Browse Definitions :
Definition

IT procurement contract

An IT procurement contract is a document detailing the legally-binding agreement between a vendor of IT products and services and the purchaser.

IT procurement contracts require careful oversight and more interaction between the contracting parties and any involved third party, such as a lawyer, who is evaluating the contract. The complex nature of information technology means that the third party is unlikely to have insight into the special requirements of IT systems, so the purchaser must ensure that all relevant requirements are fully detailed.

Following are common elements of an IT procurement contract:

A statement of work (SOW): The SOW specifies the requirements of a project or service contract and addresses how success will be assessed.

Item specifications: These include details for the design, function and performance of all items in the contract.

Testing and inspection schedule: This schedule identifies dates when goods or services will be made available to the buyer for evaluation prior to delivery.

Delivery schedule: The schedule stipulates contractual dates for delivery and penalties for failing to deliver on time.

Warranties: This area details warranties provided and stipulates areas and conditions under which no warranty is offered.

Governing laws: Identifies the jurisdiction whose laws will apply for contract enforcement.

Termination: The terms under which either party may terminate the agreement.

Arbitration: Details if and how arbitration may be used to help resolve any disputes.

Charge-back policy: Specifies any buyer expenses that may be charged back to the vendor.

Payment schedule: Stipulates dates and terms for payment.

 

 

 

 

 

This was last updated in May 2016

Continue Reading About IT procurement contract

SearchCompliance
  • ISO 31000 Risk Management

    The ISO 31000 Risk Management framework is an international standard that provides businesses with guidelines and principles for ...

  • pure risk

    Pure risk refers to risks that are beyond human control and result in a loss or no loss with no possibility of financial gain.

  • risk reporting

    Risk reporting is a method of identifying risks tied to or potentially impacting an organization's business processes.

SearchSecurity
  • Pretty Good Privacy (PGP)

    Pretty Good Privacy or PGP was a popular program used to encrypt and decrypt email over the internet, as well as authenticate ...

  • email security

    Email security is the process of ensuring the availability, integrity and authenticity of email communications by protecting ...

  • cyberterrorism

    Cyberterrorism is often defined as any premeditated, politically motivated attack against information systems, programs and data ...

SearchHealthIT
SearchDisasterRecovery
  • What is risk mitigation?

    Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a business.

  • fault-tolerant

    Fault-tolerant technology is a capability of a computer system, electronic system or network to deliver uninterrupted service, ...

  • synchronous replication

    Synchronous replication is the process of copying data over a storage area network, local area network or wide area network so ...

SearchStorage
Close