How does OSP know if an industrial sponsor is solvent and will be fiscally responsible?
First, a sound agreement specifying all the terms and conditions (payments) is our best insurance against questionable sponsors. Problems of payments typically arise with small companies or new ones in the start-up phase of their lifecycle. However, for many of the small companies we may not be able to find a financial history to determine credit worthiness. In this case, we will work with the department and the principal investigator to determine what risks they are willing to take in the event a sponsor cannot pay. Failure to pay is almost unilaterally aligned with the smaller companies. Whenever a larger company fails to pay, it is usually a result of a dispute with the deliverables of the project.
