REFURBISHMENT PROJECT MANAGEMENT TERMS AND CONDITIONS

Terms and Conditions

REFURBISHMENT PROJECT MANAGEMENT AGREEMENT

This agreement is made by and between: the “Owner”, and the “Agent” Prosperity Property North Ltd trading as El Rents and El Stays: referred to as “Prosperity Property North Ltd” throughout this agreement.
PART A: TERMS OF AGREEMENT 1. Definitions1.1 Agent / Project Manager – Prosperity Property North Ltd trading as El Rents and El Stays or nominated representative, or associated company.
1.2 Owner – The person, company or other legal form as named in Part C, of this agreement, any successor or nominated representative, and the legal owner of the Property. (Replaces "landlord" in this context).
1.3 Property – As named in Part C of this agreement, being the asset undergoing the Works, to include buildings, land, contents, Fixtures and Fittings within or attached to the property and belonging to the Owner.
1.4 Works – All agreed-upon refurbishment, renovation, repair, and development activities necessary to bring the Property to the required standard, as detailed in the agreed Scope of Works (Appendix 1).
1.5 Contractors – Third-party individuals or companies engaged by the Agent to perform the Works.
1.6 Project Budget – The total estimated cost for the complete execution of the Works, including all materials, Contractor fees, and the Agent’s Project Management Fee.
1.7 Practical Completion – The point at which the Works are substantially completed and the Property is fit for its intended purpose (e.g., fit for tenant occupation).
1.8 Working Day: Defined as Monday to Friday, excluding weekends and Bank Holidays in England.
1.9 Where reference is made to a “month”, this should be construed as a calendar month.
1.10 Where two or more persons are included in the expression “Owner”, references to that party shall be deemed to include such persons.
1.11 Where the masculine gender is used, this is also to the constructed as the feminine where appropriate.
2. Agent’s Obligation – Scope of Project ManagementThe Agent is hereby appointed as the exclusive Project Manager for the Works at the Property. The Agent agrees to provide the following services:
2.1 Project Planning: Develop and agree upon a detailed Scope of Works and the Project Budget (Appendix 1) with the Owner.
2.2 Contractor Sourcing & Vetting: Source, vet, and appoint suitable and competent Contractors to carry out all aspects of the agreed Works. The Agent will use reasonable care to ensure all appointed Contractors hold appropriate Public Liability Insurance and Professional Indemnity Insurance (where applicable to their trade).
2.3 Supervision: Oversee, manage, and supervise the execution of the Works, ensuring adherence to the agreed Scope of Works, quality standards, and schedule.
2.4 Budget Management: Control and monitor all costs against the approved Project Budget, verify Contractor invoices, and provide regular financial updates to the Owner.
2.5 Certification: Procure necessary building control sign-offs, guarantees, and compliance certificates related to the Works (e.g., electrical installation certificates, where applicable).
2.6 Reporting: Provide the Owner with detailed
e.g., weekly or fortnightly
progress reports, including photographic evidence of work completed.
2.7 Defects Liability Period (DLP): The Agent shall administer a
e.g., 6 or 12-month
Defects Liability Period commencing from the date of Practical Completion. During this period, the Agent will coordinate and compel the relevant Contractor(s) to rectify any defects in workmanship or materials that arise, provided such defects are not due to ordinary wear and tear or misuse. No further PM Fee is payable for this service.
3. Fees Chargeable
3.1 Project Management Fee (PM Fee): In consideration for the services outlined in Section 2, the Owner shall pay the Agent a non-refundable Project Management Fee of 15%
of the Total Cost of the Works (excluding the PM Fee itself).
3.2 Fee Payment: The PM Fee shall be calculated on the final, certified cost of the Works and shall be invoiced and payable upon Practical Completion.
3.3 Payment to Contractors: The Agent will deduct Contractor invoices and any agreed administrative fees from monies held on account (Section 5) and remit payment to Contractors upon verification of satisfactory work.
3.4 Overdue Fees: Should any sum payable to the Agent under this agreement (including the PM Fee or any reimbursement of costs paid by the Agent) be 7 Working Days or more overdue, interest will be payable at the Bank of England base rate plus 8.5% per annum or part thereof, from the due date until the date that payment is received.
3.5 Disbursement Fee: An administrative fee of £50
shall apply for each instance the Agent is required to obtain specific third-party professional assessments (e.g., a structural engineer's report) outside the agreed Scope of Works at the Owner’s specific request.
3.6 VAT: All fees are inclusive of VAT
or state "exclusive of VAT, which will be charged at the prevailing rate"
.
4. Agent’s Obligation to Provide Statements4.1 The Owner will receive a detailed monthly statement of expenditure against the Project Budget, including copies of Contractor invoices and documentation of works authorized.
4.2 Duplicate statements are available on request, subject to an additional fee as per the Agent’s standard fee schedule.
5. Owner Monies5.1 Initial Funding: The Owner is obliged to deposit 100% of the Project Budget (Total Acquisition Costs, excluding the purchase price and the Loan principal) into the Agent’s client monies account (to be specified on request) prior to the commencement of the Works.
5.2 Client Monies: Owner monies are held in a separate client monies account to be specified on request.
