1. BSB 559
VALUATION 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

2. 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 range
involve 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

3. an alternative
to foreign direct
investment as it
not involve
high risk and
can yield higher
returns for the
company.
Why used
management
contract??
lack of
local skills
to run a
project

4. Creation
Analyzing Negotiation
CRITERIA
Documenting Adherence
Managing Service level
changes agreement

5. 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

6. • To the contracts and all of its
sections and aims.
Adherence
• (SLA) and Key Performance
Indicators (KPI) are set to
Service level manage the day-to-day
Agreement
(SLA) performance of the vendor.

7. • Required as the relationship
Managing changes and problems arise.
changes
• Any changes that may have
Documenting been agreed.
• The benefits that accrue or may
Analyzing be available from the contract.

8. Contract
Administration
DISTINCT
AREA FOR
VENDOR
RELATION
Relationship Service
Management Delivery

9. CONCLUSION
Once 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.