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1. What is this module about

The Contract module Module in Workplace Management is designed to facilitate users to register and manage streamlines the registration and management of contracts with customers, suppliers, and partners. Register the It enables users to track financial obligations—whether monthly, quarterly or yearly financial obligations associated to the contract. Straight forward contract periods (extend yearly) and deviating contract periods (1st renewal after 5 year, 2nd renewal after 2 year and after that a yearly renewal) are supported. Receive contract notification emails, if contracts are about to expire or automatcially extended, or annually—associated with each contract. Key features include contract indexing, automated generation of index letters, and invoicing capabilities. Additionally, users can receive automated notifications for upcoming contract expirations or renewals, ensuring proactive contract management.

The next parts will go into more detail on some of the core concepts of this module.

1.1 Contract periods (and schemes)

1.1.1 General

When initially creating a new contract the user can specify the startdate, the duration, a term of notice period and the desired renewal. For example:

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Original start date: This is the start date of the contract. This date can be in the past, if old or not yet digitalized contracts need to be registered.

Duration: When entering a new contract the default duration can be selected (e.g. 1 year). In this case, every renewal of the contract will be with 1 year.

Term of notice: The term of notice period is the period at the end of the contract period until the contract can be ended without having it (automatically) renewed. Once the term of notice date is exceeded, the contract cannot be ended in the current period anymore.

For example:

• Contract period: 01-10-24 - 30-09-25 (1 year)

• Term of notice period: 1 month

• Term of notice date: 30-08-25

• Renewal: Automatic

If i do not end the contract by 30-08-25, the contract is automatically renewed with 1 year, which will result in:

• Contract period 01-10-24 - 30-09-26 (extended with 1 year)

• Term of notice period: 1 month

• New term of notice date: 30-08-26

• Renewal: Automatic

Renewal after the end of the previous period: The renewal of a contract period can be:

• None: The contract is ended/terminated after the actuve contract period.

• Possible:

• Automatic:

1.1.2 Period schemes and periods

When creating a new contract, a period scheme is created with the initial duration. The period scheme determines the contract period. The start and end dates of a contract, as well as its automatic renewal settings and termination deadlines, are determined by the contract period scheme(s) and contract period.

• Contract Period Scheme(s): The period scheme(s) define how the contract operates in terms of start and end dates, renewal methods, and notice periods for termination.

• Contract Period: Refers to the actual duration of the contract, spanning from the start date to the end date.

Via the contracts 'Period schemes' tab, the period scheme(s) can be managed:

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It is possible to have one or multiple period schemes within a contract. Multiple period schemes are used if a contract period needs to be renewed with different periods (e.g. the first contract period is 5 years, then it will be renewed with 2 years and then the contract period will be renewed every year).

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So one or more period schemes are used to automatically determine the contracts period. There is always one contract period which corresponds with one or more contract periods.

The current (active) contract period can always be consulted via the general contract page a.o.:

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1.2 Contract items

Financial obligations can be registered as contract items in the contract via the ‘Contract items' tab. This tab shows some details about the contract period (price period, invoice period, total amount of all contract items within the period, etc.). This include also shows all contract items which are divided over several includes:contract period schemes.

1.2 Contract items

Contracts often involve financial obligations for one or both parties. These obligations are managed using contract items, which allow you to define and track specific financial responsibilities within a contract.

A contract can include one or multiple contract items, depending on its complexity. Contract items enable you to break down and manage different obligations separately, providing flexibility and transparency.

Key benefits of contract Items

• Transparency: Clearly define and track financial obligations for various aspects of the contract.

• Flexibility: Easily adapt contract details over time by adding, modifying, or removing items as needed.
  

Examples of how contract items can be used

1. Maintenance Contracts: For contracts covering multiple buildings or assets, each related object can be assigned its own contract item. This approach allows you to track financial obligations per object and specify the periods during which each object is linked to the contract by setting distinct start and end dates for each item.

2. Separation of Costs: In a rental agreement, for instance, rental costs and service costs can be managed as separate contract items. This separation ensures that each financial obligation is tracked independently while remaining part of the same contract.
   

Contract items and indexing

Contract items also play a crucial role during contract indexing:

• Each relevant contract item is duplicated.

• The original items are assigned an end date corresponding to the index date.

• The new items are assigned a start date from the index date and updated with the new amounts.
  

Active-, historical- and future contract items

Within the contract there is a distinction between active-, historical- and future contract items. These contract items can be managed via the corresponding overviews to prevent all contract items being in one whole list and the user needs to search for the active contract items.

• Active contract items: Contract items currently active.

• Historical contract items: Contract items ended in the past.

• Future contract items: Contract items with startdate start date in the future.

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Via the 'Active contract items' include, new contract Contract items can be added .

Adding contract items can be done with a few options. Below each of the options are described.

