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Electrical Engineering/Third Party Components/Controls Purchase Cost.


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

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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