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Negotiating Project Contract Advice

629 Views | 2 Replies | Last: 6 yr ago by AGS749901
TheAggieInventor
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I understand that I can't give too many details on the specs of the ask, but wondering if any Former Students have advice for this current student...

I have a product me and a fellow Ag have been developing. We have hired out a product development company who has designed and will soon be prototyping the product. The design is great, and better than expected. Now given we have accepted a design, they have put together a quote to prototype the product. The quote is for $62,000...When we signed the contract for the design, it was agreed that the terms of agreement was that they had an estimated completed date of 60 days, and the estimated completion of prototype was within 90 days....and today is day 160 and they just finished the design, and the estimated end date of the prototype is 90 days from now! They have been difficult to communicate with, and on various accounts we have had to push back decision making calls because they or their team was out of town.

This is a credible company that we do want to continue working with given the fact that they have designed our product and are heavily invested. I am interested to know from Ags with greater experience than me as a student, if I should bite the bullet and conceive that it's a natural part of any project with unexpected trial and errors.....or if I should stand my ground and negotiate hard that they haven't met timeline expectations and have been difficult to communicate with... I don't want to be an overly entitled young man barking at product engineering professionals...but I don't want to get taken advantage of...

Advice? Thanks and Gig'em!
CapCity12thMan
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AG
the fact you are referencing in the contract all these dates are "estimated", I don't really feel there is anything you can do other than pressure them. They will just tell you their estimates were "way off" and sorry. They haven't really breach anything in the contract (and of course I am saying that without seeing it and basing it only on what you have stated). If they are reasonable and you are reasonable and there is a good relationship, I don't see the problem in wanting to negotiate something off the price, just come up with a good argument of how much and why. Explain to them their overage has cost you X amount for Y reasons and they should at least listen.

TheAggieInventor
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You are correct. We ended up getting 8% off the price. Thanks for your help!
AGS749901
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You need to add performance clauses to your contracts going forward.
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