Almost all IT projects require some kind of supply, whether for hardware, software or services. Therefore, IT project managers need to understand the main element of IT procurement, as described in this article. Termination: The conditions under which each party can terminate the contract. Typical Elements of the Contract Understanding of purchase contracts begins with knowledge of what these contracts have in common. Established in 1951, the Uniform Commercial Code (UCC) has established eleven articles, followed by all U.S. states (except Louisiana). (Because the Louisiana code is based on civil law and not on the common law, the state has chosen to follow only certain sections of the UCC.) All commercial orders are governed by the UCC code, with the exception of government orders under federal acquisition regulation (FAR) rules. Figure 1 shows the main sections that are generally present in all contracts. These sections may not appear in all contracts in the same order, or they will appear in other categories than those presented, but they usually appear in most purchase agreements. Second, IT managers are often too conservative when it comes to asking for changes to the language of the contract. IT service providers generally have their own boiler platform agreements, which they present to buyers as their “standard contract.” Many project managers believe that these contracts are not easy to change. It`s a mistake.
Such a boilerplate language almost always favours the seller, and each contract is an agreement between two parties. The buyer has as much right to offer the language for the contract as the seller. Never consider that the language of the treaty is engraved in marble. Please note that the information contained in this report should not be considered legal advice. Any purchase contract requires legal advice from a competent lawyer to ensure that it is suitable for the buyer`s situation. The full report provides an overview of the essential elements of IT procurement contracts, key types of contracts and recommendations for selecting the cheapest for certain project acquisitions. It serves as the first in the computer markets. We focus primarily on IT services contracts, although the principles apply to any type of IT procurement.