You should get a clear picture of the set up and ongoing costs ahead of any contract commitment. Make sure you consider these costs and
any contract commitment for the service in detail and explore the scope for any negotiation.

Example questions

  • Please summarise all costs (excluding VAT) relating to the project. If costs are dependent on number of users or active users, please provide details.
  • Please provide itemised costs i.e. costs that can be split into capital and recurrent for each year.
  • Consultancy or services costed on a per day rate must be defined. Where a cost is fixed or variable this must be made clear.
  • Please confirm that you are not subject to any insolvency or similar processes.
  • Please confirm you have no material litigation pending (with a value specified).
  • Please confirm that there are no reasons (e.g. project commitments) that the work cannot proceed immediately upon agreement to proceed.
  • Please give indicative timetable from project start to launch.
  • All costs must be listed upfront including initial set-up costs and subsequent years.
  • Please confirm the length of contract you require us to commit to.
  • Please provide a copy of the standard contract/terms and conditions to be provided
  • Is there a finance agreement needed, if so what are the exit conditions if the system isn’t satisfactory?
  • What are the exit provisions and costs, in general?

IT Procurement Guide

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