How Should I Set Spending Limits & Approval Flows?

In a Phuket property-management agreement, spending controls protect your asset when you’re not on site. Start by specifying clear authorization thresholds in the contract: who can approve routine expenses (cleaning, maintenance, utilities), and at what monetary limit. For example, routine items up to a certain amount may be approved by the manager, while larger repairs or capital projects require owner consent or two-person sign-off. Include a requirement for written quotes and documented invoices, with a minimum number of competitive bids where appropriate. Define the approval flow: who requests, who signs, and how quickly decisions must be made, with escalation paths if the primary contact is unavailable. Require regular reporting: monthly statements, receipts, and a summary of all owner funds, with access for the owner to review. Clarify whether emergency spending can be made without prior approval and how it will be reconciled afterward. Consider setting a reserve or project-cash fund to cover predictable items, plus a clear process for transferring ownership of records, passwords, and keys. Finally, ensure the agreement aligns with insurance requirements and local regulations. Have a lawyer review the contract language to prevent misunderstandings and protect the owner's rights if the manager changes financial plans or if there is a dispute.