David Johnson, P.E.
FEE AND PAYMENT POLICY and PROFESSIONAL STATEMENT OF POLICY
FEES AND EXPENSES. Professional charges are based on an rate of
$100.00 per hour. Project material costs reimbursed at cost plus 20%. Direct expenses such
as photocopies, long distance phone calls, shipping charges, etc. will be billed at cost
to the client company. No contingency fees such as stock options or ownership percentages
will be accepted as alternatives to dollar payments.
|MILEAGE AND TRAVEL. Car mileage, if outside the Denver Metro Area,
will be billed at $0.39 per mile. Travel expenses, when specifically authorized by the
client will be charged at the rate of $800.00 per day, with a minimum of two days (16
hours). Air fare, ground transportation, lodging and meals will be billed at cost in the
month in which the expense is incurred.
|PREPARATION OF COST ESTIMATES. The preparation of detailed project
cost estimates will be charged at the standard hourly rate, whether or not Dave is
retained to do the work. Quotations are valid for the next thirty (30) days. The fee for
generating the cost estimate must be paid before the project can begin.
|EARNEST PAYMENTS. A prepayment, generally of one third estimated
project cost, is required on projects of $1000.00 or more. The prepayment must be received
before the project begins. The remaining balance will be invoiced in equal monthly
payments or will be invoiced at the end of specified milestones. The final invoice is
given upon the completion and delivery of the project.
|PAYMENT OF FEES. Invoices for consulting labor and materials are
submitted at the completion of a project or a designated project milestone. Full payment
of invoices is expected within thirty (30) working days of billing.
|LATE PAYMENTS. Delinquent accounts of 90 days will be automatically
given to a collection agency. The client will further be held responsible for any legal
fees incurred to collect unpaid balances. David A. Johnson will discontinue work if
invoices are not paid.
|ARBITRATION. All claims or disputes are decided by arbitration in
accordance with the rules of the American Arbitration Association unless mutually agreed
otherwise; in which case, the prevailing party shall be entitled to reasonable attorney's
fees and costs. The decision of the arbitrators is final.
|CONFIDENTIALITY AND OWNERSHIP RIGHTS. A non-disclosure form is
provided for signatures at the first meeting. All design and patent ownership rights
evolving will become the sole property of the client upon receipt of the final payment.
The client shall receive all drawings, schematics and prototypes generated.
|WARRANTEE. Any delivered hardware will have materials and workmanship
warranted for 90 days. The warrantee is limited to the repair or replacement of defective
hardware. If the hardware is misused or neglected, the warrantee will be void.