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Cases - Good Contracts Make Good Clients
This January marks the tenth anniversary of the Advertising & Marketing Review Website, and to mark the occasion this column is about how the Website was initially funded. It’s a cautionary tale about the necessity of having a good contract whenever doing contract work.
While working at Apple In 1995, I ran into someone looking for a writer to adapt a lecture series on multimedia production to a book format. Since I had recently worked at Radius as Beta Site Coordinator introducing a
While working at Apple In 1995, I ran into someone looking for a writer to adapt a lecture series on multimedia production to a book format. Since I had recently worked at Radius as Beta Site Coordinator introducing a
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
variety of breakthrough multimedia products to Hollywood and Madison Avenue, the job sounded perfect.
I submitted a detailed proposal asking for $8,000 to provide a 75,000 word book with screen shots but no line art. The client countered with a price of $5000 for 50,000 words and no line art. The contract specified that 25% to 50% of the total words would be supplied by client in the form of a transcript of the lectures. The work would be delivered in four installments, each two weeks
I submitted a detailed proposal asking for $8,000 to provide a 75,000 word book with screen shots but no line art. The client countered with a price of $5000 for 50,000 words and no line art. The contract specified that 25% to 50% of the total words would be supplied by client in the form of a transcript of the lectures. The work would be delivered in four installments, each two weeks
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
apart. According to the contract he had two weeks from delivery to accept or reject each milestone delivery.
While the price was adequate, the payment schedule was highly suspicious. Rather than equal payments for the four milestones, the client insisted on a balloon payment “bonus” for making the last milestone on time. This effectively meant that after I had handed over all four installments, the client would have only paid me half of the total. The client justified this by saying
While the price was adequate, the payment schedule was highly suspicious. Rather than equal payments for the four milestones, the client insisted on a balloon payment “bonus” for making the last milestone on time. This effectively meant that after I had handed over all four installments, the client would have only paid me half of the total. The client justified this by saying
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
the publisher had given him a deadline shortly after the fourth milestone was due and that he would loose royalty points if the manuscript was delivered late. Maybe this was true, but I suspected there was another reason for the payment structure.
Generally, when a client holds off a significant percentage of the payment until after most of the contracted work has been turned in it’s because they’re planning to demand more than agreed to for the final payment, and sometimes a lot more
Generally, when a client holds off a significant percentage of the payment until after most of the contracted work has been turned in it’s because they’re planning to demand more than agreed to for the final payment, and sometimes a lot more
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
. The large unpaid balance gives them a lot of leverage, and they will use it. Their hope is that the contractor will be focused on getting the total amount promised, and completely loose sight of how much work they are being asked to do to collect it. In many cases, that strategy works.
A good counter-strategy in those situations is to give the client the benefit of the doubt, but to be ready and willing to quit the minute the demands significantly exceed the contract. Given that the
A good counter-strategy in those situations is to give the client the benefit of the doubt, but to be ready and willing to quit the minute the demands significantly exceed the contract. Given that the
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
first three milestones paid reasonably well for the work required, I set my goal on completing them successfully. If he wasn't honest, it was in my best interest to put off any confrontations with the client until after I received payment for the third milestone. With luck, the terms for the fourth milestone would not be changed and remain easy and profitable to meet.
I noted that the client made it a point to tell me that he was good friends with the manager of the project I was wor
I noted that the client made it a point to tell me that he was good friends with the manager of the project I was wor
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
king on. He was either being friendly, or was planning to use that later as pressure. I became a bit concerned when I saw that the transcript provided was a lot rougher than I expected, but since at least 25% of it could be used, the writing effort required still wouldn’t be too bad.
The first milestone came and went with only one problem. The client had requested that the first milestone include a lengthy chapter on a multimedia kiosk at a major university. When I turned it in he inf
The first milestone came and went with only one problem. The client had requested that the first milestone include a lengthy chapter on a multimedia kiosk at a major university. When I turned it in he inf
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
ormed me that he had not been able to secure rights from the university and the entire chapter would have to be discarded, meaning it would not count towards the 50,000 word quota I was obligated to provide. I was annoyed about this but did not want a confrontation at that point.
When I turned in the second milestone the client made two comments that that confirmed my suspicions about him. First, he said that he had not had time to read the first milestone I turned in, though he said
When I turned in the second milestone the client made two comments that that confirmed my suspicions about him. First, he said that he had not had time to read the first milestone I turned in, though he said
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
he was sure that it was all right. Second, he told me that he had been in touch with the publisher and the publisher said they needed "more, MORE." I didn't ask him if that meant more than the 50,000 words I was contracted to supply. I knew the answer. I said I understood, picked up my check and left.
A few days later I called the client and suggested that I change the sequence of chapters as defined in the contract so the third milestone would be an extensive glossary instead of abou
A few days later I called the client and suggested that I change the sequence of chapters as defined in the contract so the third milestone would be an extensive glossary instead of abou
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
t digital video. I said it would give me more time to research the remaining chapters, which was quite correct since it would have allowed me more time to interview key engineers at Apple and Radius. Since I had planed on paying for the interviews, I wanted it to be at a point where I knew I was certain I would make enough to cover the expense. The client agreed, largely because I hadn't given any indication I was on to him.
When I turned in the third milestone, the client again told
When I turned in the third milestone, the client again told
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
me that he had still not yet read anything I had turned in. Again, he repeated his request for "more." Again, I picked up my check and left.
I had estimated that if the client were going to try to pull something, he would do it in the last week before the fourth milestone was due. He was right on schedule. In the middle of that week I got a call from him at work. He sounded very angry, arguing that he had finally read the three previous milestones and was rejecting all of them. He dem
I had estimated that if the client were going to try to pull something, he would do it in the last week before the fourth milestone was due. He was right on schedule. In the middle of that week I got a call from him at work. He sounded very angry, arguing that he had finally read the three previous milestones and was rejecting all of them. He dem
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
anded to see me immediately.
