All,
Thanks for your advice, the general feedback seems to fit with my thinking.
An annual negotiation has been agreed as the route forward with a suitable increase agreeable to both parties.
Ta again.
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "A question for those with experience in procurement"
Collapse
-
Originally posted by stillooking View Postas prev messages, s/w licences are a black art, things like Oracle t&c's are quite confusing to many people. RPI linking is quite common and can be up for negotiating depending on situation/client/supplr.
Leave a comment:
-
Originally posted by jim2406 View PostAfternoon folks,
Have any of you ever seen a software licence containing a caveat that licence costs will be adjusted annually to reflect inflation?
Specifically, the situation this applies to a situation with:
- Long contracts with fixed prices and terms (5 years +)
- Enterprise software, with licences running into tens of thousands annually.
In this situation, an inflationary adjustment seems like a sensible way to protect the vendor, but I'm not sure if it's the done thing.
Thanks.
Leave a comment:
-
Originally posted by jim2406 View PostAfternoon folks,
Have any of you ever seen a software licence containing a caveat that licence costs will be adjusted annually to reflect inflation?
Specifically, the situation this applies to a situation with:
- Long contracts with fixed prices and terms (5 years +)
- Enterprise software, with licences running into tens of thousands annually.
In this situation, an inflationary adjustment seems like a sensible way to protect the vendor, but I'm not sure if it's the done thing.
Thanks.
Leave a comment:
-
Originally posted by jim2406 View PostAfternoon folks,
Have any of you ever seen a software licence containing a caveat that licence costs will be adjusted annually to reflect inflation?
Specifically, the situation this applies to a situation with:
- Long contracts with fixed prices and terms (5 years +)
- Enterprise software, with licences running into tens of thousands annually.
In this situation, an inflationary adjustment seems like a sensible way to protect the vendor, but I'm not sure if it's the done thing.
Thanks.
Leave a comment:
-
Software licence agreements are full of oddities, and the exact terms will vary depending on the negotiating skills of the customer, but my experience of them is that:
- licence fee and maintenance costs tend to have fixed % increase (say, 5% increase per year). This isn't indexed (i.e. linked to changes in the inflation rate).
- support fees, if they are separate from maintenance fees, tend to be indexed (usually to RPIX plus say, 2%).
Leave a comment:
-
Increases are common. Majority of suppliers I have worked with put a 5-6% increase per year in their quote instead of inflation increases. This way we knew what we were going to pay in advance plus they were offering a large discount if we purchased 5 years of licences upfront. We did not encourage the 5-6% but that was the way they worked. You need to negotiate hard to get the exact terms you want.
Leave a comment:
-
A question for those with experience in procurement
Afternoon folks,
Have any of you ever seen a software licence containing a caveat that licence costs will be adjusted annually to reflect inflation?
Specifically, the situation this applies to a situation with:
- Long contracts with fixed prices and terms (5 years +)
- Enterprise software, with licences running into tens of thousands annually.
In this situation, an inflationary adjustment seems like a sensible way to protect the vendor, but I'm not sure if it's the done thing.
Thanks.Last edited by jim2406; 21 September 2009, 15:46.Tags: None
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- IR35: Mutuality Of Obligations — updated for 2025/26 Today 05:22
- Only proactive IT contractors can survive recruitment firm closures Yesterday 07:32
- How should a creditors’ meeting ideally pan out for unpaid suppliers? Sep 19 07:16
- How should a creditors’ meeting ideally pan out for unpaid suppliers? Sep 18 21:16
- IR35: Substitution — updated for 2025/26 Sep 18 05:45
- Payment request to bust recruitment agency — free template Sep 16 21:04
- Why licensing umbrella companies must be key to 2027’s regulation Sep 16 13:55
- Top 5 Chapter 11 JSL myths contractors should know Sep 15 03:46
- Top 5 Chapter 11 JSL myths contractors should know Sep 14 15:46
- What the housing market needs at Autumn Budget 2025 Sep 10 20:58
Leave a comment: