NCC April Vendor Contracts: How to Be Slick and Lose Customer Trust
April 28, 2022
I read “Build Vs. Buy: Vendor Contract Shenanigans.” The write up is an excellent reminder of the character traits of MBAs and lawyers; that is, you lose if we provide you with a contract you sign without understanding. The article contains a number of examples of legal behavior which might strike some people as fraud. Oh, well, that is a signed contract, and your firm must comply. I love it when the lawyer tells a contracting officer, “Hey, we are sorry. These are standard terms.” Yep, standard for whom?
Let me highlight three of the methods used to inflict maximum gain for the vendor and delivering discomfort to the customer. Please, consult the original write up for the fourth item on the list.
First, the vendor (in this case, the Google) specifies that when the guaranteed level of service fails, the customer must get everyone in the chain to notify one another that the Googley service did not deliver. A failure to complete this notification within 30 days means you forfeit a “service credit.” (I don’t know what a service credit means, but I don’t think it means cash money.)
Second, the vendor collects the money before service begins. If you don’t use what you bought, there is no refund.
Third, sign our deal and our company will use your logo forever.
The MBAs and lawyers involved in deals with these types of clauses have an ideal rationalization: We are just doing our jobs.
Yes, these individuals are. Just following orders. Where have I heard that before?
Stephen E Arnold, April 28, 2022
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