Law 531 Week 3

1256 Words Aug 17th, 2011 6 Pages
As you know, eight months ago we entered into a contract with Citizen-Schwarz AG to create custom e-banking software. The agreed contract outlined the details of the arrangement, including on-schedule delivery and quality of the deliverables, strong communication between both parties, procedures for any changes in the system requirements, intellectual property rights, and dispute management procedures. Depending on our performance, we were projecting to gain an additional contract with C-S’s larger e-CRM order. Unfortunately, the original contract was filled with ambiguity from the start that increased the risk factor for both parties.

Eight months into the project, our contact at C-S, Mr. Leon Thur, was not pleased with the product
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To be pro-active in negotiating and to save the contract, we decided to appoint a Quality Control Panel. This panel would evaluate claims of deliverable defects and determine remedies, upload daily project updates on Spans extranet for authorized C-S personnel to review, and invite a C-S project manager to serve at Span Systems to serve in a quality control capacity. Mr. Thur did not want to appoint a Quality Control Panel but agreed to allow a C-S Project Manager to serve at Span Systems at the cost of C-S, and agreed that the uploading of project data will be beneficial. These decisions saved our contract in with C-S in January and there is a good chance we will be taking on the larger e-CRM contract. To solidify our future relationship with C-S, it was necessary to make amendments to the already existing contract:
• The Performance Contract clause has been amended to state, “Citizen-Swartz AG shall be entitled to receive all work products in progress or completed, as of the date of termination or cancellation, subject to clearance of all payments due to Span Systems at that time.”
• The Change Control Clause has been amended to state, “Any changes to the user and system requirements originally agreed to will be monitored by the Change Control Board (CCB) comprised of the project manager and lead software manager from C-S and Span Systems. The CCB will decide if the changes will be accepted or rejected. The CCB will also measure the

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