1.2.1 Generic item

When in a few different ways:

• Add generic contract item: the user adds a

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• blank contract

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1.2.2 Add asset

When the user selects 'Add asset' a list of assets is shown where the user can select the assets associated with the contract. For each selected asset, a contract item will be created. This is useful if a particular maintenance contract only consists of several assets. It will be clear that the linked assets are part of the maintenance contract. From the asset it will also be possible to see all contracts where that particular asset is linked to,

1.2.3 Add area

Before the user can add areas as a contract item, use types need to be available first. Use types are pre defined contract components which apply when linking areas to a contract. These pre defined contract components are used to be able to easily add different contract components per linked area with specific details automatically taken over (e.g. quantity, price, occupancy, etc.).

Some examples of use types:

• Rent

• Service costs

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These contract components are a combination of (general) object Use Types, or the object use types that are linked to specific object services that are added to the area (or a parent area).

Add area: The user can select all areas associated to the contract. For each of the areas, the relevant use types can be selected (for example, Rent, Service costs, etc.). Use types can be registered via 'Module settings' → 'Contratcs' tab → 'Use types' include:

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All different kinds of contract components can be registered as use type by an administrator. These contract components are used to make it more easy to added multiple contract items per area and have certain details automatically set based on the components (for instance the quantity, price and vat rate).

This is used most often in rent contracts, for instance in order to automatically add both the rent and the service costs for each area in a contract.

In an object use type it can be defined what the default price, vat rate, unit and price period is. For each area that is added to a contract (as a contract item), all the object use types will be presented and can be selected to be added as a contract item. For all the selected object use types, the default values for the price, quantity, price period, vat rate, etc. will be taken over in the contract item.

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1.2.4 Add building

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• items, where all details need to be filled in by the user. A generic item is used if the user does not need to link any objects to the contract.

• Add asset contract item: if the user also has assets registered in Workplace Management, the assets can be directly linked to contract items. This way there is always a link from the contract to the asset and visa versa.

• Add area contract item: if there are financial obligations which involve specific areas, the user can link the relevant areas to a contract item. General or area specific contract components (e.g. rent or service costs) can be registered to determine the occupancy of the area for example. More on these contract components in one of the chapters below.

• Add building contract item: buildings can be directly linked to contract items. This way there is always a link from the contract to the building and visa versa.

1.3 Contract reminders/notifications

Via ‘Module settings’ → ‘Contracts’ tab it is possible to set the default contract notification settings. These default settings are automatically taken over to every new contract.

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Contract reminders/notifications are used to inform the applicable contract manager and possible additional users about a contracts term of notice period. The contract manager can decide to renew the contract or maybe renegotiate or terminate the contract in time before it is (automatically) renewed.

The contracts notification settings, schedules, additional notification receiver(s) , and the notifications already send or waiting to be send, can all be found on the ‘Notifications’ tab of the contract:

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If notificaties are enabled for the contract, a notification schedule is automatically created. This notifcation schedule contains the notification which will be send based on the term of notice period and X days before the notification needs to be send.

For example:

• Contract startdate: 01-01-2024

• Contract duration: 1 year

• Term of notice period: 1 month

• Notification: 60 days before

• The term of notice date for the current period: 30-11-2024 (1 month before the end of the period 31-12-2024)

• The notification will be send: 01-10-2024 (60 days before 30-11-2024)

If additional notifications need to be send, notification schedules can be added manually with an own cycle, for example, an additional notification 90 days before the term of notice date or a notification every 3 months from a specific date, etc.

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Via the ‘Notifications' include on the 'Notifications’ tab, all generated notifications can be viewed:

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Via the 'Send additional notifications to' include, more contacts can be added which then will also receive the notification for this contract:

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1.4

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Indexing contract items

1.4.1 General

Indexing is used to update (usually increase in price) the contract items over time. The indexing of the prices is usually done once per year and the payable contract party is informed in advance. These indexes or price changes need to be registered in the contracts to have up-to-date prices available.

If the client is the payable party of the contract registered in Workplace Management, the receivable party will inform the client of the upcoming price changes. These new prices can be manually registered in the contract. A new contract item is added with a startdate from when the new prices apply and the old/current contract item will get an enddate from when the contract items does not apply anymore.

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If the client is the receivable party of the contract(s) registered in Workplace Management, an indexation of the prices is usually done in bulk (for example, from 01-01-2025 all contracts will be indexed with 1,5%). Indexing all or a selection of contracts can be done via a few different ways.

• Price changes

• Indice wirh with percentages

• Indice with values

• Indice with fixed values

1.4.2 Price changes

Via the menu option ‘Contracts' → 'Price changes’ the easiest way of indexing in bulk can be done.

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Via a filter all relevant contract items can be searched which need to be indexed:

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The first fields under the header 'Contract items' are used to filter on the specific contract items which need to be indexed.

