Golf Course Maintenance Agreement
b) Self Operate Pro Shop (cannot or cannot include F&B) operation and contract for maintenance includes direct communal control of Pro Shop and food/beverages, while contract for maintenance. a) Self-service and contract for Pro Shop (or may include food/beverage) operations include direct communal control of maintenance during contracts for pro-shop and food/drink management. General Discussion – Golf course maintenance, including the work associated with it, is almost everywhere the largest expense item in a golf course`s operating budget. This is especially true for the golf company in the public sector, where workers` wages and benefits are often significantly higher than in the private sector. Therefore, golf course maintenance generally offers public sector golf course owners the greatest potential for savings and efficiency. There are a number of companies that specialize in outsourced golf course maintenance at fixed costs, from individual contractors to industry leaders like ValleyCrest Golf Course Maintenance, OneSource and International Golf Maintenance (IGM). Maintenance companies are typically able to offer service savings for several reasons, including the ability to use inexpensive personnel and planning strategies, most of which are limited. Additional savings are often achieved through the ability of large companies to use national agreements to purchase equipment, materials and consumables and other economies of scale. Be wary of not jumping to this solution if maintenance costs have already been reduced due to budget cuts. In many cases of “light” maintenance work, a private maintenance provider may not be able to reduce costs at a municipal golf business.
Be sure to think carefully, as golf maintenance budgets that are already below average are not good candidates for maintenance contracts. In this case, the pro-shop and food and beverage businesses would be operated under separate concession contracts or by the municipality, but the municipality would privatize the maintenance function to another private body. This model is present on many municipal golf courses in the United States. c) Several concessions would involve the creation of several contractual agreements for separate units for each facet of golf operations (pro-shop, food/beverage and maintenance). Concession contracts can come from different types or combinations that are the most common: in the last article we discussed some ideas for the self-management of municipal golf courses. If you are now landed to the point where some form of privatization is imminent, one idea that should be considered instead of the large management company is a concession contract. This form of agreement is similar to a lease agreement, although a concession agreement usually involves the granting of a license for the operation of part of a facility and not the right to use the premises. It is widespread in the golf industry, especially in the field of food and beverage services, and currently exists in any form on many urban golf courses throughout the country.
The second most typical concession contract would be for pro Shop and includes revenue from wagons, goods, teaching and driving range. Concession contracts are popular because they are generally easier to terminate than lease or full-service management contracts, are often shorter, and include more controls…