Managing Agent Contract

[Robin Williams]

@Kevin Cook @martinhoyle
Evening..3Sixty have recently reminded me that our contract with them for 3 years from March 25 2022, soon expires!

Having discussed with Mark B & Adam at 3Sixty, the intent is to renew on same contract as current..i.e.for 3 years with a break clause at end each year. Not to say we are happy with them but reports from.other blocks suggest they are 'ok'.
Whilst we cannot contract - we are on our (I think) 5th account manager from 3Sixty, albeit this time someone who does seem to get things done & communicates well - so I will take the opportunity to push Adam to try and ensure that this manager (Alex Davies) remains with us 'for as long as possible'.
This should be a Board decision so wd ask that you respond accordingly.. Do call if you wish to discuss.

 

[Kevin Cook]

@Robin Williams @martinhoyle @Mark Brough
Hi all, apologies for my prolonged absence, and ongoing limited presence. I must say I remain unconvinced by 3Sixty, but DRBML are pressed for volunteers in a time when much needs to be done. I am conscious of the heavy burden placed upon Mark & Robin, such that I fear we do not have the capacity to change agents at this time.
Regards ....... Kevin

 

[Mark Brough]

Thanks to Robin for creating this topic thread which we can all share and which constitutes a record.
Before this topic thread, I had texted the following privately to Robin:

I am anxious that Alex's storming contribution could evaporate at any time, if only because Adam may need to apply her commendable skills to some other failing client account. I wonder if we need some written commitment about not reverting to the situation prior to Alex D?

I do want to see a written commitment from Adam. (After all, in Adam's email to Robin, Adam has asked for commitment from us.) Whilst Alex Davies is good, we have had four lamentable managers, and we have absolutely no reason to believe that Adam will keep Alex on our account. I feel that @Robin Williams 's proposal to "push Adam to try and ensure" will not be adequate.

 

[Mark Brough]

My Liz is used to contracts like this, and suggests something like:

"Let us please remind ourselves that Mark had to meet with an alternative managing agent because the situation with Lisa and your project management response (we all now know that the latter was also because of Lisa) had become untenable. Whilst Alex D. is on board we would of course not countenance any other agent. However we need to have confidence that Alex's commendable contribution would not evaporate at some point, to be replaced by some inadequate support such as we experienced with Michael Miller, Lisa Groves and Salima Cherrad. To this end we would require a break clause to terminate our contract with xxxx days' notice if there was a change to the service your staff are able to provide without agreement of DRBML and adequate justification. "Adequate justification" would include Alex D. leaving the employment of 3Sixty. "

 

[Kevin Cook]

A good idea, thanks to Liz.

 

[Robin Williams]

mm....whilst I agree with the thinking, maybe not something to make contractual. there has to be a 'trust' on both sides. Maybe 3Sixty will insist on some reciprocal break to protect themselves. One practical point is that, in event of a break during the year, I am not keen to spend the requisite time to ensure all financial records are properly handed over. To discuss.

 

[Mark Brough]

There is absolutely no justification for trust. 3Sixty has let us down now on three distinct occasions. And yet Adam's private email to you breathed a possibly accusatory tone in that I had approached a competitor.

 

[Kevin Cook]

I think it is entirely reasonable, and does not undermine trust when negotiating a new contract to introduce a clause outlining a matter we feel is important, if not critical, to the successful execution of that contract.

 

[Robin Williams]

We are all agreed that we want to take this opportunity of contract renewal to ‘protect ourselves’ by stating to 3Sixty that DRBML wants/requires at all times to have a competent account manager, particularly given history over the past three years. Our difference is (I think) that two of us want to make this contractual, whilst one (myself) wishes to make this non-contractual.

What would be the contract wording? I guess the key sentence in the earlier post is the sentence beginning ‘To this end..’ Am no legal expert but, whilst I accept this is not the proposed wording, I cannot get my head around this sentence. By service do we mean the quality of service? Does this mean we will need KPI’s? Who would determine ‘adequate justification’?. The Alex D example is not I suggest what we are after. It does not cover the possibility that she is promoted internally and her replacement turns out to be 'not competent'. Were we to invoke the break, there is risk of a bun fight. We would need time and effort to appoint a new agent. Do we have this? Are we really confident that the new agent would appoint a competent account manager?

I am in a minority. I indicated (did not commit) to Adam late last week, when I was not aware this issue would arise, that by end of this week we hoped to renew the existing contract on similar terms. We therefore need to raise this matter/delay with him asap. To be honest, I have neither the time nor energy to progress in this manner so Who? How? When? do we raise with Adam? Maybe he will have no issue with this contract request. Maybe he will resist, with all that means for our future relationship with him & with 3Sixty – not least as he is ‘our man’ in Lendlease negotiation.

I sense that we are jumping from the frying pan into the fire. Maybe better the devil we do know…

Comments please asap.

 

[Mark Brough]

Whilst you and I are trying to find time to meet, we could pose your question @Robin Williams to Adam himself. I suggested wording to you in an email a while ago, something like:

"Let us please remind ourselves that Mark had to meet with an alternative managing agent because the situation with Lisa and your project management response (we all now know that the latter was also because of Lisa) had become untenable. Whilst Alex D. is on board we would of course not countenance any other agent. However we need to have confidence that Alex's commendable contribution would not evaporate at some point, to be replaced by some inadequate support such as we experienced with Michael Miller, Lisa Groves and Salima Cherrad.
Are you able please Adam to suggest some words in our new agreement which would give us confidence about this, such that both parties can share in confidence through this agreement?
Thanks Robin."

