Management And Administration Services Agreement

Compared to using internal staff for management functions, contracting with an external manager has the potential to reduce costs and improve efficiency. In addition to reducing employee costs, your company can also avoid the equipment and office costs associated with those employees. If the management company is only engaged for a particular project, the document can be referred to as a project management consulting contract or something like that. Since a management contract is usually a complex and lengthy document, you should consider helping a lawyer prepare the agreement to ensure that all details and responsibilities are clearly set out in the document. Do you pay your agents in the field through commissions? Learn more to learn more about the basics of creating a sales commission agreement. A service management contract is usually prepared by the management company. It contains provisions common to all commercial contracts, such as the names of the parties, the date and duration of the entry into force of the contract, the choice of law, the conciliation of disputes, remedies in case of infringement, liability for lawyers` fees, prohibition of oral amendments to the agreement, etc. It may also contain provisions covering various other issues, such as: There may be many benefits to hiring an external management company for your business. In order to ensure the smooth running of the agreement, such an agreement should be formalised by a service management contract. This can also be called the administrative services agreement. A service management contract can include many responsibilities, such as. B the settlement of your employee accounts, the development and management of employee pension programs, accounting and accounting, the management of company documents, the processing of lenders and receivables, the securing of insurance for the company and the provision of consulting and advisory services for a wide range of needs.

For privacy reasons, the management company must very often have access to information about your company that you do not want to disclose to your competitors or the public. This requires a confidentiality and confidentiality clause in the agreement. The management contract should be carefully drafted in order to define as clearly as possible the status of independent contractor for the manager and his staff. The IRS rules and state laws for determining independent contractor status are too complex for further discussion here…

Comments are closed.