Measure of Time

Introduction

The scope of this document is to establish clear definitions and guidelines regarding the measurement of time within the context of contractual obligations and communications. 

It is imperative to delineate how time is defined, tracked, and accounted for in our collaborative efforts. Time is a fundamental element of productive work. Misunderstandings regarding time can result in inefficiencies, unmet expectations, and potential disputes. 

Therefore, this document aims to:

• Define the difference between Net Time and Attendance;
• Clarify the distinctions between Estimates, Commitments, and Deadlines;
• Outline the means of Tracking and Timekeeping;
• Establish the rules regarding Billability, Revision & Approval, and Overtime.

This clarification is intended to ensure that we have a mutual understanding of how time will be measured and managed throughout the duration of our collaboration.

Wording

Any singular first-person reference within this document shall be interpreted as referring to me, Adam Laszlo Rocska, Sole Proprietor. 

If the referring document is bi-party (only me and one other entity), any singular second-person reference shall be interpreted as referring to that other party. 

If the referring document involves more than two parties, any singular second-person reference shall be interpreted as referring to all named parties in the context of this agreement as “Participating Parties.”

Any plural first-person reference within this document shall be interpreted as referring to you and me collectively.

Net Time

Net Time refers to the total uninterrupted time spent directly executing tasks or services specified in the contract. It encompasses only the time that actively contributes to the deliverables or outcomes agreed upon by the parties. All other non-productive time is explicitly excluded from this calculation.

What Net Time Excludes

Net Time explicitly excludes the following:

• Administrative Work: Internal tasks related to my project management, documentation, or other non-core functions.
• Internal Meetings: Meetings that do not directly impact the deliverables or outcomes specified in the contract.
• Breaks: All forms of breaks, including meals, coffee breaks, restroom visits, etc.
• Downtime: Any waiting periods or downtimes unrelated to active work on the contracted service or deliverable.

Net Time serves as the exclusive basis for calculating all time-based service fees, including but not limited to hourly, daily, weekly, or project-based fees. It represents pure productive effort, and all billing will reflect this definition.

Summary

Net Time serves as the definitive measure of time spent actively performing the contracted work, explicitly excluding any non-productive activities. This delineation is crucial for ensuring accurate billing and effective management of expectations. All time-based agreements and invoicing shall default to Net Time unless explicitly stated otherwise.

Terms such as "man-hours," "consulting days," and similar shall always be interpreted as referring exclusively to Net Time.

Attendance

Attendance refers to the total time made available for work during a given day, encompassing both productive and non-productive activities. Unlike Net Time, which focuses solely on active contributions to deliverables, Attendance includes the entire work period and is designed for clients who prefer to measure presence rather than purely productive output.

What Attendance Includes

Attendance shall explicitly include the following, along with Net Time spent on productive work:

• Breaks: All forms of breaks, including meals, coffee breaks, restroom visits, etc.
• Administrative Work: Internal tasks related to my project management, documentation, or other non-core functions.
• Internal Meetings: Any meetings or incidental activities occurring during the work period.
• Downtime: Waiting periods or periods of inactivity unrelated to active work.
• Other Activities: Any activity undertaken during the agreed work period, regardless of its contribution to deliverables.

Example: If a workday includes 6 hours of productive work, 1 hour of administrative tasks, 30 minutes of internal meetings, and 1.5 hours of breaks, the entire 9-hour period counts as Attendance.

Measurement of Attendance

Attendance will be measured in increments of half a day. For time measurement purposes, rounding will always occur upwards in 0.5 day units (0.5, 1, 1.5, etc.). This ensures that all time is accounted for fairly.

Specifically:

• If the attendance duration is half a day or less, it will be rounded up to a half day.
• If the attendance duration exceeds half a day but is less than a full day, it will be rounded up to a full day.

A work week shall be considered a whole unit if all days officially recognized as working days in Hungary are attended within that week, or if approved time off is taken. Thus, in a week consisting of 4 workdays (e.g., Monday to Thursday), there are 4 days or 8 half days.

