Supplier delivers rock.
► Customer says, “Yes, but, actually, I wanted a small blue rock.”
► With delivered, it turns out Customer expected a spherical
small blue rock.
► Ultimately, maybe Customer was thinking all along of a small
blue marble.
► Maybe not sure, but a small blue marble w/hv been sufficient.
► At each subsequent meeting w Cust, Developer may exclaim,
“What do you want it to do?” Developer frustrated bc he had
something entirely different in mind. He’s been working long &
hard to produce rock w characteristics he thought Cust wanted
► Customer equally frustrated bc he is convinced that he did
express it clearly. “Developers just don’t understand!”
©
2006-2009 by Remco Lagarde All Rights Reserved
10
House Vs Software Analogy.vsd Rev. #3 Oct. 1, 2002
Building a House
> You decide
you want to
build a house
> First thing you
do is to define
what you want,
how much it will
cost, where to
build it, who will
build it for you
etc. (Research)
> Find a Builder
> Establish the
type and size of
House you want
plus features
> Establish Price
> Sets allowances
for plumbing,
electrical,
cabinets, etc
> Builder creates
detailed drawings
for your approval
> Builder obtains
commitments from
the Sub-trades
> Obtains permits etc.
Detailed
Drawings
> Sign a Contract
Approval
'Rough'
House Plans
Contract
Approval
Approval
Stage 1
Research
Stage 2
Contract
Research
Project
Project
Proposal
Identify the Scope
plus any
Cost or Schedule
Constraints
'Establish an Agreement
between the
Project Sponsor &
Project Manager'
Project
Charter
Materials List
Owner finalizes details
> Picks out Bricks
> Picks out Cabinets
> Picks out Plumbing fixtures
> Picks out Electrical fixtures
> Picks out Flooring etc.
Adjust Cost if allowances
exceeded ?
Build House and Perform Inspections
> Final Inspection
> On-site inspections by Owners
Approval
Approval
> Close Deal
&
Move In
> On-site inspections by Building Inspectors
Approval
Approve Cost
Changes
Approval
Stage 3
Planning &
Resources
> Create a Project
Plan & a Schedule
> Negotiate the
Resources to
Build System
Project Plan
Stage 4
Detailed Planning &
Approval to Build
Stage 5
Build & Test
Determine the detailed
Requirements needed to Build
the System
Build and Test the System
Stage 6
Implement
> Provide Training
Detailed
Requirements
Determine if
Cost & Schedule
contraints can be met
User
Reviews
& Approval of
Screens
> Implement for
Users
Quality
Reviews
System
'Ready for Use'
>
Provide
Warranty Period
> Close Project
Approval
Approval
Approve
Changes
Approval
Building a Software System
©
2006-2009 by Brian Pfaff
11
Your Dreamhouse(s)
The
Crooked House (Sopot, Poland)
www.freshome.com
©
2006-2009 by Warren S. Reid All Rights Reserved
12
Why Are Requirements So Hard… Still?
5m
© 2006-2010 by Warren S. Reid All Rights Reserved
13 w
ELICIT/DEFINE REQUIREMENTS
Three
Sources
*
F&F ; (B&D**); specified or implied
Non-Performance: (Cost; schedule; methodology)
Performance: “-abilities”; Design & UI
DD
DI
DN
DNA
Current and future
Business Case
Biz processes; Biz rules; Rules engine
Operations parms; Doc map
Accept Criteria; RTM; Gaps/Changes; Rollout
Target maint
Defect metrics
QA
4m
© 2006-2010 by Warren S. Reid All Rights Reserved
* Features & Functions
** B&D: Breadth & Depth
14 w
SUCCESS
What is it?
$, Schedule, Requirements, QA?
Some MTBF?
First to Market?
Lowest Total Cost of Ownership?
Get next round of financing?
Meet biz Case, ROI, growth w less staffing?
Better customer service?
Is it being done? Correctly?
Vague, not measurable, afraid to commit (limit)
Not used as benchmark for requirements “chill”
Acceptance Criteria (Post GL maintenance and
enhancements) [Did you check References?]
5m
© 2006-2009 by Warren S. Reid All Rights Reserved
15 w
More
Scope
about Requirements
Creep (Freeze v. Chill) Embrace
Change is natural – must be embraced (M&A, new biz,
consol, systems, vendors, opportunities, realities)
Things done diff across the organization
Buyer gets smarter; learning process; want/need/motiv)
Technology changes (web, mobile, iPhone, data wh, social)
The world changes and so do best practices, SOX)
Unwillingness to defer (YAGNI) or chg processes
BUT Changes impact:
$, Schedule, F&F, QA - And not linearly
But who pays/gives/takes?
How do you K for scope? Precise! Scope changes? CM?
Initial est. is an ESTIMATE! Controlled not contingency
©
2006-2009 by Warren S. Reid All Rights Reserved
16
Scale Factors
Precedentedness
Development Flexibility
Architecture/Risk resolution
Team Cohesion
Process Maturity
Cost Drivers
Personnel
Analyst Capability (ACAP)
Analyst Experience (AEXP)
Programmer Capability
Platform Experience (PEXP)
Language and Tool Experience (LTEX)
Personnel Continuity (PCON)
WHAT ARE THE
ESTIMATING
FACTORS?
(FROM DR. BARRY BOEHM’S COCOMO MODEL)
Project
Use of Software Tools (TOOL)
Multisite Development (SITE)
Development Schedule (SCED)
Platform
Time Constraints (TIME)
Main Storage Constraints (STOR)
Platform Volitility (PVOL)
Product
Required reliability (RELY)
Database Size (DATA)
Product Complexity (CPLX)
Required Reusibility (RUSE)
Documentation match to lifecycle needs (DOCU)
8m
© 2006-2009 by Warren S. Reid All Rights Reserved
17 w
Risks Known BEFORE Project Starts!
People/Resource Risks
Requirements Risks
Turnover, culture, x-comm.
Top Mgt Commit; Proj Champ
Partner; Ref. Checks/Ref’s Refs
Poor Project Charter
Defined, Baselined, Implied
Stability, Complexity
Project & Tech Mgmt Risks
Incomplete, Misunderstood, Gallop
I’faces, Data Conversion
Client, Depts, Users, IT, Vend, O/S consults,
attys, custs, analyst, mkt “expectations”
Unclear Leadership – SIPM
Process Risks
Project under- or mis-estimated
SEI-CMMi level; ETC &EVM Stds
Sched, $$, estimates, change control
Not enough time for testing
Shortcuts to SDLC on the fly
Technology
HW, SW, Net, D/B, Internet, Mobile Product & Other Risks
Performance, testedness & readiness
Security; Privacy
C – Correctness
I – Integrity
A – Available
Tool avail? mature? train? use?
-abilities (scale, use, test, port, maint)
Competent T/O proc, supt, maint?
compet; economy; org; regulatory
If you know beforehand… Plan, Contract for, Mitigate, Monitor, Manage Them!
10 m
© 2006-2009 Warren S. Reid All Rights Reserved
This model will change and be updated over time
18 s
What Can Possibly Be Misunderstood?!
… Everything!
People are different
People have different:
Objectives, perspective
Cultural bias, exp/educ/expertise
Styles of understanding/communicating
Abilities, talents, logic, creativity
Understanding of priorities
Fears: spoken and unspoken
Understanding of what is subjective v objective
Implied, understood, unspoken (needs, rqmts, sizzle)
So, what won’t be misunderstood?
4m
© 2006-2008 Warren S. Reid All Rights Reserved
This model will change and be updated over time
19 s
“We THOUGHT … Contract SAYS”
©2006-2009 by Warren S. Reid All Rights Reserved
# Category
What was Understood:
What the Contract Says:
1. Suitable
System description
Bounds scope; Uber-theme
2. What works?
Functional requirements
… as per specs dated _____
3. How well?
Performance reqmts
Scal- Port- Avail- Maint- Use- SMART
4. Who Does what?
Roles & responsibilities
RM? Dispute escal/resol? HR reqts?
5. How We Do It?
Conduct of project
WBS, estim, staff, delivs, PM, SDLC, bugs
6. Just for ME
Custom programming services
Config, SDLC, PM, est, test, I’face, maint
7. U prove 1st
Sys integ/interface/Test/Convert
Results NOT Resources; “Success” defin
8. Min Reqmts
Accept Testing Process
Who? How? When? Where? Criteria?
9. More Min Reqts
Key Deliverables: QA; Train; Doc;
It Works!
Exist? Imply v spec? Depth? UI (DD, DI,
DN, DNA) Maintainable? Signoff Procs
10. & Tomorrow?
Maint, upgrades, fixes
T/Over stds? Work stds? LTCO? SLA?
11. $$ = Mouth?
Proposals, workproduct, promises
“Parole evidence” rule; 4 corners only
12. Go-Live
ALL Systems Go!
What’s acceptable? Checklist? Vote?
13. Other
Costs/Pymts; ADR; TERMinate; Renew;
Title; X-hire; Site prep; Install hw, sw,
nw, BPR; confid;$ protect; Liab
limits & exclusions
There’s more to THE Sys than A sys (SOS):
12 m
$$ limits; penalties; ownership; holdbacks;
remedies; liability limits; privacy; hot sites
20 s
Why Are Contracts (K) So Important?
& Why Must YOU Know About Them?
Caveat: “Standard K form” favors V/large Ks; used as sub for good mgt/K activ
Caveat: K language often incomplete & ambig; drafters gone; shelf death
Clear & explicit delineation of Party rights, obligations & expectations
Requires ID, negotiation, appreciation others’ views, beliefs & objectives BEFORE deal
Generally produces much better :
working relationship during sane & emergency/surprise moments
prospect of proj success ($, Sch, F&F, QA, SH, Risk; <costs, staff, inv; > C serv, mkt share)
Must be a living document – able/willing to adapt to changes
Best K team knows: risks alloc,
So, Best Team has: CXO,
Matters of: Fact, Law, Evidence, Risk, Technology
4m
finan. resp, strong sense of VALUE,
CFO,
biz domain & tech eng/consult,
© 2006-2008 Warren S. Reid All Rights Reserved
This model will change and be updated over time
law skill
lawyer
21 s
Introducing: The IT Contracts Model
Allocate Risks; Keep On Target; Helps Lead to Project Succes
© Copyright 1998 – 2008 By Warren S. Reid and Richard L. Bernacchi, Esq. All rights reserved
The IT Contracts Model ties together seminal work of:
Richard (Dick) Bernacchi, Esq.,
Partner Emeritus from Irell & Manella, LLP
A founder of the Computer Law field, and
Warren S. Reid, CMC, CFE, CSQE, CSTE
IT expert w 40 years experience in IT contracts, litigation & expert witness areas
Book, monograph, peer reviewed articles author; “IT Success Models” Builder
Model ties key tasks, decisions, deliverables & quality aspects of Systems
Development Life Cycle with related, key IT contract clauses.
The IT Contracts Model was created to enable vendors, integrators, PMs, executives
& SMEs to better understand where/how they fit into the IT contracting process & to
allow them to make informed & measurable contributions to IT Contract Team.
*SDLC: Systems Development Life Cycle
© 2006-2009 by Warren S. Reid All Rights Reserved
3m
22 w
Who is Eric??
23
Your IT Contracting Team
24
The Systems Development Life Cycle: SDLC
All good methodologies
are the same!” WSReid
4m
© 2006-2009 by Warren S. Reid All Rights Reserved
25 w
The Systems Development Life Cycle: SDLC
Basics
Set Stage
Parties To The Contract
General Reps & Warranties
Definition Of Terms
Assignment Of Delegation
Interpretation Of Agreement
Site Preparation
System Configuration & Installation
Training
Documentation
Low Level, System & Integration
Acceptance Testing
2m
Risk Of Loss/Damage
Insurance
Price Protection
Renewal Options
Purchase Options
Trade-In Rights
Termination & ADR
Custom Programming Requirements
Conversion & Support Services
Title
License Rights
Proprietary Rights Indemnity
Confidentiality & Security
Risks & Rights
Project Timetable
Project Management & Reporting
Project Costs & Schedule Payment
Customize & Convert
Personnel
Maintenance
Warranties
Ownership & Protection
Pre-Go Live Items
Functional Rqmts/Performance Measure
Project Management
General Provisions
Recitals
Systems Description
Term & Termination
Limits & Exclusions Of Liability
Taxes
Miscellaneous Protections
Dispute Resolution Mechanisms
Special Outsourcing Considerations
© 2006-2009 by Warren S. Reid All Rights Reserved
26 w
Systems
3/21/2016
Development Life Cycle (SDLC)
Traditional/Disciplined
Life-Cycle Phases
Implement
Integration
Development
Requirements
Planning
Initiation
&
Sys Concept
Development
Begins when a
sponsor id’s need
for an opportunity;
Concept proposal
created. Defines
scope/boundary of
concepts.
