Contract Creation and Management
Span Systems and Citizen-Schwarz AG entered into a $6 million contract for the delivery of transaction software for Citizen-Schwarz. At the eight month mark, Citizen-Schwarz was dissatisfied with Span Systems and demanded rescission from the contract. This began discussion between Span Systems and Citizen-Schwarz. In the manner of an interest-based dispute both parties identified their needs and risks. Once each stakeholder determines the primary needs this enabled the negotiation process to begin. As each group reviewed the current contract for renegotiation each worked toward contractual agreements that both sides could agree upon. The following includes the needs and risks identified by the software developers and software customer as well as the contractual amendments modifications.
Software Developer Needs and Risks
Span Systems Director, Kevin Grant, will need to address the concerns address to him from Citizen-Schwarz lead negotiator, Leon Ther. Span Systems needs include delivering a successful software product, develop a dependable, reliable reputation as a software development company and maintain a working relationship with Citizen-Schwarz. Span Systems needs to deliver successfully on the $8 million contract to allow Span Systems the opportunity to secure the contract to build a bigger e-CRM program for Citizen-Schwarz. Some of the Risks associated with Span Systems are customer questions regarding performance on deliverables, which is impacting the schedule and the quality of the software being delivered. Another risk is scope creep and Span Systems has witnessed growing requirements since the system study was performed. Another risk is the turn-around time on the approval and review times the Citizen-Schwarz i ...