ITPEC IP October 2024 Question 54
A company orders information system development to an overseas software developer under a contract for software development. Which of the following is an appropriate activity to be performed by the company in project procurement management?
Explanation
Agree in writing on deliverables and change rules at contract signing — procurement management fixes the terms before the work starts.
With an outside developer, and even more with an overseas one, differences in language, business practice and law make unstated expectations a common source of disputes. The contract should therefore set out in writing the deliverables, acceptance conditions, intellectual property rights and the procedure for changing specifications during development.
Answer (d)
Why not others:
- •(a) — after acceptance, work not stated in the contract cannot simply be demanded; it needs a contractual basis or a new agreement
- •(b) — leaving out intellectual property provisions leaves ownership and use of the developed software unclear, inviting disputes
- •(c) — scope, specifications and work contents must be agreed in writing before development starts, not after
Key rule: In procurement, everything the buyer will rely on (deliverables, rights, acceptance and change control) is agreed in writing before the contracted work begins.
Project Management · AI-written, may contain errors
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