A clause for alarm

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• Enterprise,
• Contracts,
• Clause,
• Software

Dawn Kawamoto and John Borland ZDNet US

Published: 17 Jul 2002 08:50 BST

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You and your supplier should agree on how to define terms used in the contract. Here is a sample of definitions taken from Oracle's contract with the state of California.

Preventive Maintenance -- That maintenance, performed on a scheduled basis by the Contractor, which is designed to keep the equipment in proper operating condition.

Remedial Maintenance -- That maintenance performed by the Contractor, which results from equipment (including operating software) failure, and which is performed as required; i.e., on an unscheduled basis.

Principal Period of Maintenance -- Any nine consecutive hours per day (usually between the hours of 7:00 a.m. and 6:00 p.m.) as selected by the State, including an official meal period not to exceed one hour, Monday through Friday, excluding holidays observed at the installation.

Maintenance Diagnostic Routines -- The diagnostic programs customarily used by the Contractor to test equipment for proper functioning and reliability.

Facility Readiness Date -- The date specified in the contract by which the State must have the site prepared and available for equipment delivery and installation.

Installation Date -- The date specified in the contract by which the Contractor must have the ordered equipment ready (certified) for use by the State.

Performance Period -- A period of time during which the State, by appropriate tests and production runs, evaluates the performance of newly installed equipment and software prior to its acceptance by the State.

Acceptance Tests -- Those tests performed during the Performance Period as listed in the purchase order which are intended to determine compliance of equipment and software with Contractor's published specifications and to determine the reliability of the equipment.

Machine Alteration -- Any change to a Contractor-supplied machine which is not made by the Contractor, and which results in the machine deviating from its physical, mechanical, electrical, or electronic (including microcode) design, whether or not additional devices or parts are employed in making such change.

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Go to section: A clause for alarm Page 2:Dangers Page 3:Negotiating in the dark Page 4: Spelling it out

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