Management Services Agreement
As an entrepreneur who owns your own business, you strive to at least limit the costs you spend on the daily without having to sacrifice other aspects of your business. There will be instances where you will need help from people outside of your office in order to effectively perform specific tasks. It can be tasks you do not have permanent employees for because of its occasional need. You may also see marketing agreement examples.
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Despite the seasonality of some tasks, you still need to be able to accomplish them in order to help your business thrive and continue to move forward with tasks that are as important.
In that sense, if you have a start-up business, you may not really know how to effectively manage your business yet. Or you may not get the hang of managing employees as well as the complexities of the operations needed in the business. Therefore, you will need some type of assistance so that present situations are handled well and future repercussions can be avoided. You may also like business agreement examples.
However, if you don’t know where to start, that may be a problem. Before you go and ask somebody else’s help, you should figure out what you actually need help on.
With that in mind, what should you do to help you company efficiently solve issues without having to spend more? You may think that it is impossible, but in business, there is always a way that is better and cost-effective than you may think. This guide will help you understand how certain issues can be resolved with the help of other independent agencies or individuals. You may also check out management agreement examples.
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What Is a Management Services Agreement?
As you may know there can be various operations for a single business. Just because you have a small start-up business does not mean you only do one or two business operations at the same time. More than often, a single business entity can employ at least five business operations on a day-to-day basis. You might be interested in promotion agreement examples.
Even with that, you may get anxious how you can manage all of those while maintaining other things outside the business as well.
And you may come to realize that at some point you may need help; other people manage a certain aspect or operation of your business just to help out with the load even just for a while. If so, you may need a management services agreement to help create a boundary and conditions that comes along with the decision. You may also see what is a business agreement?
A management services agreement is an agreement between a consultant or independent contractor and a company that details how one party will provide management, consulting, and other services to another party in exchange for a certain amount as fee.
The general agreement helps the company reduce the operational costs at the same time, help the company increase its efficiency. It basically helps the company cut its spending costs on unnecessary travel and accommodations that are usually accumulated by sending employees to multiple locations to perform business-related transactions. The agreement also guarantees that the company is able to meet its needs with the help of professionals with expertise in different fields.
In cases where the company needs people on the ground in another location to conduct specific business operations, it is preferable to just hire experts on the the same field do the job for them rather than sending employees. Sending employees to fly out to the location means spending for the back-and-forth fare, daily expenses and allowances, and to think that that is on top of their usual salary. You may also like purchase agreement examples.
Meanwhile, when they hire an independent agency or contractor to the mentioned operation on the ground, all they have to pay for is the agreed upon fee in exchange of the services, which is definitely cheaper than the first option. You may also check out subcontractor agreement examples.
Therefore, that is when a management services agreement comes in handy. When the company has decided to enter into a commercial agreement with an independent contractor, the management services agreement makes sure that the company gets what they pay for and vice versa. It helps them lay out the terms and conditions they have to abide to make sure that what they have agreed upon is met and fulfilled.
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Contents of a Management Services Agreement
Before you go on ahead with entering an agreement with an independent contractor to do the job for you, you need to make sure that you clearly understand the provisions that are included in the simple agreement. This can also help you negotiate what you think is the right price for the services you need or provide. Here are some of the contents found in a management services agreement:
1. Interpretation
This clause helps clarify that both parties to the agreement have had the opportunity to review, or have legal counsel review, the document. It also contains definitions of some terms found in the basic agreement.
2. Term of Engagement
This contains the commencement as well as termination date of the business engagement. It also includes some explanation pertaining to the fees in case one party is not able to fulfill their obligations on time.
3. Duties
The definition for responsibilities and obligation of both parties are clearly defined in this clause, i.e., who provides what to whom, what the provider provides, etc.
4. Reporting
This discusses when and how frequent both parties will meet to talk about the progress on the project.
5. Substitution of an Individual
This clause explains what should be done in case a party cannot provide the services due to an illness or sickness, and what constitutes to more than usual number of absences.
6. Fees and Success Fee
This clause states the payment the other party needs to pay in exchange for the services offered by the other.
7. Business Expenses
This explains all that pertains to the expenses that the business engagement will incur. Who pays the expenses for traveling, personal living, etc. And describes the activities that are covered by the paying company. You may also see transfer agreement examples.
8. Other Activities
This describes activities the paying company can still do while in an agreement with the other company so long as the sample agreement between the two parties are not breached.
9. Confidential Information
This states the confidentiality to all the information that will be used on the engagement. The provision on what and what not to disclose is emphasized.
10. Data Protection
Relatively similar to the confidentiality, this clause also prohibits both parties in disclosing information about the individuals involved in the engagement.
11. Liability
This states what both parties will be liable of in case of any loss.
12. Insurance
The insurance employed to by whom to cover all the included materials and whatnot in the business engagement is explained in this clause.
13. Intellectual Property
The intellectual property discovered during the engagement by the service provider will be disclosed to the paying company and others regarding the intellectual property rights are explained in this clause. You may also like personal care agreement examples.
14. Termination
This clause explains how the engagement can be terminated, by who and how long does the termination process usually takes.
15. Obligations upon Termination
As the name would suggest, this means what obligations both parties have to comply upon the termination of the agreement.
16. Consultant Status
This discusses status of the service providing company in relation to the agreement with the paying company.
17. Notices
This pertains to the notices that will be given during the engagement; all notices must be in writing and signed by or on behalf of the party and shall be delivered personally and other methods applicable to both parties. You may also check out service level agreement examples.
18. Entire Agreement
Verifies that the entire agreement constitutes the agreement and understanding between both parties.
19. Variation and Waiver
This states matters regarding a variation of the agreement document that both parties have agreed upon as well as a waiver to both parties’ right and remedy be it provided by the agreement or by law.
20. Assignment and Sub-Contracting
This states the decision both parties had during the negotiation process and prior to the creation of the formal agreement regarding assigning, transferring, or sub-contracting the rights and/or benefits during the engagement.
21. Counterparts
States the availability of executing the agreement in any counterparts that should be original and should constitute one and the same instrument.
22. Third Party Rights
This clause states the provisions that has been provided by a relating third-party law more specifically the Contracts (Rights of Third Parties) Act 1999 which is applied to the standard agreement.
23. Applicable Law and Jurisdiction
The laws that applies or governs the agreement is stated and briefly explained in this clause.
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Advantages of Management Services Agreement
With the ever-changing economy, saving money has become more and more important. By leveraging a network services partner that has the appropriate resources that you need strengthened through as management services agreement, businesses can alleviate additional costs and even keep small projects in check. Here are some of the most significant advantages of a management services agreement:
1. Reduces cost
Instead of spending on unnecessary travel and accommodations, a dispatched worker can be instantly sent to multiple locations, but you only get to pay for the work getting done. It helps you save money on extra costs and helps your company become more efficient. You may also see contractor agreement examples.
2. Reduces disorientation
Not only will it help spend less, it can also help you focus on one point of contact instead of dealing with multiple contacts in multiple departments. In addition, you have a guarantee that your needs will be met by expert professionals. You may also like non-compete agreement examples.
3. Increases awareness and knowledge
It ensures an in-depth knowledge base of information at every location. You have have to that knowledge base at your fingertips as well as the people that can fix your problems. You no longer have to struggle with issues not related to your expertise since you have knowledge on the people who can easily solve your problems. You may also check out partnership agreement examples.
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We hope that this guide can be of use to you and your business endeavors. The examples given are free and can be used depending on your management services agreement needs.
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