When IT contracts go wrong

The best way to make sure that an IT installation is done properly or at least to avoid a law suit over a failed project is to follow a few simple guidelines, says PricewaterhouseCoopers in a new report.

After studying more than 120 lawsuits filed since 1976 involving Information Technology projects that failed, researchers at the firm said they found six basic patterns behind most disputes. They drew up a few common-sense guidelines based on those findings.

The researchers call the patterns: Faulty Towers, Irrational Exuberance, Three's A Crowd, The Never Ending Story, Unplanned Obsolescence, and Unintended Consequence.

Faulty Towers refers to defective technology that is never repaired. Irrational exuberance describes technology that does not perform as the vendor promised or as the purchaser expected. Three's A Crowd happens when a leasing firm or a consultant or another party is involved in the litigation. When a manufacturer never delivers a working system and repeatedly misses deadlines, there is a Never Ending Story. When a system does not meet a customer's needs or a supplier no longer supports it, Unplanned Obsolescence rears its ugly head. A manufacturer who alters a system that is being used and disrupts users stumbles into Unintended Consequences and a lawsuit.

To avoid headaches hire a lawyer who understands IT and its pitfalls and have key promises and protections written down. Make sure everyone agrees upon clear and detailed definitions of key technical terms and procedures and how suppliers deal with defects.

Don't sit you hands and moan if a project is not meeting goals and a vendor is failing to perform. Document the problems, risks and consequences, determine the best course, scaling back the project, change the requirements, or cancel it altogether. Most basically make sure you understand what the technology can do and understand that complex IT projects have a high rate of failure.

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