| 2.4 Capacity
10. Contract Management | |
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| 2.2.10 Contract Management: | | 1. Both parties understand that the only contract that is important is when payment is made. | | 2. Any payment for services is a contract that shall be provided by the application service provider. | | 3. All other kinds of contract are for lawers to earn money from in the event of a dispute - that is, all other contracts are a potential liability. | | 4. Out of principal, the ASP propose to avoid all kinds of contracts, but where this is unreasonable, the Institute of Purchasing and Supply offer a sample contract that covers all the bases and has every reason to avoid all misunderstandings. |
| 2. Quotation Management: | | 1. Quotations are an eary stage of a contract, so quotation management and contract management are different phases of the same information. | | 2. Quotations have a similar legal standing as a contract. | | 3. Standard Terms and Conditions that are attached to a quotation may be the same as attached to a contract. | | 4. A payment for services provided is a kind of contract and evidence that the service was provided as described in the quotation. | | 5. A web site offering goods and services for a price is a legal quotation that must be fair, reasonable, honest, complete and correct - a type of contract. |
| 3. Security of Service: | | 1. Where a German freight company working in partnership with the application service provider wished to guarantee the provision of its application service, it insisted on paying a monthly standing order that exceeded the data center operating costs. This safely removed any threat that the ASP could not pay its monthly bills and secured the provision of the application service for as long as the partner chose to pay the standing order. | | 2. An American corporation guaranteed a new revenue stream for many years so the initial set of remote data centers could be provisioned and hundreds of other clients could be brought onboard to share the operating costs. Once many hundreds of clients were sharing the operating costs, the demise on one client or one application service has little impact on the survivability of the ASP. |
| 4. Contract Terms: | | 1. It is illogical to fight over contract terms before the contract is signed, so all terms should begin "Both parties agree that...". The principal is that the contract does not subjigate one party over another and both parties must cooperate for any supply chain service to be effective. | | 2. No proper contact can be less than 10 pages of legal boilerplate - the art of a good heads of agreement is to condence all the legal stuff into a few sensible and understandable phrases. | | 3. For exapmple: you pay us for one months service and we deliver one months service. | | 4. For every one minute that the service is down, you get ten minutes discount from the next months subscription fee. | | 5. The limit of all liabilities is one months subscription fee. |
| 5. Stability: | | 1. It is not in the interests of any customer to threaten the long term stability of the ASP and its ability to continue to deliver web services to all its customers. | | 2. To this end, all liabilities are limited to one months subscription fee - an amount that the ASP can fund in the event of a service failure and continue to stay in business. | | 3. Consequential damages that are beyond the control of the ASP are not offered and can never be offered as that would be to gamble the service that can be delivered to every customer. |
| 6. Contract Term: | | 1. Just like your telephone contract, your natual contract term is automatically renewed each month. | | 2. Subscription fees are adjusted each year, normally going up with inflation, but may come down where economies of scale have enables a more efficient solution to be delivered. | | 3. Where a customer wishes to set of fixed budget for one to five years, then the contract term can be extended from one month up to five years with a fixed monthly subscription fee. | | 4. The monthly subscription fee may be offered as a quarterly subscription fee with the first month free of charge. |
| 7. Smart Contract: | | 1. Blockchain is used to generate smart contracts that are ummutable because they are replicated to a large number of unknown places. | | 2. Contracts cannot be changed, so they are frozen with a private encrypted blockchain and distributed to a very large number of secure data centres. | | 3. In addition, each party can have their own private copy of the smart contract knowing that a radulent change to the contract will be detected by comparison with all other replicated copies. | | 4. Because no person can know all the places that the smart contract is stored, fraudulent contract changes will be detected and blocked. |
| Document Control: | | 1. Document Title: Contract Management. | | 2. Reference: 163410. | | 3. Keywords: ITIL Contract Management. | | 4. Description: Contract Management. | | 5. Privacy: Public education service as a benefit to humanity. | | 6. Issued: 13 Feb 2018. | | 7. Edition: 1.2. |
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