Effective Management of I.T. Disputes

A joint publication by SITDRAC (Singapore IT Dispute Resolution Advisory Committee) and Butterworths Asia.

Effective Management of I.T. Disputes is a slim volume focusing on the information technology industry. Whilst written for the information technology industry generally, its broad focus is on computer contracts. The two main chapters in the book on IT contracts (Chapters 2 and 3) take as their broad focus computer system contracts rather than contracts related to e-commerce (which would probably require a separate volume in themselves). Persons in the e-commerce industry will still find this a useful book, however, as a significant part of the e-commerce industry still involves setting up computer systems. In addition, the general principles espoused in the book will apply to that industry as well.

The book is a welcome primer for persons in the IT industry, and is written for the benefit of lay persons. A legalistic approach to disputes has been avoided as evinced by the title itself, which refers to IT disputes and not legal disputes. The writers have striven to present legal issues and concepts in a simple and plain manner. To a large extent, the book succeeds admirably in this approach, although the chapters on arbitration and mediation could, perhaps, have been a little less dry, with a greater focus on the practicalities of arbitration and mediation rather than their procedural aspects. To further attract the lay person, the book is studded with illustrations which provide some comic relief from the more serious matters discussed in the book.

The book comprises 7 chapters in all, covering all aspects of dispute management. Each chapter has been written by a practitioner in that area. What is particularly interesting and commendable is that the book adopts a holistic approach to dispute management. It not only deals with what can be done after a dispute arises, but also considers strategies to bring about a reduction in the occurrence of disputes. Accordingly, Chapters 2, 3 and 4 are on ‘Avoiding Legal Minefields in IT Contracts’ , ‘ Managing Government IT Contracts’ and ‘Psychological Contracting in IT Contracts’ respectively.

The chapter on ‘Psychological Contracting in IT Disputes’, written by Ang Soon and Christine Koh, was particularly interesting as it covered an area of contracting not normally considered by most people — the social aspect of managing a contractual relationship. Although it refers to ‘psychological contracting’, the title belies a very practical down-to-earth approach and provides useful guidance as to how the relationship between an IT provider and a client can be managed. Particularly useful were the various tables in the chapter which explains the point of view of each party to an IT transaction.

Also useful was Lim Kien Thye’s chapter on ‘Avoiding Legal Minefields in IT Contracts’, which explained the basic features of an IT contract, and reproduced the IDA’s Checklists for IT Contracts in Appendix 1. These covered application development, product development, consultancy agreements and licensing agreements. The checklists would provide any person in the IT industry with a quick and easy reference guide and pointer to the crucial issues that arise in most IT contracts.

Chapters 6 and 7 of Effective Management of I.T. Disputes focus on the mediation and arbitration processes respectively. These chapters help to demystify the mediation and arbitration processes for the lay person by explaining the broad objectives of and procedures involved in these processes. While the current trend is to emphasise ‘soft’ methods of dispute resolution, the book could perhaps have been made more comprehensive if a chapter on court proceedings had been included as well, especially as court proceedings tend to carry with them their own unique aura of fear and avoidance for most lay people.

Perhaps the only real criticism of the book is its final chapter, ‘The Year 2000 Problem: Chronological Study’, primarily because sitting here some four months after 1 January 2000, the chapter (which takes a retrospective look at the Y2K problem) seemed a little redundant. It also sat a little uncomfortably with the general topic of the management of IT disputes. It might perhaps have been more useful if the focus had been on the lessons that could have been learnt from the Y2K issue, and how similar problems could be managed in future, rather than a chronological survey of how the problem arose.

On the whole, however, persons in the IT industry will find Effective Management of I.T. Disputes a useful and welcome primer that encompasses the entire process of managing an IT relationship and the disputes which might arise from such a relationship.


Lim Wee Teck
Rajah & Tann