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Contracts and Agreements Guide

Essential Documents​

1. Non-Disclosure Agreement (NDA)​

  • Must be signed before detailed technical discussions
  • Protects both parties' confidential information
  • Key components:
    • Scope of confidential information
    • Duration of confidentiality
    • Permitted uses of information
    • Return/destruction of confidential materials
    • Breach consequences

2. Master Services Agreement (MSA)​

  • Framework for ongoing business relationship
  • Key sections:
    • Services scope
    • Term and termination
    • Intellectual property rights
    • Warranty and liability
    • Payment terms
    • Dispute resolution
    • Governing law

3. Statement of Work (SOW)​

  • Project-specific details
  • Essential components:
    • Project scope and deliverables
    • Timeline and milestones
    • Acceptance criteria
    • Resource allocation
    • Cost breakdown
    • Change management process

Payment Terms​

Standard Payment Structure​

  1. Initial Payment

    • 25-30% upon contract signing
    • Required for project initiation

  2. Milestone Payments

    • 50-60% divided across major milestones
    • Tied to deliverable acceptance

  3. Final Payment

    • 15-20% upon project completion
    • Released after final acceptance

Payment Methods​

  • Bank transfer (preferred)
  • Payment processing timeframes
  • Late payment penalties
  • Currency considerations

Contract Negotiation Guidelines​

Key Negotiation Points​

  1. Scope Definition

    • Clear deliverables
    • Acceptance criteria
    • Change request process

  2. Timeline

    • Realistic milestones
    • Buffer for uncertainties
    • Dependencies and assumptions

  3. Pricing

    • Rate cards
    • Payment schedule
    • Additional costs

  4. Intellectual Property

    • Ownership rights
    • License terms
    • Pre-existing IP

Risk Mitigation​

  • Limitation of liability
  • Warranty terms
  • Indemnification
  • Force majeure provisions

Contract Review Process​

Internal Review​

  1. Sales team initial review
  2. Technical team assessment
  3. Legal team review
  4. Financial team review
  5. Final approval process

Documentation Requirements​

  • Client company details
  • Signing authority verification
  • Supporting documents
  • Internal approval records

Post-Contract Process​

  1. Contract storage and management
  2. Team notification and handover
  3. Project kickoff preparation
  4. Payment schedule tracking