Example: Given a workweek from Monday to Thursday, with Friday being a national holiday:

• Monday: 2 hours of work → 1 half day (0.5 day)
• Tuesday: 6 hours of work → 2 half days (1 day)
• Wednesday: 3 hours of work → 1 half day (0.5 day)
• Thursday: 5 hours of work → 2 half days (1 day)

Adding these up gives a total of 6 half days, or 3 full days. Therefore, in this example, the week is 0.75 of a work week (6 half days / 8 half days = 0.75).

A work month shall be deemed a whole unit if all officially recognized working days in Hungary within that month are attended, or if approved time off is taken. This interpretation applies to each individual calendar month and follows the same fractional accounting principle based on half-day units.

Education on Attendance

You are encouraged to understand the Attendance model as a holistic measure of time availability for work. This model recognizes that not all time spent during working hours translates directly into deliverables and aims to provide a comprehensive view of engagement throughout the work period. By measuring Attendance, both parties can set realistic expectations regarding availability, participation, and overall project management.

Example: You understand that although 8 hours are billed as Attendance, this includes breaks, meetings, and administrative tasks, providing a realistic expectation of work output and engagement.

Feedback Mechanism

To ensure continuous improvement of the Attendance system, you are encouraged to provide feedback regarding its effectiveness and clarity. Feedback can be submitted via email or during scheduled review meetings. Any significant amendments resulting from client feedback will be discussed and mutually agreed upon before implementation.

Regular Reviews

The Attendance policy shall be reviewed regularly, at least once annually, to ensure it remains up-to-date with changing practices and feedback from clients. Review participants shall include key stakeholders and client representatives to ensure comprehensive feedback and appropriate adjustments.

Summary

Attendance serves as a measure of time available for work, including all productive and non-productive activities. It allows for a broader understanding of engagement in the project while clearly differentiating itself from Net Time. This distinction is crucial for ensuring mutual expectations regarding availability and participation. You acknowledge that while Attendance is measured, this does not imply a guarantee of productivity, and effectiveness remains contingent upon project context.

Tracking

Time Tracking Tools

To ensure accurate and transparent tracking of my Net Work Hours, I utilize the following tools:

• Apple Screen Time: Provides an overview of overall device usage.
• Apple Stopwatch: Tracks durations for specific tasks in real-time.
• Odoo Timesheets: A structured system for logging work hours linked to project management.
• ActivityWatch: Monitors active work on the computer, allowing detailed time analysis.

Before generating any invoices, I cross-check time records from these tools to ensure accuracy and consistency in reporting. This multi-layered approach guarantees that the reported time reflects the actual Net Work Hours worked.

Non-Negotiable Time Reporting

My time reports are final and non-negotiable. I will not utilize any alternative tracking software or systems at your request. The logs I provide will serve as the sole basis for all invoicing and dispute resolution, and they will be considered accurate unless a verifiable system failure is demonstrated. By agreeing to these terms, you waive your right to contest the reports on the grounds that intellectual work is inherently irreversible, making any resultant damages irreparable.

You must understand that disputes regarding tracked hours will not be entertained. All logs will be securely archived for potential legal enforcement.

Example Scenario

If a task takes 3 hours and is logged using the Apple Stopwatch, ActivityWatch, and Odoo Timesheets, the total reported time will be verified across all tools for consistency before invoicing.

Recommendation for Clients

For full transparency, I recommend invoicing daily or weekly. This keeps you informed, facilitates timely resolution of questions, and enhances cash flow management.

Legal Enforcement

Should you fail to recognize the irreversible nature of intellectual work and attempt to dispute payments or engage in any form of disagreement directly impacting your obligation to pay the applicable service fees, I am prepared to take decisive legal action. This includes leveraging the full extent of Hungarian law to enforce my rights, escalating matters to a court.

This approach is not merely a warning; it is a commitment to protecting my work and ensuring compliance. Your cooperation is expected.

Estimates

The Program Evaluation and Review Technique (PERT) is a statistical tool used to estimate the time required to complete tasks within a project. It was developed by the U.S. Navy in the 1950s for the Polaris missile project. PERT is now widely trusted across industries, including military and large-scale infrastructure, because it provides high-accuracy time estimates based on probabilistic analysis.

It’s designed to handle uncertainty in project estimates by using a three-point estimate system: Optimistic (O), Nominal (N), and Pessimistic (P). This method is widely regarded as one of the most robust, risk-averse techniques for project estimation, making it a globally trusted standard for precise and reliable project planning.

