There are 2 Ways We Avoid Software Contract Disputes.

And today, I share what they are.

The more I talk to people in the tech sector, the more I realize how frequently they encounter disputes in their projects.

It is a lose-lose situation for both the vendor and the customer.

For vendors, the dispute process itself eats into their margins.

For customers, they are left with an unsatisfactory or incomplete product.

Do you know where the problem lies? 

Or why that happens to begin with?

It's typically because of the steps that are taken in the initiation of the project.

And also the ways expectations are set on both sides.

Now if we know the root cause of it, we can fix it.

Here are 2 ways I personally like to help my clients avoid disputes in this sector.

1) Scope of Work

The most basic, yet ignored part of the project.

A poorly defined scope is the most common cause of disputes in software contracts.

It creates a mismatch in the expectations of both parties.

Generally, the customer may have simple requirements, but the implementation will be much more difficult.

That's why a detailed scoping of work from the vendor’s POV should be done.

The time and cost incurred in proper scoping are necessary and should never be ignored.

2) Project Management

As the project progresses, there will be changes in requirements or some other issues.

That's pretty much inevitable in 99% of cases.

Now what can you do about this?

You can establish a procedure to address those issues early on.

By now, you must have some common issues in mind.

So write those down, talk to the clients on call about them, and come up with solutions with your team.

You should also have a change control mechanism implemented and specified in the contract.

That's it.

The problem happens in such projects when unresolved issues or concerns pile up.

And then result in disputes eventually.

Now as a vendor or even a customer, you can take these steps to minimize the risks of contractual disputes in projects.

Good luck!

P.S. Do you typically face issues in your projects?

Need more tips like this? Follow me:

Linkedin | Twitter

Did someone forward this to you?