Maritime Business Strategies, LLC

Terms of Employment

THE FOLLOWING PARAGRAPHS OUTLINE THE BASIC PRINCIPLES UNDER WHICH TIM COLTON CONTRACTS FOR WORK:

1. My contracting procedures are designed to be legally binding but not excessively bureaucratic.  There has to be a high degree of trust between the client and the consultant from the outset.

2. Except in unusual circumstances, I will always want to meet with a prospective client to discuss and understand the nature of the problem, before submitting a proposal.

3. I will always provide a prospective client with a written proposal that includes a proposed scope, an outline schedule and some form of cost estimate.

4. An authorized signature on my proposal letter will be sufficient authorization for me to go to work on the project, unless the client requires more formal documentation.

5. I will use the form of contract that best suits the circumstances:

   1. Firm fixed price: if the scope of the project, including out-of-pocket costs and deliverables, can be clearly defined, a firm-fixed-price contract is appropriate.  Since I am not a bank, I will expect that the contract price will be divided into monthly progress payments.

   2. Fixed price plus expenses: if the scope of the project can be clearly defined, but not the out-of-pocket costs and deliverables, a fixed-price-plus-expenses contract is appropriate.  As with a firm-fixed-price contract, the base contract price will be divided into monthly progress payments.  Expenses will be billed monthly and fully documented.

   3. Time-and-expenses: if the scope of the project cannot be clearly defined, a time-and-expenses contract is appropriate.  The rates at which time will be charged will be defined in advance.  Both time and expenses will be billed monthly and fully documented.

6. Out-of-pocket costs are defined as including the following:

   1. Travel expenses, including coach-class air or rail fare (business-class for overseas travel); mid-level hotel accommodation (e.g., Holiday Inns); meals taken in the hotel or at restaurants in a similar price range; taxis as required; car rental if appropriate; parking fees, tolls and other minor travel expenses; tips if appropriate; any other relevant expense.

   2. Communications expenses, including postage; courier services; long-distance telephone and fax charges.

   3. Other expenses that are specific to a project, such as the purchase of special references; special binders and dividers; artwork; printing and copying.

   4. Entertainment only with the client's prior authorization.

7. Invoices are mailed at the end of each month.  Payment is expected within 30 days.  Not being a bank, I do not charge interest on amounts that are late but I expect to be paid promptly.  I don't care what your standard practice is: when you contract with me, you accept my terms of payment.

8. And finally, what is possibly the most important point.  If you retain me for my advice or opinion, you will get my advice or opinion.  You may not like what I have to tell you, but I will not be a rubber-stamp endorsement for a decision that has already been made.