My Estimation Approach

All of my time estimates are based on Net Work Hours and follow the PERT methodology with some customized enhancements tailored to my workflow and individual client behavior.

For each task or work item, I provide three estimates:

• Best Case (Optimistic): The minimum time required to complete the task assuming everything goes perfectly.
• Worst Case (Pessimistic): The maximum time required if everything that could go wrong does go wrong.
• Nominal Case (Most Likely): The time required based on a realistic assumption of normal conditions.

Using these estimates, I calculate the Expected Time (E) for the task as follows:

$E=\frac{O+4N+P}{6}$

This formula gives weight to the Nominal estimate (4 times more important than Optimistic and Pessimistic) because it is generally the most accurate reflection of real-world conditions.

The Standard Deviation (SD) is also calculated to measure the degree of uncertainty around the estimate:

$\mathrm{SD}=\frac{P-O}{6}$

This metric helps assess the variability and risk associated with each task's time estimate.

Adaptive Weights for Improved Precision

Initially, I apply the classic PERT weighting scheme (1 for Optimistic and Pessimistic, 4 for Nominal) across all clients. The weights can be summarized as follows:

$$\begin{array}{c}\text{Optimistic Weight}\left(W_O\right)=1\\ \text{Nominal Weight}\left(W_N\right)=4\\ \text{Pessimistic Weight}\left(W_P\right)=1\end{array}$$

After every 30 individual work items, I analyze your specific project dynamics to refine these weights. Based on this analysis, I adjust the weighting system to more closely align with your unique workflows and project characteristics. This enhances the precision of future estimates for that client.

The adjusted expected time calculation can be represented as:

$$E=\frac{W_O\cdot O+W_N\cdot N+W_P\cdot P}{W_O+W_N+W_P}$$

The adjusted standard deviation calculation can be represented as:

$$\mathrm{SD}=\frac{P\cdot W_P-O\cdot W_O}{W_P+W_N+W_O}$$

Estimating Task Groups

When estimating a group of tasks (a project phase or a complete project), I apply the same PERT principles to aggregate the estimates, ensuring that I consider the statistical variance for each task. 

When estimating the total time for a group of tasks—whether it constitutes an entire project, a specific phase, or any other group of work items—the Expected Time (E) and Standard Deviation (SD) are calculated based on the individual estimates of each task. This ensures a statistically accurate reflection of the time required to complete the grouped tasks.

The Expected Time for the group of tasks is calculated by summing the expected time for each individual task. This formula applies irrespective of the number of tasks included in the group. It is calculated as follows:

$$E\left(\mathrm{group}\right)=\sum _{i=1}^n{E}_{}\left({\mathrm{task}}_i\right)$$

The Standard Deviation (SD) of the group of tasks reflects the variability or uncertainty of the overall time estimate. It is calculated using the square root of the sum of the variances (i.e., the squared standard deviations) of the individual tasks:

$$\mathrm{SD}\left(\mathrm{group}\right)=\sqrt{\sum _{i=1}^n{\mathrm{SD}\left({\mathrm{task}}_i\right)}^2}$$

For large and high-risk projects, I apply the following confidence intervals (as outlined by PERT methodology):

• 68% confidence interval: E(project) ± SD(project)
• 90% confidence interval: E(project) ± 1.645 × SD(project)
• 95% confidence interval: E(project) ± 2 × SD(project)
• 99.7% confidence interval: E(project) ± 3 × SD(project)

This means the estimates come with specific probabilities of being accurate, but there is always a degree of risk that the actual time required will differ. Even the best statistical models cannot guarantee perfect accuracy, and I am not responsible for any deviations outside of these confidence intervals.

Responsibility for Risk

While PERT is one of the most accurate and risk-averse estimation techniques available (even trusted by the U.S. military), it is still probabilistic in nature. There is always a chance that unforeseen circumstances could affect the accuracy of estimates. Therefore, you are responsible for conducting your own risk assessment and mitigation. If an estimate doesn’t hold due to factors beyond my control, I will not be held accountable. You must ensure that potential deviations from the estimate will not critically impact the project’s success.

