ABSTRACT

There is a natural tendency to want to start the actual implementation of software as soon as an apparent winner has been identified. “Let’s get to the ‘real work’ while the lawyers hash out the details” is a familiar refrain. Although understandable, beginning to work with any vendor before a contract is signed is a major mistake. Not only does it undermine the company’s position by signaling that this vendor has won the business, but also there is the possibility that the work may need to be redone if the company and the vendor are unable to agree on the contract terms. Although not common, in some cases companies do walk away from a deal because of contract terms.