What do you mean by contract system?

Contract system refers to that the owner selects a property management enterprise that meets the qualification requirements through bidding, and then signs a Property Management Service Contract with it on the basis of fairness, justice and equality. The contract clearly stipulates the service items and standards, and it is also clear that when the property management enterprise completes the service with good quality and quantity, the owner shall pay a fixed fee to the property management enterprise, and the profit and loss of this fee shall be enjoyed or borne by the property management enterprise. Advantages of the contract system: First, the contract system is relatively simple to implement and is conducive to the adoption of small property companies.

Secondly, under the condition that the professional level and energy of the members of the owners' committee are limited, the contract system is simple and easy to implement, which avoids the supervision and audit of the accounts of property service enterprises.

Third, because the cost saved by the contract system may become the profit of the property company, it can stimulate the property service enterprises to innovate management methods and save costs to a certain extent;

Fourth, the contract system is conducive to the scale operation of property companies and reduce costs. Disadvantages of the contract responsibility system: First of all, in the contract responsibility system, the quality of property service mainly depends on enterprise self-discipline. In order to obtain higher profits, property service enterprises may charge more and spend less, which often leads to hasty behavior of property service enterprises in order to reduce management costs; Secondly, the cost limitation of the contract system makes the property service enterprises often delay or make minor repairs to the work that needs timely maintenance, which will have a certain impact on the service life and value of the property if it is not completely solved;

Legal basis: Article 25 of the Bidding Law of People's Republic of China (PRC), a legal person or other organization that participates in bidding competition in response to bidding. If individuals are allowed to participate in the bidding of scientific research projects that must be subject to bidding according to law, the provisions of this Law on bidders shall apply to individuals who bid.