Impact of Estimates on Deadlines

Deadlines are directly based on estimates. If the estimates change or prove inaccurate due to unforeseen issues, deadlines will shift accordingly. If a task takes longer than anticipated (as covered by the PERT methodology’s probabilistic nature), the deadline will be adjusted. Detailed goals and directions are crucial to maintain estimate accuracy.

Your Role in Estimate Accuracy

My estimates are based on the input you provide. If your communicated goals differ from your actual objectives, or if key details influencing the estimate are omitted or distorted, the estimates will reflect this misalignment.

I can only produce accurate estimates if your goals and expectations are crystal clear. Any missing information, vague objectives, or overlooked details can cause the estimates to fail, and any unforeseen dependencies can also disrupt the timeline.

I do not require micromanagement; however, clear and specific goals are critical to the success of any project. You are responsible for ensuring that I have all the necessary information upfront. If the project scope or details change after the estimate has been made, this can lead to delays or time overruns, for which I will not take responsibility.

Example

The table below provides an example of an exemplary fictitious set of work items.

Best Case	Nominal Case	Worst Case	Expected time	Standard Deviation
2h	5h	6h	4.7h	0.7h
3h	8h	10h	7.5h	1.2h
2h	4h	5h	3.8h	0.5h
5h	11h	40h	14.8h	5.8h

This example would yield an Expected time of 30.8h and a standard deviation of 6h.

Assuming 4h of Net Time per day per capita, this would mean that the expected time to deliver is 7.7 Attendance day +/- 1.5 Attendance days.

Since Attendance is always rounded to half day or full day precisions, the yielded result is an expected time of 8 working days, best case 6 working days, worst case 9.

Assuming work starts on a Monday, and the involved calendar period is of standard days by Hungarian law (no national holidays, no Saturday workdays, etc.), this would mean the deliverable must be expected:

• Best case on the consecutive week's Tuesday
• Expected on the consecutive week's Thursday
• Worst case on the consecutive week's Friday

Deadlines

Mutual Agreement on Deadlines

Deadlines are critical components of our collaboration and must be agreed upon by both of us. Deadlines cannot be unilaterally imposed—both you and I must align and have a clear understanding of any expectations surrounding a deadline.

Dependency on Estimates

All deadlines are directly based on the Estimates defined in the preceding section. Any changes to the Estimates will require corresponding adjustments to the deadlines. Should the Estimate change due to unforeseen issues, the deadline will be reconsidered.

Commitment to Deadlines

Once I commit to a deadline, I will do everything in my power to deliver the work as swiftly as possible. Deadlines are considered firm commitments but represent the last-resort parameters. My approach is to complete the work before the deadline whenever possible, pushing for rapid delivery without compromising quality.

Limitations on Deadlines

If an Estimate remains valid, I will prioritize it over any agreed-upon deadline. However, if external factors beyond my sole control—such as miscommunications, resource delays, or other unexpected impediments—affect progress, the original deadline becomes invalid. In such cases, I will focus on resolving these challenges and proceeding with the work, but I am not bound by the outdated deadline.

Should I fail to meet a deadline due to factors within my control, I will complete the remaining work without any additional charges. However, I am not responsible for missed deadlines caused by factors outside of my control, and I will not accept any liability for delays resulting from such circumstances.

No Penalties for Missed Deadlines

I will not pay any reparation or penalty fees for missed deadlines. The risk-reward dynamic disproportionately benefits you, where the success of timely delivery is significantly more profitable for you than for me. Given this imbalance, I will not assume additional risk without commensurate reward. My commitment is to finish the work, but under no circumstances will I be liable for financial penalties due to missed deadlines.

Your Responsibility

Deadlines are contingent upon the timely provision of all necessary resources, information, and approvals from you. Any delay on your part in providing these will result in an automatic extension or invalidation of the deadline. In such cases, I will not be held liable for any missed deadlines or delays resulting from the client’s failure to fulfill their responsibilities.

Grace Period

All deadlines are based on PERT's Expected Time ± Standard Deviation, providing a built-in range for completion. Deliveries made within this window will be considered timely and in accordance with the agreed deadlines.

External Factors Beyond Control

Delays caused by external events, such as regulatory changes, natural disasters, or global crises, which are beyond my control, will result in an automatic extension of deadlines. In such cases, no liability will be assumed for missed deadlines or delays.

