A Proposal for
KUFU
Shield Works has prepared this proposal to formalise a temporary monthly management fee for the KUFU programme. It reflects the active workload our team is committing to the account at this stage of the project — ahead of rolling production volumes that will sustain the engagement commercially.
Project Overview
Shield Works has been working with KUFU on the development and supply of their drawer system since the programme began. An initial monthly management fee was in place during the onboarding phase, which was discontinued once meaningful first orders progressed through production and into fulfilment.
Those initial orders have now been completed. While the commercial relationship remains strong — with solid long-term potential for volume manufacturing — the programme currently sits in a pre-volume phase that requires significant ongoing management without the corresponding order revenue to offset it. This proposal sets out a practical and fair arrangement to address that imbalance.
Active Workload
The table below outlines the active tasks and responsibilities currently being managed by the Shield Works team on behalf of KUFU.
| Activity | Owner | Frequency | Notes |
|---|---|---|---|
| Supplier coordination & communication | Helen | Weekly | Multi-supplier programme management and daily liaison |
| Quality control & inspection oversight | Evan | Per shipment | Pre-shipment inspection coordination and sign-off |
| Client updates & progress reporting | Kachal | Bi-weekly | Structured status reports and issue escalation |
| Logistics & shipping coordination | Helen | As required | Freight booking, customs documentation, delivery tracking |
| Engineering & DFM support | Evan | Ad hoc | Ongoing product refinements, DFM reviews and supplier queries |
| Commercial administration | Kachal | Monthly | Purchase order processing, invoicing and cost reconciliation |
Proposed Management Fee
A temporary monthly management fee covering the Shield Works team's ongoing time and resource commitment to the KUFU programme during the current pre-volume phase of the engagement.
This fee is temporary and will be reviewed — and ceased — once the KUFU programme progresses into rolling mass production at commercially sustainable volumes. It is not a permanent arrangement.
Engagement Terms
| Start Date | April 1, 2026 (or upon agreement) |
| Duration | Rolling monthly — no fixed term or lock-in |
| Notice Period | 30 days written notice by either party |
| Review Trigger | Automatically reviewed when rolling monthly order value consistently exceeds $15,000 USD |
| Invoicing | Raised on the 1st of each month, payable within 14 days |
| Scope | Covers standard ongoing management only — ad hoc project work outside normal scope quoted separately |
Why This Fee Is Justified
The Shield Works team currently invests considerable time each week managing the KUFU account — coordinating suppliers, overseeing quality, handling logistics, maintaining client communication, and providing engineering support. This level of service is entirely standard for an active programme of this nature. However, it is typically funded through the margin generated on production orders. At current order frequency, that margin is not sufficient to cover the resource being committed.
A modest management fee ensures Shield Works can continue to deliver the same quality of service — without deprioritising the account or scaling back the team's involvement. The four points below set out the core rationale.
Ready to Move Forward?
If this proposal aligns with your expectations, please review and countersign the agreement via the link below. Once confirmed, Shield Works will raise the first invoice effective from the agreed start date.