Sample Working Agreement

Example based on a working agreement for restoration of a 100-year old stone house in the old quarter of a historic town. Details for an agreement depend, of course, on the specifics of the project.

Working agreement between

Helping Hand (part of Anson-Bryant Usluge d.o.o.) (HH) of ADDRESS, Croatia

AND

CLIENT of ADDRESS for organising and managing restoration of property, ADDRESS, as follows:

  • Repainting façade
  • Replacing windows and shutters
  • Assessing wiring; rewiring where necessary
  • Up-rating electricity supply
  • Repainting master bedroom
  • Retiling roof terrace, repairing roof flashing and drainage

 

HH work involved

  • Arranging quotes with suitable suppliers
  • Translating and emailing all quotes to CLIENT
  • Arranging Power of Attorney authorising HH to act on CLIENT’s behalf
  • Reviewing provided property documentation and arranging authorised copies to secure appropriate permits
  • Liaison with all government authorities for necessary permits, including formal meeting with Conservation Department at property
  • Liaising work with all suppliers to carry out work as approved by CLIENT
  • Checking work has been carried out according to the specifications on agreed supplier quotes
  • Forwarding all supplier invoices to CLIENT for payment
  • Keeping CLIENT informed of progress according to agreed schedule

 

Working procedures

  • As HH is acting on CLIENT’s behalf in this project, there will be times when it is necessary for HH to forward questions to CLIENT for his decision. These questions will be sent in writing by email and, when necessary, work will cease until the matter has been resolved.
  • To keep the project moving smoothly, CLIENT agrees to respond to emails within two working days.
    • To minimise costs, HH will work as much as possible by phone and email, and limit property visits to those strictly necessary.
    • Suppliers will collect the key from HH and return it after work is finished (to avoid trips to the house simply to deliver keys).
    • A project schedule will be agreed which will take into account that no exterior or noisy work is permitted from 1st June – 1st October.
    • During the project, HH will keep a track of time spent on the project for billing purposes and supply detailed timesheets to CLIENT, on request.
    • If, during the works, it becomes apparent that small amounts of additional work are required by a supplier, this work is to be carried out. HH to keep CLIENT informed of requirements and costs.
    • If works uncover a major problem (fingers crossed this won’t happen!), work will halt until the problem is fully assessed and costed, CLIENT is informed and a way forward agreed in writing.

 

Supplier relationship

  • As local suppliers do not include PDV (VAT) in their quotes, HH to calculate it (where appropriate – not all work is subject to PDV) and add it to translated estimates when sending quotes for approval.
  • On acceptance of each quote, CLIENT agrees to abide by conditions specified by supplier on quote (such as paying deposits to cover materials).
  • At CLIENT’s request, HH to pay suppliers, including themselves, from a locally established bank account. (See * below for alternative.)
    • Bank account to be opened by CLIENT at Erste Bank in Porec for the project. HH to be given authorisation on account.
    • HH to accompany CLIENT to bank and provide necessary assistance to establish account. This will be done on the same day as visit to notary for Power of Attorney.
    • CLIENT to ensure sufficient funds in account to cover supplier invoices as they occur.
    • HH to keep CLIENT informed of financial requirements, giving sufficient lead time.
    • HH will inform CLIENT by email of all outgoings.
    • If sufficient money is put in the account, HH will invest it to gain maximum possible interest within totally safe financial instruments (deposits, money market funds) while keeping sufficient liquid funds to pay bills. CLIENT to be kept informed.

* For other projects it may be more appropriate for Clients to pay supplier invoices directly. In this case:

    • All supplier invoices will be translated and forwarded directly by HH to CLIENT for payment. HH will not make any supplier payments on behalf of CLIENT.
    • CLIENT agrees to pay all suppliers within the specified period quoted on invoice.
  • In case of any disagreements between suppliers and CLIENT over payment or any other issues, HH’s only role will be as facilitator between the two parties and has no responsibility for the specifics of resolving the dispute.

 

Project duration

This working agreement covers the period until all specified work is completed, as specified on agreed supplier quotes. The project can only be terminated ahead of this in writing, which can be sent via email (provided receipt of the e-mail has been acknowledged).

  • If CLIENT wishes to stop work before the project is completed, upon receipt of written instructions HH undertakes to contact relevant suppliers as quickly as possible to halt work.
  • If the project is halted before completion, CLIENT agrees to pay all suppliers and HH for any work done, up to the date it stopped.
  • HH has the right to halt the project if:
    • CLIENT fails to provide necessary responses to emailed questions. Work will resume again, once the matter has been resolved, with CLIENT liable for any additional costs incurred by the delay.
    • after two chasing emails, CLIENT fails to pay either an HH or supplier invoice, as specified in their terms and conditions.

 

Payment

HH’s rate is € XX / hour. Because Croatia is part of the EU, invoicing must be done in either Kuna or Euro. VAT will be added at Croatian rate of 25%. (Note: Some supplier invoices may be VAT free, as some types of building work is currently exempt VAT.)

Payment will be in three parts: one third on signing of this agreement; one third when three quarters of the estimate has been used; and a final payment, when the project is complete.

Working with old properties, Croatian workmen, and the Croatian Government and local authorities, it is impossible to give a guaranteed quote for the amount of time required. The following is simply a best guess, based on experience.

Estimated HH cost € XX (ex. VAT)

(This estimate allows a total of 16 trips to the house: three client visits, one for securing the outside work permit and 12 supplier-related visits. If requested, HH is happy to provide a detailed spreadsheet itemising all expected hours.)

  • HH will only invoice for hours worked. This means if the project takes less work than this estimate, the final invoice will be lower. If it takes longer, then it will be higher.
  • HH’s incidental expenses, such as petrol and phone costs, are included in this estimate. Any larger costs incurred will be invoiced on at cost and, when possible, will only be incurred with prior written approval.
  • If it becomes clear the project will over-run this estimate, due to unforeseen problems creating additional work for a supplier, more trips or liaison, etc., HH will notify CLIENT by email immediately, explaining why this is occurring and providing an additional estimate which, when approved, will be added as an appendix to this working agreement.
  • Any additional works above and beyond what is covered in this initial estimate, requested by at CLIENT, will be covered by a separate estimate and, when agreed, included in an appendix to this working agreement.

Date: XX, 2015
 

___________________                                                          ___________________________

Nicky Anson                                                                                     XX,

Director, Helping Hand and                                                        Owner house,

Anson-Bryant Usluge d.o.o.                                      

 

 

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