In addition to particular responses from other members who may have noticed such a potential decline in remuneration, if any, I would encourage the poster of this forum entry to regularly check IACCM annual salary review. Please refer to our IACCM library, by clicking on www.iaccm.com/resources/contract-management-resources/
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Under Common Law principles, liability for personal injury or death cannot be excluded. So it most likely makes no difference whether or not the provision is struck because the customer could not deny their legal liability in the event of negligence leading to this form of loss.
What if there is an industry practise/custom to allow a party to exclude its liability even for its own negligence and it is being upheld by the court of law. What happens then?
I think that the second question goes to the difference between an indemnity and ordinary liability. Under general Common Law principles, the lack of an indemnity for a particular thing does not necessarily mean that a party won't be liable for that thing. The specific issue here is a legal question. It's probably worth a call to counsel so that you can be certain you will be covered in this circumstance. I see this as a different question than "excluding" liability for one's own negligence. Such clauses typically require clearing a higher legal hurdle.
All this said, I really do not understand why the customer would be so unwilling to indemnify for harm they caused. It's generally considered a reasonable commitment.
In terms of the 8 different payment schemes I was specifically referring to what we call 'payment curves' (see attached graphic) as opposed to payment regimes such as cost+ (time and material), fixed price, cost + fixed fee, etc. In this light these are grouped into 5 main families with a couple of variations inside each. These are as follows:
- 'all or none' payment curves
- Linear payment curves
- Non-linear payment curves
- Alternative payment such as demerit point and visual payment curves
- Matrix payment curves
The intent of this discussion is to simply highlight that the choice of payment curve, similar to the choice of performance measure and level, can have a significant impact on the success (or otherwise) of the overall performance management framework. My blog (www.performancebasedcontracting.com) has 3 posts specifically on this topic including the graphics.
I hope this helps and answers your questions. However, please let me know if you have any further questions.
Whilst it's the way that a lot more suppliers seem to be going, if you think about this in with your procurement hat on - and that is what's going to happen at the end of 3-5 years - it's tough to see you doing anything but just rolling this over (and over and over again) as someone else has all of your data on their server.
At the risk of being awfully contentious, my own experience is that in a lot of circumstances, there's little consideration of whole of life costs - especially with that thinking about what's to happen in 3-5 years. Right now, many of these purchases done right now are flying under the radar of procurement teams because they're below procurement limits or just being called operational expenditure within business delegated authorities.
That said, one of the benefits that I've also seen is that upgrades happen automatically on the server of the host without the business having to create teams to do this, especially where there was a major upgrade - which were previously a big financial impact on many businesses.