A Research Collaboration Agreement outlines cooperative research activities between institutions or companies. This playbook discusses IP ownership, publication rights, and funding obligations.
Why This Matters: Ambiguous or unfavorable payment terms can lead to delayed payments, disputes and financial strain.
Negotiation strategy
If you're the Institution A:
Ensure payment terms are clear and align with cash flow needs. Negotiate for favorable reimbursement timelines to maintain financial stability.
If you're the Institution B:
Advocate for milestone payments to secure timely compensation. Ensure invoicing procedures are streamlined to avoid delays.
Essential elements
1
Fee Structure
Defines costs and payment terms.
2
Milestone Payments
Payments tied to project milestones.
3
Invoicing
Details billing and payment process.
Action framework
ACCEPT
Propose edits if payment terms are unclear or unfavorable.
EDIT
Reject if terms impose undue financial risk.
ADD
Add clauses for clarity on reimbursement processes.
PRO TIP
Always ensure payment terms are aligned with your financial planning and risk management strategies.
Example clauses
FAVORABLE
Clear Fee Structure
"The Parties agree that the fees for the services provided under this Agreement shall be clearly defined and set forth in Exhibit A attached hereto."
NEUTRAL
Standard Invoicing Terms
"The Service Provider shall submit invoices to the Client on a monthly basis, detailing the services performed and the corresponding fees."
UNFAVORABLE
Ambiguous Payment Schedule
"Payments shall be made as agreed upon by both parties without a specified timeline."
Fallbacks
High-Risk Projects
In high-risk projects, ensure payment terms include contingencies for unforeseen delays or additional costs.
International Transactions
Consider currency fluctuations and international banking fees when setting payment terms.
Long-Term Contracts
For long-term contracts, include periodic reviews of payment terms to adjust for market changes.
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WEEK 3
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WEEK 4
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