Contract managers can also become a senior contract manager, a contract director or a contract administrator. Contract Analyst is another common career in the field of contract management. The most fundamental element of control that an owner will have is the right to approve the operating budget of the hotel. The owner should maintain strict control over the budget process and expenses should be made in such a way that they match the budget as soon as it has been approved by the owner. If, for any reason, the owner and the management company are unable to agree on a budget within a reasonable time after its submission (which should take place at least annually), the parties should agree to separate and terminate the contract. The management company will often endeavor to negotiate some form of lump sum damages in the event of termination after the failure of the budget agreement. The owner may object to this and perhaps have the feeling that the management company could arbitrarily propose a much higher budget than is necessary, knowing that the owner will not approve it. In this case, the management company is licensed and is therefore entitled to lump sum damages. Ultimately, the parties must agree to work in good faith towards a budget that is acceptable to both parties and rely on each acting prudently during the budget process. When it comes to management contracts, it is not always a question of giving a management company all the control of a given function at a time. Nor do two companies always participate in these contracts.
Sometimes there is another type of agreement, known as an association manager, involving trade associations, non-profit organizations, and other similar organizations. In principle, a management contract entrusts operational control of one function or company to another company, and it is therefore easy to confuse what a management contract is with a franchise agreement. They are different. Although both offer the opportunity to sell an intangible product and establish links between commercial entities, their structures differ. The contractual conditions are different depending on the nature of the operation carried out and the parties involved. . . .