Technology contracts are rarely exciting reading, and that is why important details get skimmed. A phone system, internet service, copier lease or software subscription can quietly lock a business in for years.
I am Vice President of Operations at DirecTech Connect, a Nashville-area provider of business phone systems, managed IT, websites and digital marketing. I oversee our managed VoIP and telecommunications services, managed IT for small and medium-sized businesses, and client project delivery, so these are questions I deal with every week.
I also spend a good deal of time on project delivery and vendor details, so I have read a lot of agreements from both sides of the table. I am not a lawyer, and for anything large you should have one review it. These are the sections I check first as an operations person.
Term and renewal. Find out how long the agreement lasts and what happens at the end. Many contracts renew automatically for another full term unless you cancel within a specific window, sometimes months ahead. Put that date on your calendar the day you sign.
Cancellation and early termination. Ask what it costs to leave early, and what counts as a reason to leave without penalty, such as repeated outages. Look for language about fees that equal the remaining months.
Price changes. Check whether the rate is fixed or can increase, how much notice you get, and whether an introductory price ends after a set period.
What is actually included. Look for what the service covers, response times, support hours and any promises about uptime. If something was promised in conversation, make sure it is in the document.
Equipment and ownership. Ask who owns the phones, routers and other hardware, what happens to them when you leave, and whether you can keep your phone numbers and data.
Setup and extra fees. Look for installation charges, change fees, taxes and surcharges that are not in the headline price.
Ask questions before you sign, and ask for changes in writing. A good vendor will explain any clause plainly. If the answers feel evasive, that tells you something too.
Danielle Lemons is Vice President of Operations at DirecTech Connect, a Nashville provider of business phone systems, managed IT services, websites and digital marketing. More about Danielle.
