Rich,

Good luck with that! In all of my EDI engagements I've never had a 
contract like that, not even for the one fixed price contract I did. 
When I worked for a vendor our fixed price contracts routinely had a 
provision to make final payment dependent on passing the acceptance 
tests. But, there was also a payment due on signing and frequently 
progress payments. Unless you can arrange something like that and get 
specific about acceptance criteria I would pass on the deal. Even when 
you do arrange something, you also have to put in provisions about what 
happens when the work is presented for testing and the client delays, 
how long you have to fix reported problems and re-test, etc. Bottom line 
is that if you don't trust each other no contract is going protect 
either of you. If you do trust each other, keep it simple.

Hope my two cents worth helps.

Mike

-----------------------------------------
Michael C. Rawlins, Rawlins EC Consulting
www.rawlinsecconsulting.com


On 4/6/2011 10:23 AM, Rich Silva wrote:
>
> Or those of you with Contracting experience… OK, any of you…. Feel free to
> chime in…
>
> A prospective client of mine (their lawyers anyway) have asked that I 
> add a
> clause to “Exhibit A of the Contractors Agreement” (Exhibit A, in 
> their case
> is basically the place where I put in my billing terms…) that goes 
> something
> like
>
> “…payment is not due until testing has been approved and completed…”
>
> I have a lot of issue with this, not only because it holds up payment 
> on the
> entire contract until the end (and I am in no condition to support 
> that) but
> because it also leaves me no leverage if they decide to withhold payment
> (for any reason)… I’d have made my “deliveries” and its not like I could
> “remove” them… (Other than legal).
>
> Not to mention that “Now” I/we will have to negotiate and agree on
> “Acceptance Criteria” which so far has been loosely “make it work”…
>
> (For a bit of context, it’s a multi month contract… Currently labeled as a
> “Phase 1” (of at least three)… And both sides (myself and my contacts 
> within
> the company) are hoping that this turns into a “long friendly 
> relationship”…
>
> I was curious if any of you have seen anything like this…
>
> And if any of you have some alternative positions I might offer while I
> negotiate around this issue?
>
> Thanx,
>
> Rich
>
> Description: Wizard Clip Art SigRichard Silva
>
> Silva Software Services – United States
>
> Phone: (310) 387-8364
>
> Email: <mailto:[email protected] <mailto:RichSilv%40Pacbell.net>> 
> [email protected] <mailto:RichSilv%40Pacbell.net>
>
> ü Please consider the environment before printing this email.
>
> [Non-text portions of this message have been removed]
>
> 


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