Is Your Office Feeling the IT Contract Crunch?

Many information technology companies offer great deals for contract renewals and incentives for new contracts at year end.

The catch? They need to be signed before year’s end.

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Many of our clients struggle balancing getting a good deal with taking the time to ensure they are entering into a fair and reasonable contract.

If you are experiencing the end of the year contract crunch, you’re not alone.

So how can you avoid feeling pressured to enter into contracts at the end of the year?

  1. Plan ahead. While it might be too late this year, next year, ask all of your IT contacts for contracts in advance. They might not be able to offer early incentives, but if you can begin negotiations early, it will save you time in December. If all that needs to be inserted in December is the price, that is a lot less work at crunch time.
  2. Ask for an extension. Many IT companies and other entities offer short windows for incentives, but in reality, they may be able to extend the incentive well into the new year. See if they are willing to extend their deadline if you are actively negotiating a contract.
  3. Be organized. Stay on top of deadlines and make sure to plan regular calls as needed to move your negotiation along. If different staff members or departments need to be involved, make sure to stay on top of schedules. Check vacation days and arrange meetings as far in advance as possible. Staying organized will help prevent things falling through the cracks.
  4. Know your ‘must haves’. Write out a list of your expectations from this particular contractor. Be as specific as possible. Also know what other needs your company expects – do you need certain termination provisions, confidentiality provisions, insurance provisions, etc.? Write as detailed of a list as possible. Share the list with others in your company so that they can add their input.
  5. Involve your legal counsel as early as possible. If your lawyer knows that you have upcoming deadlines, they will be able to manage their time appropriately to prioritize your high ticket items.

Entering into a bad contract to get a good deal can be very costly in the long run. Hasty negotiations can lead to lack of clarity for day to day operations, potential breaches, and litigation.

Make sure your contract is fully negotiated and understood by both parties.

If you need help, contact Rickard & Associates today.

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