The Effective Date, whether on a new contract or a renewal, represents when the terms in the contract you signed go into effect. For the Effective Date to apply, your contract must be fully signed by all parties, and your Implementation Fee must be paid.
Key Implications of the Effective Date
- Contract Activation: All terms and conditions outlined in the contract, including confidentiality, indemnification, and other stipulations, come into effect. This establishes a formal legal agreement between Net Friends and your business.
- Implementation Commencement: The 30-day countdown for completing the Implementation Project begins on the Effective Date. The Effective Date marks the official handover from the Customer Success team to the Implementation team, initiating the project.
- Financial Obligations: The Implementation Fee becomes due on the Effective Date. This fee initiates the contract's financial terms.
Distinguishing the Effective Date from Go-Live Date
The Effective Date signifies the contract's initiation, the Go-Live date is when employees can access IT support services. A good rule of thumb is that the Go-Live Date is typically 30 days after the Effective Date. However, the Go-Live Date can be less than or more than 30 days after the Effective Date.
