Third Millennium Engineering: Full Custom Products and Services

Business Details

CONTRACTED SERVICES

TME normally contracts with a customer for an outsourced engineering project. TME will also contract for consulting or engineering retainers. TME will start the process by meeting with the customer to discuss their needs and subsequently providing a written project proposal. TME will negotiate, modify, and re-issue the proposal until it is satisfactory to both the customer and TME. The proposal becomes the contract when both parties sign it and TME receives the initial payment stated in the proposal. At that time, TME will begin work on the project.

A typical proposal names the parties involved, technically describes the project in high level terms, describes a project acceptance method, estimates price and delivery, and provides business terms in an agreement. An example "Terms and Conditions of Sale for Contract Engineering Services" is shown here for reference. The proposal considers the consulting time, engineering time, risks, and other costs involved in the project. Manufacturing, tooling, materials, labor, yield, rework, warranty, and other costs are considered for product prototypes or custom equipment. Proposal prices generally do not include the cost of shipping, special packing, insurance, or taxes, which are extra costs for the customer.

If needed, the proposal can be re-negotiated during the course of the project to accommodate significant changes in the project scope, requirements, or responsibilities. However, some kinds of project changes can be accommodated without proposal re-negotiation by using TME non-contracted services.

NON-CONTRACTED SERVICES

TME normally provides services under contract but can provide them without a contract. Non-contracted services can be useful in early stages of a project, such as for business and technical planning, project definition, idea generation, or other tasks with difficult to determine durations or scopes. They can also be used to accommodate minor changes in a contracted project and to perform material, component, or equipment searches where engineering or consulting judgment is important. TME does not generally provide consulting and engineering services on an extended “work for hire” basis. Fees, billing, and payment terms are:

	Base Consulting Rate is $1600 per day, Engineering Rate is $1200 per day, 20% discount applied above 3 days per year
	Services are charged in half day increments, where a day is 8 hours ±2 hours Monday through Friday
	Services are provided directly to customer or to other parties per customer’s request
	Invoices are issued monthly or upon completion of service, due in 15 days
	$100 re-billing fee and interest up to legal maximum will be charged for late payment at TME's discretion
	Escrow required for continued services after two late payments per year or for non-USA customers
	Local travel time over two hours per day charged at Engineering Rate in half day increments
	Remote travel time charged at Engineering Rate in half day increments
	Remote travel for plane, hotel, meals, car, and incidentals are charged at TME cost plus 15%

Webmaster: Last modified: 08-Feb-2009