Have You Ever Gotten a PDF-format Contract Template from a Vendor!?
I have a lot of “pet peeves” when it comes to negotiating a vendor’s contract-like when they don’t want to make
indemnification mutual or they give me a hard time about carving out infringement from the limitation of liability. What that
says to me is that I’m not a valued customer and I’m dealing with someone that has either just graduated from law school or is on a low rung of the vendor’s corporate ladder. But that's OK, that's just a part of vendor management.
What really ticks me off, what really sends me into orbit, what really makes me want to go ballistic on a vendor is when a
vendor sends me their contract in PDF format. Mind you, I absolutely love Adobe. I think they make some of the best
nearly-bug-free software products out there. So, it’s not that I don’t like Adobe-it’s the fact that I’ve gotten a contract
in an unchangeable format.
Usually, this PDF contract template drama only happens with new or non-strategic vendors. But even with those types of
vendors it shouldn't be happening. I mean, aren’t contracts intended to be negotiated? Sure, I clench my jaw when I have to click-through online license agreements, and I smile and suck it up when it comes to shrink-wrap agreements. But that’s OK, because that’s what I’ve bargained for. When it comes to a semi-COTS software package, especially one that is pricey, I want to negotiate the darn contract. Otherwise, if I cannott negotiate it, it’s just another adhesion contract and I have enough of those in my personal life, like when I park my car and “assume all risk.” I’m still OK with that, but I’m not parking a car here, I’m buying an expensive piece of software (or whatever)!
When a vendor sends me that PDF contract, they’re impliedly saying a number of things I really find offensive. “We don’t want you to redline the contract.” “We don’t trust you to redline our contract.” “We want to make redlining so painful for you, that we want you to write the redlines in the form of an amendment to our PDF contract.” At the same time, the vendor wants to be my newest best buddy and take me out for lunch. Stand in line, vendor, there are other vendors out there that want to take me to lunch AND use MY contract template.
So what do I do when I get a vendor contract in PDF format? Well, the first thing I do is send them my contract
template-again. I probably already sent it as a part of the RFx and the vendor is now engaging me in a dizzying battle of
the forms. If I have no leverage because the vendor has hypnotized my customer and I’m forced to use the vendor's contract template, I give them an earful about how unprofessional it is to send a PDF contract and I scream bloody murder for them to send me their template in a Word format. Or better yet, use my contract template. If they still give me a hard time, and sometimes they do, I whip out one of my trusty PDF crackers and bust their PDF into a Word document so I can hack at it. If you don’t have one of those crackers, buy one because they’re worth every penny.
So vendors, wake up and get customer focused, save the PDF format for the final version of the contract and treat your
customers like we keep you in business. You might even be able to reduce your own costs (and mine, right?) by not having to buy so many Adobe Acrobat licenses. Here’s the irony that makes everything all better for me: I just love sending my comments back to a vendor in a PDF format.

What is the service levels with escalations in details? Can you give an example, thanks.
Reply to this
Bo,
It's actually quite easy. You would use a traditional service level objective, like "99% of the time in the monthly measurement period, vendor shall respond to all service requests within 2-business hours of the request and shall provide a resolution within 4-business hours of the request." Just add to that the remedy, like "Where vendor fails to resolve a service request with 4-business hours, vendor shall escalate the service request to vendor's operations manager, and shall then escalate the service request to vendor's vice president of operations if the service request remains unresolved for greater than 8-business hours. Should vendor fail to meet the service level objective for the monthly measurement period, vendor's vice president of operations and customer's vice president of vendor management shall meeting in person to discuss the root cause and vendor's action plan to improve the service level for the following monthly measurement period." This is an off-the-top-of-my-head example, and needs a lot more work, but I think you get the picture of how it works from the example.
Thx!
Stephen
Reply to this
I thin "Achieving Service Level Method" with penalties would be a great model.
Reply to this
This is a great article. Thanks for the information.
Reply to this