Flat Fee Projects

[pbd22]

Hi.

I am in contract negotiations with a new consultant.
I want the project to go flat fee after a period of time.
The time allotted is more than reasonable for the
assigned task.

He doesn't want the flat fee and wants a week notice
without cause in the termination clause. I feel that this
exposes me to paying way beyond what I have allotted to this project
should things drag on. I am a start-up and cannot afford
to pay more than the hourly rate x hour/week x number of
set weeks math.

Is there any way of protecting myself?

Thanks.

[McGyver]

Post by pbd22
Hi.
I am in contract negotiations with a new consultant.
I want the project to go flat fee after a period of time.
The time allotted is more than reasonable for the
assigned task.
He doesn't want the flat fee and wants a week notice
without cause in the termination clause. I feel that this
exposes me to paying way beyond what I have allotted to this project
should things drag on. I am a start-up and cannot afford
to pay more than the hourly rate x hour/week x number of
set weeks math.
Is there any way of protecting myself?
Thanks.

The clause allowing termination on one week's notice is good protection.
The way to handle it is to give notice of termination when you decide
that there are only a few days of work left to wrap up the project. If
you guess wrong, you could be paying for an extra day or two, but not
the full week. That's as close as you are going to get to being well
protected, unless you shop around for a different consultant. I think
the consultan't clause is reasonable, so it seems to me unlikely that
you will do better by shopping around. But that's the option.

This answer must not be relied on as legal advice for the reasons posted
here: http://mcgyverdisclaimer.blogspot.com . And I am not your attorney.

McGyver