1. What is this module about

The Contract module in Workplace Management is designed to facilitate users to register and manage contracts with customers, suppliers and partners. Register the 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.

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

1.1 Contract periods (and schemes)

The start date and end date of the contract, when the contract needs to be or will be automatically renewed and from which date it is no longer possible to terminate the contract because of an automatic renewal is determine by the contracts period scheme(s) and period.

Contract period scheme(s): The period scheme(s) determine how the contract period should behave in terms of the start and end date, the periods renewal method and the term of notice period.

Contract period: The actual period of the contract from the start date until the end date.

Via the contracts 'Period schemes' tab, the period schemes can be managed:

The period scheme consists of a couple of settings which eventually determines the contracts period or duration:

No: Automatic generated number or reference for each period scheme within the contract, 01, 02, 03, etc.
Start date: This is either the start date of the contract (if this is the first period scheme) or the date after the previous period scheme ended. From this date, the period scheme applies to the contract until the end of the contract or until the next period scheme starts.
Duration: The duration of every renewal when this period scheme applies.
Term of notice: The term of notice period of every renewal when this period scheme applies. Until the term of notice period is reached, the contract can be terminated without the contract being renewed anymore. After the term of notice period the contract will be renewed with one duration again.
Renewal after the end of the previous period: With this field it can be determine how the contract should be renewed:
- Automatic: As soon as the term of notice period is reached, the contracts period is automatically extended with the period schemes duration or the next period schemes duration (if applicable).
- Possible: As soon as the term of notice period is reached, the contracts period is not automatically extended. The contracts parties can determine if the contract needs to be renewed or not. If the contracts period needs to be renewed, the end date of the period can be manually extended.
- None: As soon as the term of notice period is reached, the contracts period will not be extended. This means that the contract is ending, without it being terminated in advance.

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).

Every period scheme can have its own duration, term of notice period and renewal.

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 period schemes.

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:

• Active contract items: Contract items currently active.

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

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

Via the 'Active contract items' include, new 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 the user adds a generic contract item, the user needs to enter all contract details (e.g. the name, the price, the VAT rate, etc.) and the contract items is not linked to any other object.

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

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

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.

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:

1.2.4 Add building

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

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.

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:

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.

1.4 Index 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.

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 with percentages

• Indice with values

• Indice with fixed values

1.4.2 Price changes

Via the price changes option, the desired contract items can be indexed from a specific date via one of three 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)

1.4.3 Index via indices

Next to price changes, it is also possible to index via an index table or indice. With an indice a list of values or percentages can be specified with a date. The indexation process will do the rest and calculates the correct percentage to index with from the specified date.

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

The indice 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 indice, 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).

1.4.4 Index letters

After the receivable contracts have been indexed, a indexation letter can be generate to forward to the contract party about the (upcoming) indexation. Via the menu option ‘Contracts' → 'Generate indexation letters’ the indexed contracts can be search to generate a indexation letter for.

After the index letters are generated, they can be viewed via the menu option ‘Contracts' → 'Index letters to be processed’. Depending on the delivery method registered on the contract, the index letter can either be send via email, printed out to send via mail or not send.

The last index letter is linked in the contract on the 'Indexing' tab:

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

1.5 Contract invoicing

Via the contract 'Invoicing' tab the contracts invoice settings can be determined, like for example the date from which the contract needs to be invoiced, the invoice period, etc. Via this tab it is possible to generate a period invoice or manually create a invoice for the specified contract items.

Period invoice: determine a period for which an invoice needs to be generated, all contract items not yet invoiced and within that period are taken into account.

Manual invoice: the user manually selects the period and the contract items to be invoiced.

Contracts can also be invoiced via an invoice run. An invoice run is a periodic process where all contract items to be invoiced are searched and invoices are generated. This process can be completely manual or automated.

Using contract invoicing can be enabled and invoice run setttings 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

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’ inlduce, 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.

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.

2. 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:

3. 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: Contract module activation and information