Includes Systems
Boundary
document, Cost
Benefit Analysis,
Risk Management
Plan, and
Feasibility Study.
Agile
Develops a
Project
Management
Plan & other
planning
documents.
Provides the
basis for
acquiring the
resources
needed to
achieve a
solution.
Analysis
Analyses user
needs and
develops user
requirements.
Create a Detailed
Functional
Requirements.
Document.
Design
Transforms
detailed reqmts
docs into a
complete,
detailed Design
Document.
Focuses
on
HOW to deliver
the required
functionality
solution
Converts a design
into a complete info
system incl:
* acquire/install
sys environ
* create/test db
* prep test case
procs & files
* code, compile,
refine programs
* perform test
readiness rev
& procurement
tasks.
&
Test
Demonstrates
developed
system
conforms to
requirements as
specified in the
Funct Rqmts
Doc.
Conducted by
QA staff
(testers)/Users.
Produces Test
Analysis and
Defect Tracker
reports.
Includes:
* implement
preparation;
* implement
of system into
production
environment,
*
resolution of
problems
identified in
the Integration
and Test
Ops
& Maint
Describes tasks to
operate and
maintain info
systems in a
production
environment
including PostImplementation
& In-Process
reviews
Systems Development Life Cycle (SDLC)
One XP core value is open, honest, accurate communication.
XP Rule: Have a customer in the developers office, in line-of-sight at all times
Write tests first – before coding! These automated test cases become the requirements
Programming (and other development tasks) are performed in pairs
Agile teams are generally more experienced because work in a less planned environment
Next iterations of usable code (Sprints)are broken into small chunks every 2 – 6 wks by
Customer Rep. Iteration demonstrated to Rep before sent to Customer for testing.
Best on smaller/less complex projects. Daily Scrum meeting to present issues – not status.
© 2006-2010 by Warren S. Reid All Rights Reserved
27
When
to Use Agile vs. Planned
I.
V.
(Loss
Personnel Alister Cockburn
(% Level 1B)
Follow trained steps
Criticality
due to impact of defects)
4
1
0
5
3
2
0
0
2
2
0
5
1
3
0
0
0
3
(% Level 2 and 3)
tailor/revises meth
Agile Realities
Tacit knowledge
Customer rep on dev team & site
Paired programmers
Develop Tests1st: Unit/UAT
Pass cust rep demo before delivery
Limited (‘just enuf’) documentation
30 day deliv – valuable, work’g code
1
5
5
10
50
(%
30
II.
Dynamism
Requirements-change/month)
3
90
10
70
30
50
100
30
300
IV.
(Number
©
Size
of Personnel)
2006-2010 by Warren S. Reid All Rights Reserved
10
III.
(%
Culture
Thriving on chaos vs. order)
From
Barry Boehm & Richard Turner 2003
28
“Balancing Agility and Discipline”
SCRUM
PROCESS - Artifacts
EXTREME
PROGRAMMING
TENETS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Every member responsible
Understand Business Case
Det Broad Requirements Scope
Assemble Team
”Paired Programmers” PLUS
Reviews, Inspections, walkthrus
Write test cases 1st; rev; automate
Entire team in single room
Customer Rep(s) & QA on team
Adherence to Coding Standards
Team Demo/Approval
Deliver working code quickly
Develop test cases
Automated test
suite
II
.
•
•
I.
III.
Product Backlog
• Product Backlog
Burndown
•
VI.
Unit Tests = Funct Rqts
User Tests = Design Rqts
SCRUM
Update
Product
Backlog
•
•Daily Work
•Product
increment
[Sprint
PROCESS
RELEASE
Increment(s)]
Sprint
Retrospective
•
•Daily Scrum
Devel test cases:
•Sprint
Review
Sprint Backlog
Sprint Backlog Burndown
• Impediment List
• Sprint Retrospective; Updated Estimates
•
•
ARTIFACTS
•
•
Reqmts docs (?)
Estimation docs
Vision, biz case, funding
• Contract; Assemble team
• Init backlog/release plan
SCRUM
• Stakeholder buy-in
•
Sprint
Planning
Meeting
•
IV.
PROCESSES:
Error Mgmt System
V. Test
Debugging; Code Turnover; Escalation
Conversion & Interface; Implementation
© 2006-2010 by Warren S. Reid All Rights Reserved
The Systems Development Life Cycle (SDLC) &
Its Relationship to the “Successful” IT Contract
Basics
Set Stage
Recitals
General Provisions
Ownership & Protection
Term & Termination
Limits & Exclusions Of Liability
Taxes
Miscellaneous Protections
Dispute Resolution Mechanisms
Systems Description
Functional Reqmts & Perform Measure
Project Management
Site Preparation
System Configuration & Installation
Training
Documentation
Low Level, System & Integration
Acceptance Testing
Customize & Convert
Project Timetable
Project Management & Reporting
Project Costs & Schedule Payment
Pre-Go Live Items
Risk Of Loss/Damage
Insurance
Price Protection
Renewal Options
Purchase Options
Trade-In Rights
Termination & ADR
2m
Title
License Rights
Proprietary Rights Indemnity
Confidentiality & Security
Risks & Rights
Parties To The Contract
General Reps & Warranties
Definition Of Terms
Assignment Of Delegation
Interpretation Of Agreement
Custom Programming Requirements
Conversion & Support Services
Personnel
Maintenance
Warranties
Special Outsourcing Considerations
© 2006-2009 by Warren S. Reid All Rights Reserved
30 w
The IT Contracts Model for Successful Contracts (Top Level)
2m
© 2006-2009 by Warren S. Reid All Rights Reserved
31 w
The IT Contracts Model for Successful Contracts (Broken down – Lawyer side)
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o
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1m
© 2006-2009 by Warren S. Reid All Rights Reserved
32 w
The IT Contracts Model for Successful Contracts (Broken down – IT side)
O
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.
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O
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1m
© 2006-2009 by Warren S. Reid All Rights Reserved
33 w
The IT Contracts Model for Successful Contracts (Detailed)
http://www.wsrcg.com/PDFs/model_itcontracting.pdf
28. TERM & TERMINATION (K)
22. RISK OF LOSS/DAMAGE (J)
22.1 During shipment
22.2 After shipment
22.3 Cross-reference to insurance provisions
28.1 Initial term of K(K) 28.2 Renew at Term(s)
28.3 Def of breach by V 28.4 Def of breach by B
28.4 Definition of breach by B
28.5 Notice of breaches & cure provisions
28.6 Termination by V for breach by B
28.7 Termination by B for breach by V
28.8 Termination by V or B for insolvency/BK
28.9 Obligs of V & B to assure smooth transition
28.10 Survival of certain provisions
11. GENERAL PROVISIONS (L)
I. Parties to 'Contract' (L)
i.1
i.3
i.4
i.5
Savvy MIS/IT Contracts that: Allocate Risks, Keep You on Target, Help Lead to Success
Correct legal names i.2 Principal places of biz
Legal Relat’shp to other entities involved in tranx
State or jurisdiction of incorporat'n/formation.
Authority of signatories
© Copyright 1998-2008 By Warren S. Reid & Richard L. Bernacchi, Esq. All rights reserved
ABBREVIATIONS:
An ORAL contract isn't worth the paper its
written on!
0. BASICS (M)
K = Contract Pty = Party (to a contract)
V = Vendor; B = Buyer
BU = Backup
3.1 Desc of biz funct to be performed (or x-ref to RFP)
SDLC = System Development Life Cycle
3.2 Rqm ts Elicitation (RE)/Scope Change (s ) Process
sw
= softw are; hw = hardw are; nw = netw are
- ID specif Users/Classes; assure/sched availability
0.1 No such thing as a PERFECT contract (K)
29. LIMITS & EXCLUSIONS OF LIABILITY (K)
proc = process; proj = project LT = Long Term
- Prep timeline; ID RE technq/tools/docs used/produced
0.2 The PROCESS is key, NOT just the contract
29.1 Express/ implied w arr disclaim not inc in K
PM = Project Manager recs = recommendations
- Escalation/dispute resolution process
0.3 K is a LIVING doc; w illing to adapt to change
III. Definition of Terms (L)
29.2 Exclusion of consequential damages
relat'shp = relationship proc = process(es)
- Scope s process: proposed, est all im pacts,
0.4 K lang often ambig/incomplete; Drafters gone
29.3 Limits on V’s liabilities 29.4 Limits on B’s liabs
IV. Assignment or Delegation (L)
decis crit, doc, update ests, CPM, staff, m onitor
s = delta = change Desc = description
0.5
Clear/explicit
delineat'n
V/B
rights,
obligs,
expects
29.5 Xcept'ns to disclaimers, exclusions/Limits
RFP = Request For Proposal ID= identify
iv.1 Restrictions on assignment &/or delegation
Em
brace
change:
Iterative,
Incremental,
interactive
0.6 Req. ID, negot, apprec others' view s, objs B4 deal
24. PRICE PROTECTION (J)
rqm t = requirement; RE = Rqmts Elicitation (proc)
iv.2 Exception for affiliated entities
3.3
Incorp
of
Functional
Requirem
ents
Docs
30. TAXES (K)
0.7 Generally produces much better:
24.1 Limits on future price or fee increases
iv.3 Exception for business reorganizations
- Rqts incl: success crit; '-abilities'; F&F current/future;
30.1 Responsib for sales/use & prop taxes, etc.
a. w ork'g relat during emergency/surprise periods
2. DESC OF SYSTEM (A)
24.2 Disc'ts on future procurem'ts & period of Avail
iv.4 Except'n for sale or transfer of substant all biz
UI; rpts; biz procs & rules; ops parms; doc map; RTM; 5. PROJECT MANAGEMENT (PM) & REPORTING (C)
30.2 Right to contest & indemnity
b. prospect of project success:
5.1 Steering Comm role, structure, makeup, processes
2.1 Desc/specs for equip, compo'nts, media, cable, etc.
24.3 Most favored cust treatment & period of Avail
iv.5 Consents not unreasonably w ithheld
GAPs/s s; rollout plan; test results; sys.stability; Go30.3 responsibility for filing returns
i. $, Sch, F&F, QA, SH, Risk
5.2 SWAT Team role, structure, makeup, processes
2.2 Configuration w arranty
24.4 Guaranteed prices & period of Avail
Live checklist; rqts s process/tools; defer/tradeoff;
30.4 responsibility for interest & penalties
V.
Interpretation
of
Agreement
(L)
ii.
<
costs,
staff,
inv;
>
C
serv,
mkt
share
5.3 Nam ed Sys Integrator's role, resp, auth, accountability
2.3 Desc & specs for sys sw ; current; complete; usable
24.5 Relat’shp to trade-in provisions
training plan; converted data; legacy I'face; security
30.5 Investment tax credit representations
v.1 Entire agreement v.2 Governing law
0.8
Best
K
Team
know
s:
alloc
risk;
$
resp;
law
;
value
5.4 Desc of V’s project team; Desc of B’s proj team
2.4 Desc & specs for packaged apps sw
passw ords; enabled Ops/ Maint. Groups, etc
30.6 Remedies for breach invest tax credit reps
v.3
Venue
of
litigation
or
arbitration
25. RENEWAL OPTIONS (J)
0.9 Best Team:CXO; CFO; Law yer; SME/eng xperts
2.5 Desc & specs for custom mods to packaged apps
3.4 Incorp of V’s proposal(s), w ebsite, marketing matl, etc. 5.5 Designation of V’s PM; Designation of B’s PM
31. MISCELLANEOUS PROVISIONS (K)
v.4 Consent to in personam jurisdiction of courts
25.1 Renew al of hw maintenance support
5.6 Determ SDLC METHOD to be used; rules to deviate
2.6 Desc & specs for custom sw apps to be devel by V
3.5
Perform
ance
Param
eters:
31.1 Avail of spare parts
v.5 Situat'n making liquidated damages reasonable
25.2 Renew al of sw maint &/or enhancem't support
5.7 PM Tools/Measures: EVM; CPM; ETC; $/sch variances
2.7 List & Desc of all manuals, system & user docs, etc.
a.
