RFP for Property Management Services

operation, maintenance, and service of the Property, and to pay the same when due, as long
as Owner has approved the expenditure in the annual budget. Agent must obtain the
Owner’s prior written consent before entering into any unbudgeted contract or equipment
lease for the account of Owner in which (i) the term exceeds one (1) year, or (ii) the contract
is not cancelable with thirty (30) days notice unless such contract or lease is made under
circumstances which shall reasonably be considered to constitute an Emergency (as
defined above). Notwithstanding the foregoing, Agent shall attempt to contact and secure
prior approval of Owner in the event any such emergency expenditure is likely to exceed
$10,000.00.
vii. Supplies and Inventory.
a) Within the Owner-approved annual budget, Agent is authorized, on behalf of Owner, to
purchase such supplies and expendable items as are necessary to operate the Property.
When taking bids or issuing purchase orders, Agent shall use its commercially available
reasonable and prudent efforts to secure for Owner's benefit any discounts,
commissions, or rebates obtainable in connection with such purchases. All such
discounts, commissions or rebates shall inure to the benefit of the property and Owner.
In no event may a commission or rebate inure to the benefit of Agent, its officers,
employees or subcontractors, or to other properties that Agent may be managing.
b) Agent shall conduct a physical inventory of the fixed assets, personal property,
materials, and equipment used in connection with the Property at the commencement
and termination of the Agreement and, if requested by Owner, at the end of each
fiscal year.
viii. Insurance
a) Owner shall cause to be placed and kept in force usual and customary insurance
against direct physical loss or damage to the Property as well as resulting Loss of
Income. All insurance shall be in conformity with the requirements of any mortgages
of the property; the cost will be charged to the project operating account.
b) Owner shall obtain and keep in force a Comprehensive General Liability (CGL)
insurance policy, with respect to the property and its operations, and in amounts no less
than $1,000,000 per occurrence of bodily injury and property damage, and not less than
$3,000,000 policy general aggregate or such higher amounts as agreed upon by the parties
required to sufficiently insure Owner's obligations to hold agent harmless for all claims
arising from the operations at the Property other than property management errors and
omissions. The cost of insurance will be charged to the project operating account.
Property Management Agreement 6
December 2010