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Issues to consider in IT procurement

Issues to consider in IT procurement This Practice Note explores IT procurement (or information technology procurement, tech procurement or technology procurement) setting out the main stages in the IT procurement process, key contract documentation, the principal legal and commercial issues and some specific cloud computing and open source software (OSS) considerations. It focuses on customer concerns but also highlights some considerations for the supplier where relevant to IT procurement. Issues specific to public sector IT procurement are not covered here, but instead, see: Public sector technology sourcing—overview, and Practice Notes: Public procurement—private sector considerations and Freedom of information and public contracts. Main stages of IT procurement An IT procurement exercise will broadly follow a lifecycle comprising some or all of the following stages (depending on the value and complexity of the procurement and the sourcing approach adopted): • the customer identifies their initial requirement for a product/service/solution in response to a business need • the customer develops a specification for the technology or IT services that...

System development and systems integration agreements

System development and systems integration agreements System development agreements govern a wide range of projects from the straightforward to the large, complex and costly. The objective is usually simple: to create an IT system meeting the customer’s needs in a trouble-free way, by an agreed time and for an agreed price. However, this simple ambition often masks a mass of complexity reflecting the underlying complexity of IT systems themselves. Practical matters, including the methodology for the project, the components of the system and how the system should work in real-life conditions, fundamentally affect the issues that a development agreement must address. Without a clear working knowledge of the commercial and technical issues, there is a good chance that lawyers will produce contracts which are divorced from reality and inadequately address the risks. In addition, development contracts contain a mixture of contract, intellectual property and commercial issues which can look standard to the uninitiated but in fact vary widely in order to accommodate specific project requirements. This Practice Note...

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Systems integration agreement—pro-supplier

Systems integration agreement—pro-supplier This AgrEement is made on [date] Parties 1 [insert name of supplier], a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at [insert address] (Supplier); and 2 [insert name of customer], a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at [insert address] (Customer) (each of the Supplier and the Customer being a party and together the Supplier and the Customer are the parties). Background (A) The Customer wishes to procure software, [hardware], software configuration and development services, installation services and other related services. (B) The Customer has agreed to procure the Services from the Supplier and the Supplier has agreed to provide the Services to the Customer on the terms and conditions of this Agreement. The parties agree as follows: 1 Definitions and Interpretation 1.1 In this Agreement the following terms have the following meanings: Acceptance • means that: (a) the Customer confirms in writing that the...

Software development agreement

Software development agreement This Agreement is made on [insert date] (the Commencement Date) between the following: Parties 1 [insert supplier name] a company incorporated in England and Wales whose registered number is [insert company number] and whose registered office is at [insert registered office] (the Supplier); and 2 [insert customer name] a company incorporated in England and Wales whose registered number is [insert company number] and whose registered office is at [insert registered office] (the Customer), each of the Supplier and the Customer being a party and together the Supplier and the Customer are the parties. Background (A) The Supplier is [insert Supplier’s background details and the background to the relevant transaction]. The Customer is [insert Customer’s background details]. (B) The Supplier wishes to develop certain Software (as defined below) and the Customer wishes to engage the Supplier to develop the same on the terms of this Agreement. The parties agree: 1 Definitions and interpretation 1.1 Words shall have the meanings given to them...

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Where can I find examples of acceptance testing clauses for software?

Where can I find examples of acceptance testing clauses for software? Acceptance testing is the process under which a customer establishes that software (or other deliverable) operates correctly and meets the specifications agreed with the supplier. Acceptance testing provides an element of quality control which enables defects to be identified early. If the software fails the acceptance tests then the customer will be entitled to a remedy. Common contractual remedies include: • requiring the supplier to rectify any faults and then submitting the software for further acceptance tests • accepting the software with its faults but at a reduced price, and • if the faults are substantial, or cannot be rectified within a reasonable timeframe by the supplier, terminating the licence and requesting a refund The

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Court refuses summary judgment on interpretation of termination costs clause (Resource Recovery (Derbyshire) Ltd v Derbyshire County Council & Derby City Council)

Construction analysis: The Technology and Construction Court (TCC) was asked to grant summary judgment on two issues related to the interpretation of a clause in a Project Agreement related to how termination costs were calculated, both of which it subsequently refused to grant. This case provides a useful examination of the principles of summary judgment and in what circumstances it is appropriate for the court to grant summary judgment/strike out.

Nationally Significant Infrastructure—action plan for reforms to the planning process

Planning analysis: On 23 February 2023, the Department for Levelling Up, Housing and Communities (DLUHC) published its ‘Nationally Significant Infrastructure: action plan for reforms to the planning process’ (the Action Plan). The Action Plan contains detailed actions which the government intends to take to improve the effectiveness and resilience of the planning regime of nationally significant infrastructure. We summarise the key proposals.