Frequently Asked Questions

General question

Which browser is recommended? 
We recommend the Mozilla Firefox or Google Chrome browser for the use of the trusteeship system. Certain functions do not work when using Internet Explorer.

Where can it be accessed? 
www.elsofedezetkezelo.hu

What is e-trusteeship / electronic registry of subcontractors?
In case of engagement of a construction trustee, it is an electronic registry forming an annex to the construction log of the prime contractor, which contains the details of all contractors involved in the implementation of the construction activity and the construction work undertaken by them.

Above what limit is use of the system mandatory?
The use of a construction trustee is mandatory for projects with a value over the EU limit (approximately EUR 5 million). Below this amount it is optional based on the decision of the parties.
When calculating the limit, the value of construction activities implemented by the same constructor over several years for new buildings on contiguous or related land areas  with the same purpose or for new buildings closely related to each other in functions or existing building, shall be considered together.

Who is required to use the trusteeship system?
All contractors involved in the implementation of the construction activity (prime contractor and subcontractors) are required to use it in accordance with the construction log.

What are the advantages of participating in the system?
The system renders transparent the full procedure of payment of the contractor fee to the investor / constructor  and it guarantees that the subcontractors engaged in the project are duly paid their contract fees relative to their actual performance.
The prime contractor has no interest in making unwarranted deductions from the contractor fee as it is under the supervision of the prime contractor. Thus, the number of unjustified legal disputes concerning the project can be reduced, which facilitates the delivery of the project in a timely manner, at the appropriate standards and within the planned budget.

From when should I use it? 
The new contract / subcontractor should be registered in the electronic registry of subcontractors following the conclusion of the contract and entry into the construction log.
Constructor: Prior to the commencement of the project, the builder concludes a contract with the trustee, who sets up the project in the system and enters the contract concluded between the builder and prime contractor.
Prime contractor: upon the conclusion of the new subcontractor agreement and its entry into the construction log, the subcontractor must also be recorded in the trusteeship system.
Subcontractor: if the subcontractor / contractor acting as principal wishes to engage additional subcontractors, it must register in the system after the conclusion of the contract. 

Until which date should I register my engaged subcontractor in the system?
The prime contractor or the contractor acting as principal shall administer the registry of the subcontractor following the conclusion of the contract and simultaneously with the entry into the construction log but no later than the commencement of the construction activity.

What are my main tasks that I have to perform in the system?
Constructor: Administration of contract fees as a technical supervisor: Recording of fees of work phases related to prime contractor agreements (contract fee of work verified in certificate of performance)
Prime Contractor: Creation of new subcontractor agreement. Forwarding of single use password. Acceptance of subcontractor agreement. Administration of state of collateral and advance. Query of eligibility to pay invoice.
Subcontractor / Contractor acting as principal: Administration of state of collateral and advance. Query of eligibility to pay invoice. Entry of own subcontractor agreement and work phases, submission for approval. Administration of work phases. Creation of new subcontractor agreement. Forwarding of single use password. Acceptance of subcontractor agreement. Administration of state of collateral and advance. Query of eligibility to pay invoice. Responsible technical foreman: administration of recognized contract fee.

How long does it take to use the system?
The entry of contracts is a process that takes no longer than 10 minutes. The additional monthly administration of work phases takes about 2 to 3 minutes per month. The system was established such that the initiation of the issuing of the certificate of performance and the entry of wire transfers can be done in a single click.

Who is eligible to administer the site? 
The application has a very stringent eligibility check in place. Users with varying eligibility are only allowed to carry out activities within their respective scope of competence in all cases. Users can view different data depending on the eligibility level, the ability to modify data and the menu items available in the software may also be different. During the entries made in the system the logging ensures that users making the changes and the IP address identifying the location of such changes are recorded and can be retraced.

What are the eligibilities that I can work with in the system?
Constructor:
- Constructor administrator (master user),
- Constructor,
- Construction technical supervisor – entry of recognized contract fee.
Prime Contractor:
- Prime Contractor administrator – entry of contracts (master user powers),
- Prime Contractor – entry of certificates of performance,
- Responsible technical foreman – entry of recognized contract fee.
Subcontractor / Contractor acting as principal:
- Contractor administrator – entry of contracts and certificates of performance,
- Contractor – entry of contracts and certificates of performance,
- Responsible technical foreman – entry of recognized contract fee.

As a supplier of materials, do I need to register myself?
Legislation provide no clear guidance on the registry of supplier companies. Thus, it is a decision of the company executive how important it considers the use of the trusteeship system in the interest of their own business (to guarantee due payment).

What should I do if several prime contractors are working on the project?
The constructor has the possibility to work with several prime contractors and to handle such contracts separately to ensure that prime contractor agreements can be managed by a single constructor master user.

Who can I expect to settle the invoiced fee?
Following the completion of each construction phase, the trustee directly pays the subcontractors based on the certificates of performance issued by the technical supervisor of the project if the subcontractors have not been paid by the date of payment of the prime contractor. In the event of any legal dispute the trustee shall withhold the disputed contract fee in a separated manner.

