Issue link: http://read.uberflip.com/i/8885
BEST PRACTICES FOR REVIEWING AND NEGOTIATING AGREEMENTS • Fees: We recommend you request that the vendor provide three quotes for providing the services: What the project will cost on a time-and-materials basis; the maximum cost if the vendor guarantees not to exceed the estimate by more than a specified percentage or amount; and the flat-fee cost of the project. If you elect to purchase services on a time-and- materials or not-to-exceed basis, make sure you know what activities are billable. Discuss the topic with the vendor, and if you object to anything on the list (e.g., time spent recording billable time), negotiate to exclude those specific items. • Expenses: • Obtain a complete list of expenses that will be billed back to your firm. We suggest declining to pay for long-distance charges, connectivity fees for accessing your systems, and small volumes of photocopying or shipping fees. •We recommend you require that expenses charged to your firm be pre-approved. If the vendor proposes that its personnel will bill a per diem fee for meals, but your firm is providing most of the lunches and some of the breakfasts and dinners during the project, perhaps you want to negotiate a reasonable accommodation. •Require that expenses be billed within a reasonable time of being incurred (e.g., 30 days). • Personnel: You may want the right to interview and approve the personnel the vendor will be supplying for the engagement to make sure the fit is right. ILTA oposing and Negotiating Agreements • Choose a licensing structure for your software that is relevant to how the software will be used and easy to administer and track. •Don ’t promise the customer anything — express or implied — that you aren’t willing to include in the agreement. •Offer a discount for early payment. • Make sure your company ’s invoicing procedures are flawless, and the customer does not, for example, receive an invoice that includes an increase not permitted under the contract. ILTA www.iltanet.org Best Practices in Licensing Agreements 17