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A management agreement is a binding contract that establishes the manager's legal authority over the operation of a given property. The manager usually is an agent for the owner, serving as the owner's fiduciary or trustee of the owner's funds and assets associated with the property.
The common standard term for a management contract is typically between one and five years, but this can vary depending on the specific needs and goals of the parties involved.
Some of the most useful types of contracts in project management are fixed priced contracts, cost reimbursement contracts and time and materials contracts. Other types of contracts are implied contracts, unit price contracts, unilateral contracts, express contracts and bilateral contracts.
Management Contracting is a form of construction procurement where the Client for a project employs different Subcontractors directly. The Client has a Main Contractor in place that is responsible for managing the Subcontractors, but is not in contract with them in the same way as with traditional procurement.
A management agreement is a legal contract through which a company enables another company to have control of another business's operations. Business owners often sign these written agreements directly with the management company.