Contract

The contract relationship for a classic temporary management assignment is three-way, involving three main players in three distinct roles:

The provider – Contract Manager s.r.l.
The client company
The contract manager + shadow manager

Contract Manager s.r.l. is responsible for the quality and the success of the assignment. We invoice the client for the service and then pay the managerial resources involved in the temporary management project. The client company appoints the contract manager as “Special Attorney” with power of attorney for ordinary administration. The agreed powers vary according to the specific requirements of the project. The three-way contract is as shown in the diagram

This contract was drawn up by Giorgio Treglia in 1988. It was the first contract of its kind in Italy. Later it was also used by others operating in the sector.

A temporary management assignment is regulated according to

A single contract in straightforward cases (head of function or project management)
Two contracts in more complex, difficult assignments (general management) one for the check up and the restructuring plan and the other for the actual management phase.

The fee for the check up phase is one-off. The second phase of the assignment is calculated on a monthly basis according to the number of managers involved and the duration of the assignment. The fee can also be linked in part to results delivered.
The client company pays an agreed fee that does not alter during the assignment.