Relationship
to
functional
processing
rqmts.
31.2 Specs for & Avail of supplies
Contracts are
v.6 Joint participation in drafting of K
25.3 Lease renew al(s)
5.8 V’s resp for PM; proj rpt'g: format; freq; distrib; detail
2.8 Incorp of RFP, proposals, brochures, mktg matls, etc.
b. Types & volumes of data to be stored
31.3 Covenant not to solicit employees
v.7 Partial invalidity; severability
NEVER Perfect
25.4 Calc of charges or fees w /i renew al period(s)
2.9 Sys Def (5 Rs: Right person; truck; tools; address; time)
5.9 V’s/B's resp: BPR/new proc dev, link, train, test, approv
c. Number of users; Locations
31.4 Performance bonds
v.8 Remedies not exclusive
2.10 Definitions of other terms & Relationship to system
5.10 V’s resp to ID, manage, mitigate RISKS, probs, delays
d. Special features or capabilities
31.5 Applicability of UCC
26. PURCHASE OPTIONS (J)
v.9 Number & gender v.10 Waivers
2.11 Testing: proc; types; rqmt; tools; staff; doc; S/O; crit
5.11 B’s responsibity to address V's probs/recs in proj rpts
CONTRACTING:
e. Hosting, SaaS, other service act w trial period
31.6 Rules re publicity 31.7 Quiet enjoyment
26.1 Guaranteed prices & period of Avail
GENERAL
2.12 X-refs to other K provisions & exhibits (inc Biz Case)
STRATEGY
5.12 B’s responsibility to assist V
g. Use by affiliates
Contracts
26.2 Credits for rent or lease payments
PROVISIONS
& TEAM
32. DISPUTE RESOLUTION MECHANISMS (K)
5.13 B’s responsibility for project problems or delays
h. Transfers to other CPUs or locations
Balance
liabil
limits
w
26.3 Method of exercising option
ALLOCATE
32.1 Mediation by designated party reps
5.14 Relationship to project timetable
Contract Oxymorons
i. Right to make copies, incl bkup or archiv copies
11. General Provisions:
essential purpose of
26.4 Assignability of options
32.2 Arbitration
Risks
5.15 Remedies for loss/reassignment of V’s Proj Mgr (PM)
- Parties - Gen'l Reps/Warranties - Clearly misunderst'd - Act Naturally
NUTS: Not Using
j. Grow th cap meas'ed in increas tranx process rate
SET
STAGE
26.5 Relat’shp to accept (AT), w arranty, maint provis
remedies
- Definitions - Assignm ent a. Types of disputes & method of initiating
k.
Capacity
for
field
modification
or
enhancement
The
Standards
12. PROJECT COSTS & PAYMENT SCHED. (C)
- Same difference - Exact estimate
1. Recitals
Interpret'n
b. Location; c. # of arbitrators ("arbs")
l.
Other
V
representations
2. System Desc
U-CRINGE: Unplanned Chang'g
12.1 Hw prices, if purchased (incl “bundled” sw )
27. TRADE-IN RIGHTS (J)
- Good grief
- Test organization
d. Qualificat'ns of arb(s) e. Arb selection
The
3.6
Perform
ance
"-ABILITIES"
12.2 Sw prices, if purchased (& if 2b stated sep
Rqmts IN-validate Good
27.1 Right to upgrade to new avail hw /sw ; avail per'd
BARGAIN?
f. Compensation of arbitrators
SW QA: ['-abilities'] hw , sw , nw , architecture
Economics/Engineering
12.3 Rental or lease pymts & method of calc
27.2 Right to upgrade to curr avail hw /sw & avail per
The “HE SAID… SHE SAID…” Chart – for Failed Software Projects
g. Arbitration rules & procedures
USERS (Extl): Avail- Depend- Flex- Integ12.4 License f ees f or sof tw are and applications
27.3 Calculation of trade-in credits
h. Provisional remedies
Oper- Reli- Modif- Use- Scala Safety Secur12.5 Training f ees; Ref resher train'g devel & f ees
27.4 Relat’shp to compatibility representations
K Area
Category:
What Users, Acquirers,
What Vendors, Software Developers,
i. Discovery rules j. Rules of Evidence
Surviv- R&R- Config- Utility; $ Effect [vs benchm 'ks]
SDLC Step
12.6 Maintenance f ees f or equipment and/or sw
27.5 Relat’shp to guaranteed or future discounts
X-Ref
“-abilities”
In-house IT Dept Teams Say:
Sys Integrators Say:
k. Funding of arbitration costs
DEVELS (Internal): Adapt- Audit- Deploy- Reuse- Test12.7 Fees/$ f or addl services (hosting; SaaS; BU)
27.6 Relat’shp to perform meas, AT, w arr, maint provis
3. Funct Rqm ts & Interop- Maint- Perform- Port- Extense- Struct1. Reimbursement of costs & fees
TERMINATION
12.8 Partial payments tied to major milestones
Biz Case/Reqts
System doesn’t work; Not
You changed your minds; You don’t
Perform Measures
m. Governing law
n. Briefs
2, 3
Feasibility
& ADR
ManufactTraceReuseTESTStruct12.9 Start date f or rental or lease payments
Feasibility
what we wanted
know what you want/need; Not viable
o. Findings & conclusions
3.7 Relationship to acceptance criteria & testing
12.10 Commencement date f or license f ees
28. Term /Term inat'n
q. Rendering & enforcement of aw ard
3.8
Relationship
to
ongoing
m
aintenance
reqm
ts
12.11 Commencement date f or maintenance f ees
Reqts Elicit/
You delivered limited
29. Lim its/Excl to Liab
3,
8
Capability
You
continually
changed
project
scope
32.3 Use of sys pending resolution of disputes
30. Taxes 31. Misc
12.12 Credits or of f sets f or delays or f ailures
Scope Mgmt
functionality/performance
32. Dispute Res Meth
12.13 Ref unds if Contract is terminated
4. PROJECT TIMETABLE (C)
Contracts are 4.1 Definition of proj tasks
3, 14,
BPR/
The system failed in the field
You didn’t perform required ‘business
12.14 Most f avored nation clause
If you go to court,
33. Special Outsourcing Considerations (H)
18. TITLE (I)
Compatibility
S
15
Accept Test
process reengineer’ to make it work
Computer& in production
an SDLC STEP 4.2 Definition of deliverables for each task
12.15 No mods/addtl charges w /o w ritten approval
you've already
18.1 V’s reps as to ow ner/rights to transf hw /sw
c
12.16 Invoicing procedures
4.3
Estim
ating
meth
used;
assumps;
update
procs
Contract
lost
18.2 Transfer of title to hw
Recitals/
Your software, services &
You conducted ref checks & Due
PROJECT
33.1 Biz Considerations, & RISKS (H)
12.17 Supporting docs
1,
2,
3
Credibility
4.4
B’s
responsibilities;
V’s
responsibilities
18.3 Retention of security interest
MGMT (PM)
Feasibility
expertise werehoversold
Diligence; What didn’t you do/know?
33.1a “59% of all O/S Ks fail” (Com pass '05; Forrester
Collaboration
12.18 Required notice f or price increases
4.5
Target
completion
dates
by
task
18.4 Execution of security docss
33.1b SOX/Regs adherance; No subbing to China
(c) 1991-2008 ©2003-8
e
4.
Project
Tim
etable
12.19 Personnel/services rates to price chg orders
4.6 Final completion dates by task
Training/
NoWS
oneReid
can use system! Poor
“Required staff” never came to
33.1c Think w /cost 70-80% less but only profit 20-30%.
18.5 Release of security interest upon payment
RLBernacchi,
RISKS &
W arren S. Reid
5. Proj Mm t & Reporting
10, 11
Usability
12.20 Limits on price increases
Implement
training
primary/refresher training
d
In fact, m ost report 1st year savings of 0%
12. Proj Costs & Pay Sched 4.7 B’s right to delay or cancel proj tasks
18.6 Title xfer to sw (or x-ref to licensing provis)
RIGHTS
4.8 Major perform milestones & relat’shp to pymt sch 12.21 Right to benef it of price reductions
18.7 Ow ner/license/mkt rights to V made sw mods 33.1d 'Please You; Don’t Ask?'; 90% of tim e w /say "OK" 22. Loss/Dam age Risk
1, 14,15
Selection
Stability
System fundamentally flawed
We only need 2 months to fix it all
12.22 Relationship to Contract remedies
4.9 Delay remedies & bonuses for early perform
18.8 Ow ner/license/mkt rights to B made sw mods 33.1e Tim e Zone diff; Infrastructure poor; 22 official
23 Ins 24. Price Protect
12.23 Payments under protest
too m any polit parties; Turnover by
4.10
Relationship
to
termination
rights
4,
5,
12,
Project/Risk
You
never
told
us
that!
You
You
didn’t
follow
our
recs;
You
25.
Renew
Opts
26.
18.9 X-ref to license & authorized use provisions
Culpability
12.24 Of f set rights
33.1f Security/privacy law s; cyber crim e; terrorism
Purch Opts 27. Trade- in
4.11 Prompt notice of anticipated delays
13
Mgmt
gave poor advice!
changed/delayed making decisions
18.10 Rights to use ideas/invent'ns devel dur'g proj
Rights
12.25 Relat’shp to dispute resolution mechanisms
33.1g M/have both orgs' staff on both sites; Build trust
8, 9. 14,
Bad data conversion/interface cause
33.1h
Define
Success
(iterative,
increm
ental,
6.
SITE
PREPARATION
(D)
Contracts take
Testing
Reliability
The system is full of bugs!
19. LICENSE RIGHTS (I)
14. LOW LEVEL, SYSTEM & INTEGRAT'N TESTS (D)
15
probs. Always have bugs!
33.1i.
OS
in
internat'l
m
arket
w
/o
int.
ops
exper
6.1
Preparation
&
delivery
of
site
prep
specs
OWNERSHIP
14.1 Diagnostic tests of hw , infra, netw are
19.1 Exclusive or non-exclusive rights
time, $, hard work
33.1j No variety of perspectives in selection process
6.2 B’s (or V’s) obligation to prepare site
&
14.2 All Kinds of System s:
19.2 Term of license
Project
You failed as Systems
No! YOU failed as the SIPM. That role
33.1k Using poorly devel/docum ented serv/prod spec
4, 5, 12
Responsibility
6.3 V’s oblig to clarify specs, inspect & certify
PRE GOPROTECTION
End-User; MIS; Outsourced; Commercial;
19.3 Products covered
Mgmt
Integration Proj. Mgr. - SIPM
was not my job!
33.1l Not doing biz/financial due diligence on OS candid
LIVE ITEMS
6.4 B’s obligation to approve
Military; Operating Systems (latent error stats avail)
19.4 Types of use permitted:
33.1m Insuff know ledge of OS capacity lim its
18. Title 19. License Rts
6.5 Remedies for improper site preparation
Bait
&
Switch!
Staff
unqual,
hi
YOU
bait
&
switch!
Staff
unqualif’d,
hi
14.3 All m anner of tests for funct & '-abilities' incl:
a. Types of equipment
20. IP Rights Indem nity
13
Staffing
Availability
33.1n Not resolv'g ops issues b4 m ove to K legal
6.6 Remedies for inspection errors
6. Site Prep
T/O,
poor
PMs,
Steer
Com
T/O,
poor
PMs,
Steer
Com
Dynam ic tests - ~85% incl:
21. Confidential/Secure
b. Number of CPUs
7. Config Deliv/Install 6.7 Effect on proj timetable
33.1o No full com plan in effect; no escal, reg sch
- w hite/black box; sub-routine; unit; integ, system
10. Training 11. Docs
c. Number of users
Planning/
You stopped good PM & Sys
You were unwilling to comply w
14. Low er Level Tests
11
Suitability
- Interface, data audit, test of/w converted data
d. Types of apps
OutSourcing:
SDLC
Dev Life Cycle (SDLC) method
agreed to/promised/necess methods
7. COMPUTER CONFIG DELIV & INSTALL (D)
15. Accept Tests
33.2 Contract ("K") Considerations (H)
- new funct; regression; performance; capability;
M Kane, W Gross
e. Timesharing or service bureau activities
7.1 Delivery of complete equipm't configuration
© 2007 Michele Kane, Wendy Gross all rights reserved
- Indep V&V; Viral, Security; Acceptance; Beta
f. Locations
You
can
define
"SUCCESS"
either
BEFORE
contract
is
7.2
Delivery
of
operating
sys
&
other
system
sw
33.1 Biz Consid's
Contracts 'Incentivize' Parties to Cooperate
33.3
Train
both
Cust
&
OS
m
gm
't
&
operations
on
O/S
K
- '-ability' (use-, scal-, port-, maint-, reuse-,
signed
or
AFTER
delivery.
