The most important things covered by a contract are:

  • Liability

  • Warrancy

  • Post Warrancy

    • Mentenance and Support

    • Hotline (24/7+SLA)

  • Assumptions


The amount of money paid in case the work is not accepted for various reasons: too late, not delivered, low quality, missing features.

It is usually 100%. Some beneficiaries asks for 150%. Usually around 50%-100%.

You don’t want to be above 100% since this might be an incentive for the Beneficiary to “help” the Supplier to fail. This can also be transformed in a business model.


The amount of effort (time and costs) the Supplier will provide for the accepted delivery after that delivery and payment. It is sensible that will be capped by the liability.

Post Warrancy

Mentenance & Support

Could be around 15-20% from the price of the contract per year.

Usually is assumed that is delivered in business hours. Could provide a 20 manday/year effort deliverd to the Beneficiary.

Hotline & SLA

A hotline is usually a 24/7. This is much more demanding for Supplier so will cost more. A person needs to be hired for that specific Beneficiary. Usually connected with SLA.


You ned a list of things that both the Beneficiary and Supplier are responsible for. You also need the list for things that are not responsible for.

Other advices

  1. For anything that is not agreed the Supplier will be blamed since the Supplier is the expert.

  2. No matter how good is your personal connection with the Partner he will be replaced and the new one might want to make a business out of the old contacts (see Liability part).