hi Michael,
i'm not sure if this is a 'smart watch' of some kind, or just a tally counter. nonetheless, the dollar amounts for each of the stages and the time allowed seems to be a fraction of what i would expect to see for a commercial product development.
might i suggest that you initially have someone develop the device just as an application that runs on a tablet or smart phone. given that the user-input is via just 3 buttons, this is something that would come closer to your budgetary constraints while demonstrating much of the functionality - that is counters that are incremented by the user, decremented by timers over days and weeks, and some limited text messages delivered on-screen. in essence, a variation of the 'tamagotchi' electronic toys that were popular some 20 years ago.
are you able to describe in more detail what you wish the finished device is to be used for? this may be helpful in suggesting the best way for you to move your project forward.
cheers,
rob :-)