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Help with a contract
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Posted October 13, 2010 at 11:52AM
I hope someone can help me! I have an IT supplier building a database for us at the moment. This supplier has been tardy with the project and we are now running about 9 months behind schedule.
He is putting together a new contract for the job and has included many and varied safeguards for himself (e.g. if we ask for additional features they will be charged in addition to the agreed price, etc). But there is no safeguard at all for us. He could take another nine months to do the first task of the list, and there is nothing we can do about it.
Now, I know this kind of thing is very difficult in IT projects as delays can be due to clients not getting back with information, or various other things. So I want to be fair, but my boss is not going to sign that contract without some kind of safeguard in it for us.
Does anyone have any wording that can be used? And what kind of penalties would be fair?
We will be paying in monthly payments for the job, rather than half on signature, half on completion.
Hope you can help!!
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Posted October 19, 2010 at 10:48PM
are wary of penalty clauses because there may well be reasons beyond a contractor's control why a delay occurs. You acknowledge this possibility, and if such an arrangement isn't acceptable to your contractor a better way is probably to set out a payments schedule which allows for a fairly substantial sum to remain as a final payment.
In other words, weight the scales in your favour, so that you are always holding more than the value remaining in the contract for the contractor.
You obviously trust this man to deliver,what you need to do now is to give him the incentive to complete within an acceptable time frame.
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