18 technology
Preventing IT contract disputes
An IT dispute can be disastrous for businesses. The disruption caused when systems are down can be immense and costs can spiral quickly as resources are diverted to handling the issue. Nicole da Silva of Penningtons Solicitors LLP looks at areas where problems commonly arise
Urgency – for good business reasons, the client needs to launch a new system as quickly as possible. This can result in the parties implementing the project without fully agreeing its scope, timetable or price.
Scope – although the scope of the project is generally defined in the contract, often it evolves as the project progresses (’scope creep’). Scope creep can be exacerbated if the client does not properly explain its requirements or fully understand the supplier’s proposal.
Milestones – often IT contracts have ’milestones’ which trigger payments. Disagreement over whether milestones have been reached can lead to disputes over payment.
Termination – many IT disputes arise from a party’s attempt to terminate the contract. Usually, the contract will allow termination for “material breach“. What constitutes a material breach is a frequent area of contention. Other disputes arise over obligations after termination or whether a party’s actions are tantamount to a rejection of the contract.
How to avoid the most common pitfalls
The simple answer is clarity:
• clearly define scope, milestones, when a party can terminate and the parties’ duties, including after termination.
• clients should consider hiring a consultant to assist in defining work specifications and supervising performance, if in- house expertise is not available.
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• suppliers should not ’down tools’ at the first onset of a dispute, to avoid inadvertently putting themselves in repudiatory breach.
• be conscious that the inherent nature of IT projects involves change, and build in flexibility where possible. Consider an overall price cap rather than a fixed price or a window within which go-live will take place. Also, take care to ensure that milestones set are realistic.
• as the client, try to ensure the contract is tailored to your specific needs. If IT providers have tendered for the work acting on their standard terms, compare those terms. Look out for exclusion clauses or clauses limiting liability. The lowest headline cost may not be the best solution.
• think carefully about governing law and dispute resolution clauses. Alternatives to court action, such as mediation, arbitration or expert determination should be considered.
• ensure that you are in a good position to address a dispute, with a clear document retention policy. This includes documents which may be stored on employee- owned devices (BYOD). Such policies will help you deal with the disclosure process in litigation.
Details: Nicole da Silva
nicole.dasilva@penningtons.co.uk www.penningtons.co.uk
High-speed broadband to reach rural Isle of Wight
Poole-based data centre and connectivity solutions provider C4L has announced that it is helping Natural Enterprise, a not-for-profit organisation, to provide and guarantee high-speed internet to rural areas on the Isle of Wight as part of the Yarmouth Broadband project.
Beginning with the town of Yarmouth, C4L is providing Natural Enterprise with a 100MBps wireless connection between the Yarmouth Exchange and C4L’s own connection to the UK network in Bournemouth. As a result Natural Enterprise can offer households and businesses in the Yarmouth area high-speed connections of up to three times more than previous speeds, allowing both home users and businesses a level of communication that was previously limited to those in certain urban areas.
“Rural high-speed broadband is essential if we’re to stop Britain from becoming a society of online haves and have-nots,“ said Graham Biss, managing director at Natural Enterprise. “Since traditional service providers are limited to providing connectivity in urban areas that their networks can easily reach, the rest of the island’s population of 140,000 must find other means to get online. Whether through the actions
of local councils or initiatives such as the Rural Communities Broadband Fund, we have to find ways to provide the connections that will stop these people being left behind. In this respect, C4L is providing an essential lifeline for us in helping to make the whole of the Isle of Wight a viable spot to live or do business online.“
Natural Enterprise’s goal to bring high-speed broadband to rural areas on the Isle of Wight has begun with the Yarmouth Broadband project. This will bring high-speed connections to 1,200 premises in the area, both commercial and residential. As a result, these premises will see their broadband speeds more than tripled from the current average of less than 2MBps. The aim is to use the Yarmouth Broadband project as a proving ground before pushing high-speed broadband to the Isle of Wight.
“As we march into the 21st century, high-speed broadband continues to move from being a luxury to a necessity,“ said Matt Hawkins, managing director, C4L. “If Britain is to become a true information economy everyone in the country must have the same ability to access, manipulate and share data.“
Details:
www.naturalenterprise.co.uk
Hedge End company among the best places to work
Following a phenomenal 12 months of growth and success, Hedge End-based eDigitalResearch is celebrating having been named as one of The Sunday Times Top 100 Best Small Companies To Work For for the second consecutive year.
This position, as well as the highest three-star accreditation, cements eDigitalResearch as one of the country’s top insight and technology providers to work for and comes after another record breaking year.
The market research specialist was also a runner up in the wellbeing award, encouraging staff to stay fit and healthy with
subsidised gym membership, fruit snacks and regular walks with the office dogs. It also ranked sixth overall for job security and scored highly for charitable giving, personal development and a positive management style.
After completing one of Southampton’s biggest office moves in 2011, the company has welcomed an additional 31 new staff.
Chris Russell, founding director, said: “The great thing about this award is that it allows us to continue to attract the best individuals in the industry, both for our research and technical teams.“
THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – APRIL 2012
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