Overtime

Overtime can only be interpreted within the context of the Attendance model. If the contract is based on Net Time, Result-Based Work, or any other model, any additional effort will require bilateral negotiation due to the variable and event-driven nature of such work. Overtime in these contexts cannot be assumed or enforced unilaterally.

Overtime Agreement

Overtime can only occur through prior mutual agreement. It is never unilateral. I will not commit to overtime work without your explicit approval, and you cannot enforce overtime on me. Any demand for overtime without mutual consent will be considered invalid.

Overtime Limits

The following limits apply to overtime, unless otherwise negotiated:

• Daily Limit: Working hours, including overtime, must not exceed 12 hours per day.
• Weekly Limit: Working hours, including overtime, must not exceed 48 hours per week.
• Annual Limit: The maximum overtime is 250 hours per year, which may be increased to 300 hours if specifically agreed upon.

Overtime Compensation

Overtime work will be compensated as follows:

• Standard Overtime: Overtime hours will be compensated at a rate of 150% of the standard hourly rate.
• Public Holidays or Rest Days: Overtime performed on public holidays or rest days will be compensated at a rate of 200% of the standard hourly rate.

The standard hourly rate is calculated by dividing the daily rate by 8 (assuming an 8-hour working day).

Billability

All time spent on cognitive or intellectual work is fully billable and non-reversible. Once I engage in any task—whether it involves creative, strategic, analytical, or any form of knowledge-based work—it cannot be undone. You agree that payment for all billed time is mandatory and unconditional.

Billing Frequency and Control

To provide you with better control over costs, I recommend requesting shorter and more frequent billing periods. By opting for faster invoicing cycles, you can monitor progress more closely and make adjustments as needed. This approach reduces the risk of accumulating significant costs and enables more informed decision-making at smaller incremental amounts.

Proof of Work and Audits

If requested, I am prepared to provide proof of work and allow for audits or investigations into the billed time. However, such actions will incur additional fees, which will be priced on a case-by-case basis. 

The complexity, depth, and context of the audit—including data protection concerns such as GDPR compliance—will determine the cost. You acknowledge that these activities require significant preparation and safeguards to ensure confidentiality and compliance with legal standards.

Audits or investigations will not only cover the review of work performed but also the protective measures necessary to avoid exposing sensitive or proprietary information. You agree to bear the costs associated with any such audit requests.

Billability Across Models

Whether the contract is based on Net Time, Attendance, or any other time-based model, all time is billable. You understand that once work is performed, it is irreversible, and payment is required in full for all time spent. This applies without exception to any form of engagement, including task execution, meetings, preparation, or incidental activities tied to the project.

Revision & Approval

For all time-based work, reports will accompany invoices (or bills) to provide transparency and clarity regarding the time spent on each task.

Reporting for Net Time-Based Work

When the work is Net Time based, the timesheet will include the following details:

• Project: The project name.
• Task: The specific task performed.
• Summary: A brief description of the work completed.
• Net Time: The total uninterrupted time spent on each unit of work, recorded in hours and minutes.

Each entry will represent a single uninterrupted unit of work, even if that unit is just a few minutes. This granular approach ensures that every moment of productive effort is accounted for. Reports may also be provided in digital format through my ERP system, but you must specifically request such exports, as they cannot be attached to invoices by default.

Reporting for Attendance-Based Work

For Attendance based work, the timesheet will detail:

• Start Time: The time work commenced each day.
• End Time: The time work concluded each day.
• Daily Annotation: Each entry will indicate whether it was a half day or a full day.
• Summary: A brief overview of activities performed during that day (or half-day).

In both cases, the timesheet reports will contain concise summaries describing the work completed during each time interval.

Additional Granular Reporting

If you require more granular reporting, I am open to providing that information. However, such detailed reports will involve additional administrative work on my part and may incur extra charges. The cost for this additional service cannot be predetermined, as it will depend on your specific requirements for detailed reporting.

Informative Nature of Reports

It is important to note that these reports are solely for revision purposes. You are not required to approve or take any further action regarding these reports. Their primary purpose is to ensure transparency and provide insight into the time spent on the work performed.