Types of contract

The external resources required could be in the form of services. A simple example of this could be using temporary staff on short term contracts to carry out some project tasks. At Brightmouth College. Brigette could use temporary staff to type into the computer system the personnel details needed to set up the payroll standing data for the new system, while at IOE a decision might be made to carry out the required system building in-house but to augment the permanent staff with contract programmers for the duration of the project. A more far-reaching use of external services would be for the contractor not only to supply the new system but to also operate it on the customer's behalf. For example, it might well be worth Brightmouth College abandoning the idea of buying a package and instead getting a payroll services agency to carry out all the payroll work on their behalf.

On the other hand, the contract could be placed for the supply of a completed software application.

This could he:

• a bespoke system, that is. a system that is created from scratch specifically for one customer;

• off-the-shelf, which you buy 'as is' - this is sometimes referred to as shrink-w rapped software;

• customized off-the-shelf (COTS) software - this is a basic core system, which is modified to meet the needs of a particular customer.

Where equipment is being supplied then, in English law. this may be regarded as a contract for the supply of goods. In the case of the supply of software this may be regarded as supplying a service (to write the software) or the granting of a licence (or permission) to use the software, w hich remains in the ownership of the supplier. These distinctions will have legal implications.

David Bainbridge's Introduction to Computer Law. Pitman. 3e. 1996 is highly recommended as a guide to the legal aspects of IT contracts.

Which of the three system options (that is. bespoke, off-the-shelf or COTS) might Exercise 10.1 Amanda consider with regard to the IOE maintenance group accounts system? What factors would she need to take into account?

Another way of classifying contracts is by the way that the payment to suppliers is calculated. We will look at:

• fixed price contracts;

• time and materials contracts;

• fixed price per delivered unit contracts

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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