5.3 Further Funding (Call): If any unforeseen circumstances or variations necessitate an increase in the Project Budget, the Agent will notify the Owner in writing. The Owner must remit the required additional funds within 7 Working Days of the invoice date. Failure to do so may result in Works being suspended, and Section 3.4 will apply.
6. Works Management and Authorization6.1 Owner Authorization Limit: The Owner authorises the Agent to arrange Works within the limits detailed in the approved Scope of Works and Project Budget (Appendix 1) without further consultation.
6.2 Budget Overruns: The Agent will seek the Owner’s express written permission prior to authorising any work that would cause the Project Budget to be exceeded by more thaN 5% of the remaining budget.
6.3 Agent of Necessity: The Owner authorises the Agent to make arrangements for any urgent works necessary to ensure the Property is safe or to prevent major damage, regardless of cost. Prior consultation is not necessary, although the Agent will make a reasonable effort to notify the Owner prior to or immediately after such works commencing.
6.4 Works Sign-Off: The Owner agrees to approve the Works as satisfactory, or to raise any concerns, within two working days of being notified of Practical Completion. Failure to do so may result in delays to Contractor payments.
7. Liability, Indemnity, and Disputes7.1 Contractor Workmanship: While the Agent shall use reasonable skill and care in selecting Contractors and supervising the Works, the Agent shall not be liable for the conduct or standard of workmanship of any appointed Contractor. The Owner's primary recourse for defects is against the relevant Contractor, whose details will be supplied on request.
7.2 Owner Indemnity: The Owner agrees to protect and indemnify the Agent against all costs, liabilities, claims, or damages relating to the Works carried out by Contractors, as arranged by the Agent or otherwise.
7.3 Building Regulations: The Owner is responsible for ensuring the final Works and the Property conform to all required building regulations, planning permissions, and statutory compliance requirements. The Agent’s role is limited to instructing the necessary professionals on the Owner’s behalf.
7.4 Limitation of Liability: Except in respect of death or personal injury caused by the Agent's negligence, the entire liability of the Agent under or in connection with this agreement shall not exceed the amount of the Project Management Fee charged.
7.5 Complaints and Arbitration: Any unresolved dispute between the Owner and Agent may be referred to a nominated arbitrator agreed by both parties, in accordance with the Arbitrations Act 1996. The costs of any such arbitration will be borne by the losing party or as determined by the arbitrator (Mirroring Section 10 of Management Agreement).
7.6 CDM Regulations 2015 and Statutory Appointments: Where the Works involve more than one Contractor, the Owner acknowledges their duty as the 'Client' under the Construction (Design and Management) Regulations 2015 (CDM 2015). The Owner hereby appoints the Agent, Prosperity Property North Ltd, to act as the Principal Designer for the Works. The Owner also agrees to appoint a suitable Principal Contractor who will have control of the construction phase, as advised by the Agent. The Agent shall carry out the Principal Designer duties including the planning, managing, and monitoring of the pre-construction phase and compiling the Health and Safety File.
8. Termination of This Agreement
8.1 Withdrawal Fee: A withdrawal fee of £500
will apply per property and will be due by the Owner upon notification of the termination of this agreement prior to Practical Completion. This fee is due within 7 Days of the notification.
8.2 Termination during Works: If the Owner terminates this agreement while the Works are ongoing, the Owner shall immediately pay the Agent the full agreed PM Fee calculated against the remaining estimated Project Budget and indemnify the Agent against all outstanding Contractor costs or cancellation penalties.
8.3 Agent Termination: Prosperity Property North Ltd may terminate with immediate effect if the Owner frustrates this management agreement through poor communication, refusal to fund Works, or abusive behaviour towards staff.
PART B: OWNER’S OBLIGATIONS (Mandatory Requirements)1.     Funding: The Owner must ensure sufficient funds are held by the Agent (Section 5.1) to cover all Works and the PM Fee prior to commencement.
2.     Access: The Owner must ensure the Agent and all appointed Contractors have unfettered access to the Property at all reasonable times for the purpose of carrying out the Works.
3.     Insurance: The Owner is required to maintain adequate buildings and public liability insurance throughout the duration of the Works. Furthermore, the Owner must obtain and maintain Contractor's All Risks (CAR) Insurance (or equivalent policy covering the existing structure and the Works) and provide proof of all such insurance to the Agent upon request.
4.     Information: The Owner shall provide the Agent with all relevant documents relating to the Property, including existing surveys, structural reports, and building plans, prior to the commencement of the Works.
PART C: OWNER AND PROPERTY INFORMATION
Agent Details: Prosperity Property North Ltd,
Address, Contact Details
Owner Details
Title:
Forename:
Surname:
Address:
Postcode:
Telephone:
Mobile:
Email:
Property Address (The Investor Property):
Postcode:
Appendix 1: Scope of Works and Project BudgetScope Summary:
e.g., Full structural survey, kitchen installation, re-wire, re-plastering, internal decoration.$
Agreed Project Budget: £0.00
(Total maximum cost, including the PM Fee)
Commencement Date:
DD/MM/YYYY
Estimated Practical Completion Date:
DD/MM/YYYY
Signed

The Owner
Signature: __
Date: __
The Agent (Prosperity Property North Ltd)
Signature: __
Date: __