An EDA buyer may need a product to be modified in order to fit a particular need. The EDA vendor is concerned with spending resources towards customization without a commitment. Impasse?
No! This is the perfect place to put the Contingent Purchase Order in play. The Contingent PO guarantees that if certain items are delivered, an invoice will be paid. It lays out a clear set of objectives to be met and focuses the buyer and the seller on solutions and deliverables.
Why would you want one?
The buyer’s uncertainty is often a reason for decision delays, which are detrimental to both parties. The vendor does not receive the revenue and the user waits for the tool’s benefits. The Contingent PO can break this cycle. The vendor commits to deliver to a well defined set of objectives in order to be paid. This reduces the buyer’s anxiety when purchasing a customized product or dealing with a new vendor.