- Contract for service : Contract for service
Definition : Contract for service
Contract by which a person (the provider of services) undertakes to another person (the client) to carry out physical or intellectual work or to supply a service, for a price which the client binds himself to pay to him. The provider of services is free to choose the means of performing the contract and, with respect to such performance, no relationship of subordination exists between the provider of services and the client.
The manager bound to a syndicate by a contract for services does not have the same relationship with his client as the one who has the status of a salaried employee. That being said, regardless of the nature of the relationship between the parties, it is advisable to specify the contract’s terms and conditions, including its obligations and its possible renewal. This will prevent misunderstandings and possible litigation.
Terminating the contractual relationship between the manager and the syndicate of co-owners requires, at all times, an evaluation of the legal and contractual parameters. A review of the various scenarios illustrating the expiration or resiliation of a contract for services.
The condo manager must stipulate, in the contract for services, the scope and the cost of his services for the co-ownership’s day-to-day management. Day-to-day management includes the usual acts usually included in the basic package. The manager may also charge for additional remuneration for "supplementary" services. Therefore, it is necessary to specify the services included in “day-to-day management”, to avoid arguments, or having to pay unforeseen additional fees.
Every syndicate of co-owners should retain the services of a condo manager, to assist the board of directors carrying out its duties. As the needs of a co-ownership are multiple and complex he needs to be the one man band of the co-ownership and assume enormous responsibilities. This being said, there are three management modes associated with this function, namely: resident-managers (autonomous management), employees (self-management) and contractors (external manager). A review of the various missions that may be entrusted to them.
The condo manager’s tasks are numerous. Therefore, his civil liability could be engaged. If he is at fault, he may be exposed to recourses or claims for compensation, whether by the syndicate or the co-owners themselves. It is therefore imperative that he takes out civil liability insurance for the term of his contract for services.
The work of the condo manager is not governed by Law. As a general rule, it is up to the board of directors to set the guidelines of the management contract, according to the size and characteristics of the co-ownership. As for the terms and conditions of appointment and replacement of the manager, they are generally provided in the constituting act of the declaration of co-ownership.
Although there is no provision of the law requiring a written contract with the manager, it is strongly recommended that one be executed. This document is essential to the sound management of a co-ownership. It will avoid misunderstandings on the nature of the services to be rendered, as well as their financial terms and conditions of execution.
Essentially, there are two types of contractual arrangements between a syndicate of co-owners and a manager: the contract of employment and the contract for services.
A syndicate of co-owners can sometimes evolve into a small and medium size enterprise, an SME. Even more so if it assigns personnel to the various common portions maintenance chores of the immovable.
Yet, people hired by a syndicate have rights. In fact, their prerogatives are the same as those in force in the labor market. It is better to be aware of them and to understand the consequences.