Operating Management Agreements are essential documents used when businesses seek to delegate operational management to specialized third parties while retaining ownership of the assets or business. These agreements, governed by English and Welsh law, establish comprehensive frameworks for service delivery, risk allocation, and performance standards. An Operating Management Agreement typically includes detailed provisions for operational control, revenue sharing, reporting requirements, and termination rights, making it particularly valuable in sectors requiring specialized operational expertise or where owners wish to benefit from professional management services while maintaining asset ownership.
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1. Parties: Identification and details of the contracting parties
2. Background: Context and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Appointment and Scope: Terms of appointment and scope of management services
5. Duration and Term: Period of agreement and renewal provisions
6. Management Services: Detailed description of services to be provided
7. Fees and Payment Terms: Compensation structure and payment mechanics
8. Obligations and Responsibilities: Duties of both parties
9. Termination: Circumstances and procedures for ending the agreement
1. Performance Standards: Specific KPIs and service levels, used when specific performance metrics are required
2. Staff and Employment: Terms relating to personnel management, used when the agreement involves staff transfers or management
3. Intellectual Property: IP rights and usage, used when IP is created or used in operations
4. Insurance: Required insurance coverage, used when specific insurance requirements exist
1. Schedule 1: Services Description: Detailed breakdown of management services
2. Schedule 2: Fee Structure: Detailed fee calculations and payment terms
3. Schedule 3: Performance Metrics: KPIs and measurement criteria
4. Schedule 4: Property Details: Details of managed properties
5. Schedule 5: Staff Transfer Provisions: Details of any TUPE transfers or staff arrangements
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