From job contracts to bank loan agreements, CFMs spend countless hours and dollars reviewing contracts and each has its own set of evaluation criteria.

Technology contracts are no different: They often contain specific terms that are helpful and terms to watch for during the evaluation process. While technology contracts may not require as much due diligence as a job contract, contractors should ensure the terms are favorable since company data or operations are often at stake.

Almost every common technology product or service requires a contract, including enterprise resource planning (ERP) systems, cloud hosting, software product licenses, Building Information Modeling (BIM), Customer Relationship Management (CRM) systems, networks, threat prevention software (e.g., virus software, firewalls), technology support, phone systems, mobile devices, Computer Maintenance Management Systems (CMMS), and scheduling systems.

But this list only represents a fraction of available technology solutions. With the increase of technology’s role in business, the quantity and complexity of such contracts will continue to grow.

What sets a technology contract apart from other agreements? Let’s look at an ERP contract as an example. The ERP is one of the most important systems to a company. It contains a wealth of data: job cost, payables, payroll, HR, general ledger, and financials. The accessibility, availability, and security of such data as well as the systems that contain the data are unique to technology contracts.

This article will focus on what questions contractors should ask around these three key areas and will provide tips for negotiating price before entering into a contract with a technology vendor. (Given that each technology vendor has its own unique set of contract terms, the specifics of each type are beyond the scope of this article.)

Data Accessibility

Every technology contract involves data: Some vendors house data, others provide a means to transport data, and others secure the data. Here are some key questions to ask regarding data in the contract language:

• Which party owns the data?
• What type of access does the contractor have to the data?
• What type of access does the vendor have to the data?
• What type of requirements exist for working with and accessing the data?
• Which party can modify the data?
• How can the data be modified?
• In what format is the data stored?

These types of questions are mostly applicable to software that creates or houses data; they are not as relevant for contracts that move or secure data (e.g., network provider or firewall contracts).

Let’s use the previous example of purchasing an ERP to review data accessibility-related items in a contract. Be sure to ask about the infrastructure that houses the data. If the data resides in a proprietary database, then issues with sharing and integrating the data with other software may arise. Along the same lines, ensure the contract language states that the data stored in the system belongs to the contractor, and that the vendor may not obtain or use the data for its own purposes.