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David Johnson, P.E.
FEE AND PAYMENT POLICY and PROFESSIONAL STATEMENT OF POLICY
Contact: David A. Johnson, P.E.


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.
 


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