OIGP-CNI Referral Business Agreements
Contents:
- Terminology
- Types of business
- CNI rules for referral business
- Payment
- Exchange risks.
1. Terminology
For the purposes of this document the following terminology will apply:
- Specific Work: a Career Transition (CT) service agreed between companies and/or individuals involved. A service can be standard or tailor made program(s) for individuals and groups.
- Originating company or partner: the partner who is referring the specific work, the ‘referrer’
- Contracting company: the partner or company contracting the work, can be the originating partner or the realizing company
- Realizing company: the company realizing the work (referee)
- Client: the organization or individual engaging and paying for CT services
- Candidate: the individual receiving CT service
- Transfer date: starting date of the work or program
- Referral information: information for administrative purposes, minimum: name of client, name(s) of candidate(s), amount involved, kind of program(s), referrer and referee, start date, expected end date.
2. Types of Business
The following types of business are discussed:
- CNI Contacts
CNI partner or associate gives contact(s) to other CNI partners or associates.
- Specific work referred to CNI partners
A CNI partner refers specific work to be executed completely or partly by another or other CNI partner(s). A price offer of the realizing company/companies of the work is/may be required before the final offer will be made to the client.
Partners give each other internally best prices, i.e. list price minus 20 %.
In case work is partly referred, an individual agreement will be made depending on the split and the risk in a(n) (unlimited) program.
- Specific work (100% or partly) referred to CNI associates or outsiders
A CNI partner refers specific work to be executed completely or partly by another company (CNI associate or outsider). A price offer of the realizing company of the project is required before the final offer will be made to the client.
- CNI Courtesy Consultancy
The minimum package given free of charge is half a day in the office plus 2 hour-consulting, face to face.
For any need going beyond this minimum package, an agreement has to be found: gratuity, a fee per day of office occupation or consulting, or a fixed amount for the co-operation. But, in any case, a written agreement has to be established between the two partners before the beginning of the assignment. See also 1.2 as it may become a (partly) program transfer.
3. CNI rules for Referral Business
The following rules apply to the referral business:
- The originating partner requests another firm to do work on their behalf, informs about the payment terms of a contract, and agrees the amount at the outset in the currency agreed with the client. A partner should take referral business from another partner, based on confidence, even in case of minimum pricing to be competitive.
- It is strongly advised to write a statement between originating company (referrer) and realizing company (referee) necessary before beginning an assignment.
- The realizing company informs the originating partner when the work starts, and also when the work is complete and gives feedback on the process.
- The contracting company invoices the client when the work commences (sometimes it may be appropriate for invoicing to take place when a job is complete).
- The contracting company keeps handling the contract and stays in touch with the client. The contracting company is responsible for the reporting to the client as agreed.
- The contracting company collects the debt, and when this is received pays the invoices of the company/companies involved without delay.
- Appropriate commercial credit control methods should be used to collect debts as necessary.
- If CNI partners desire to come to other arrangements they are free to do so. It would be sensible for this to be agreed between referrer and referee, not only in advance but in writing.
- CNI partners always provide referral information to the ‘Headquarter’ following the agreed ‘format’.
4. Payment
The following applies on payments:
- Contact
In principle there is no fee for giving a contact name, this is expected between CNI members.
If CNI partners desire to come to other arrangements on information passed between them then any remuneration should be agreed in advance and they are free to do this. It would be sensible for this to be agreed between CNI partners not only in advance but in writing
- Referral fees between CNI partners for specific work
A fee will be paid to the partner referring specific work. The fee will be:
- 15% for the referrer of the services;
- 85% of the amount involved is for the servicing firm (referee).
- Referral fees between CNI partners and others (excluding OIGP) for specific work
A fee will be paid to a CNI partner referring specific work. The fee will be:
- 15% for the referrer of the services;
- 5% for CNI;
- 80% of the amount involved is for the servicing firm (referee).
- Referral fees within OIGP, between CNI and OI partners for specific work
A fee will be paid to an OIGP partner referring specific work. The fee will be:
- 15% for the referrer of the services;
- 5% for OIGP;
- 80% of the amount involved is for the servicing firm (referee).
To secure large contracts, the referral fee may be negotiated on a case by case basis, including the (administrative) management of a larger project, with prior agreement of the OIGP Board. Referral fees are owed on all billings of US $1,200 or more, including consulting fees, but not on materials or pass-through expenses.
- Period of referral fees due within OIGP
The partner who is now delivering the referred programs is free to approach the local HR contacts of the company the work is done for (client). This partner will pay the same referral fee for any work agreed in the first 12 month period from the date of the transfer of the work.
After this first 12 month period no more referral fees are due involving the company the work is done for.
- Costs
Each company pays her own bank costs.
In normal circumstances payment for work accomplished or payment of the referral fee will be done as soon as the money is received from the client. In the case of a default and nonpayment from the client the costs of doing the work is paid, being the additional costs of doing the work. They would not include contribution to overheads etc.
5. Exchange rate risks
The contracting company invoices the client.
All transactions take place in the currency mentioned in the (local) contract.
The exchange rate effective on the transfer date (= starting date of the work), will be the basis for the invoice.
The contracting company pays the invoices (either for the programs or for the referral fee) of the other companies involved in the currency as mutually agreed.
