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PP Lec 8 Computer Contract 03042024 115725am

The document discusses different types of computer contracts for software-related services including fixed price contracts, contract hire, time and materials, and consultancy contracts. It covers key issues addressed in standard terms and conditions like project requirements, payment terms, acceptance procedures, and termination clauses.

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andreytagno
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83 views19 pages

PP Lec 8 Computer Contract 03042024 115725am

The document discusses different types of computer contracts for software-related services including fixed price contracts, contract hire, time and materials, and consultancy contracts. It covers key issues addressed in standard terms and conditions like project requirements, payment terms, acceptance procedures, and termination clauses.

Uploaded by

andreytagno
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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1

Course Outline
• Introduction
• Ethics and codes of conduct
• Structure of organization (Software House)
• Financial practices
• Human resource management
• Intellectual property
• Cyber law
• Software related contracts
• Social networking responsibilities and ethics
• Information security and privacy

2
Previous Lecture
• Intellectual Property rights grants exclusive rights to an
author for utilizing and benefiting from their creation.
• Intellectual property rights include:
– Confidential information: know how which goes into the development
of the product.
– Patents: hardware or a process used in its manufacture maybe protected by
a patent
– Trade marks: name under which a product is sold maybe registered
– Designs: look of the product maybe registered in the Designs Registry
– Copyrights protecting computer programs
• Plagiarism: practice of taking someone else’s work or ideas
and passing them off as one’s own
3
Chapter 5: Computer Contract
Book: Professional Issues In Software
Engineering by F.bott, A.Coleman, J.eaton,
Diane Rowland 3rd edition

COMPUTER
CONTRACT

4
LECTURE REVIEW

• Introduction
• Computer Contracts for
supply of Custom-built
Software
• Other Types of Software
Services Contract

5
INTRODUCTION
• An agreement between two or more parties for
the doing or not doing of something specified.
• Contracts serve the following purpose:
– Set out the agreement between the parties
– Set out the aims of the parties
– Provide for matter arising while the contract is running
(conflict)
– Ways of terminating the contract and the consequences

6
INTRODUCTION (cont..)
• If the contracts are too harsh or unfair causing any
issue between parties to be unresolved, it is the
responsibility of contract laws to contemplate
according to the rules.

7
INTRODUCTION(cont…)
• There are almost never disputes over contracts
which run perfectly.
– Example of a ship carrying a cargo.
– Example marriage.

• In order to avoid disputes and future difficulties it is


better to draft a document which sets out:
– The terms on which both parties is to work.
– Methods of payments
– Appropriate ways to terminate the contract-notice
required 8
INTRODUCTION(cont…)
• Contract should be clear, concise and consistent.
There should be no ambiguity and the parties to
the agreement should be left in no doubt as to
their rights and duties.
• Ambiguity and doubts can lead to performance
which is viewed as unsatisfactory.
• This can lead to disagreement and the
expenditure of time, effort and therefore money,
in resolving the matter.
9
CONTRACTS FOR THE SUPPLY OF CUSTOM-BUILT
SOFTWARE AT A FIXED PRICE
• Software suppliers try to use what are known as
standard form contracts (tender) , which are used
or intended to be used many times over.
• Such a contract might consist of:
– a short introductory section
– A set of standard terms and conditions
– A set of appendices or annexes

10
1. INTRODUCTORY SECTION
• It states that it is an agreement between the parties
whose names and registered addresses are given.
• It is dated and signed by authorized representatives
of the parties.
• It often begins with a set of definitions of terms
used in the course of the agreement, set out either
in alphabetical order, like a dictionary, or in the
order in which they appear in the rest of the
contract –The Company, The Client
11
OTHER PARTS
2. Terms and conditions : do not change from one
project to another; they contain references to the
annexes, which contain all the project specific
material.

3. Annexes must include any document stated like


Requirements specification. This is to avoid,
– for example, the situation in which statements
made by an over-enthusiastic salesman while
trying to win the business are claimed by the
client to constitute part of the contract
12
2. ISSUES DEALT WITH STANDARD TERMS
& CONDITIONS
• What is to be produced?
• What is to be delivered? (source code, command files, training to
employees)
• Ownership of rights (in physical items books, dics, documents or
duration of licence)
• Payment terms
• Calculating payments for delays and changes
• Penalty clauses
• Obligations of the client
13
2. ISSUES DEALT WITH STANDARD TERMS
& CONDITIONS (cont…)
• Standards and methods of working (QA procedures)
• Progress meetings
• Project Managers
• Acceptance procedure
• Warranty and maintenance
• Termination of the contract

14
OTHER TYPES OF SOFTWARE
SERVICES CONTRACT
• There are four types of contractual arrangement
which are widely used in connection with the
provision of software services:
1. fixed price
2. contract hire
3. time and materials
4. consultancy

15
2 .CONTRACT HIRE
• The supplier agrees to provide the services of one
or more staff to work for the client.
• The staff work under the direction of the client
• Supplier’s responsibility is limited to provide
suitable competent people and replacing them if
they become unavailable or said unsuitable by the
client.
• Payment is on the basis of a fixed rate for each
man day worked.
• Issues such as delay payments, acceptance tests
and many.
16
3. TIME AND MATERIALS
• It is somewhere between a contract hire agreement
and a fixed price contract.
• The supplier agrees to undertake the development
of the software in much the same way as in a fixed
price contract but payment is made on the basis of
the costs incurred, with labor charged in the same
way as for contract hire.
• The supplier is not committed to completing the
work for a fixed price, although a maximum
payment may be fixed beyond which the project
maybe reviewed.
17
4. CONSULTANCY CONTRACTS
• Consultants are typically used to assess some aspect
of an organization and to make proposals for
improvements.
• The end product of a consultancy project is therefore
usually a report or other document.
• Consultancy projects are usually under taken for a
fixed price but the form of contract is very much
simpler.
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