Ultra understands that reaching a legal agreement with your selected ERP provider can be a very difficult challenge. Most companies have not structured or negotiated such an agreement and have the wisdom to be advised by a team that understands all the components and has a complete understanding of the flexibility that the respective suppliers have in structuring the final agreement. The General Counsel of a company the size of a company knows how to do everything from employment contracts and leases to complex sales contracts. But few people know what enterprise resource management systems (ERPs) software actually do, let alone the pitfalls that lurk in these types of contracts. If an ERP project is working well, you will rarely have to review contracts (except perhaps to review trade agreements). In case of difficulties, your first point of contact will be to check the contract to see what has been agreed. A properly constructed treaty defines the rights, responsibilities and obligations of both parties and is therefore an essential element of the expectations and protection of the interests of both parties. Also make sure the legal team verifies prices, conditions and agreements for the company`s implementation providers in the contract. 4 – Define everyone`s responsibility. Your company is responsible for certain activities during software integration, as well as the software provider and integrator. These must be carefully negotiated and inserted into the agreement, so that no one can say later: “Wouldn`t I have thought that was our role.” Your legal team will check the conditions and ancillary restrictions regarding dispute resolution or software acceptance. The details of these agreements are often indicated in separate annexes or annexes as the main contract. Legal review should take into account documents such as intellectual property rights, confidentiality, liability, insurance, safeguards and dispute resolution.
In a number of agreements, the legal department spends more time developing the legal clauses, which generally represent 90% of the contractual clauses, and the 10% that are critical, such as those listed below, do not become very important. All other documentation (for example. B work instructions, software, advice and support contracts) should be linked to the main contract. The idea is that the master`s contract remains in place and that several SoWs with associated advertisements can be executed as soon as they are needed. Thus.B there may be a SoW for phase 1 of your ERP implementation, a second separate SoW for Phase 2 and a third SoW for a system upgrade two years later. It is therefore always advisable to consider the ERP implementation contract as a long-term contractual perspective. This includes blocking long-term prices for additional employment/modification contracts. 2 – Detailed liability and warranty limits. The standard contract issued to the company includes unilateral and incriminating restrictions on exclusions of liability and guarantee.
The agreement with the Seller and all third parties that he or the Company uses must contain a detailed language on liability and warranty restrictions and indicate corrective action to be taken in the event of the implementation of the “Wreck” ERP. Thanks for keeping an eye on some things when it comes to implementing the ERP.