another way of speeding payments is have pre-established milestones and
payment dates for each of them. be explicit with terms and include late
penalties, you can enforce these only if you get them to sign a document
agreeing to them, you can get quite harsh with these too, so long as they
explicitly agree to them (no that doesnt mean "yes I'll F$&*#@g agree to
them" ;-) in writing.

-----Original Message-----
From: pic microcontroller discussion list
[mailto:PICLIST@MITVMA.MIT.EDU]On Behalf Of Mike Harrison
Sent: Tuesday, 9 December 2003 10:39 AM
To: PICLIST@MITVMA.MIT.EDU
Subject: Re: [OT]: Starting up as a small design shop


On Mon, 8 Dec 2003 17:14:35 -0600, you wrote:

>Once you have customers (your first priority) you will need contracts
>(your second priority IMHO).
>
>Many consultants work without contracts, figuring that if they are gonna
>screw you they will do it anyway.  Other people call these types fools,
>but there are proponents of each method.  I won't argue about it but I
>have a standard contract.  In any case you need a clearly stated written
>scope of work for each project that outlines the deliverables, the fee,
>when the fee will be paid, and what happens if it is not paid on time, and
>which deliverables will be withheld against payment.

Contracts can work both ways. It can be hard for them to pin any liability
down to you if there
isn't  a formal contract specifying exactly what your responsibilities
were....

I usually state something like "I reserve the right to withold design files
(source.object code, PCB
artwork etc.) and/or support if any invoices are overdue".
Where possible, supply code-protected devices for testing, invoice when the
customer has approved
them, and hand over code when invoice is paid. This can also be a good way
to speed up payments.

>You may need Professional Liability insurance jsut to operate at all.  In
>electronics, this is often not done in the US.  But Professional engineers
>that work on public buildings, such as structural engineers, absolutely
>must have liability insurance or their clients run away screaming.
My answer to this is something like :
"The customer is responsible for testing the (code/hardware etc.), and
determining its suitability
for purpose. Significant time spent fixing bugs discovered after customer
has approved prototypes
etc. may be chargeable."

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