Management Agreement Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Management Agreement Contract

"I need a Management Agreement Contract for my Riyadh-based manufacturing facility, where a local facility management company will provide comprehensive management services starting March 1, 2025, with special emphasis on Saudization compliance and operational efficiency metrics."

Document background
The Management Agreement Contract serves as a fundamental legal instrument in Saudi Arabia for establishing professional management relationships between service providers and client companies. This document is essential when a company seeks to delegate management responsibilities to professional managers or management companies, whether for entire operations or specific facilities/departments. The agreement must comply with Saudi Arabian commercial law, labor regulations, and Sharia principles, making it distinct from similar agreements in other jurisdictions. It typically includes comprehensive details about management scope, performance metrics, compensation structures (ensuring Sharia compliance), reporting requirements, and governance mechanisms. The document is particularly relevant in cases of foreign investment, facility management, or when specialized expertise is required for business operations in Saudi Arabia.
Suggested Sections

1. Parties: Identification of the contracting parties including full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the agreement, business purpose, and brief description of the parties' intentions

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Appointment and Scope: Formal appointment of the manager and detailed scope of management services

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. Manager's Duties and Responsibilities: Comprehensive list of management obligations and responsibilities

7. Client's Obligations: Responsibilities and obligations of the client entity

8. Fees and Payment Terms: Management fees, payment schedule, and calculation methods (ensuring Sharia compliance)

9. Performance Standards: Required service levels and performance metrics

10. Reporting and Accountability: Reporting requirements, frequency, and accountability measures

11. Compliance with Laws: Obligation to comply with Saudi laws, regulations, and Sharia principles

12. Confidentiality: Protection of confidential information and trade secrets

13. Termination: Grounds for termination and termination procedures

14. Dispute Resolution: Process for resolving disputes under Saudi law

15. Governing Law: Confirmation of Saudi law as governing law and jurisdiction

16. General Provisions: Standard clauses including notices, amendments, and severability

Optional Sections

1. Intellectual Property Rights: Provisions regarding IP ownership and licensing when management involves creation or use of intellectual property

2. Non-Competition: Restrictions on competitive activities, if applicable to the management arrangement

3. Force Majeure: Provisions for unforeseen circumstances preventing performance

4. Insurance: Insurance requirements when management involves significant operational risks

5. Succession Planning: Procedures for management transition and succession when long-term continuity is critical

6. Environmental Compliance: Environmental obligations for management of facilities or operations with environmental impact

7. Saudization Requirements: Specific provisions regarding compliance with Saudi workforce nationalization requirements

8. Anti-Corruption Compliance: Specific anti-corruption provisions when dealing with government entities or public sector

Suggested Schedules

1. Schedule 1 - Services Description: Detailed description of management services to be provided

2. Schedule 2 - Fee Structure: Detailed breakdown of management fees and calculation methods

3. Schedule 3 - Key Performance Indicators: Specific performance metrics and measurement criteria

4. Schedule 4 - Reporting Requirements: Templates and specifications for required reports

5. Schedule 5 - Key Personnel: List of key management personnel and their roles

6. Schedule 6 - Operating Procedures: Detailed operational procedures and guidelines

7. Appendix A - Power of Attorney: If required, specific powers granted to management team

8. Appendix B - Compliance Certificates: Copies of required licenses and certificates

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

Relevant legal definitions
Clauses
Relevant Industries

Healthcare

Hospitality

Real Estate

Manufacturing

Retail

Education

Technology

Construction

Facilities Management

Financial Services

Transportation & Logistics

Energy & Utilities

Professional Services

Tourism

Relevant Teams

Legal

Operations

Compliance

Finance

Human Resources

Risk Management

Facilities Management

Project Management

Business Development

Executive Leadership

Contract Administration

Quality Assurance

Relevant Roles

Chief Executive Officer

Managing Director

Operations Director

Facility Manager

General Manager

Legal Counsel

Compliance Officer

Contract Manager

Business Development Manager

Project Manager

Risk Manager

Human Resources Director

Finance Director

Department Head

Regional 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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