Purchase of a strategic IT system

This was a high-value, high-risk contract for the procurement of an IT system that drove at the heart of our client’s operational performance. A legacy system was being replaced. When the tenders were received there was a high degree of non-compliance with the contract terms and conditions drafted by us. A preferred supplier was appointed and negotiations commenced. One issue was a limit of liability of 125% of the contract value in any one year. Negotiations were help with the supplier and their insurer (a first, said the supplier). The outcome was an agreement where the supplier accepted a much greater LOL. Another issue was the right to terminate the contract in the event a milestone was missed. This was, eventually accepted, but only after the supplier provided detailed staffing provisions for the work associated with each milestone. These negotiations were extended over a period of two weeks.