I (The Contractor) have a Services Contract with a company (The Company).
Working together more than 2 years, in a very non traditional, hard to replace service, now they are restructuring their society, from their corporate logos to their formal Contract Agreements.
After the proper format change of the standard document we deliver to them (which I will probably charge to them due to the change), now I have their new Contract Agreement Template, which is filled with "Penalty Fees" for a number of different reasons, in different scales between the possible and the expensive, of course the less possible, less expensive being the easier, understandable, and the more possible, more expensive being the hardest, financially unsustainable.
We never failed to deliver our services, and our price is very low, even considering the non traditional nature of our services, hence this is not a reaction for a bad performance from our side, but simply their lawyer applying their template to each of their Contractors.
Of course, a fee increase of my services would be seen as a dealbreak for my company, and the agreement as-is is a dealbreak for me.
Now, each time I read this new "agreement", I am facing these choices:
- Should I keep the agreement as untouched as possible, adding little "pressure relief" phrases, like "only if the Contractor has direct responsibility for the described events", in order to nullify the Penalty Fee Clauses, but keeping open the hardest Penalty Fees?
- Should I keep the agreement as untouched as possible, increasing the currently very low prices, with significatively higher (at least 2X) but updated prices, in order to absorb the eventuality of the Penalty Fees, and keeping them all?. This will be a dealbreak for them, as an antecedent of rising our prices, which we have never done and we don't expect to do.
- Should I change the agreement, eliminating the Penalty Clauses completely?. This would be seen as a soft non compliance with their templates.
- Should I made a Price List for every situation dealing with Penalties, in order to reflect the Company all them has a cost, which should be eventually paid to us in these situations?. This would be seen as an additional complication, forcing us to work a lot for preparing and defining a not expected, nor requested Price List.
Do you have a link document or article should I see for a kind of advice?