Vendor diligence

AI vendor contract clauses

The 21 clauses to negotiate before signing. US-default jurisdiction; have your counsel adapt to local law.

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Cost predictability clauses

  • Monthly cost cap
  • Quarterly cost review
  • 30-day cost-change notice

Pricing transparency clauses

  • Cost assumption disclosure
  • Itemized cost breakdown

IP protection clauses

  • IP ownership
  • Derivative works
  • Source code escrow
  • Buyout option
  • Data portability

Operational competence clauses

  • Data processing addendum
  • Data residency
  • SLA / uptime
  • Fixed milestones
  • Milestone payments
  • SOW amendment process

Customer proof clauses

  • Reference performance guarantee
  • Pilot-first clause

Trust + transparency clauses

  • Key personnel
  • Model disclosure
  • Termination for convenience

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Vendor diligence

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What kind of vendor are they?

Different archetypes carry different risk profiles. Boutique consultancies, agencies, SaaS vendors, freelancers, and staff-aug shops all fail in distinct ways - we adapt the rest of the questions to the archetype you pick.

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