i think your negotiation skills are horrible, why would you take a difficult contract in the first place?? Also we're In a capitalist society and its a free market. If you don't do it someone else will plain and simple either negotiate or tell them to find another company.
And i still doubt someone would pay this less for that amount of work.
What do they look in someone before hiring them or making them their business partner and how important is the understanding of human nature in business