ctory becomes the basis on which a transaction is moved from money-due to money paid status. Ordering a single network interface card, or a gross, is easily done with a single purchase order. As long as they are all being delivered to a single address, installing and configuring them is a labor intensive deliverable. If a third party does installation and configur- ation, it's likely the value is many times the cost of the network interface cards, yet all three items can be labeled a deliverable in purchase order and paid for separately on acceptance. Defining a project is more complex because it involves multiple tasks and deliverables. Projects may be segmented into phases built around time frames and capabilities. The data network conversion from private lines to frame relay mentioned previously might be further segmented into phases timed across several weeks or months while the technology conversion program might be structured in phases built around voice, data, and Internet access capabilities. Structuring a project or program, like defining an application, should logically start with a statement of requirements. The statement can be used in a proposal in response to a verbal request, or it can be posed in a written document by the requestor. If the statement of requirements is structured properly, it can flow smoothly through a response to a request (a proposal) to the negotiation and acceptance of the proposal, which becomes the basis, or in fact, a contract, between two parties. The work proceeds through deliverable, acceptance, payment, and contract completion. Contracts for goods are usually considered com- plete on delivery and acceptance, except for any warranties covering defects in workmanship and materials, or clauses covering patents, copyrights, or other intellectual property. 7 SPECIFYING EQUIPMENT AND SERVICES The same process is used for equipment and services. The difference between the two is mostly a matter of physical items or rights to use physical items such as software or intellectual 