Beware of "evergreen" clauses in contracts with information-technology suppliers

By Staff -- Purchasing, 3/23/2000

Beware of "evergreen" clauses in contracts with information-technology suppliers. Clauses automatically extend service agreements if suppliers are not notified by a certain date. Problem is that many services are no longer required as time passes, but companies fail to notify the IT supplier. Such clauses have been included in contracts for years, partly due to inexperience of IT personnel in contract negotiations. Use of evergreen clauses if additional evidence of need for purchasing to handle IT purchasing. Burden should be on suppliers, not customers, to review need for continued service and upgrades.

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