Success Tip Consumate The Agreement

The contract is signed when the negotiation is concluded. There should be support by the entire team and senior management before it is signed. This commitment is important to ensure subsequent compliance with the contract, and to communicate to internal staff the willpower to make the outsourcing relationship work.

Prior to signing the contract, it is important to ensure that it covers some basic contractual elements. Failure to address the basic elements listed below could contractually obligate the firm in a manner that fails to protect its best interests (e.g., desirable quality of services at a competitive price).

When drafting the agreement, the organization should make sure it has incorporated at least the following basic elements:

■ Conditions for renegotiation and termination

■ Governance

■ Intellectual property rights

■ Length of the contract

■ Penalties, damages, and incentives

■ Services to provide and their levels

■ Subcontractor management

■ Technology transfer

Before signing the agreement, the organization should:

■ Ensure that all clauses, phrases, and terms are clearly defined

■ Ensure that there are no outstanding issues

■ Obtain senior management's support

■ Obtain consensus of the negotiating team

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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