Management service contracts are agreements between business owners and management companies that detail the terms under which the management company will operate the business. These contracts allow owners a hands-off approach while transferring daily operations to the management company. Key details in the contracts include the names of the parties, duration of the agreement, payment amounts and methods, and responsibilities of each side. While management companies can provide advantages like bonuses based on performance, disadvantages include the company's limited ability to handle all aspects of running the business and potential misalignment between the company's and owner's decisions.

1. Felipe Viana
Allan Soto

2. What is Management Service
Contracts?
Management service contracts are agreements used
between investors or owners of a project or business
and a management company. These contracts are
legal agreements that detail the terms and conditions
of the service agreement.

3. Management service contracts are designed to allow
the owner of a business a hands-off approach in
running his business, allowing a management
company to take over.


4. PURPOSE
Business owners who do not want to run their
business themselves often turn to hiring a
management company to run the business. When this
occurs, a management service contract is created.

5. Details of the M.S.C
A management service contract states many details of
the agreement
the names of both parties involved.
the duration of the contract.
explains the payment amount, method and due date.

6. Advantages
Numerous advantages are offered to an owner of a
business when a management company is hired.
Many management companies are paid a flat fee plus
bonuses based on performance, These bonuses paid
can be an advantage for the business owner.

7. Disadvantages
A management company typically cannot handle all
aspects of running the business and making business
decisions.
The owner is periodically called in to address issues and
problems the management company cannot handle.
Another disadvantage is that the decisions the
management company makes may not always be the
decisions the owner feels are the best.

8. Some international companies
Symantec.
JFL.