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Whiteford Technologies renders its services using one of the following three business arrangements:
The easiest and most common arrangement is hourly. Here, time spent on a project is billed by the hour and invoiced on a weekly basis. The rate is negotiable and depends largely on the complexity of the project and the company's prior work experience. In general, work can begin, end, and be paused at any time. A contract is required and is usually very simple.
The by-project arrangement is a little more complicated and applies to outsourced projects. Here, a detailed specification is supplied by the client for review by the company. The company reviews the document(s) and returns a proposal. The proposal addresses important issues including conceptual design, tooling, schedule, and expenses. The engineer works almost exclusively at the home office. Progress payments are made at key milestones.
For small companies on a tight budget, a partnership has many advantages. Here, the company assumes part of the risks associated with the project in return for future gains. The arrangement, in this case, may involve licensing, sole source supplying, profit sharing, stock options, or shares of the client corporation.