My suggestion is both a good negotiating ploy (divining Adam's position) and a respectable reason for stalling him.

 

[Robin Williams]

..plam on the road at mo. & writing off mobile phone l..I would wordthe this differently and much shorter..saying something like.."whilst delighted with alex d encouraging start, we do have concern , based on history, that any replacement would not be of the same level. Thus, in the hopefully unlikely situation.of a replacement, we do request there is no drop.in the future level.of service. Could you please give us some reassurance of this?"

 

[Mark Brough]

Yes, that's OK. I think, given that Adam wrote privately to you expressing a little concern that I had entertained a competitor, that we should respond to that by stating unequivocally the reason why that had become rationally necessary. As worded at the beginning of my suggestion. I sometimes fear that Adam is not facing up to the reality of the situation that he has been putting us in.

 

[Mark Brough]

Well, after all that discussion our negotiation has achieved zero. Thanks however to Robin for administering it.
Here for the (forum) record is Robin's request to Adam, and Adam's response (by email)...
+++++++++++++++++++++++++++++
Thanks Adam,
I've now discussed with fellow directors (yes, plural). We are delighted with Alex D encouraging start, but it is worth us noting, at this time of contract renewal, that we do have concern, based on history, that any replacement would not be of the same level. Her great work then falls away. I trust you appreciate this comment.

Ideally we would have the opportunity to meet any such replacement before appointment.

Thus, in the hopefully unlikely situation of a replacement, we do request there is no drop in the future level of 3Sixty's service. Could you please give us some reassurance of this?

Many thanks - robin
+++++++++++++++++++++++++++++
Dear Robin
Thank you for your email and very good news indeed, we look forward to continuing with yourselves going forward.

I totally understand and appreciate your comments. While we cannot guarantee no replacement in the future due to operational reasons as you can hopefully appreciate, off the record Alex D has started as we had hoped/expected and has settled in if not better than expected, to the extent that we are in the process of signing off her probation early as a reflection of her efforts to date. Having spoken to Alex D specifically about Deanery Mews in recent weeks, the instruct is as she had expected to the extent that she is not fazed by it and does not foresee any issues going forward, as such is keen to keep on top of matters going forward to make it as smooth as possible for all concerned.

I hope this is all in order and I will update the management agreement in due course.

Best regards Adam

 

[Robin Williams]

For the record, am not sure why Adam wrote the first sentence......at best, I would have stated 'am hoping to continue but need directors' ok' or some such

Presumably by 'update', he means another 3 -year contract with a break clause at end of each year - otherwise no further changes.

We are currently working with 3Sixty on a 'no contract' basis. albeit we have approved their 2526 service charge. This does not sound right

So @Mark Brough @Kevin Cook @martinhoyle ..please, what do you propose as next steps?....replies soonest please.

Thanks rw

 

[Robin Williams]

@Kevin Cook
Reply please soonest.
Hi....I've just discussed the above with Mark and I think for reason of pragmatism, he is now ok to continue with 3Sixty as originally proposed i.e. the same contract for a 3 year term with an annual break clause.
If nothing else, recent communication with Adam has 'fired a bolt across the bows' of 3Sixty that we should have an account manager of the calibre as Alex D currently shows. I will mention to him, that, even if not contractual, we would hope to meet any new account manager before he/she is appointed.
Effectively therefore we have a majority for me to write to Adam accordingly but it would be good if you could also ok.

 

[Kevin Cook]

@Robin Williams @Mark Brough @martinhoyle
Thanks Robin/Mark, and my apologies for the slow response.
I understand the effort required to change management companies and therefore that we should not take such decisions lightly, so I respect your stance in light of this.
I appreciate that, as you say, you have fired a bolt across the bows, but experience suggests that DRBML will slip down the priority list at 3Sixty and you are far more astute than I if you can establish the capabilities of any new candidate from an initial meeting, however, ......... all said and done ...... you and Mark have put much more effort into this matter than I have, and so I will be happy to accept your guidance and to support you.
Thanks to you both again ................ Kevin

 

[Robin Williams]

Thanks Kevin for your feedback.

As a record for this thread, I will email Adam (cc directors) as follows:

Dear Adam,

I confirm that DRBML directors are now ready to sign a new contract to appoint 3Sixty as our managing agent for 3 years from March 25 2025 with a break clause for both sides at the end of each year. Otherwise, we continue with the same wording as in our prior contract.

We will each need to sign this. I suggest you prepare the relevant papers for both parties to sign at our next Board meeting on May 13.

You are aware that we expect that our account manager to be of 'Alex D calibre' throughout this period. The role is obviously critical in successful delivery of the contract. Should Alex cease to be our manager, whilst non-contractual we request that we meet with any replacement before his/her appointment.

Our thanks to 3Sixty for your support over the past three years, particularly since Alex's recent appointment. We hope we continue in much the same vein over the coming three years.

................

Any Adam reply, I will post on this thread.