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Hardware Contracts for Buyers

June 28, 2012
MyTechnologyLawyer
IT Contracts for Buyers

Acquiring a large computer hardware system represents a long term commitment to a particular technology base. Since the precise future needs of your organization are invariably unknown, you gamble that the technology and services of the selected vendor will keep up with the requirements of your user community. Negotiating adequate protection in your computer hardware purchase and leasing contracts can reduce the risks of that gamble.

The criteria for your computer hardware should be specified in your Information Systems Plan. The objective is to translate your technology requirements into specific contract terms.

System acceptance criteria can be incorporated into the hardware contract to insure that the following requirements are satisfied:


Reliability
Compatibility
Response and Processing Time
Accessibility and Upgradability

Provisions supporting consequential damages, installation warranties, equipment return, delivery schedules and user acceptance testing can help insure the attention of your hardware vendor during installation of the new system.

The practical aspects of hardware maintenance should also be addressed. Your vendor should be required to maintain local access to spare parts, hardware maintenance personnel and adequate maintenance records. Preventive maintenance procedures should be specified along with an implementation schedule and the right to revise the schedule.

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