BUT
IT
WILL
BE
DEFINED!
g. Use by affiliates
33.2 K Consid's
7.3 Access to site
33.4 Proc to initiate/request new service, s , projs
recover-, failover, stress, bullet & many more
h. Transfers to other CPUs or locations
7.4 Installation obligations of V
8. CUSTOM PROGRAMMING SERVICES (E)
33.5 Right to use 3rd party OS to in-source/re-source
SERVICE
POST
Static
Tests - ~15% incl:
CUSTOMIZE &
7.5 Installation obligations of B
i. Right to make copies, incl bkup/archiv copies
STAFFING
8.1
Incorp
of
functional
processing
rqmts
docs
GO-LIVE
33.6 Control of arch, tech, and org change stds
- review s; w alk-thrus; inspections
CONVERT
7.6 Diagnost tests & relat'n to Accept Test provis
16. Warrantees
19.5 Rights to source code &/or hw mainten docs
8.2
V’s
obligation
to
develop
custom
apps
33.7 O/S obligs to update w tech advances; refresh tech
14.4 For each test level consider no. of tests and:
17. Maintenance
7.7 Def of completion of equipment installation
19.6 Relat’shp to assignment rights
Contracts
force
parties
8.3
Relat’shp
to
stipulated
performance
measures
33.8 SLAs (how they w k, credits, contin im prov oblig, s )
- Goal, objectives, success criteria
7.8 Remedies for delays in delivery or installat'n
19.7 Relat’shp to V’s termination rights
17. MAINTENANCE (G)
8.4 Relat’shp to proj timetable
to understand objectives
33.9 Com m itm ents regarding supplier personnel
- Def of accept results to move to next test level
8. Custom Prog Services
7.9 Relat’shp to termination rights
17.1 Start date/maint period
33.10 Financial term s
- Test tools: decide, acquire, train; # test environs
9. Convert/Other Suppt Serv 8.5 Development by V of detailed design specs
20. PROPRIETARY RIGHTS INDEMNITIES (I)
13. Personnel
17.2 V’s termination rights
8.6 Review /approval by B of detailed design specs
33.11 Ow nership of custom devel/other w ork product
- Exper test staff: leads, SMEs, analyst, testers, QA
20.1 V’s indem vs infring: patent/ (c)/ trade sec/IP
10. TRAINING (D)
17.3 Required notice for termination
8.7 ID B's resp to create, dev, link, test new BPR
33.12 Term ; term inat'n assist services/term in rights
13.
PERSONNEL
(F)
- Test: sched, train'g, environ, equip; access
20.2 Notice of claims
17.4 B’s renew rights for guaran period
10.1 V’s obligation to provide training
8.8 Prog stds spec; x-ref to sys, prog, user docs std
33.13 Min retent'n per for transit'ned (T) & LT key Ees
13.1 V’s staff quals/B’s approv rights; evals; courses; exper
- Test results review : w ho, w hen, turnaround time
20.3 V’s obligation to defend
17.5 Relat’shp to performance measures
10.2 Qualifications of trainers
8.9 Specification of change order procedures
33.14 Diff for single silo outsourc'g than for “big bang” tranx
13.2 Application certified/certificates; Updated CMMi rating
- No. of shifts, def of scenarios; end-to-end tests
20.4 B’s obligation to cooperate
17.6
Types
&
Desc
of
maintenance
support
10.3
Location
of
training
8.10
X-ref
to
system
&
acceptance
test
provisions
staff
know
l
33.15 Keep
in: apps, biz, in-scope tech, procs to manage OS
13.3 Periods of Avail
- Std test docs; signoff; rigor & format of error logs
20.5 B’s right to participate in defense
17.7
Notice
of
defects
or
problems
10.4
Stds
for
acceptable
performance
8.11
V’s
responsib
for
acceptable
unit/sys
test
procs
33.16 K provisions to secure appropriate supplier talent:
13.4 Prohibitions against interruptions in Availability
- Rigor of error root cause id, est to fix, fix process
20.6 V’s oblig to replace/modify infringing products 33.17 K provisions to lim it use of subs (e.g., to China)
17.8 Classific of types & criticality of maint probs
10.5
Relat’shp
to
timetable
8.12
V’s
obligat'n
to
deliv
source
code
&
related
docs
13.5 Temporary replacements for sickness, etc.
- Test metrics to rept progress, issues and probs
20.7 V’s rights to remove infringing products
17.9 Required dispatch or respond time(s)
10.6 Relat’shp to proj costs
8.13 Relat’shp to proj timetable
33.3 Change process: biz, staff, tech, ind stds, law s,
13.6 Right to request replacements
14.5 Desc of error severity levels and time to repair each
20.8 Calc of B’s refund for products removed by V 33.18 Lim it unnecess charges: data recovery; serv re-perform
17.10 Escal of maint suppt if delays to correct probs
10.7 Availability of student matls
8.14 Remedies for delays in completion
13.7 Prohibition against removal or reassignment
14.6 Escalation Process; SWAT - SW Adjudication Team
17.11 Maximum repair time
10.8 Avail of instructor’s matls & training
8.15 Relat’shp to termination rights
33.19 Baseline OS resources for ongoing suppt & projs
14.7 Maintenance service during testing
21. CONFIDENTIALITY & SECURITY (I)
17.12 Uptime guarantees
10.9 Number of trainees
14.8 Relat’shp to performance measures
to allow C to re-priorit/assign OS services/resources
21.1 Definition of V’s confidential information
9. CONVERSION & OTHER SUPPT SERVICES (E)
17.13 Replacement of “lemons”
10.10 B’s rights to reproduce & use training matls
16. WARRANTIES (G)
14.9 Remedies for failure to meet test criteria
33.20 K s/req OS to track: asset type/loc, ID, ser/m odel
21.2 Definition of B’s confidential information
9.1 Data convert: plan, cleanse, map; load; audit; S/O
17.14 Avail of spare parts or components
10.11 Continuing Avail of std V classes
16.1 V’s financial condition
14.10 Relat’shp to termination rights
21.3 Scope of V’s obligs for confidentiality/security #s, in serv date; sw /hw vers/upgrades; if ow n: lease,
9.2
Data
&
Apps
sched,
resources,
conversion
17.15 Limits on Vs refurbishment rights
10.12
Continuing
Avail
of
on-site
training
by
V
16.2 hw w arranties
21.4 Scope of B’s obligs for confidentiality/security licen/fin resp pty; Tie apps to servers; Log s
9.3
Development
of
test
data
15. ACCEPTANCE TESTING (D)
17.16
B’s
rights
to
perform
maintenance
10.13
Remedies
for
delays
in
provid
suitable
train
s
16.3 sw w arranties
21.5 Remedies for breach
15.1 Live or simulated environ; w new BPR
9.4 Assist to B w ith site acquisition &/or prep
17.17 B’s rights to maintenance manuals
16.4 Service w arranties
33.21 Coop Oblig: betw OS/C/3rd parties; staff; facilities,
21.6 Relat’shp to termination provisions
11.
DOCUMENTATION
(D)
15.2 Desc of test data & responsibility for prep
9.5 Assist to B in acquiring other products/services
17.18 B’s rights to maintenance training
16.5 Pass through of third party w arranties
equip, sw , doc, biz process access; Adding new OSs;
15.3 Desc of test procedures & criteria
11.1 Desc of types of docs
9.6 Assist to B in locating & screening employees
17.19 Limits on B’s rights to perform maintenance
16.6 Relat’shp to performance measures
33.22 K cost reduct'n com m its, process im prov; Stds im plem
15.4 Relat’shp to funct rqmts & perform stds
11.2 Doc stds for user, system & program docs
9.7 Coordination of telecom procurement
17.20 Remedies for delays in providing adeq maint
16.7
Start
date(s)/length
of
w
arranty
period(s)
15.5 Period of testing
33.23 Service level im prov (esp if SLAs m et but serv unsatis
11.3 Relationship to proj timetable
9.8 Responsibility for trouble-shooting
17.21 V’s obligation to coordinate third party maint
16.8
Relat’shp
to
maintenance
provisions
15.6 Review of test results
33.24 Term inat'n assist: doc plan; staff; all equip, sw ,
11.4 Relationship to performance measures
9.9 Assist to B w ith development of backup plans
17.22 B’s right to get maint o/s principal maint period
16.9 Scope of w arranty obligations
15.7 Correction of errors & problems
11.5 B’s rights to reproduce docs
m atl, data, 3rd pty Ks/ tools to prov serv; train C/ 3rd pty
9.10
Assist
to
B
w
ith
backup
arrangements
17.23 Limits on increases in maintenance fees
16.10 Remedies for failure to meet w arr obligs
15.8 Definition of acceptance
11.6 B’s rights to future docs or enhancements
9.11 Assist to B in developing security plan
17.24 B/U equip avail during extended maint periods
in equip, sw , tools; Right to em ploy OS staff; Right to
15.9 Remedies for failure to meet accept criteria
16.11 Assignability of w arranties
11.7 B’s rights to source code & related docs
17.25 B’s rights to future enhancements
9.12
Assist
to
B
in
develop'g
disaster
recovery
plan
33.25 Counsel’s role does not end w hen deal signed!
15.10 Relationship to w arranty & maint provisions
16.12 Relat’shp to disclaimers/Limits of V’s liabs
11.8
Remedies
for
delays
or
inadequate
docs
17.26 B’s rights to assign maintenance rights
9.13 Pre-installation machine time
15.11 Relationship to termination rights
23. INSURANCE (J)
23.1
23.2
23.3
23.4
23.5
23.6
23.7
V’s obligations to provide insurance
B’s obligations to provide insurance
Types & scope of coverage
Acceptable underw riters
responsibility for payment of premiums
responsibility for processing claims
Relat’shp to Limits of liability
II. General Reps & Warranties (L)
ii.1 Legal status of entity ii.2 Auth to enter into K
ii.3 No conflicting agreements
ii.4 No legal impediments ii.5 No brokers/agents
3. FUNCT RQMTS & PERFORMANCE MEASURES (B)
1. RECITALS (A)
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
V’s areas of expertise, experience, etc.
B’s business & data processing rqmts
V’s ability or experience to handle B’s rqmts
Spec/execut'n of a quality RFP process; req V services
B’s issuance of Request For Proposals (RFP)
V’s Response to B’s RFP; feasibil, honest, suitabl
Addtl docs or communications betw een B & V
Proposal eval factors & assumpts affecting B’s decis'ns
Biz Case Discussion (?)
