We design electronic products for manufacturers. Recently we we were approached by a company to design a product. We gave them a project quote broken up into different phases and were engaged by them for the first phase.
Upon getting to know them better I learned that the principals in the company are major league lawyers. This spooked me to no end. In our line of business
, as in the construction business, things rarely go according to plan - there are always changes, adjustments and bug fixes till the final product is done. No matter how good the design and how thorough the testing, many times issues arise once the product is in the field.
Most of our clients are established manufacturers and know how things work and we have very good relationships with them.
I am afraid of getting sued by the lawyer clients at the first sign of trouble. The project has just started.
What should the ideal course of action be? I was thinking of stopping work after first phase unless they agree to a no sue/arbitration clause.
We are in Maryland, while the client is in Chicago, Illinois.
Of course all this points to a need for me to do a thorough background check on new clients before taking them on/