When I met him, he handed me a copy of the chapters I had turned in, loaded with editing marks and comments and he launched into a tirade about the quality of my work. As he went on, I examined the marked up chapters and noticed that nearly all the critical comments on the pages involved the text I used that he had provided. Chapters and sections I had written from scratch had few, if any, critical comments. In effect, he was rejecting the 25% of the text
When I met him, he handed me a copy of the chapters I had turned in, loaded with editing marks and comments and he launched into a tirade about the quality of my work. As he went on, I examined the marked up chapters and noticed that nearly all the critical comments on the pages involved the text I used that he had provided. Chapters and sections I had written from scratch had few, if any, critical comments. In effect, he was rejecting the 25% of the text
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
he was contractually obligated to provide.
This was a classic maneuver on the part of my client. His emotionalism was calculated to keep my mind on anything but the terms of the contract. Anyone in any kind of business, whether it's advertising, writing or palm reading, either has, or will eventually, face this situation, and probably many times. It's when your client is the most emotional that you have to be the most detached. If you can't be detached and keep your mind on the contra
This was a classic maneuver on the part of my client. His emotionalism was calculated to keep my mind on anything but the terms of the contract. Anyone in any kind of business, whether it's advertising, writing or palm reading, either has, or will eventually, face this situation, and probably many times. It's when your client is the most emotional that you have to be the most detached. If you can't be detached and keep your mind on the contra
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
ct terms, you need to find another line of work.
The client expected me to crater under his tirade, I didn’t, and at one point for a second he looked lost and confused. He was obviously used to this technique working. Then he continued, telling me what he expected from me to make it right. What he now wanted was pretty much what I had specified in my $8,000 bid; a much longer book, completely original, and with line art. He was expecting me to provide much more than I agreed to make u
The client expected me to crater under his tirade, I didn’t, and at one point for a second he looked lost and confused. He was obviously used to this technique working. Then he continued, telling me what he expected from me to make it right. What he now wanted was pretty much what I had specified in my $8,000 bid; a much longer book, completely original, and with line art. He was expecting me to provide much more than I agreed to make u
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
p for the “bad” job I had done on the first three milestones. He was profoundly optimistic, though he had yet to realize it.
He strongly suggested that I take time off from my job at Apple to make time for the revisions and additional material. He may have been setting up this demand when he told me he was friends with the manager of the project I was working on. However, it seemed to me that his manager friend would rather have me working on the project I was supposed to be working o
He strongly suggested that I take time off from my job at Apple to make time for the revisions and additional material. He may have been setting up this demand when he told me he was friends with the manager of the project I was working on. However, it seemed to me that his manager friend would rather have me working on the project I was supposed to be working o
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
n than taking time off to work on an unrelated project for a fried of his. From a business perspective, taking time off from a well paying job to work on something whose rewards were dubious just didn’t make sense.
The client demanded that I provide the additional material he requested and threatened to sue me if I didn’t. It was an empty threat, and he knew it. He couldn’t sue me for failing to provide content I had not agreed to provide in the first place. In addition, he was the on
The client demanded that I provide the additional material he requested and threatened to sue me if I didn’t. It was an empty threat, and he knew it. He couldn’t sue me for failing to provide content I had not agreed to provide in the first place. In addition, he was the on
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
e breaking the contract, and in at least four ways. By default, he had accepted the first two milestones when he failed to reject them within the two week period the contract specified. His only stated reason for rejecting the third milestone was that the glossary wasn't long enough, even though it more than met the word count required in the contract. He was also failing to provide the minimum 25% of the text for the book, and according to the contract he couldn't require line art eit
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
her.
I quit the book project at that point. Once you know you have a dishonest client it's best the part company as soon as possible. Suing him to force him to live up to the contract wouldn't have been worth the effort. Besides, I had earned a reasonable profit for the work I did, more than enough to buy an Apple PowerPC. In addition, I acquired thousands of dollars worth of software from companies whose products I reviewed in the book. It was all the software I would need to launch
I quit the book project at that point. Once you know you have a dishonest client it's best the part company as soon as possible. Suing him to force him to live up to the contract wouldn't have been worth the effort. Besides, I had earned a reasonable profit for the work I did, more than enough to buy an Apple PowerPC. In addition, I acquired thousands of dollars worth of software from companies whose products I reviewed in the book. It was all the software I would need to launch
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
a Website.
In the end, my client got what he paid for, though it was not all he wanted. He is in a small way commemorated by the A&M Review Website, in that the initials of the magazine spell his first name, Amr. Out of good taste, I have never brought this to his attention.
The lesson learned from this project is simple. Good contracts make good clients, even if they don’t want to be. Never work for a client without a detailed contract specifying exactly what your obligations to the
In the end, my client got what he paid for, though it was not all he wanted. He is in a small way commemorated by the A&M Review Website, in that the initials of the magazine spell his first name, Amr. Out of good taste, I have never brought this to his attention.
The lesson learned from this project is simple. Good contracts make good clients, even if they don’t want to be. Never work for a client without a detailed contract specifying exactly what your obligations to the
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
client are, and how much you wall be paid for them. It’s the nature of business that the client will try to get all the work he can from you, whether it’s in the contract or not. Only a contract can protect you unreasonable demands, and it will only protect you if you’re willing to use it.
From Advertising & Marketing Review January, 2006.
Copyright © 1994 - 2006 by Glen Emerson Morris
All Rights Reserved
Copyright © 1994 - 2006 by Glen Emerson Morris
All Rights Reserved
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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