By Carly Spengler, Haven by Neighborhood Management Inc. 

As managers, we view our relationship with clients as a true partnership—one built on transparency, communication, and mutual understanding. A key component of this partnership is ensuring clarity around cost structures, particularly those outlined in what is commonly referred to as “Schedule A” or “Addendum A” of a management contract. This document should be clearly communicated and fully understood by all parties and never buried in the fine print or treated as an afterthought.

Whether you are a board member evaluating a new management proposal or a homeowner reviewing your community’s invoices, it is essential to understand the purpose of Addendum A and how to extrapolate its contents. 

What Is “Addendum A” and How Does It Relate to the Management Contract?

Addendum A is a legally binding supplement to a management agreement. It details specific costs and services that fall outside the scope of the base contract, providing additional context or clarification on items that may incur extra fees. Common inclusions are:

• Postage and mailing services

• Photocopying and document reproduction

• Special oversight or project management fees

• Administrative or ancillary services

• The association. It means it is not pre-paying for services it does not use.

• The management company. It ensures fair compensation for services that require additional time or resources.

• “Notwithstanding Section X of the HOA Agreement...”

• “This addendum shall supersede any conflicting terms...”

• Ask the HOA board or property manager to explain anything that is unclear

• Consult an HOA attorney, especially if the addendum includes financial or legal obligations

• Request written confirmation if verbal clarifications are made

Carly Spengler is the Director of Association Management at Haven by Neighborhood Management Inc. Haven is a boutique management firm located in Broomfield. With three years of industry experience and certifications including CMCA and AMS, Carly focuses on building authentic relationships with clients and team members while promoting ongoing education within the industry.

These costs are not typically included in the base monthly management fee but rather billed as they are incurred. As such, Addendum A plays a crucial role in ensuring the association only pays for what it uses, benefiting both the client and the management company.

Why Is an Addendum A Important?

Many management companies choose to separate ancillary fees from their base contract. This model provides flexibility for:

Additionally, Addendum A can often be updated separately, without needing to renegotiate the full contract. This offers adaptability as the community’s needs evolve.

Watch for Superseding Clauses

Some terms in Addendum A may override provisions in the original agreement. Language to watch for includes:

These phrases indicate that Addendum A takes precedence over the original contract where conflicts exist. Some contracts may allow Addendum A to be updated unilaterally, so it's important to review how changes are governed and approved.

Ask Questions Before You Sign

Before agreeing to the terms of Addendum A:

Understanding the addendum is vital. It is a legally binding part of your agreement and can have lasting financial and operational implications.

Final Thoughts

Reading the Addendum A carefully can help you avoid unpleasant surprises down the road. While it may appear to be just another piece of legal documentation, its impact on your community and your relationship with the management company can be substantial. Treat it with the same seriousness as the main contract and never hesitate to ask for help when in doubt. As stated, transparency is paramount when entering into a new management agreement. It is not just a best practice, it’s a responsibility.  When both the board and the management company are aligned on expectations and costs, it strengthens the relationship and lays the foundation for long-term success and continuous partnership.

About the Author

Carly Spengler is the Director of Association Management at Haven by Neighborhood Management Inc. Haven is a boutique management firm located in Broomfield. With three years of industry experience and certifications including CMCA and AMS, Carly focuses on building authentic relationships with clients and team members while promoting ongoing education within the industry.