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IT Contracts - why you need them

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It could be argued that there is a large proportion of the business sector which fails to place adequate emphasis on the need to have a thorough contract in place when conducting business either in the information technology sector or over the World Wide Web.

Contracts should be implemented and thoroughly constructed regardless of the subject matter or sector.

There are a number of points which need particular attention when drafting an I.T contract.

Firstly the contract should explicitly state the specification of the products or goods in question. For example, if a website design company has been instructed to develop a website, the contract should list all the components which are to appear on that site such as shopping carts, checkouts, video and sound.

The next issue, and one which is vitally important is that of payment. When will the payments be made? Will you pay all the costs upfront or on completion, perhaps you would prefer to implement a ‘milestone’ payment structure. That is to say that payments will be made when specific achievements have been met.

The third important aspect is that of an acceptance test. When the site or product is complete and delivered, a test should be conducted to ensure that it meets the required standards.

Intellectual property is should also be a major consideration, who will own the copyright, who will receive the exclusive rights to any trade marks designed by the design company or included within the developed product?

Furthermore all contracts should contain ‘boiler plate’ provisions which are essentially miscellaneous provisions which guard against unexpected interference.


About the Authors


Article written by Jody Tsigarides from Lawdit Solictors. The above points are not of course comprehensive as there are many facets to an I.T contract which need careful consideration. For more information on I.T contracts please contact us on info@lawdit.co.uk or contact me personally on jody.tsigarides@lawdit.co.uk

Posted December 2, 2005
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