M
L
A
B
K
Cost
Q
A
J
C
Reid's
REqmts
Remedies
F&F
I
D
H
G
3m
E
F
© 2006-2009 Warren S. Reid All Rights Reserved
This model will change and be updated over time
34 w
28. TERM & TERMINATION (K)
22. RISK OF LOSS/DAMAGE (J)
22.1 During shipment
22.2 After shipment
22.3 Cross-reference to insurance provisions
23. INSURANCE (J)
23.1
23.2
23.3
23.4
23.5
23.6
23.7
V’s obligations to provide insurance
B’s obligations to provide insurance
Types & scope of coverage
Acceptable underw riters
responsibility for payment of premiums
responsibility for processing claims
Relat’shp to Limits of liability
24. PRICE PROTECTION (J)
24.1
24.2
24.3
24.4
24.5
Limits on future price or fee increases
Disc'ts on future procurem'ts & period of Avail
Most favored cust treatment & period of Avail
Guaranteed prices & period of Avail
Relat’shp to trade-in provisions
25. RENEWAL OPTIONS (J)
25.1
25.2
25.3
25.4
Renew al of hw maintenance support
Renew al of sw maint &/or enhancem't support
Lease renew al(s)
Calc of charges or fees w /i renew al period(s)
26. PURCHASE OPTIONS (J)
26.1
26.2
26.3
26.4
26.5
Guaranteed prices & period of Avail
Credits for rent or lease payments
Method of exercising option
Assignability of options
Relat’shp to accept (AT), w arranty, maint provis
28.1 Initial term of K(K) 28.2 Renew at Term(s)
28.3 Def of breach by V 28.4 Def of breach by B
28.4 Definition of breach by B
28.5 Notice of breaches & cure provisions
28.6 Termination by V for breach by B
28.7 Termination by B for breach by V
28.8 Termination by V or B for insolvency/BK
28.9 Obligs of V & B to assure smooth transition
28.10 Survival of certain provisions
29. LIMITS & EXCLUSIONS OF LIABILITY (K)
29.1
29.2
29.3
29.5
Express/ implied w arr disclaim not inc in K
Exclusion of consequential damages
Limits on V’s liabilities 29.4 Limits on B’s liabs
Xcept'ns to disclaimers, exclusions/Limits
30. TAXES (K)
30.1
30.2
30.3
30.4
30.5
30.6
Responsib for sales/use & prop taxes, etc.
Right to contest & indemnity
responsibility for filing returns
responsibility for interest & penalties
Investment tax credit representations
Remedies for breach invest tax credit reps
31. MISCELLANEOUS PROVISIONS (K)
31.1
31.2
31.3
31.4
31.5
31.6
Avail of spare parts
Specs for & Avail of supplies
Covenant not to solicit employees
Performance bonds
Applicability of UCC
Rules re publicity 31.7 Quiet enjoyment
3/21/2016
11. GENERAL PROVISIONS (L)
I. Parties to 'Contract' (L)
i.1
i.3
i.4
i.5
Correct legal names i.2 Principal places of biz
Legal Relat’shp to other entities involved in tranx
State or jurisdiction of incorporat'n/formation.
Authority of signatories
II. General Reps & Warranties (L)
ii.1 Legal status of entity ii.2 Auth to enter into K
ii.3 No conflicting agreements
ii.4 No legal impediments ii.5 No brokers/agents
III. Definition of Terms (L)
IV. Assignment or Delegation (L)
iv.1
iv.2
iv.3
iv.4
iv.5
Restrictions on assignment &/or delegation
Exception for affiliated entities
Exception for business reorganizations
Except'n for sale or transfer of substant all biz
Consents not unreasonably w ithheld
V. Interpretation of Agreement (L)
v.1
v.3
v.4
v.5
v.6
v.7
v.8
v.9
Entire agreement v.2 Governing law
Venue of litigation or arbitration
Consent to in personam jurisdiction of courts
Situat'n making liquidated damages reasonable
Joint participation in drafting of K
Partial invalidity; severability
Remedies not exclusive
Number & gender v.10 Waivers
The MIS/IT Contracts Success Model: Allocates Risks, Enforces Focus, Leads to Success
© Copyright 1998-2010 By Warren S. Reid & Richard L. Bernacchi, Esq. All rights reserved.
An ORAL contract isn't worth the paper its
written on!
0. BASICS (M)
0.1 No such thing as a PERFECT contract (K)
0.2 The PROCESS is key, NOT just the contract
0.3 K is a LIVING doc; w illing to adapt to change
0.4 K lang often ambig/incomplete; Drafters gone
0.5 Clear/explicit delineat'n V/B rights, obligs, expects
0.6 Req. ID, negot, apprec others' view s, objs B4 deal
0.7 Generally produces much better:
a. w ork'g relat during emergency/surprise periods
b. prospect of project success:
i. $, Sch, F&F, QA, SH, Risk
ii. < costs, staff, inv; > C serv, mkt share
0.8 Best K Team know s: alloc risk; $ resp; law ; value
0.9 Best Team:CXO; CFO; Law yer; SME/eng xperts
Contracts are
NEVERPerfect
L
CONTRACTING:
STRATEGY
& TEAM
GENERAL
PROVISIONS
32. DISPUTE RESOLUTION MECHANISMS (K)
M
1. RECITALS (A)
1.1 V’s areas of expertise, experience, etc.
1.2 B’s business & data processing rqmts
1.3 V’s ability or experience to handle B’s rqmts
1.4 Spec/execut'n of a quality RFP process; req V services
1.5 B’s issuance of Request For Proposals (RFP)
1.6 V’s Response to B’s RFP; feasibil, honest, suitable
1.7 Addtl docs or communications betw een B & V
1.8 Proposal eval factors & assumpts affecting B’s decis'ns
1.9 Biz Case Discussion (?)
ABBREVIATIONS:
K = Contract Pty = Party (to a contract)
V = Vendor; B = Buyer
BU = Backup
3.1 Desc of biz funct to be performed (or x-ref to RFP)
SDLC = System Development Life Cycle
3.2 Rqm ts Elicitation (RE)/Scope Change (s ) Process
sw = softw are; hw = hardw are; nw = netw are
- ID specif Users/Classes; assure/sched availability
proc = process; proj = project LT = Long Term
- Prep timeline; ID RE technq/tools/docs used/produced
PM = Project Manager recs = recommendations
- Escalation/dispute resolution process
relat'shp = relationship proc = process(es)
- Scope s process: proposed, est all im pacts,
s = delta = change Desc = description
decis crit, doc, update ests, CPM, staff, m onitor
RFP = Request For Proposal ID= identify
- Em brace change : Iterative, Incremental, interactive
rqm t = requirement; RE = Rqmts Elicitation (proc)
3.3 Incorp of Functional Requirem ents Docs
2. DESCRIPTION OF SYSTEM (A)
- Rqts incl: success crit; '-abilities'; F&F current/future;
5. PROJECT MANAGEMENT (PM) & REPORTING (C)
UI; rpts; biz procs & rules; ops parms; doc map; RTM;
2.1 Desc/specs for equip, compo'nts, media, cable, etc.
5.1 Steering Comm role, structure, makeup, processes
GAPs/s s; rollout plan; test results; sys.stability; Go2.2 Configuration w arranty
5.2 SWAT Team role, structure, makeup, processes
Live checklist; rqts s process/tools; defer/tradeoff;
2.3 Desc & specs for sys sw ; current; complete; usable
5.3 Nam ed Sys Integrator's role, resp, auth, accountability
training plan; converted data; legacy I'face; security
2.4 Desc & specs for packaged apps sw
5.4 Desc of V’s project team; Desc of B’s proj team
passw ords; enabled Ops/ Maint. Groups, etc
2.5 Desc & specs for custom mods to packaged apps
3.4 Incorp of V’s proposal(s), w ebsite, marketing matl, etc. 5.5 Designation of V’s PM role/resp; Designation of B’s PM
2.6 Desc & specs for custom sw apps to be devel by V
5.6 Select "best" proj SDLC (Discilpined <--> Agile)
3.5 Perform ance Param eters:
2.7 List & Desc of all manuals, system & user docs, etc.
Agree on doc, em bedded persons, tests, deviation
2.8 Incorp of RFP, proposals, brochures, mktg matls, etc.
a. Relationship to functional processing rqmts.
5.7 PM Tools/Measures: EVM; CPM; ETC; $/sch variances
2.9 Sys Def (5 Rs: Right person; truck; tools; address; time)
b. Types & volumes of data to be stored
5.8 V’s resp for PM; proj rpt'g: format; freq; distrib; detail
2.10 Definitions of other terms & Relationship to system
c. Number of users; Locations
5.9 V’s/B's resp: BPR/new proc dev, link, train, test, approv
2.11 Testing: proc; types; rqmt; tools; staff; doc; S/O; crit
d. Special features or capabilities
5.10 V’s resp to ID, manage, mitigate RISKS, probs, delays
2.12 X-refs to other K provisions & exhibits (inc Biz Case)
e. Hosting, SaaS, other service act w trial period
5.11 B’s responsibity to address V's probs/recs in proj rpts
g. Use by affiliates
Contracts
5.12 B’s resp to assist V & for project problems and delay
h. Transfers to other CPUs or locations
ALLOCATE
5.14 Relationship to project timetable
i. Right to make copies, incl bkup or archiv copies
Risks
NUTS: Not Using
5.15 Remedies for loss/reassignment of V’s Proj Mgr (PM)
SET STAGE
j. Grow th cap meas'ed in increas tranx process rate
TheStandards
1. Recitals
k. Capacity for field modification or enhancement
12. PROJECT COSTS & PAYMENT SCHED. (C)
2. System Desc
12.1 Hw prices, if purchased (incl “bundled” sw )
l. Other V representations
The
3.6
Perform
ance
"-ABILITIES"
12.2 Sw prices, if purchased (& if 2b stated sep
BARGAIN?
SW QA: ['-abilities'] hw , sw , nw , architecture
12.3 Rental or lease pymts & method of calc
Software Projects
USERS (Extl): Avail- Depend- Flex- Integ12.4 License fees for softw are and applications
12.5 Training fees; Refresher train'g devel & fees
Oper- Reli- Modif- Use- Scala Safety SecurWhat Vendors, Software Developers,
12.6 Maintenance fees for equipment and/or sw
SurvivR&RConfigUtility;
$
Effect
[vs
benchm
'ks]
Sys Integrators Say:
12.7 Fees/$ for addl services (hosting; SaaS; BU)
DEVELS
(Internal):
AdaptAuditDeployReuseTest3. Funct Rqmts &
12.8 Partial paym e nts tie d to m aj m ile s tone s
You changed your minds; You don’t Perform Measures Interop- Maint- Perform- Port- Extense- Struct12.9 Start date for rental or lease payments
Manufact- Trace- Reuse- TEST- Structknow what you want/need; Not viable
12.10 Commencement date for license fees
3.7 Relationship to acceptance criteria & testing
12.11 Commencement date for maintenance fees
3.8
Relationship
to
ongoing
m
aintenance
reqm
ts
You continually changed project scope
12.12 Credits or offsets for delays or failures
12.13 Refunds if Contract is terminated
4. PROJECT TIMETABLE (C)
Contractsare 4.1 Definition of proj tasks
12.14 Most favored nation clause
You didn’t perform required ‘business
12.15 No mods/addtl charges w /o w ritten approval
an SDLC STEP 4.2 Definition of deliverables for each task
process reengineer’ to make it work
12.16 Invoicing procedures
4.3 Estim at'g meth used; assumps; update procs
You conducted ref checks & Due
PROJECT
12.17 Supporting docs
4.4 B’s responsibilities; V’s responsibilities
MGMT
(PM)
Diligence; What didn’t you do/know?
12.18 Required notice for price increases
4.5 Target completion dates by task
12.19 Personnel/services rates to price chg orders
4. Proj ect Timetable
4.6 Final completion dates by task
“Required staff” never came to
5. Proj Mmt & Reporting
12.20 Limits on price increases
primary/refresher training
12. Proj Costs & Pay Sched 4.7 B’s right to delay or cancel proj tasks
12.21 Right to benefit of price reductions
4.8 Major perform milestones & relat’shp to pymt sch
12.22 Relationship to Contract remedies
We only need 2 months to fix it all
4.9 Delay remedies & bonuses for early perform
12.23 Payments under protest
4.10 Relationship to termination rights
You didn’t follow our recs; You
12.24 Offset rights
4.11
Prompt
notice
of
anticipated
delays
changed/delayed making decisions
12.25 Relat’shp to dispute resolution mechanisms
3. FUNCT RQMTS & PERFORMANCE MEASURES (B)
A
Balance liabil limits w
32.1 Mediation by designated party reps
ContractOxymorons
11. General Prov isions:
essential purpose of - Parties
32.2 Arbitration
- Gen'l Reps/Warranties - Clearly misunderst'd - Act Naturally
remedies
- Definitions
- Assignment a. Types of disputes & method of initiating
- Same difference - Exact estimate
Interpret'n
b. Location; c. # of arbitrators ("arbs")
27. TRADE-IN RIGHTS (J)
U-CRINGE: Unplanned Chang'g
- Good grief
- Test organization
d. Qualificat'ns of arb(s) e. Arb selection
27.1 Right to upgrade to new avail hw /sw ; avail per'd
Rqmts IN-validate Good
f. Compensation of arbitrators
27.2 Right to upgrade to curr avail hw /sw & avail per
Economics/Engineering
The
“HE
SAID…
SHE
SAID…”
Chart
– for Failed
g.
