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12 Questions Before Renewing a Software Contract

· 4 min read

Before renewing a contract with a software supplier, establish four things: what you own, where it runs, what the support line actually covered this year, and what leaving would involve. A renewal signed without those answers is not a decision, it is a continuation, and the difference becomes visible the first time you want to change supplier.

This guide is for an owner or manager who cannot assess the technical work directly and needs a way to judge the relationship instead.

Key takeaways

Twelve questions to ask before you sign

1. Who owns the source code, and where is that stated? It should be in the contract, not implied by having paid for it.

2. Where does the code live, and do we have access today? If the repository is in the supplier's account and you have never logged in, you do not have access, you have a promise.

3. Whose name is on the cloud, domain and app store accounts? These are the items that cause the most damage in a bad separation, because they control whether the service keeps running at all.

4. Where is our data, who else can reach it, and how do we get a full copy? Ask for an export now rather than at the end.

5. What did the support retainer cover this year, itemised? Hours, tickets, incidents, small changes. If nobody can produce this, the retainer is being paid for availability, which may be reasonable, but you should know that is what you are buying.

6. What was the response time when something broke, measured rather than promised? Compare it against what the contract says.

7. Which parts of the system does only one person understand? Every supplier has some. The answer tells you your real risk, and a supplier who denies it is not being straight with you.

8. What is documented, and can we see it? Documentation that exists only in a conversation is not documentation.

9. What happens if we stop working together? Handover period, format, cost, and who is available during it. This is much easier to agree before signing.

10. What would you do differently if you were starting this system today? A useful and revealing question. A supplier who has thought about the system's weaknesses will answer it in detail.

11. What is on our roadmap that you consider risky? Specific technical risks stated plainly are a sign of a partner rather than a vendor.

12. What is the price for the same scope next year, and what is driving any increase? Costs can rise for good reasons. They should be nameable.

What the answers tell you

Take the answers together rather than individually. Three patterns matter.

Ownership and access are clear. Code, accounts and data are yours, and you have logged into them at least once. If this is true, the rest is a commercial negotiation rather than a dependency.

Work is visible. You can see what has been done, what it cost, and what is planned. Visibility is the single best predictor of a relationship that will survive a disagreement.

Concentration risk is acknowledged. Every supplier has key people. The difference between a good one and a bad one is whether they tell you and manage it.

Renewing is often the right answer

None of this is an argument for changing supplier. Switching has real costs: the new team spends months learning what the old one knew, and much of that knowledge is not written down anywhere.

The point of the questions is to renew from a position where you know what you are agreeing to, and to fix the gaps, ownership, access, documentation, exit terms, while you still have leverage. The best time to agree a clean handover process is at the start of a renewal, not at the end of a relationship.

If the renewal review shows gaps in ownership, documentation or support that need addressing before you sign, Discuss Your Plan.

Frequently asked questions

Is it rude to ask a long-term supplier these questions?

No, and a good supplier will expect them at renewal. The reaction is informative: a partner answers, a vendor deflects, and how they respond to the ownership question in particular is worth noting.

What if we do not own the source code?

Raise it at renewal rather than later, and treat it as a term to negotiate. Understand what the supplier's position is, in writing, and what it would cost to change it.

What should we do before the renewal meeting?

Pull together what you already know: the contract, the invoices from this year, and a list of incidents. Going in with a record of what actually happened changes the conversation.

How we would work on this

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We would rather deliver one product that holds up than three that have to be rebuilt. That standard is the same on every project, whatever its size.

Ali Boran GazelCEO

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