Q: What is Contract Management?

Contract management is the method used by Murco Petroleum to operate its network of company owned service stations in the UK.

A contract manager is a self-employed person who derives his or her income from commission payments for the sale of motor fuel and from the business he or she runs at the service station. Payments of commission are made on a daily basis. The other business operated by the contract manager at the station will include the forecourt shop, operated under Murco's 'Checkout' name or under Murco's alliance with Costcutter and may also include a car wash.

Q: What are the Principal Responsibilities of the Contract Manager?

• To bank the money received for motor fuel sales to Murco's account every day, having first deducted the commission due.
• To employ such staff as is necessary for the operation of the business.
• To maintain minimum opening hours.
• To arrange insurance cover for Personal and Third Party Liability, Cash in Transit and Own Stocks.
• To participate in sales promotions arranged by Murco.
• To operate the service station in accordance with the terms of the Murco Contract Manager Agreement, Petroleum Licence and other statutory requirements as imposed on the operator of a service station.
• To operate the shop in accordance with the franchise conditions.

Q: What do Murco pay for?

• Rent
• Rates
• Equipment and fixtures
• Maintenance and repairs
• Property insurance for buildings and equipment
• Forecourt and shop electricity
• Posters and other advertising materials
• Commission and bonus payments

Q: What does a Contract Manager pay for?

• Staff wages and all relevant employment costs
• Uniform costs for staff
• Telephone, including rental on all lines
• Daily cleaning and housekeeping; trade refuse charges
• Facility, Franchise, Concession or Licence charges to Murco (depending on facilities at the station)
• Bank and professional charges relating to his own business
• Personal, Third Party, Cash in Transit and Own Stock Equipment Insurance
• Charges on security alarms
• Other charges associated with the operation of his business

Q: Is security required?

The contract manager is in possession of a valuable service station and of the cash received for the sale of motor fuels.

Therefore a minimum cash deposit of between £10,000 to £20,000 is required depending on the fuel volume sold from the relevant station.

Q: How much capital is required?

The contract manager requires capital to:

• Stock and operate the shop.
• Set up a workshop or other business, if space is available at the relevant station.

No premium or ‘key money’ is required. Typical capital requirements are £10,000 for a small outlet, rising to £40,000 for a large station.

Q: Is training provided?

Yes. Initial training is for five days at a training station operated by a contract manager. During this period formal instruction in safety and technical matters is provided by Murco's own personnel.

Depending on the store's franchise, further training up to a period of three weeks will be given. For the first three days of your operation at your own station you will be joined by your Area Retail Manager.

Q: What is the next step?

The stages:

• Interview. We will invite you to meet us at a location in your area.
• Selection. We will offer a provisional position to suitable applicants.
• Financial evaluation and status checks for applicant.
• We will confirm or withdraw our provisional offer.
• Signing of all documents by applicant and company.
• Payment of security monies.
• Initial training at training station.
• Installation at station and follow-up training by Area Retail Manager.