Arbitration
rules
&
procedures
27.3 Calculation of trade-in credits
h. Provisional remedies
27.4 Relat’shp to compatibility representations
K Area
Category:
What Users, Acquirers,
i. Discovery rules j. Rules of Evidence
SDLC Step
27.5 Relat’shp to guaranteed or future discounts
X-Ref
“-abilities”
In-house IT Dept Teams Say:
k. Funding of arbitration costs
27.6 Relat’shp to perform meas, AT, w arr, maint provis
1. Reimbursement of costs & fees
TERMINATION
Biz Case/Reqts
System doesn’t work; Not
m. Governing law n. Briefs
& ADR
2, 3
Feasibility
Feasibility
what we wanted
o. Findings & conclusions
28. Term/Terminat'n
q. Rendering & enforcement of aw ard
Reqts Elicit/
You delivered limited
29. Limits/Excl to Liab
18. TITLE (I)
3, 8
Capability
32.3 Use of sys pending resolution of disputes
30. Taxes 31. Misc
Scope Mgmt
functionality/performance
18.1 V’s reps as to ow ner/rights to transf hw /sw
32. Dispute Res Meth
18.2 Transfer of title to hw
3, 14,
BPR/
The system failed in the field
If you go to court,
Compatibility
S
18.3 Retention of security interest
Computer & in production
15
Accept Test
you'vealready
18.4 Execution of security docss
33. SPECIAL OUTSOURCING CONCERNS
c
Contract
lost
Recitals/
Your software, services &
18.5 Release of security interest upon payment
33.1 Biz Considerations, & RISKS:
1, 2, 3
Credibility
h oversold
Feasibility
expertise were
18.6 Title xfer to sw (or x-ref to licensing provis)
Collaboration
33.1a “59% of all O/S Ks fail” (Compass '05; Forrester '07)
(c) 1991-2008 ©2003-8
18.7 Ow ner/license/mkt rights to V made sw mods
e
Training/
RLBernacchi,
WSone
Reidcan use system! Poor
RISKS &
W arren S.No
Reid
18.8 Ow ner/license/mkt rights to B made sw mods 33.1b SOX/Regs adherance; No subbing to China
10, 11
Usability
Implement
training
d
RIGHTS
18.9 X-ref to license & authorized use provisions 33.1c Think w /cost 70-80% less but only profit 20-30%.
In
fact,
most
report
1st
year
savings
of
0%
1, 14,15
Selection
Stability
System fundamentally flawed
18.10 Rights to use ideas/invent'ns devel dur'g proj
22. Loss/Damage Risk
23 Ins 24. Price Protect
33.1d 'Please You; Don’t Ask?'; 90% of time w /say "OK"
4,
5,
12,
Project/Risk
You
never
told
us that! You
25.
Renew
Opts
26.
19. LICENSE RIGHTS (I)
Culpability
33.1e Time Zone diff; Infrastructure poor; 22 official langs;
Purch Opts 27. Trade- in
13
Mgmt
gave poor advice!
19.1 Exclusive or non-exclusive rights
Rights
too many polit parties; Turnover by “Group/Floor”
19.2 Term of license
8,
9.
14,
Bad data conversion/interface cause
6. SITE PREPARATION (D)
33.1f Security/privacy law s; cyber crime; terrorism
Contractstake
Testing
Reliability
The system is full of bugs!
19.3 Products covered
15
probs. Always have bugs!
6.1 Preparation & delivery of site prep specs
OWNERSHIP
33.1g Must have both orgs' staff on both sites; Build trust
time, $, hard work
19.4 Types of use permitted:
6.2 B’s (or V’s) obligation to prepare site
&
33.1h Define Success (iterative, incremental, interactive)
Project
You failed as Systems
No! YOU failed as the SIPM. That role
a. Types of equipment
6.3 V’s oblig to clarify specs, inspect & certify
4, 5, 12
Responsibility
PROTECTION
PRE
GOMgmt
Integration Proj. Mgr. - SIPM
was not my job!
33.1i. OS in international market w /o int. ops experience
b. Number of CPUs
6.4 B’s obligation to approve
LIVEITEMS
c. Number of users
33.1j Not using variety of perspectives in selection process
18. Title 19. License Rts
6.5 Remedies for improper site preparation
Bait & Switch! Staff unqual, hi
YOU bait & switch! Staff unqualif’d, hi
20.
IP
Rights
Indemnity
13
Staffing
Availability
d. Types of apps
6. Site Prep
6.6 Remedies for inspection errors
33.1k Using poorly devel/documented serv/prod spec
T/O, poor PMs, Steer Com
T/O, poor PMs, Steer Com
21. Confidential/Secure
7. Config Deliv /Install 6.7 Effect on proj timetable
e. Timesharing or service bureau activities
33.1l Not doing biz/financial due diligence on OS candid
10. Training 11. Docs
f. Locations
Planning/
You
stopped
good
PM
&
Sys
You
were
unwilling
to
comply
w
14.
Low
er
Lev
el
Tests
33.1m Insuff know ledge of OS capacity limits
11
Suitability
OutSourcing:
7. COMPUTER CONFIG DELIV & INSTALL (D)
SDLC
Dev Life Cycle (SDLC) method
agreed to/promised/necess methods
15. Accept Tests
g. Use by affiliates
33.1n Not resolv'g ops issues b4 move to K legal aspects
M Kane, W Gross
7.1 Delivery of complete equipm't configuration
h. Transfers to other CPUs or locations
You can define "SUCCESS" either BEFORE contract is
7.2 Delivery of operating sys & other system sw
i. Right to make copies, incl bkup/archiv copies 33.1o.No full com plan in effect, incl escal, reg sch meets,
Biz Consid's
Contracts
'Incentivize'
Parties
to
Cooperate
H 33.1
signed or AFTER delivery. BUT IT WILL BE DEFINED!
7.3 Access to site
33.2 K Consid's
19.5 Rights to source code &/or hw mainten docs 33.2 O/S CONTRACT CONSIDERATIONS:
7.4 Installation obligations of V
8. CUSTOM PROGRAMMING SERVICES (E)
19.6 Relat’shp to assignment rights
SERVICEPOST
© 2007 Michele Kane & Wendy Gross All rights reserved
CUSTOMIZE&
7.5 Installation obligations of B
STAFFING
8.1
Incorp
of
functional
processing
rqmts
docs
19.7 Relat’shp to V’s termination rights
GO-LIVE
33.3 Train both Cust & OS mgmt & ops on O/S K
CONVERT
7.6 Diagnost tests & relat'n to Accept Test provis
16. Warrantees
8.2 V’s obligation to develop custom apps
17.
Maintenance
33.4
Process
to
initiate/request
new
service,
changes,
projs
7.7 Def of completion of equipment installation
20. PROPRIETARY RIGHTS INDEMNITIES (I)
8.3 Relat’shp to stipulated performance measures
Contracts forceparties
17. MAINTENANCE (G)
33.5
Right
to
use
3rd
party
OS
to
in-source,
to
re-source
7.8 Remedies for delays in delivery or installat'n
8.4 Relationship to proj timetable
20.1 V’s indem vs infring: patent/ (c)/ trade sec/IP
to understandobjectives
17.1
Start
date/maint
period
8. Custom Prog Services 8.5 Development by V of detailed design specs
33.6 Control of arch, tech, and org change stds
7.9 Relat’shp to termination rights
20.2 Notice of claims
17.2 V’s termination rights
9. Convert/Other Suppt Serv
33.7 O/S obligs to keep pace w tech advances & refresh tech
13.Personnel
8.6 Review /approval by B of detailed design specs
20.3 V’s obligation to defend
17.3 Required notice for termination
10. TRAINING (D)
33.8
SLAs
(how
they
w
k,
credits,
contin
improv
oblig,
chges)
8.7
ID
B's
resp
to
create,
dev,
link,
test
new
BPR
20.4 B’s obligation to cooperate
17.4 B’s renew rights for guaran period
13. PERSONNEL (F)
10.1
V’s obligation to provide training
33.9 Commitments regarding supplier personnel
8.8 Prog stds spec; x-ref to sys, prog, user docs std
20.5 B’s right to participate in defense
17.5 Relat’shp to performance measures
13.1 V’s staff quals/B’s approv rights; evals; courses; exper
10.2 Qualifications of trainers
8.9 Specification of change order procedures
20.6 V’s oblig to replace/modify infringing products 33.10 Financial terms
17.6 Types & Desc of maintenance support
13.2 Application certified/certificates; Updated CMMi rating
10.3 Location of training
8.10 X-ref to system & acceptance test provisions
33.11 Ow nership of custom devel & other w ork product
20.7 V’s rights to remove infringing products
17.7 Notice of defects or problems
13.3 Periods of Avail
10.4 Stds for acceptable performance
8.11 V’s responsib for acceptable unit/sys test procs
20.8 Calc of B’s refund for products removed by V 33.12 Term, terminat'n assist services, rights to term inate
17.8 Classific of types & criticality of maint probs
13.4 Prohibitions against interruptions in Availability
10.5 Relat’shp to timetable
8.12 V’s obligat'n to deliv source code & related docs
33.13 Min retent'n per for transit'ned (T) & long term crit Ees
17.9 Required dispatch or respond time(s)
13.5 Temporary replacements for sickness, etc.
10.6 Relat’shp to proj costs
8.13 Relat’shp to proj timetable
21. CONFIDENTIALITY & SECURITY (I)
33.14 Diff for single silo outsourc'g than for “big bang” tranx
13.6 Right to request replacements
17.10 Escal of maint suppt if delays to correct probs
10.7 Availability of student matls
8.14 Remedies for delays in completion
21.1 Definition of V’s confidential information
13.7 Prohibition against removal or reassignment
33.15 Keep staff know l apps, biz, in-scope tec, procs 2 mge OS 17.11 Maximum repair time
10.8 Avail of instructor’s matls & training
8.15 Relat’shp to termination rights
21.2 Definition of B’s confidential information
17.12
Uptime
guarantees
33.16 K provisions to secure appropriate supplier talent:
10.9 Number of trainees
21.3 Scope of V’s obligs for confidentiality/security
17.13 Replacement of “lemons”
10.10 B’s rights to reproduce & use training matls
9. CONVERSION & OTHER SUPPT SERVICES (E)
16. WARRANTIES (G)
21.4 Scope of B’s obligs for confidentiality/security 33.17 K provisions to limit use of subs (e.g., to China)
17.14 Avail of spare parts or components
10.11 Continuing Avail of std V classes
33.3 Change process: biz, staff, tech, ind stds, law s, regs &
9.1
Convert
Data:
plan;
clean;
map;
load;
audit;
S/O
21.5 Remedies for breach
16.1 V’s financial condition
17.15 Limits on Vs refurbishment rights
10.12 Continuing Avail of on-site training by V
33.18
Limit
unnecess
charges:
data
recovery;
serv
re-perform
21.6 Relat’shp to termination provisions
9.2 Data & Apps sched, resources, conversion
16.2 hw w arranties
17.16 B’s rights to perform maintenance
10.13 Remedies for delays in provid suitable train
33.19 Baseline OS resources for ongoing supt & projects to
9.3 Development of test data
16.3 sw w arranties
17.17
B’s
rights
to
maintenance
manuals
DISCLAIMERS:
33.20 K s/req OS to track (at min): asset type/location, ID,
9.4 Assist to B w ith site acquisition &/or prep
16.4 Service w arranties
11. DOCUMENTATION (D)
17.18 B’s rights to maintenance training
While a tremendous amount of research,
9.5
Assist
to
B
in
acquiring
other
products/services
16.5
Pass
through
of
third
party
w
arranties
33.21
Coop
Oblig:
betw
OS/C/3rd
parties;
staff;
facilities,
analysis and effort has been put into
11.1 Desc of types of docs
17.19 Limits on B’s rights to perform maintenance
9.6 Assist to B in locating & screening employees
16.6 Relat’shp to performance measures
dev eloping and testing this "IT Contract
33.22 K cost reduct'n commits, process improv; Stds implem
11.2 Doc stds for user, system & program docs
17.20 Remedies for delays in providing adeq maint
Success Model" it is no substitute for you
9.7 Coordination of telecom procurement
16.7 Start date(s)/length of w arranty period(s)
33.23 Service level improv (esp if SLAs met but serv unsatis
11.3 Relationship to proj timetable
17.21 V’s obligation to coordinate third party maint
discussing your specific case and set of facts
9.8 Responsibility for trouble-shooting
16.8 Relat’shp to maintenance provisions
w ith your ow n counsel/consultants before
33.24 Term inat'n assist: doc plan; staff; all equip, sw , matl,
11.4 Relationship to performance measures
17.22
B’s
right
to
get
maint
o/s
principal
maint
period
proceeding.
