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Operating Management Agreement
"I need an Operating Management Agreement for a Saudi retail mall property, where an international facility management company will handle all operations including maintenance, security, and tenant relations, starting March 2025."
1. Parties: Identification of the Owner and the Operator/Manager, including full legal names and addresses
2. Background: Context of the agreement, description of the business/property to be managed, and parties' intentions
3. Definitions: Detailed definitions of terms used throughout the agreement
4. Appointment and Scope: Formal appointment of the operator and detailed scope of management services
5. Term and Renewal: Duration of the agreement, commencement date, and renewal provisions
6. Operator's Rights and Obligations: Comprehensive list of the operator's responsibilities, authority limits, and service standards
7. Owner's Rights and Obligations: Owner's responsibilities, including provision of resources and cooperation requirements
8. Staff and Employment: Provisions regarding employment, training, and management of staff
9. Financial Arrangements: Management fees, payment terms, expenses, and financial reporting requirements
10. Operating Standards: Required quality standards, KPIs, and performance metrics
11. Reporting and Compliance: Regular reporting requirements and compliance with laws and regulations
12. Insurance and Liability: Insurance requirements and allocation of risks between parties
13. Termination: Grounds for termination, notice requirements, and consequences of termination
14. Handover Provisions: Process and requirements for business handover upon termination
15. Governing Law and Dispute Resolution: Applicable law and mechanisms for resolving disputes
16. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Intellectual Property Rights: Provisions for IP ownership and licensing when specific IP assets are involved
2. Non-Competition: Restrictions on operator's competing activities, used when protecting market position is crucial
3. Emergency Services: Special provisions for emergency situations, particularly relevant for critical facilities
4. Environmental Compliance: Specific environmental obligations when managing environmentally sensitive operations
5. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in high-risk environments
6. Marketing and Branding: Requirements for marketing and brand management when operator's brand is being used
7. Technology Systems: Provisions regarding use and maintenance of specific technology systems when relevant
8. Shariah Compliance: Specific provisions ensuring compliance with Islamic principles when required by parties
1. Schedule 1 - Property Details: Detailed description of the property or business being managed
2. Schedule 2 - Services Specification: Detailed scope of services and performance standards
3. Schedule 3 - Fee Structure: Detailed breakdown of management fees, incentives, and payment calculations
4. Schedule 4 - Key Performance Indicators: Specific performance metrics and measurement criteria
5. Schedule 5 - Operating Budget: Initial operating budget and budget preparation procedures
6. Schedule 6 - Staff Organization: Organization structure and key personnel requirements
7. Schedule 7 - Operating Policies: Standard operating procedures and policies
8. Schedule 8 - Required Insurance: Detailed insurance requirements and coverage levels
9. Appendix A - Required Reports: List and formats of required operational and financial reports
10. Appendix B - Handover Checklist: Detailed requirements for property/business handover
Authors
Hospitality
Real Estate
Healthcare
Education
Retail
Manufacturing
Logistics
Facilities Management
Infrastructure
Entertainment
Sports Facilities
Shopping Centers
Industrial Operations
Commercial Properties
Legal
Operations
Finance
Human Resources
Compliance
Risk Management
Business Development
Property Management
Facility Management
Project Management
Asset Management
Contract Administration
Chief Executive Officer
Chief Operating Officer
Operations Director
General Manager
Facility Manager
Legal Counsel
Contract Manager
Property Manager
Business Development Director
Finance Director
Human Resources Director
Risk Manager
Compliance Officer
Project Manager
Asset Manager
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