Acquiring a computer hardware system represents a long term commitment to a particular technology base and user support organization. Once the system is implemented, you have an opportunity to work with the buyer in addressing future system needs. The management challenge is to deliver technical capability without unreasonable increases in business risk. Your computer hardware purchase and leasing contracts can help you minimize these risks.

Hardware configuration and sizing support is an initial step in the buying process. These analyses are usually provided at no charge to help offset the high cost of the new system. However, because they are often based upon user assumptions, they should not be incorporated into the final purchase agreement at the sole risk of the vendor.

Defining user responsibilities as a term in your hardware purchase agreement can reduce contractual risks for inevitable delays. Such terms are particularly important in structuring the equipment delivery and installation process.

Your warranties should be based upon tested performance and documented technical specifications, rather than the dynamic functional objectives of your users. Indemnifications should be sufficiently narrow to avoid liability based upon use of the equipment.

An adequate hardware maintenance agreement is also critical to successful implementation of the system. Favorable access to hardware upgrades, back-up contingency planning and off-site data storage can provide additional security and should be specifically addressed as additional contract terms.

Equipment leasing arrangements introduce additional risks which can be minimized in the lease agreement between you and your user. Equipment selection, insurance and maintenance should be user responsibilities.