BSB 559VALUATION AND PROFESIONAL STUDY MANAGEMENT CONTRACTING PREPARED BY : MOHD FARIZUDIN BIN MOHAMMAD FAUZI 2010350161 NOR AMALIN BINTI KELING 2010646608 NOR ‘AIN BINTI HASSAN 2009702613 PREPARED FOR SR. MAZLAN BIN ABU BAKAR
An arrangement under which operational control of an enterprise is vested by contract in a separate enterprise which performs the necessary managerial functions in return for a A management contract Management contracts fee. can involve a wide rangeinvolve not just selling a of functions, such as method of doing things technical operation of a (as with franchising production facility, or licensing) but management of involves actually doing personnel, accounting, them. marketing services and training. Introduction
an alternativeto foreign directinvestment as it not involve high risk andcan yield higher returns for the company. Why used management contract?? lack oflocal skills to run a project
CRITERIA • Whilst many companies work from standard contracts, they do have to be created in the first place and they often need to be changed Creation as negotiations progress. • Of the contracts to ensure that, the best possible contract is available to both parties.Negotiation
• To the contracts and all of its sections and aims.Adherence • (SLA) and Key Performance Indicators (KPI) are set toService level manage the day-to-day Agreement (SLA) performance of the vendor.
• Required as the relationship Managing changes and problems arise. changes • Any changes that may haveDocumenting been agreed. • The benefits that accrue or may Analyzing be available from the contract.
Contract Administration DISTINCT AREA FOR VENDOR RELATIONRelationship ServiceManagement Delivery
CONCLUSIONOnce the contract is fairly negotiated and signed by both companies need to set up a number of Service Level Agreements that measure service performance and let the vendor know what is expected of them.Most procurement software programs allow to manage the financial aspects and relationship management. Contract management can be managed by your legal team when problems arise or performance dips.