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Operating Management Agreement
"I need an Operating Management Agreement for a luxury hotel in Kuala Lumpur, with specific provisions for performance-based incentive fees and detailed staff management requirements, targeting commencement in March 2025."
1. Parties: Identifies and defines the property owner/principal and the management company
2. Background: Sets out the context of the agreement, including property details and management objectives
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Term: Specifies the appointment of the manager and duration of the agreement
5. Manager's Rights and Obligations: Details the scope of management services and authority granted to the manager
6. Owner's Rights and Obligations: Outlines the owner's responsibilities and retained rights
7. Financial Arrangements: Covers management fees, operating accounts, budgets, and financial reporting
8. Staff and Employment: Addresses employment matters and allocation of responsibilities for personnel
9. Reporting and Performance Standards: Sets out reporting requirements and performance metrics
10. Insurance and Liability: Details insurance requirements and liability allocation between parties
11. Termination: Specifies termination events and processes
12. Confidentiality: Addresses confidentiality obligations and protection of proprietary information
13. Governing Law and Dispute Resolution: Specifies applicable law and dispute resolution mechanisms
14. General Provisions: Contains standard boilerplate clauses including notices, amendments, and assignment
1. Intellectual Property Rights: Required when the management involves significant IP assets or branding elements
2. Force Majeure: Optional but recommended for long-term agreements to address unforeseen circumstances
3. Data Protection: Required when personal data processing is a significant aspect of operations
4. Environmental Compliance: Important for operations with environmental impact considerations
5. Competition Compliance: Necessary when the arrangement might raise competition law concerns
6. Step-In Rights: Optional provision allowing owner to take control in specific circumstances
7. Asset Management: Required when physical asset management is a key component of services
1. Schedule 1 - Property Details: Detailed description of the property or business being managed
2. Schedule 2 - Services Scope: Comprehensive list of management services to be provided
3. Schedule 3 - Fee Structure: Detailed breakdown of management fees and payment terms
4. Schedule 4 - Performance Metrics: Key performance indicators and measurement criteria
5. Schedule 5 - Required Insurance: Specific insurance requirements and coverage details
6. Schedule 6 - Operating Procedures: Standard operating procedures and protocols
7. Schedule 7 - Initial Budget: First year operating budget and financial projections
8. Appendix A - Required Reports: Templates and specifications for required operational reports
9. Appendix B - Key Personnel: List of key management positions and qualifications
Authors
Hospitality
Real Estate
Healthcare
Manufacturing
Retail
Education
Leisure and Entertainment
Industrial Facilities
Commercial Properties
Residential Developments
Legal
Operations
Facilities Management
Asset Management
Risk and Compliance
Finance
Property Management
Contract Administration
Business Development
Senior Management
Chief Executive Officer
Chief Operating Officer
Operations Director
Facility Manager
Property Manager
General Manager
Legal Counsel
Contracts Manager
Asset Manager
Operations Manager
Risk Manager
Compliance Officer
Financial Controller
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