Vendor relations – more than just a contract: ensuring that the pre-nuptial arrangements work to create a good marriage, rather than something to get thrown across the table at the divorce.

Abstract

Considers the importance of contracts and contract negotiation relating to the acquisition of electronic data from third party vendors. Stresses that contract negotiation should involve as much, if not more, thought in the pre-contract work as into the contract signing itself. It is important to plan for the end of the contract through cancellation or product termination rather than allow contracts to be renewed by default. Contract management and processing within an organization should cover: the scope of what is being done; the timeliness of the process; the overall roles and responsibilities of those involved; and what needs to be reviewed. Considers possible pitfalls, including: contracts that roll from one year into the next; inability to achieve savings identified as part of the contract; failure to ensure that the deal can be financed; changes in the number of users between the start and end of a contract period; and the problems and opportunities involved in unbundling and partnering. Concludes with brief notes on the relationship between the buyer and seller of electronic information.