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Electrical Engineering/Third Party Components/Controls Purchase Cost.

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Question
Dear Prof Cleggsan

If Third party Components/Controls Toolkit is used in the system
being developed by the Information Technology Service Provider, Who should bear the purchase cost of this Toolkit ?.

1. Software Development Company
2. Client who requires the System to be developed by Software Development Company.

i.e. 1 or 2.

Do you feel even this may work ?. If a mutual understanding between both parties takes place, the purchase cost of the Toolkit
can be shared between both parties equally  as 50 % each ?.


Awaiting your reply,

Thanks & Regards,
Prashant S Akerkar

Answer
This is a business matter and should be clarified in the contractual agreement between the parties.  It is very common to have such agreements in place and if not a method for seeking agreement on matters that become at question.

I am not aware of any trend or industry practice in this regard.  But, I have been instrumental in preparing contractual agreements that define the role of expenditures for third party devices and works. It is not uncommon for such language to be contained in pro-forma agreements.

Hope this helps.  

Electrical Engineering

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cleggsan

Expertise

All technical areas of Electronics Engineering.

Experience

BSEE, MBA, Design, R&D, University Research.
Senior Life Member of IEEE. Life Fellow of AES.

Organizations
IEEE, Consumer Electronics Society, Audio Engineering Society.
Broad teaching experience; work experience mostly in consumer electronics and conversion from analog to digital technologies. Pioneer in digital audio at all levels.

Education/Credentials
BSEE (Equiv) BYU BSEE University of North Dakota MSBA (MBA) Illinois State University Graduate Studies in Computer Science - Bradley University Graduate Studies - Ohio University Graduate Studies - University of Missouri Kansas City DeVry Tech - Electronics

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