You are managing a project to develop and deploy a new finance management software system for a client. The project has been deployed and is now in the post-deployment support phase. This phase requires ongoing technical support and maintenance after the software is deployed. The workload can vary significantly over time, is likely to evolve over time, and quick response times are essential. Question: Based on the features of different contractual relationships and methods of supplier reimbursement, state the most appropriate contract type for the post-deployment phase

SIMULATION

You are managing a project to develop and deploy a new finance management software system for a client. The project has been deployed and is now in the post-deployment support phase. This phase requires ongoing technical support and maintenance after the software is deployed. The workload can vary significantly over time, is likely to evolve over time, and quick response times are essential. Question: Based on the features of different contractual relationships and methods of supplier reimbursement, state the most appropriate contract type for the post-deployment phase. (1 mark)

Question: Explain four reasons why this would be the most suitable. (4 marks)

Answer: Most Appropriate Contract Type:

Time and Materials (T&M) Contract

The Time and Materials (T&M) contract is the most suitable for the post-deployment support phase of this project. This type of contract allows flexibility and is ideal for scenarios where workload can vary significantly, and the scope of work may evolve over time.

Four Reasons Why T&M is the Most Suitable Contract Type:

Flexibility to Accommodate Changing Workloads:

The nature of post-deployment support often involves unpredictable workloads that may vary significantly based on client issues, system updates, and evolving requirements. A T&M contract enables scaling of resources (both time and effort) up or down as needed, ensuring the flexibility required for such scenarios.

Adaptability to Evolving Scope:

Since post-deployment support tasks often change over time (e.g., addressing newly discovered bugs, implementing requested features, or handling unexpected incidents), a T&M contract is well-suited as it allows for adaptability without the need for renegotiation.

Cost-Effective for the Client:

Clients only pay for the actual time and materials used, making it cost-effective. This ensures that no money is wasted on fixed-price contracts where the estimated scope may not align with the actual effort required.

Enables Quick Response Times:

Post-deployment support often demands immediate attention to critical issues to maintain the

software’s reliability and performance. A T&M contract facilitates rapid allocation of resources as

needed, ensuring prompt resolution of issues without delays caused by scope or cost discussions.