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Operating Management Agreement
"I need an Operating Management Agreement for a shopping center in Brisbane, with a 5-year term starting March 2025, focusing on strict performance KPIs and including sustainability requirements for the operator."
1. Parties: Identification of the property owner/principal and the operator/manager
2. Background: Context of the agreement, description of the property/business, and purpose of the management arrangement
3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement
4. Appointment and Term: Formal appointment of the operator, term duration, and renewal provisions
5. Operator's Rights and Obligations: Comprehensive outline of the operator's authority, responsibilities, and duties
6. Owner's Rights and Obligations: Owner's responsibilities, including provision of access, information, and resources
7. Financial Arrangements: Management fees, payment terms, expense arrangements, and financial reporting requirements
8. Operating Standards: Required service levels, quality standards, and performance metrics
9. Reporting and Compliance: Regular reporting requirements, compliance obligations, and audit rights
10. Staff and Employment: Employment arrangements, responsibilities for staff, and HR management
11. Insurance and Liability: Required insurance coverage and allocation of liability between parties
12. Termination: Termination rights, processes, and consequences
13. Handover Provisions: Requirements and processes for transition at agreement end
14. General Provisions: Standard boilerplate clauses including notices, governing law, dispute resolution
1. Intellectual Property: IP ownership and licensing arrangements, used when the operation involves significant IP assets
2. Emergency Procedures: Special protocols for emergency situations, important for high-risk or public facilities
3. Environmental Compliance: Environmental obligations and standards, necessary for operations with environmental impact
4. Capital Expenditure: Processes for major capital improvements, used when operator has capex responsibilities
5. Marketing and Promotion: Marketing responsibilities and budget, relevant for customer-facing operations
6. Force Majeure: Provisions for extraordinary events, particularly important in volatile industries
7. Competition Restrictions: Non-compete and exclusivity provisions, relevant in competitive markets
8. Data Protection: Specific data handling requirements, important when dealing with sensitive information
1. Property Details: Detailed description of the managed property/business assets
2. Services Specification: Detailed scope of services to be provided by the operator
3. Fee Schedule: Detailed breakdown of management fees, incentives, and payment calculations
4. Key Performance Indicators: Specific performance metrics and measurement criteria
5. Operating Budget: Initial or sample operating budget and budget preparation procedures
6. Reporting Templates: Standard formats for required operational and financial reports
7. Employee Information: Details of transferred or key employees and related arrangements
8. Maintenance Schedule: Planned maintenance requirements and schedules
9. Insurance Requirements: Detailed insurance specifications and coverage requirements
10. Operating Procedures: Standard operating procedures and manuals
Authors
Real Estate
Hospitality
Healthcare
Retail
Industrial
Infrastructure
Education
Aged Care
Sports and Recreation
Entertainment
Facilities Management
Property Development
Legal
Operations
Facilities Management
Asset Management
Risk and Compliance
Commercial
Property Management
Business Development
Contract Administration
Executive Leadership
CEO
Operations Director
Facility Manager
Property Manager
General Counsel
Legal Counsel
Contract Manager
Asset Manager
Business Development Manager
Chief Operating Officer
Commercial Director
Risk Manager
Compliance Officer
Operations Manager
Project Manager
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