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How much to hold back?

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by blclark

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We are going to purchase a new billing system, and pay vendor for implementation. What is your knowledge of the industry standard for hold back? I.e., what percentage of the implementation costs do you hold back pending successful implementation andsystem acceptance?

5 replies

by pm100

Generally it is a good dea to hold off 20% for GO live and then another 10% pending SA.
Generally for an product implementation approach, the vendor bills you for license and implementation costs
Would suggest that u hold on to similar percentages of both as surety.

But also the vendor is smart enough to know this and hence all his costs are normally recovered with the 70% !!!!.

So the rest is his real profit !!!

by alon

30% down,
30% once the system is up and running,
30% 3 months later - Debugging etc (problem solving)

Alon Moritz
Moozatech IT Systems

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