The next fields determine the actual indexation:

• Date of price change: This will be the start date of the new contract items with the indexed price

• Set last index date: Do you want to set the last index date to be able to see when the contract item has been changed the last time and prevent that a contract items is indexed multiple times?

Determine the type of price changeThe easiest option to index is the 'Price changes' option. This option is used to quickly index the prices of the desired contracts without the need to create and maintain indices (or index table). There is also no need to configure the indexation per contract and per contract item.

A price change can be applied with one of the following options:

• Percentage: Change the price with a percentage (e.g. the price is increased by 1,5%)

• Fixed price: Change the price to a fixed value (the new price is 1000)

• Price change: Change the price and add a value (the new price is the old price + 100)

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1.4.3

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Indexation via indices

Next to price changes, it is also possible to index via an index table or indice. With an indice indices. An indices is a list of percentages or values or percentages can be specified with a date. The indexation process will do the rest and calculates the correct percentage to index with. Via which are used to determine the indexation percentage. Usually these indices values are provided by a government or specific authority. An example: Consumer price indexes (CPIs) are index numbers that measure changes in the prices of goods and services purchased or otherwise acquired by households.

These indices need to be manually created and maintained in Workplace Management. If a specific indices is applicable for a contract item, it can be linked to the contract item and will automatically be taken into account when the actual indexation is executed.

Indices can be managed via the menu option ‘Contracts' → 'Indices’ the indices can be managed.

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The indices can be one of three types:

• Percentage: Change the price with a percentage (e.g. the price is increased by 1,5%).

• Value: Change the price with a percentage. The percentage of indexation is calculated by two values in the indices, depending on the index period and delay period of the contract.

• Fixed value: Change the price with a fixed value (e.g. the price is increased by 100).

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1.4.4 IndexlettersIndex letters

After the receivable contracts have been indexed, a indexation letter can be generate to forward to the contract party about the (upcoming) indexation. In the index letter the current price, new price and index percentage is included so that the contract party is completely aware of the indexation.

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Using index letters can be enabled via the module settings for 'Contracts'.

1.5

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Contract invoicing

As the receivable party of a contract it is important that the payable contract party is aware of the amounts that needs to be payed for which period. With contract invoicing it is possible to manually create or (automatically) generate periodic (monthly, quartly, yearly, etc.) invoices which can be send to the payable contract party.

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Using contract invoicing can be enabled and invoice run settings can be determined via the module settings for 'Contracts'.

More information about outgoing invoices and invoice runs, can be found via: Outgoing invoices module

1.6 Other relevant options

1.6.1 Contract types

Use types

VAT tables

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By default contracts are created in one default category. If the client wants to distinguish between different types of contracts, contract types can be used. Via ‘Module settings' → ‘Contracts’ → 'Contract types’ include, the contract types can be managed.

The contract types can be used in various reports and filter pages to find contracts of a particular contract type.

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1.6.2 VAT tables

VAT tables can be created and managed via ‘Module settings' → ‘Contracts’ → 'VAT Tables’ include. A VAT table consists of the applicable VAT rates within a country and can be used to select the relevant VAT rate within the contract items.

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1.6.3 Use types

Before the user can add areas as a contract item, use types need to be available first. Use types are pre defined contract components which apply when linking areas to a contract. These pre defined contract components are used to be able to easily add different contract components per linked area with specific details automatically taken over (e.g. quantity, price, occupancy, etc.).

Some examples of use types:

• Rent

• Service costs

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Use types can be registered via 'Module settings' → 'Contracts' tab → 'Use types' include:

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In a use type, it can be defined what the default price, vat rate, unit and price period is. Also it can be defined if the use type influences the occupancy of the area. For example, when adding the ‘Rent' component of an area to a contract means that the area is occupied. Adding the 'Cleaning’ component of an area to a contract does not mean the area is occupied.

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If an area has deviating settings for a specific use type, ‘Services’ can be added to that specific area. A service (ObjectService) is a combination of a use type and an area. When adding an area with services to a contract, the specific service settings are taken over to the contract instead of the general use type settings.

Via the 'Services' tab of an area, the administrator and contract manager can manage the services for the area:

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2. Automatic emails send in the workflow(s)

Contracts do not work with a workflow, but there emails involved within this module. As mentioned in the chapter 1.3 Contract reminders/notifications, emails can be send as soon as a contracts term of notice period is getting closer.

3. General contract module settings

To navigate to all the general Contract module settings, go to Module settings → Contracts tab. Hover over the available settings to get more information about a specific setting:

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4. Additional information on this module

More information on the Contract module can be found via the following related articles:

• For an (end) user manual, see: Contract module for (end)users

• For more detailed implementation information (including how to enable the module, which system groups are involved, data imports, and more information on the startboard and navigation menu options), see: Contracts Contract module activation and information