We recently came to the end of a 6 month hourly contract (at about 25 hours per week).
The client and my company discussed renewal, but the sticking point became our hourly rate.
The client wanted us to lower our rate in exchange for a 12 month contract, but the initial price that we gave them was already, in my opinion, low.
Anything lower than our current rate would risk our company not making money, or having to cut our employees salaries.
This resulted in negotiations stalling, and the client has informed us that they will be reallocating our work to someone else, but have asked for transition of all work to whoever is taking over.
The project was a somewhat open-ended optics/systems/software engineering project. The product is currently in the design and implementation phase, so there is no final product from us. This is not a fixed price contract. There was no support agreement.
Our only termination obligation under the contract is to transfer all currently generated materials (including source code, documentation, design documents, etc.) and all of the client owned/purchased hardware to the client.
This will certainly involve discussions and training on the code that has been currently written (which hasn't been fully documented due to time pressure, part of the task list going forward if renewal occurred was for all code to be properly documented).
Because the relationship (other than the renewal disagreement) was quite amicable and we really enjoyed working with the people and we enjoyed the work technically, we are prepared to offer some level of free transition service.
For this level of contract (6 months, 25 hours per week) what is the appropriate level/amount of free transition/free training to give them?
We don't want to give too much, especially since they didn't renew...and the final product is about 2 years away...
Our question is similar to this question, but we want to determine upfront how much free time we want to provide, instead of negotiating after the fact.
I informed the client that I will provide 1 hour of questions, etc. for transition and that any other support will require a new contract, and any contract less than 3 months in length will be billed at our full non-discounted rate.