What is a Management Fee?

The nature of management fees is similar to fees. The management fee is calculated based on a certain percentage of the total loan and paid in one or more installments.

management fee

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The nature of management fees is similar

The nature of management fees is similar

Management expense ratio = Management expenses / Main business income * 100%

Annual is annual income and annual management expenses

Monthly is monthly income and monthly administrative expenses.

Attachment: Construction unit management fee

1. Definition: The management fee of the construction unit refers to the administrative expenses incurred by the construction unit from the date of commencement of the project to the date of completion of the final financial account. Including: salaries of staff who do not pay wages in the original unit, office expenses, travel and transportation expenses, labor protection expenses, tools and appliances usage fees, fixed asset usage fees, sporadic purchase fees, recruitment of production workers, technical books and materials, stamp duty, Business entertainment fees, construction site allowances, completion inspection fees, and other administrative expenses.

2. Collection standard: The business entertainment expenses shall not exceed 10% of the total management fee of the construction unit. The allowance standards at the construction site shall be implemented in accordance with the travel expenses standards formulated by the local financial department.

See: Notice of the Ministry of Finance on Printing and Distributing the "Regulations on the Financial Management of Capital Construction" (Caijian [2002] No. 394)