9.9 Assist to B w ith development of backup plans
16.9
Scope
of
w
arranty
obligations
33.25 Counsel’s role does not end w hen deal signed!
11.5 B’s rights to reproduce docs
17.23 Limits on increases in maintenance fees
9.10
Assist
to
B
w
ith
backup
arrangements
16.10
Remedies
for
failure
to
meet
w
arr
obligs
We understand that deliv erables and clauses
11.6 B’s rights to future docs or enhancements
17.24 B/U equip avail during extended maint periods
change depending in the SDLC methodology
9.11 Assist to B in developing security plan
16.11
Assignability
of
w
arranties
11.7 B’s rights to source code & related docs
17.25 B’s rights to future enhancements
selected. That w ill be cov ered in our liv e
16.12 Relat’shp to disclaimers/Limits of V’s liabs
9.12 Assist to B in develop'g disaster recovery plan
discussion and in the Q&A session. WSReid
11.8 Remedies for delays or inadequate docs
17.26 B’s rights to assign maintenance rights
9.13 Pre-installation machine time
B
K
Cost
Q
A
J
Reid's
REqmts
Remedies
F&F
C
I
D
G
E
F
© 2006-2010 by Warren S. Reid All Rights Reserved
14. LOW LEVEL, SYSTEM & INTEGRAT'N TESTS (D)
14.1 Diagnostic tests of hw , infra, netw are
14.2 All Kinds of System s:
End-User; MIS; Outsourced; Commercial;
Military; Operating Systems (latent error stats avail)
14.3 All m anner of tests for funct & '-abilities' incl:
Dynamic tests - ~85% incl:
- w hite/black box; sub-routine; unit; integ, system
- Interface, data audit, test of/w converted data
- new funct; regression; performance; capability;
- Indep V&V; Viral, Security; Acceptance; Beta
- '-ability' (use-, scal-, port-, maint-, reuse-,
recover-, failover, stress, bullet & many more
Static Tests - ~15% incl:
- Reviews; Walk-thrus; Inspections
14.4 For each test level consider no. of tests and:
- Goal, objectives, success criteria
- Def of accept results to move to next test level
- Test tools: decide, acquire, train; # test environs
- Exper test staff: leads, SMEs, analyst, testers, QA
- Test: sched, train'g, environ, equip; access
- Test results review : w ho, w hen, turnaround time
- No. of shifts, def of scenarios; end-to-end tests
- Std test docs; signoff; rigor & format of error logs
- Rigor of error root cause id, est to fix, fix process
- Test metrics to rept progress, issues and probs
14.5 Desc of error severity levels and time to repair each
14.6 Escalation Process; SWAT - SW Adjudication Team
14.7 Maintenance service during testing
14.8 Relat’shp to performance measures
14.9 Remedies for failure to meet test criteria
14.10 Relat’shp to termination rights
15. ACCEPTANCE TESTING (D)
15.1 Live or sim ulated environ; w new BPR
15.2 Desc of test data & responsibility for prep
15.3 Desc of test procedures & criteria
15.4 Relat’shp to funct rqmts & perform stds
15.5 Period of testing
15.6 Review of test results
15.7 Correction of errors & problems
15.8 Definition of acceptance
15.9 Remedies for failure to meet accept criteria
15.10 Relationship to w arranty & maint provisions
15.11 Relationship to termination rights
35
Functional Rqmts & Project Mgmt (areas: 3, 4, 5, 12)
This Model contains 32
contract clause areas.
NOTE: Less than half of these
can be drafted by an IT contracts
attorney alone. The others
require thoughtful input from
CXO(s), CFO, biz domain & MIS
leads/ consultants
Click for full
size view of
all contract
areas:
http://www.wsrcg.c
om/PDFs/model_itc
ontracting.pdf
1m
36 w
© 2006-2009 by Warren S. Reid All Rights Reserved
PRE GO-LIVE ITEMS
(areas: 6,7,10,11,14,15)
This Model contains 32
contract clause areas
NOTE: Less than half can be
drafted by an IT contracts
attorney alone. The others
require thoughtful input from
CXO(s), CFO, biz domain &
MIS leads/ consultants
Click for full
size view of
all contract
areas:
http://www.wsrcg.c
om/PDFs/model_itc
ontracting.pdf
1m
37 w
© 2006-2009 by Warren S. Reid All Rights Reserved
(A) Set the Stage
2. DESC OF SYSTEM (A)
1. RECITALS (A)
2.1 Desc/specs for equip, components, media, cable, etc.
1.1 V’s areas of expertise, experience, etc.
1.2 B’s business & data processing
requirements
2.3 Desc & specs for sys sw; current; complete; usable
1.3 V’s ability or experience to handle B’s
rqmts
1.4 Specification/execution of a quality RFP
process; required V services
1.5 B’s issuance of Request For Proposals
(RFP)
1.6 V’s proposal response to B’s RFP;
feasibility, honest, suitability
1.7 Additional docs or communications
between B & V
1.8 Proposal evaluation factors &
assumptions affecting B’s decisions
6m
2.2 Configuration warranty
2.4 Description & specs for packaged apps sw
2.5 Desc & specs for custom mods to packaged apps
2.6 Desc & specs for custom sw apps to be devel by V
2.7 List & Desc of all manuals, system & user docs, etc.
2.8 Incorp of RFP, proposals, brochures, mktg matls, etc.
2.9 Sys Def (5 Rs: Right person; truck; tools; addr; time
2.10 Definitions of other terms & Relat’shp to system
2.11 Testing: proc; types; rqmt; tools; staff; doc; S/O; crit
2.12 X-refs to other K provisions & exhibits (inc Biz Case)
38 s
© 2006-2009 by Warren S. Reid All Rights Reserved
(B) What IS the Bargain?
3. FUNCT RQMTS & PERFORMANCE MEASURES
c. Number of users; Locations
3.1 Desc of biz funct to be performed (or x-ref to RFP)
d. Special features or capabilities
3.2 Rqmts Elicitation (RE)/Scope Change Process
e. Hosting, SaaS, other service act w trial period
- ID specif Users/Classes; assure/sched availability
g. Use by affiliates
- Prep timeline; ID RE technq/tools/docs used/produced
h. Transfers to other CPUs or locations
- Escalation/dispute resolution process
i. Right to make copies, incl bkup/archive copies
- Scope change process: proposed, est all impacts,
j. Growth cap meas'ed in incr tranx process rate
decis crit, doc, update ests, CPM, staff, monitor
k. Capacity for field modification or enhancement
- Embrace change: Iterative, Incremental, interactive
3.3 Incorporation of Functional Requirements Docs
- Rqts incl: success crit; '-abilities'; F&F current/future;
UI; rpts; biz procs & rules; ops parms; doc map; RTM;
GAPs/changes; rollout plan; test results; sys.stabil;GoLive checklist; rqts change process/tools; defer/tradeoff;
training plan; converted data; legacy I'face; security
passwords; enabled Ops/ Maint. Groups, etc
3.4 Incorp of V’s proposal(s), website, market’g matl, etc.
3.5 Performance Parameters:
a. Relationship to functional processing rqmts.
b. Types & volumes of data to be stored
6m
l. Other V representations
3.6 Performance "-ABILITIES"
SW QA: ['-abilities'] hw, sw, nw, architecture
USERS (Extl): Avail- Depend- Flex- IntegOper- Reli- Modif- Use- Scala Safety SecurSurviv- R&R- Config- Util; $ Effect [vs benchmk]
DEVS (Internal): Adapt- Audit- Deploy- Reuse- TestInterop- Maint- Perform- Port- Extense- StructManufact- Trace- Reuse- TEST- Struct3.7 Relationship to acceptance criteria & testing
3.8 Relationship to ongoing maintenance reqmts
39 w
© 2006-2009 by Warren S. Reid All Rights Reserved
(C) Project Management
4. PROJECT TIMETABLE (C)
5. PROJECT MGMT (PM) & REPORTING (C)
4.1 Definition of project tasks
5.1 Steering Committee role, structure, makeup, process
4.2 Definition of deliverables for each task
4.3 Estimating meth used; assumps; update procs
4.4 B’s responsibilities; V’s responsibilities
4.5 Target completion dates by task
5.2 SWAT Team role, structure, makeup, processes
5.3 Named Sys Integrator's role, resp, auth, accountability
5.4 Desc of V’s project team; Descrip of B’s project team
5.5 Designation of V’s PM; Designation of B’s PM
4.6 Final completion dates by task
4.7 B’s right to delay or cancel proj tasks
4.8 Major perform milestones & relat to pymt sched
4.9 Delay remedies & bonuses for early perform
4.10 Relationship to termination rights
4.11 Prompt notice of anticipated delays
5.6 Determ SDLC METHOD to be used; rules to deviate
5.7 PM Tools/Measures: EVM; CPM; ETC; $/sch variances
5.8 V’s resp for PM; project rpt'g: format; freq; distrib;
detail
5.9 V’s/B's resp: BPR/new proc dev, link, train, test,
approv
5.10 V’s resp to ID, manage, mitigate RISKS, probs, delays
5.11 B’s responsibility to address V's probs/recs in proj
rpts
5.12 B’s responsibility to assist V
5.13 B’s responsibility for project problems or delays
5.14 Relationship to project timetable
5.15 Remedies for loss/reassignment of V’s Proj Mgr (PM)
6m
40 w
© 2006-2009 by Warren S. Reid All Rights Reserved
(C) Project Management
12. PROJECT COSTS & PAYMENT SCHED (C)
12.19 Personnel/services rates to price chg orders
12.1 Hw prices, if purchased (incl “bundled” sw)
12.20 Limits on price increases
12.2 Sw prices, if purchased (& if 2b stated sep
12.21 Right to benefit of price reductions
12.3 Rental or lease pymts & method of calc
12.22 Relat’shp to K remedies
12.4 License fees for sw
12.23 Payments under protest
12.5 Training fees
12.24 Offset rights
12.6 Maintenance fees for equipment &/or sw
12.25 Relat’shp to dispute resolution mechanisms
12.7 Fees or charges for other services
12.8 Partial payments tied to major milestones
12.9 Start date for rental or lease payments
12.10 Commencement date for license fees
12.11 Commencement date for maintenance fees
12.12 Credits or offsets for delays or failures
12.13 Refunds if K is terminated
12.14 Most favored nation clause
12.15 No mods/addtl charges w/o written approval
12.16 Invoicing procedures
12.17 Supporting docs
12.18 Required notice for price increases
6m
41 w
© 2006-2009 by Warren S. Reid All Rights Reserved
(D) Pre- Go-Live Tasks
6. SITE PREPARATION (D)
10. TRAINING (D)
6.0 ID general contractor; roles/resp; liens; overall
schd
10.1 V’s obligation to provide training
6.1 Preparation & delivery of site prep specs
6.2 B’s (or V’s) obligation to prepare site
6.3 V’s obligation to clarify specs
6.4 V’s obligation to inspect & certify
6.5 Remedies for improper site preparation
6.6 Remedies for inspection errors
6.7 Effect on project timetable
10.2 Qualifications of trainers
10.3 Location of training
10.4 Stds for acceptable performance
10.5 Relationship to timetable
10.6 Relationship to proj costs
10.7 Avail of student matls
10.8 Avail of instructor’s matls & training
10.9 Number of trainees
10.10 B’s rights to reproduce & use training matls
7. COMPUTER CONFIG DELIV & INSTALL (D)
7.1 Delivery of complete equipment configuration
7.2 Delivery of operating sys & other system sw
10.11 Continuing Avail of std V classes
10.12 Continuing Avail of on-site training by V
10.13 Remedies for delays in provid suitable train
7.3 Access to site
7.4 Installation obligations of V
11. DOCUMENTATION (D)
7.5 Installation obligations of B
11.1 Desc of doc types; Docs stds: user, test, system docs
7.6 Diagnostic tests/relation to Accept Test provision
11.3 Relationship to proj timetable & performance measures
7.7 Def of completion of equipment installation
11.5 B’s rights to reproduce & to future docs/enhancements
