First enterprise contract for a construction platform was a trap
While (running the business on personal funds without outside ) a construction project management platform with a cofounder, weeks of demos and negotiation nearly landed a first customer. Flexibility on pricing was offered since the first customer is about learning rather than maximizing revenue. But th that arrived was not a standard SaaS agreement — it was paperwork for a custom-built internal system exclusive to that one client.
The terms included fees frozen forever across every renewal, unlimited liability on the founders' side, the client able to walk away anytime with a refund, a requirement that the client approve any future raise, and a demand that the platform be hosted on the client's own server. The client also pushed for a fast signature, promising payment the same day th was signed and claiming the project had already started so it needed to be loaded onto the platform immediately.
Key points
- Nearly landed a first client for a construction project management platform
- Contract was custom paperwork, not a SaaS — fees frozen forever and unlimited liability included
- Client demanded approval rights over future raises and required hosting on its own server
- Client pushed for a same-day signature in exchange for same-day payment