When can I expect my invoiced amount to be paid?
Following the completion of each construction phase, the subcontractor shall initiate the issuing of the certificate of performance to the prime contractor. Subsequently, the responsible technical head shall record the contract amount, which the subcontractor shall transfer to the prime contractor after its acceptance. If the subcontractors are not paid by the date of payment of the prime contractor, the subcontractors shall be paid simultaneously with the payment of the prime contractor even if the payment due date vis-à-vis the subcontractor has not expired. To ensure payments it is important that each phase be administered in the trusteeship system in a timely manner, otherwise the transfers cannot be made.

Questions related to login

When and from whom will I get access? (the single use password)
Constructor, prime contractor: trustee shall register the contract concluded between the constructor and the prime contractor(s) in the system and shall subsequently hand over the single use password (master ID) required for the first login.
Subcontractors: following the conclusion of the contract the prime contractor / contracting acting as the principal shall register its subcontractor in the system. After the registration, it shall hand over the user name and password generated for the first login.

What is the single use password?
After the first login, the first step is to change the so-called single use master ID data. The master ID is the primary or main ID of the contractor that provides full access for the administration of data.
The single use password is generated in the system upon the registry of the subcontractor,  and the prime contractor or the contractor acting as the principal shall forward this to its subcontractor.
This needs to be changed during the first login by providing a new user name and password.
We recommend that the newly changed data be noted down to avoid any problems in the future.

I did not print out the single use password, where can I retrieve it?
The single use password required for the given contract can be accessed under the Documents tab.

What can I do if I forgot my password?
You need to signal the request of a new password by email. The request shall be forwarded to the developers, who shall in turn generate a new password.

Questions relating to the entry of data (for subcontractors)

What is meant by entry of contract?
The prime contractor registers its own subcontractor in the system and hands over the document containing the user name and the password required for the first login. Subsequently, the subcontractor enters the contract details and the phases of the construction activities.

What does submission for approval mean? Why is it necessary? (the contract becomes active)
After the entry of the contract details and the work phases the contract only becomes active in the trusteeship system if it is approved by the contractor acting as the principal. The contract must be submitted by the subcontractor to its client via the system.

I cannot anticipate the precise phases of monthly performances. What should I do?
We are aware of the fact that in construction activities one cannot stick to a precisely planned schedule as construction projects do not work on a pre-determined schedule. Accordingly, it is recommended that the work phases be entered as monthly performances with an estimated contract fee as this is key to the entered contract becoming active in the system. Afterwards, this should be updated monthly by applying a so-called “rolling wave planning” as a function of the progress.

What contract amount should I enter if my contract is subject to reverse charge VAT or if it is not?
If the contract is subject to reverse charge VAT, then the net amount without VAT should be entered. In all other cases the gross amount should be specified.

What should I do if I do not know the exact TEÁOR code?
The selection of the TEÁOR code has no effect on the later status of the contract and can also be changed. However, its selection is key to the entry of the contract, therefore we recommend that you select the TEÁOR code 4110 Organization of building construction project.

Why can’t I enter a new subcontractor agreement?
In the case of multiple subcontractor circles, no subcontractor agreements may be recorded until your own agreement has been approved.

What can’t I administer my own agreement and what should I do in this case? 
If the administration is not done within the deadline of 15 days, the system automatically proceeds in the process and no entries can be administered later.
If an agreement / closed work phase needs changes, only the trustee is able to administer such changes. Any requests for change should be submitted to us by email and we also respond by email of their completion.

How do I know what the status of the process is and what I should do? 
The trusteeship system has been established such that it sends automatic email alerts and messages to its users of the status of the various processes and the tasks to be done. In addition, it also monitors the status of each phase of the construction activities.

The contract fee recognized in the certificate of performance is HUF 0. How can this be? 
In this case the responsible technical head did not enter the recognized fee within the set deadline, so the system automatically entered HUF 0. As a result, the amount to be transferred also indicates HUF 0 and the invoice cannot be issued. Any request of change should be submitted to us by email.

Why is a responsible technical head needed? 
The responsible technical head of the contractor acting as the principal has to enter the contract fee of the work performed by the subcontractor and approved by the responsible technical head relative to each work phase. Until the responsible technical head enters such work fee, the subcontractor cannot issue the invoice relative to the work phase in question. If the responsible technical supervisor fails to enter the fee of the work performed by the subcontractor within the set deadline, then upon its expiry the system will set it at HUF 0, which the subcontractor will obviously dispute. At this point the process of dispute resolution will commence, in which the trustee will also engage.

Tasks of responsible technical head:
In addition to the entry of the fee of the work recognized in the certificate of performance the responsible technical head shall also record the extent of the performance bond and the warranty bond, as well as any set-offs and client counter invoices (work services, discounts).
Precise entries are required because these amounts are deducted from the full amount and if the amount to be transferred are less, then the system signals outstanding payment and the work phase cannot be closed.