<aside> 💡 Purpose: This procedure establishes clear incentives for cross-selling collaborations while providing a structured framework to safeguard districts from unfair practices, ensuring transparency, accountability, and mutual benefit.

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Decentralized sale 1 - Case of Handover

1. Transferring a Client Project to Another District

A district (District 1) may decide to pass a client’s project to another district (District 2) under the following circumstances:

1.1 Reasons for Transfer

• 1A - Capacity Constraints: District 1 is too busy to handle the project.
  • Option 1A.1: The project is assigned to another district under District 1’s direct control. In this case, District 1 retains client management.
  • Option 1A.2: The project is fully transferred, and District 2 takes full ownership of both management and execution.
• 1B - Pricing Constraints: The client rejected District 1’s quote due to high costs.
  • District 1 may transfer the project to District 2, which can execute it using a different pipeline with lower costs.
  • The trade-offs of the alternative method must be clearly communicated to the client to prevent unexpected expectations.

2. Agreement Structure

• In Option 1A.1 (Capacity Constraints - Indirect Control)
  • District 1 remains the project owner.
  • District 2 operates as a subcontractor.
  • Payment is handled between District 1 and District 2, with no direct client interaction.
• In Option 1A.2 (Capacity Constraints - Full Transfer)
  • The project is fully transferred to District 2.
  • The client interacts directly with District 2.
  • District 1 may negotiate a percentage-based commission on the project’s value.
  • If the collaboration is successful, District 1 maintains its reputation and receives the agreed percentage.
  • If disputes arise due to mismanagement or miscommunication, a pre-agreed stake must be paid by District 2 to District 1 to compensate for potential damage to District 1’s reputation and future opportunities.
  • The stake amount is determined based on the client's lifetime value and the level of trust between the districts.

3. Conflict Resolution Mechanism

To prevent disputes and ensure fairness:

• Both districts must agree on a "Guardian", a third, neutral district that acts as an impartial mediator in case of conflicts.
• If a dispute arises, the Guardian district reviews the case and determines whether the agreed stake must be paid.
• This ensures transparency, accountability, and reputation protection for all parties involved.

4. Risks and Benefits

4.1 Risks for District 1