Practical contracting advice for growing tech companies
Landing a large customer should feel like a win. Then their procurement team emails a 40-page “Professional Services Agreement” and says: “We don’t sign vendor contracts. You’ll need to use our PSA.”
There’s just one problem: the deal doesn’t fit a professional services model. It’s a:
- SaaS subscription
- software license
- hardware sale with limited services
- usage-based API product
In other words, it’s the wrong contract for the deal.
The following provides a practical framework for evaluating the issues presented by this situation while supporting continued deal progress.
1. Reframe the Conversation (before it becomes a power struggle)