Games for the Future: How Forward Contracts Can Infiltrate Software Deliveries
Nowadays, people often talk about the idea of introducing forward contracts for the supply of software for Russian market players. The most striking example is a proposal to actively implement such contracts from Dilara Bashirova, Procurement Director at Dom.RF. Her proposal was discussed among members of the Association of Major Consumers of Software and Hardware.
However, when concluding forward agreements, it is worth considering the main difficulties that are important to consider when using such contracts. Which ones? Let's look at this in more detail. What is a forward contract? This is an agreement between the parties to buy or sell goods or services in the future under predetermined conditions. In the context of software, this means that the customer undertakes to purchase the software at a certain price and time in the future.
Alina Davletshina, Head of the Digital Practice, commented to ComNews. She believes that, from a legal point of view, the conclusion of forward agreements in the field of IT development has no direct obstacles.
However, in practice, some difficulties may arise: “Changes in requirements: in the face of changing customer needs, the contract must be flexible and include mechanisms for making changes without additional difficulties or financial losses during long-term development. Legislative changes: when international cooperation, it is necessary to take into account differences in the legislation of different countries, which can create legal difficulties. Laws may also change during the execution of a contract.”
You should also not discount financial risks: prepayment for software development can become risky for the customer, especially if the process is delayed or the product does not meet expectations. It is important to define clear payment terms and responsibility for possible delays or product inconsistencies.
You can read all the details about forward contracts here.