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Contracts management

Contracts management (management consulting)

Management contracts are inherently very similar to contracts for the provision of engineering and technical services. In spite of the large investments and advanced technologies, many companies are experiencing difficulties due to poorly trained or poorly motivated managers. But talented managers - one of the company's most important assets. Transferring control of art at the international level is carried out through the signing of international management contracts. In accordance with these agreements, the operational control of the company or individual phases of its operations, which is usually carried out managers, appointed or selected by the owner of the enterprise, provided by another firm, which executes it for a fee. There are two types of management contracts: 1) Management contracts a new commercial project. In this case, the contracting firm may sell the company-customer a significant amount of their equipment; 2) contracts, the signing of which is a foreign company, the contractor takes over the management in order to increase the efficiency of the enterprise.

The functions assumed by the contractor, cover the following aspects of the customer: • Management of the direct process of production, including responsible for technological and engineering aspects of the production; • human resource management, including the appointment and dismissal of foreign personnel and training the local workforce; purchase of machinery and raw materials; • Marketing; • financial management, including bookkeeping, tax optimization and contracts on borrowing operations. Sometimes marketing services are the subject of a special agreement. In this case, on the basis of a marketing contract the customer transfers the responsibility for the implementation of its products and the implementation of all activities of the contractor for the sale. Management contracts are usually concluded for a period of 3 to 5 years, as a rule, a fixed payment or payment, depending on the production volume and not on profits. Because of the similarity of management contracts to contracts for the provision of engineering services advantages and disadvantages of these forms of international technological exchange are similar. Thus, in a developed market economy in view of its increasing complexity of market participants (companies / organizations) is economically feasible to use the services of engineering firms. The company contracting literally orders on the basis of an agreement (contract) changes itself.

#Management #Development

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