At a glance


  • £1.5m financial software purchase
  • £100k cost saving
  • Business Critical system
  • Small, geographically distant supplier   
 
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Project:

Software Purchase Risk Assessment & Negotiation

Client:

Land Securities

Land Securities is the largest commercial property company in the UK and the leading British property development and investment company headquartered in Central London. It owns and manages commercial property, from London offices and high street shops to major shopping centres and out-of-town retail parks.

Scope:

Through a tender process, the client selected a core financial software system from a small incumbent supplier, with several challenges 
•    Significant development needed to satisfy requirements
•    Small supplier, with unknown financial stability
•    Supplier resources based in Australia and Canada, creating communication challenges
•    Tight implementation deadlines constricted negotiation timescales

Key Business Benefits:

 

Cost Savings: 

£100,000 reduction from initial RFP response

Commercial benefits:

1.    All implementation costs fixed price to reduce Client risk of cost increase
2.    Clearly defined requirements within the contract
3.    Clear project timescales and deliverables, set against fixed milestone payment to incentivise on time delivery
4.    Detailed acceptance criteria and a defined acceptance testing process
5.    Granularity of all implementation and ongoing costs
6.    Scalability of costs for future
7.     A pricing model best suited to the client (buy & maintain, not subscription)
8.    Clearly defined service levels set against service credits for ongoing support & maintenance

 

The Turnstone Approach:

 

1.    A risk assessment of the supplier’s response to the RFP
2.    A negotiation strategy to mitigate all identified risks
3.    A draft contract constructed to minimise risk through the life of the contract
4.    Support to the client during the negotiation process

 

“Turnstone helped us to achieve best value for money from the supplier whilst negotiating strong contractual terms to underpin a successful delivery.”
Michelle Senior, Land Securities