7.8 Remedies for delays in delivery or installation
11.7 B’s rights to source code & related docs
7.9 Relationship to termination rights
11.8
Remedies
for delays
orAll
inadequate
docs
© 2006-2009
by Warren
S. Reid
Rights Reserved
6m
42 s
(D) Pre- Go-Live Tasks
14. LOW LEVEL, SYS & INTEGRAT TESTS (D)
14.4 For each test level consider no. of tests and:
14.1 Diagnostic tests of hw, infra, netware
- Goal, objectives, success criteria
14.2 All Kinds of Systems:
- Def of accept results to move to next test level
End-User; MIS; Outsourced; Commercial;
Military; Operat’g Systems (latent error stats avail)
14.3 All manner of tests for funct & '-abilities' incl:
- Test tools: decide, acquire, train; # test environs
- Experi test staff: leads,SMEs, analyst, testers, QA
- Test: sched, training, environ, equip; access
- Test results review: who, when, turnaround time
Dynamic tests: ~85% including:
- No. of shifts, def of scenarios; end-to-end tests
- white/black box; sub-routine; unit; integ, system
- Std test docs; signoff; rigor & format of error logs
- Interface, data audit, test of/w converted data
- Rigor of error root cause id, est to fix, fix process
- new funct; regression; performance; capability;
- Test metrics to rept progress, issues and probs
- Independ V&V; security; acceptance; beta
14.5 Desc of error severity levels/time to repair each
- '-ability' (use', scal-, port-, maint-, reuse-,
14.6 Escalat Process; SWAT - SW Adjudication Team
recover-, bullet, and many more
Static Tests: ~15% including:
- reviews; walk-throughs; inspections
14.7 Maintenance service during testing
14.8 Relationship to performance measures
14.9 Remedies for failure to meet test criteria
14.10 Relationship to termination rights
6m
43 w
© 2006-2009 by Warren S. Reid All Rights Reserved
(D) Pre- Go-Live Tasks
15. ACCEPTANCE TESTING (D)
15.1 Live or simulated environ; w new BPR
15.2 Desc of test data & prep responsibility
15.3 Desc of test procedures & criteria
15.4 Relat’ship to funct rqts & perform stds
15.5 Period of testing
15.6 Review of test results
15.7 Correction of errors & problems
15.8 Definition of acceptance
15.9 Remedies for failure to meet accept criteria
15.10 Relat’ship to warranty/maint provisions
15.11 Relationship to termination rights
6m
44 w
© 2006-2009 by Warren S. Reid All Rights Reserved
(E) Customize and Convert
8. CUSTOM PROGRAMMING SERVICES
(E)
9. CONVERSION & OTHER SUPPT
SERVICES (E)
8.1 Incorp of funct processing rqmts docs
9.1 Data conversion
8.2 V’s obligation to develop custom apps
9.2 Application program conversion
8.3 Relat’shp to stipulated perform measures
8.4 Relat’shp to proj timetable
9.3 Development of test data
9.4 Assist B with site acquisition &/or prep
8.5 Development by V of detailed design specs
8.6 Review/approv by B of detail design specs
8.7 Specification of programming stds
9.5 Assist B in acquiring other products/services
9.6 Assist to B in locating & screening employees
8.8 X-ref to system, program, & user docs stds
9.7 Coordination of telecom procurement
8.9 Specification of change order procedures
9.8 responsibility for trouble-shooting
8.10 X-ref to system/acceptance test provisions
9.9 Assist to B with development of backup plans
8.11 V’s resp for acceptable unit/sys test procs
9.10 Assist to B with backup arrangements
8.12 V’s oblig to deliver source code/related docs
9.11 Assist to B in developing security plan
8.13 Relationship to project timetable
9.12 Assist B in develop'g disaster recovery plan
8.14 Remedies for delays in completion
9.13 Pre-installation machine time
8.15 Relationship to termination rights
6m
45 w
© 2006-2009 by Warren S. Reid All Rights Reserved
(F) Personnel
13.1 V’s staff qualifications/B’s approval/denial
rights; Staffs’ evals; courses taken;
experience & expertise
13.2 Application certified/certificates; Updated
CMMi rating
13.3 Periods of Availability
13.4 Prohibitions against interruptions in Availability
13.5 Temporary replacements for sickness, etc.
13.6 Right to request replacements
13.7 Prohibition against removal or reassignment
13.8 Ability to pass on V's staff salary raises to B
6m
46 s
© 2006-2009 by Warren S. Reid All Rights Reserved
(G) Post Go-Live Services
16. WARRANTIES (G)
16.1 V’s financial condition
16.2 Hardware warranties
16.3 Software warranties
16.4 Service warranties
16.5 Pass through of third party warranties
16.6 Relationship to performance measures
16.7 Start date(s)/length of warranty period(s)
16.8 Relat’shp to maintenance provisions
16.9 Scope of warranty obligations
16.10 Remedies for failure to meet warranty obligs
16.11 Assignability of warranties
16.12 Relat’shp to disclaimers & Limits of V’s liabs
6m
47 s
© 2006-2009 by Warren S. Reid All Rights Reserved
(G) Post Go-Live Services
17. MAINTENANCE (G)
17.14 Avail of spare parts or components
17.1 Start date(s) & length of maint period(s)
17.15 Limits on Vs refurbishment rights
17.2 V’s termination rights
17.16 B’s rights to perform maintenance
17.3 Required notice for termination
17.17 B’s rights to maintenance manuals
17.4 B’s renewal rights for guaranteed period
17.5 Relationship to performance measures
17.18 B’s rights to maintenance training
17.19 Limits on B’s rights to perform maintenance
17.6 Types & Desc of maintenance support
17.20 Remedies for delays in providing adeq maint
17.7 Notice of defects or problems
17.8 Classific of types & criticality of maint probs
17.9 Required dispatch or respond time(s)
17.21 V’s obligation to coordinate third party maint
17.22 B’s right to get maint o/s principal maint per’d
17.10 Escal of maint suppt if delays to correct probs
17.23 Limits on increases in maintenance fees
17.11 Maximum repair time
17.24 B/U equip avail during extended maint periods
17.12 Uptime guarantees
17.25 B’s rights to future enhancements
17.13 Replacement of “lemons”
17.26 B’s rights to assign maintenance rights
6m
48 w
© 2006-2009 by Warren S. Reid All Rights Reserved
(H) SPECIAL OUTSOURCING CONSIDERATIONS
33.1 BIZ CONSIDERATIONS & RISKS (H):
33. 1a “59% of all O/S Ks fail” (Compass '05; Forrester '07)
33. 1b SOX/Regs adherence; No subbing to China
33. 1c Think w/cost 70-80% less but only profit 20-30%.
In fact, most report 1st year savings of 0%
33. 1d 'Please You; Don’t Ask?'; 90% of time w/say "OK"
33. 1e Time Zone diff; Infrastructure poor; 22 official langs;
too many polit parties; Turnover by “Group/Floor”
33. 1f Security/privacy laws; cyber crime; terrorism
33 .1g Must have both orgs' staff on both sites; Build trust
33. 1h Define Success (iterative, incremental, interactive)
33. 1i OS in international market w/o int. ops experience
33. 1j Not using variety of perspectives in selection process
33. 1k Using poorly devel/documented serv/prod spec
33. 1l Not doing biz/financial due diligence on OS candid
33. 1m Insufficient knowledge of OS capacity limits
33. 1n Not resolving ops issues b4 move to K legal aspects
33. 1o No full com plan in effect, incl escal, reg sch meets,
6m
© 2006-2009 by Warren S. Reid All Rights Reserved
49 w
(H) OUTSOURCING CONTRACT CONSIDERATIONS
33.2 CONTRACT ("K") CONSIDERATIONS (H):
© 2007 Michele Kane/Wendy Gross All rights reserved
33.2 Change process: biz, staff, tech, ind stds,
laws, regs, efficiency gains. Limit OS
ability to charge for such changes
33.3 Train both Cust & OS mgt & opns on O/S K
33.4 Proc to request new service, change, projs
33.5 Right to use 3rd pty OS 2 in-/re-source
33.6 Control of arch, tech, and org change stds
33.7 O/S obligs to pace/refresh w tec advances
33.16 K provision to secure appropriate supplier talent:
33.17 K provision to limit sub’s use (e.g., to China)
33.18 Limit unnecessary charges: data recovery;
re- perform services
33.19 Baseline OS resources for ongoing
support/projects to allow B to reprioritize
services and reassign OS resources
33.20 K s/require OS to track (at min): asset
type/location, ID, ser/model #s, in serv date;
sw/hw vers/upgrades; if own, lease, license &
fin resp party; Apps tied to server; Changes
33.9 Commitments regarding supplier staff
33.21 Coop Obligations: betw OS/C/3rd parties; staff;
facilities, equip, sw, doc, biz proc access;
additional OSs;
33.10 Financial terms
33.22 K $$ reduct’, commits, proc improv; stds imple
33.11 Ownership of custom devel & work prod
33.23 SLA improvm’ts (esp if SLAs met but service unsatis
33.12 Term, termination assist services/rights
33.24 Termination: Termination assist: doc plan;
staff; all equip, sw, matl, data, 3rd pty Ks/ tools
to provider services; train; C/ 3rd party in equip, sw,
data, same; Right to employ OS staff;
Right to purchase equip/assign leases
33.8 SLAs: how they wk, credits, impr oblig/chg
33.13 Min retent’n 4 transitioned/LTerm key Ees
33.14 Diff for single silo OS than big bang tranx
33.15 Keep staff knowl: apps, biz, tec, OS procs
6m
33.25 Attorney’s role does not end when deal
signed!
50 w
© 2006-2009 by Warren S. Reid All Rights Reserved
Some Important Legal Clauses/Thoughts
In Virtually ALL Contracts (IT and Otherwise)
Assumptions and Goals
Do You Really Want to Avoid
Litigation?
Attorneys’ Fees
Don’t Do A Contract Until
You Know What Is Being Delivered
Venue
Choice of Law
Under the Subject Matter
Indemnification
Alternative Dispute Resolution
Arbitration
2m
© 2006-2010 by Warren S. Reid All Rights Reserved
51 s
SUMMARY
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Scratched underside of the Iceberg
Both sides Lose in Litigation: See it from both sides
Contracts allocate risk: Get it in writing Up front
Negotiate for “Intention”: NOT “Principle!”
Here are our needs! U devel clauses! We select best!
Be Flexible: everything not = in import or linear
If you want to end w Success, start w Success
You NOW know the risks! Manage them!
Perform OUTSTANDING Reference Checks
Follow good methodologies
Measure: Quantity & quality, Progress & Status
No Panaceas: Consider SWAT, Mediation, ADR
© 2006-2009 Warren S. Reid All Rights Reserved
10 m
5252
w
AFTER YEARS OF EXPERIENCE:
THE GOLDEN ANSWER!
h
d(y)
p
f(y) +
:
(l)+
2
(c) = P R
© 2006-2010 Warren S. Reid All Rights Reserved
2m
53 w
QUESTIONS/COMMENTS
WSR CONSULTING GROUP, LLC
Management, Technology, e-Business & Litigation Consulting
Warren S. Reid, Managing Director
PH: 818/986-8832
E-mail: wsreid@wsrcg.com; Website: www.wsrcg.com
For
More Written Materials, Articles & Full Size
Versions of the Success Models, please visit:
The WSRcg Learning Center for IT Excellence
http://wsrcg.com/learn_introducingmodels.php
For large size views of the “IT Success Models” go to:
http://www.wsrcg.com/PDFs/model_riskipedia.pdf
http://www.wsrcg.com/PDFs/model_requirements.pdf
http://www.wsrcg.com/PDFs/model_RFP.pdf
http://www.wsrcg.com/PDFs/model_itcontracting.pdf
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2006-2010 by Warren S. Reid All Rights Reserved
