Contract review process and stages Contract review objectives

• Contract review process and stages • Contract review objectives • Implementation of contract review • Contract review subjects • Contract review for internal projects

• Participation in a tender • Proposal submission according to customer’s RFP • Receipt of an order from a company’s customer • Internal request from another department in the organization

+ Proposal draft review Contract draft review -------------Contract review

1. 2. 3. 4. 5. 6. 7. 8. 9. To make sure that the following activities have been satisfactorily carried out: Customer requirements clarified and documented Alternative approaches for carrying out the project examined Formal aspects of the relationship between the customer and the software firm specified (communication channel, deliverables, acceptance criteria, approval process, change request procedure, activity attendance. ) Development risks identified Project resources and timetable adequately estimated The firm’s capacity with respect to the project examined The customer’s capacity to fulfill his commitments examined Partner and subcontractor’s participation conditions defined Protection of proprietary rights defined

To make sure that the following activities have been satisfactorily carried out: 1. No unclarified issues remain in the contract draft 2. All understandings reached subsequent to the proposal are correctly documented 3. No “new” changes, additions, or omissions have entered the contract draft

• Factors affecting the extent of a contract review - project magnitude, technical complexity, acquaintance/experience with/in the project area, project organizational complexity • Who performs a contract review? (In ascending order with complexity) - the leader or another member of the proposal team - the members of the proposal team - an outside professional or a company staff - a team of outside experts

• Implementation of a review for major proposals - Def. of major proposals - The difficulties of carrying out contract reviews *time pressures, requires professional work, time conflict • Recommended avenues for implementing major contract reviews - the review should be scheduled. - a team should carry out the review. - a review team leader should be appointed.

Contract Review Subjects • Based on the contract review objectives. • Checklists are useful devices. • Contract review team determines the list of subjects pertinent for the project.

(1) Administrative or operative software to be applied internally (2) Software packages originally intended to be sold to the public as “off-the-shelf” packages (3) Firmware to be embedded in the company’s products

Subject Disadvantages to the internal customer (1) Inadequate definition of project requirements * Implementation deviates from the needed applications * Low satisfaction * Unrealistic expectations about project feasibility (2) Poor estimate of the required resources (3) Poor timetable * Missing scheduled dates for beginning the distribution of new products (4) Inadequate awareness of development risks * Customer unprepared for project risks and their consequences

Subject Disadvantages to the internal developers (1) Inadequate definition * Higher change requirements of project requirements * Wasted resources due to introducing avoidable changes (2) Poor estimate of the * Substantial deviations from budget required resources * Friction between units induced by requirements for budget additions (3) Poor timetable * Development activities are under time pressures and suffer from low quality * Delays in freeing staff for their next project (4) Inadequate awareness * Tardy initiation of efforts to overcome of development risks difficulties