Acceptance criteria: Overview, definition and example
What are acceptance criteria?
Acceptance criteria are the specific conditions or requirements that must be met for a product, service, or deliverable to be accepted by a customer, client, or stakeholder. These criteria define what is expected in terms of quality, performance, or functionality and are used to assess whether the work meets the agreed-upon standards.
For example, a software company might set acceptance criteria for a new application, such as specific features working properly, performance benchmarks being met, or compatibility with certain devices.
Why are acceptance criteria important?
Acceptance criteria are important because they provide a clear and agreed-upon framework for what needs to be delivered. They set expectations upfront, helping to prevent misunderstandings or disputes about the quality or scope of work. By defining measurable standards, acceptance criteria ensure that all parties are aligned on the requirements and can confidently assess whether the work is complete.
They also help avoid unnecessary delays and rework by providing a reference point for what is considered “acceptable.”
Understanding acceptance criteria through an example
Imagine a construction company hired to build a warehouse. The contract includes specific acceptance criteria, such as the building must meet local building codes, the roof must be water-tight, and the flooring must support a certain weight capacity. These criteria are used to inspect and approve the completed warehouse. If the building doesn’t meet these conditions, it cannot be accepted, and the necessary adjustments must be made.
This ensures the client receives exactly what they expected, meeting both legal and practical requirements.
An example of an acceptance criteria clause
Here’s how an acceptance criteria clause might look in a contract:
"The Deliverables will be considered accepted by the Buyer once the following acceptance criteria are met:
- The software must pass all user acceptance tests as defined in Schedule A.
- The application must perform under load of 100 simultaneous users without degradation of performance.
- All security vulnerabilities identified during testing must be resolved to the satisfaction of the Buyer."
Conclusion
Acceptance criteria are a crucial part of contracts, ensuring that the expectations for the quality and functionality of deliverables are clear and agreed upon by both parties. By defining acceptance criteria, businesses can ensure that their products or services meet the required standards and avoid disputes or delays.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.