Procuring small-scale software solutions
Councils may experience difficult negotiations when procuring small-scale software solutions. Maddocks has in-depth understanding of the market.
We have been noticing recently that a lot of our local government clients have been procuring a wide variety of smaller-scale cloud-based software solutions. With these types of procurements, vendors will try to insist that council agree to and execute the vendor’s template terms and conditions. These terms and conditions are often extremely one-sided in favour of the vendor, and give the customer very limited recourse in the event that the solution is defective or some other damage occurs (such as a data security incident).
One way to avoid protracted negotiations trying to get a vendor agreement into a form which is suitable for a local government entity is for councils to have a template cloud services agreement which has been specifically tailored for smaller-scale cloud-based services.
An agreement for a smaller-scale solution will be quite different to an agreement for a business-critical or high risk service. A template developed for such larger-scale procurements is unlikely to be acceptable to vendors of smaller products. However, a well-crafted template targeted specifically at smaller-scale products, with appropriate risk allocation regimes, pricing structures and service level models, is likely to be something that a vendor will work with, and which should also address many of the risks specific to a local government entity (such as its obligations under Victorian data security legislation).
Has your council experienced difficult negotiations with a software vendor for what should be a low-risk low-cost cloud solution?
Maddocks has an in-depth understanding of the market for small-scale software solutions, and has experience in developing template agreements which adequately address the risks for councils while most often also being acceptable to vendors.
Need advice on procurement matters?
Contact the Procurement & Contracting team.
Keep up to date with our legal insights and events
Sign upRecent articles

Tipping the balance – a fresh look at the impact of the 2021 defamation law reforms (Part 2)
By Rebecca Griffiths, Shaun Temby
We consider further key reforms in this area following their introduction in 2021.

Changes to the Unfair Contract Terms Regime. It’s here – Developers, are you ready?
The amendments to the laws governing UCT came into effect and apply to new contracts made at or after 9 November 2023

Navigating major state tax changes in Victoria – what property developers need to know
By Michael Taylor-Sands, Andrew Wright
We break down the the State Taxation Acts Amendment Bill 2023 for property developers.

‘Jack’ and ‘Mac’ recognisably different: McDonald’s loses trade mark beef with Hungry Jack’s
By Georgia Hunt, Robert Gregory
McDonald’s has failed in its trade mark claim against Hungry Jack’s for the sale of its ‘Big Jack’ burger.
Partner
Melbourne