I have found myself in the midst of an interesting predicament and wanted to reach out to everyone for some help and insight. I have been invited to team up with a prefab company to design a series of prototypes for new smaller-scale civic buildings. The prefab company will be engaging me to develop a few standard designs for each building type they are targeting. The initial thoughts are that they will pay for design and development of the prototypes. Each iteration of the design that is built will pay a licensing fee to the firm, as well as hourly compensation for time incurred by the practice for any revisions required. My firm will maintain ownership of the designs and will sign / seal sets for permits in multiple jurisdictions.

So, my question is has anyone found themselves working in a situation like this? If so, do you have any advice as I am negotiating contracts and getting the venture off the ground? Also, if anyone has any pitfalls that they have encountered in a model like this, warnings would be greatly appreciated.

Thanks in advance for the help.