Operating Management Agreement for Australia

Operating Management Agreement Template for Australia

An Operating Management Agreement is a comprehensive legal document used in Australian business contexts to establish and govern the relationship between a property or business owner and a professional management company. The agreement details the appointment of an operator to manage and operate a facility or business on behalf of the owner, including specific responsibilities, performance standards, financial arrangements, and reporting requirements. This document is governed by Australian federal and state laws, including the Corporations Act 2001 and relevant state-specific property legislation, and incorporates provisions for compliance with Australian employment, safety, and consumer protection laws.

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What is a Operating Management Agreement?

Operating Management Agreements are essential legal instruments used when a property owner or business entity wishes to engage a professional operator to manage their facility or business operations. The Operating Management Agreement establishes the framework for this relationship, detailing the operator's authority, responsibilities, and performance expectations while protecting the owner's interests. These agreements are particularly common in Australia's property, hospitality, and facility management sectors, where professional management services are frequently utilized. The document must comply with Australian federal and state legislation, including corporate law, employment regulations, and property laws. It typically includes comprehensive provisions for operational standards, financial arrangements, reporting requirements, risk allocation, and termination procedures, making it suitable for complex operational arrangements where professional management expertise is required.

What sections should be included in a Operating Management Agreement?

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

What sections are optional to include in a Operating Management Agreement?

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

What schedules should be included in a Operating Management Agreement?

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

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Genie AI

Sector

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Hospitality

Healthcare

Retail

Industrial

Infrastructure

Education

Aged Care

Sports and Recreation

Entertainment

Facilities Management

Property Development

Relevant Teams

Legal

Operations

Facilities Management

Asset Management

Risk and Compliance

Commercial

Property Management

Business Development

Contract Administration

Executive Leadership

Relevant Roles

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

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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