Choosing the Contract Framework
The choice of the optimal contract depends on the specific project. The starting point for the contract is crucial for how much work is required to prepare and negotiate the final agreement, as well as for the quality of the contractual foundation you end up with.
Fundamentally, there are three different paths – as shown to the right – for establishing a suitable contractual framework.
HNCO typically recommends using the VIRK23 contract for larger ERP projects. We have extensive experience with this contract, and we contributed to the development of VIRK23 in collaboration with attorney Nicolai Dragsted, one of Denmark’s most experienced IT lawyers.
- Supplier’s Contract Draft
- Designed primarily to serve the supplier’s interests
- Can be difficult to negotiate into an acceptable form for the customer
- Rarely recommended for large, complex projects, but may be suitable where risk is low or where the supplier does not hold delivery responsibility
- Customer’s Contract Draft
- Designed primarily to serve the customer’s interests
- Requires substantial legal assistance to prepare
- Can be tailored precisely to the customer’s specific priorities and requirements
- A Standard Contract
- Designed to balance the interests of both parties
- Allows for a quick initial contract draft, and most major suppliers in the market are already familiar with these contracts
- Examples of commonly used standard contracts for business system projects include VIRK23, ERP12, K01, K02, and others
