Capstan has templates and market benchmarks for drafting and negotiating master service agreement terms and conditions. We focus primarily on commercial terms negotiated in the Pricing, Governance, Performance Management and Transition Assistance portions of a contract.
Contract Negotiations
With the expertise and experience of our Capstan partners, we work with our clients to:
- Draft a negotiation strategy and deal hurdle checklist
- Develop a due diligence and site visit work plan with the selected the service provider, and coordinate the communication of due diligence findings between provider and client
- Provide commercial input to the Master Service Agreement (MSA)
- Prepare financial models to test the impact of changes requested by the provider in the negotiation sessions
- Develop “must haves” and “nice to haves” lists for each area of the contract
- Serve as a go-between for the client and the provider on contentious issues
- Assist in the negotiation of the final KPIs, staffing levels, change order procedures and other business terms in the contract.
- Document agreed-to business terms during negotiation sessions and confirm with parties
- Review and validate version control of final MSA and exhibits
A cloud software firm with 4 million SF of office space was on its second generation of outsourcing with Capstan when we launched an RFP for transactions, projects and lease administration. The process resulted in a unique delivery model, with one service provider for US transactions, lease admin and global technology, and another provider delivering all projects and international transactions. Capstan helped negotiate the two contracts including innovative commission rebate structures and terms and conditions on the shared technology.
