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Managing contracts

Managing contracts. Dept of IT-CAPE. Introduction. Doing it yourselves-attractive Potential suppliers –flexible planning. Types of contract. Completed software application Bespoke Off-the shelf Customized off-the shelf Payment calculation Fixed price contracts

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Managing contracts

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  1. Managing contracts Dept of IT-CAPE Dept of IT-CAPE

  2. Introduction • Doing it yourselves-attractive • Potential suppliers –flexible • planning Dept of IT-CAPE

  3. Types of contract • Completed software application • Bespoke • Off-the shelf • Customized off-the shelf • Payment calculation • Fixed price contracts • Time and material contracts • Fixed price per delivered unit contracts Dept of IT-CAPE

  4. Fixed price contracts • Adv: • Known customer expenditure • Supplier motivation • Disadv • Higher prices to allow for contingency • Difficulties in modifying • Upward pressure on the cost changes • Thread to system quality Dept of IT-CAPE

  5. Time and material contracts • Adv: • Ease of changing requirements • Lack of price pressure • Disadv: • Customer liability • Lack of supplier Dept of IT-CAPE

  6. Fixed price per unit delivered contracts Dept of IT-CAPE

  7. Fixed price per unit delivered contracts • Adv: • Customer understanding • Comparability • Emerging functionality • Supplier efficiency • Life cycle change • Disadv: • Difficulties with s/w size measurement • Changing Dept of IT-CAPE

  8. Based on contractor selection • Open tendering • Restricted • negotiated Dept of IT-CAPE

  9. Stages in contract placement • Requirement analysis • OR • Mandatory • Desirable Dept of IT-CAPE

  10. Sections in requirement document Dept of IT-CAPE

  11. Evaluation plan • Draw up plan acc to proposals • Opposed to off the shelf application • Mandatory requirements are identified • Value for money Dept of IT-CAPE

  12. Invitation to tender • Needs requirement doc with supporting letter • Memorandum of agreement(MOA) • ISO12207 Dept of IT-CAPE

  13. Evaluation of proposals Dept of IT-CAPE

  14. Typical terms of a contract • Definitions • Forms of a agreement • Goods and services to be supplied • Services to be provided • Ownership of the software Dept of IT-CAPE

  15. Contn.. • Environment • Customer commitments • Acceptance procedures • Standards • Project and quality management • Timetable • Price and payment method • Miscellaneous legal requirements Dept of IT-CAPE

  16. Contract management • Decision points • Incremental delivery • Agents Dept of IT-CAPE

  17. Acceptance • Acceptance tests • Internal test plans • Pitfalls • Very short warranty period Dept of IT-CAPE

  18. Summary Dept of IT-CAPE

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