Hi,
I'm in the process of negotiating contract terms with a new client. I'm using the standard PCG direct (non agency) contract as the basis for the contract, but the client has insisted on a few extra terms.
I've agreed with the client that in addition to my daily rate, I'll be paid a completion bonus at the end of the contract to the sum of £50 per day. The client is very insistent on this clause as they've had problems in the past with a contractor who disappeared mid-contract leaving them very much in the lurch. I'm ok with this clause, but have a question about how it should be handled with regards to renewals.
The initial contract will be for 3 months, with a very good chance it will be extended to 6 months. I've just received the latest copy from the client, and they only want to pay the completion bonus at the end of the 6 month period if the contract is extended. I'd much rather this was paid at the end of the 3 month period. Here's the exact wording from the contract:
"4.2.2. If the contract is renewed for a further 3 month period following the end of the Initial Period (“Second Term”) then the sum due in respect of the £50 per day contract completion bonus for the Initial Term shall not be invoiced until the end of the the Second Term. For the avoidance of doubt a contract completion bonus of £50 shall also be payable for each day of Services provided during the Second Term and shall also be invoiced at the end of the Second Term. "
Do you think this is a reasonable clause? Does anybody else have experience of dealing with contracts with this type of 'completion bonus'? Any ideas what negotiation approach I could take with them to have this paid in 3-monthly intervals?
Thanks in advance for you help.
I'm in the process of negotiating contract terms with a new client. I'm using the standard PCG direct (non agency) contract as the basis for the contract, but the client has insisted on a few extra terms.
I've agreed with the client that in addition to my daily rate, I'll be paid a completion bonus at the end of the contract to the sum of £50 per day. The client is very insistent on this clause as they've had problems in the past with a contractor who disappeared mid-contract leaving them very much in the lurch. I'm ok with this clause, but have a question about how it should be handled with regards to renewals.
The initial contract will be for 3 months, with a very good chance it will be extended to 6 months. I've just received the latest copy from the client, and they only want to pay the completion bonus at the end of the 6 month period if the contract is extended. I'd much rather this was paid at the end of the 3 month period. Here's the exact wording from the contract:
"4.2.2. If the contract is renewed for a further 3 month period following the end of the Initial Period (“Second Term”) then the sum due in respect of the £50 per day contract completion bonus for the Initial Term shall not be invoiced until the end of the the Second Term. For the avoidance of doubt a contract completion bonus of £50 shall also be payable for each day of Services provided during the Second Term and shall also be invoiced at the end of the Second Term. "
Do you think this is a reasonable clause? Does anybody else have experience of dealing with contracts with this type of 'completion bonus'? Any ideas what negotiation approach I could take with them to have this paid in 3-monthly intervals?
Thanks in advance for you help.
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