Common Area Maintenance (CAM) Programs for California Shopping Centers & Mixed-Use Projects
Common Area Maintenance (CAM) charges are one of the most contentious—and misunderstood—aspects of commercial real estate in California. For shopping centers and mixed-use projects combining retail with residential units, CAM represents the cost-recovery mechanism landlords use to maintain shared spaces while tenants and residents often suspect padding, misclassification, or unfair allocation.
CAM or “operating expenses” typically function as additional rent in net (NNN) and modified-gross commercial leases. The landlord budgets annual costs for maintaining common areas, allocates those costs across tenants based on their proportionate share, and reconciles actual expenses at year-end.
Typical CAM inclusions:
- Parking lot and lobby lighting, utilities for common areas
- Irrigation, landscaping and grounds maintenance
- Janitorial and porter services
- Security patrols, cameras and monitoring
- Property management fees and admin overhead (within limits)
- Common-area repairs, snow removal (where relevant), trash/recycling
- Liability insurance attributable to common areas
Typical exclusions:
- Debt service and landlord’s income taxes
- Major capital improvements (except code-mandated upgrades that may be amortized)
- Leasing commissions and landlord’s legal fees for lease negotiations
- Marketing expenses benefiting specific tenants rather than the project
- Excess management fees or overhead beyond industry norms
Pure retail shopping centers have well-established CAM norms. Mixed-use projects add complexity because you’re blending:
When these three systems aren’t coordinated, you end up with disputes over who pays for what—parking garage elevators, shared landscaping, grease interceptors, fire systems serving both uses, EV charging stations, solar installations, and rideshare drop-off zones all become friction points.
Landlords view CAM as legitimate cost recovery: “We’re maintaining the property to benefit all tenants and simply passing through actual expenses on a fair, prorated basis.”
Tenants suspect overcharging and opacity: Studies show approximately 40% of CAM disputes arise from unclear reconciliation statements and misclassified expenses. Tenants can’t verify whether charges comply with their lease when the reconciliation is vague or categories are lumped together.
- “We’re launching our first formal CAM program” and don’t want to guess at how to structure charges or allocate between retail and residential uses.
- “Our leases, CC&Rs and vendor contracts don’t line up”—it’s unclear who pays for parking lot resurfacing, who covers lobby HVAC, and whether retail or residential bears grease-trap costs.
- “We’re not sure how California’s new laws affect our CAM model”—rent control (AB 1482), water billing (SB 7), and commercial tenant protections (SB 1103) all touch CAM or operating-expense pass-throughs.
- “Tenants are auditing us” and we don’t have clean documentation showing how we calculated their share or why certain costs are included.
This resource hub is designed for:
- Owners and asset managers of shopping centers, mixed-use (retail + residential) projects, and multi-tenant commercial properties in California
- In-house counsel, CFOs and property managers launching a first formal CAM program or cleaning up legacy CAM language and cost allocations
- Developers worried about California-specific regulatory overlays affecting how CAM, assessments and utility charges can be structured
- Anyone responsible for the lifecycle of designing a CAM framework → drafting leases/CC&Rs → aligning vendor contracts → administering and adjusting over time
Understanding CAM mechanics is essential to building a defensible program. Here’s how landlords budget, allocate and reconcile CAM charges—and where disputes typically arise.
Tenant’s Share = (Tenant’s Rentable Square Footage) ÷ (Total Rentable Square Footage in CAM Pool)
Example: A 2,000 SF retail tenant in a 40,000 SF shopping center has a 5% pro-rata share. If annual CAM is $200,000, the tenant pays $10,000.
In mixed-use projects, you typically need multiple CAM pools:
The allocation formula for the Shared Core Pool often becomes contentious. Options include:
- Square footage only: Each unit (retail or residential) pays based on its percentage of total project SF.
- Weighted formulas: Residential units might pay a lower percentage for parking if they have assigned spots vs. retail customers who use more visitor parking.
- Fixed percentage splits: CC&Rs might say “Retail bears 60%, Residential bears 40%” for certain shared costs based on anticipated use.
In my practice, I see the same pattern: CAM language drafted in isolation from CC&Rs and vendor contracts, and then everyone is surprised when the numbers don’t reconcile. The retail leases say one thing about parking lot costs, the residential CC&Rs say another, and the parking-lot-paving vendor invoice gets allocated using a third method no one documented.
Most CAM programs follow an annual cycle:
California requirements and best practices:
- CAM charges must be reasonable, directly related to common-area maintenance, and fairly prorated.
- Reconciliation statements must be transparent—line-item detail, not lump sums—so tenants can verify compliance.
- New SB 1103 (Commercial Tenant Protection Act) adds documentation requirements for “building operating costs” that include maintenance of common areas (see Legal Issues tab).
Industry studies show that a significant chunk of disputes—around 40%—arises from unclear reconciliation statements and misclassified expenses. Tenants can’t verify whether charges comply with the lease when categories are vague or when capital improvements are lumped into operating expenses.
Sophisticated leases often include cost-control mechanisms:
Controllable CAM Caps: Tenant might agree to “no more than 5% annual increase in controllable operating expenses” (e.g., janitorial, landscaping, management fees).
Uncontrollable Exclusions: Real estate taxes and insurance are usually excluded from caps because landlord has limited control.
Drafting Tip: Be precise about what’s capped vs. uncapped to avoid disputes.
In a base-year structure, tenant pays a gross rent that includes a “base year” of operating expenses. Tenant then pays their share of increases above base year in subsequent years.
Gross-Up Clauses: If the building is only 60% occupied in the base year, landlord “grosses up” variable expenses (e.g., janitorial) to what they would be at, say, 95% occupancy, so tenant isn’t penalized for low occupancy in year one.
For mixed-use projects: Gross-up assumptions interact with different lease-up curves for retail vs. residential. Retail might stabilize faster, while residential ramps up over 18-24 months. Your CC&Rs and budgets need to account for phased occupancy when setting initial assessments and CAM charges.
This is where most owners feel lost. When you combine retail and residential in one project, you’re operating at the intersection of commercial leases, residential leases, HOA law, and complex governance documents. If these aren’t aligned, you’re inviting conflict.
A typical mixed-use project has a governance structure that looks like this:
Covenants, Conditions & Restrictions (CC&Rs) and Reciprocal Easement Agreements (REAs) are recorded documents that define:
- What constitutes “common area” at the project level
- Which entity (master association, residential association, commercial association, or “maintenance party”) is responsible for which maintenance tasks
- How assessments and shared expenses are calculated and capped
- Easements for access, parking, utilities, signage
- Insurance requirements and loss allocation
Leading real estate law firms describe a “Mixed Use Gap” where owners don’t fully understand:
- How governance documents interact
- Which easements run where and what they allow
- How common-area expense structures work across retail and residential
- Who carries what insurance and how losses are allocated
- Damage and destruction provisions when shared systems fail
The result? Surprises when a major repair bill arrives and no one is sure whether it’s a retail CAM expense, a residential assessment, or split 50/50 per the REA.
If your CAM language, CC&Rs, and budgets aren’t coordinated, you’re inviting conflict between retail tenants, residents, and associations. I see this constantly: the retail lease says “Landlord maintains all common areas,” the residential CC&Rs say “Association maintains landscaping,” and the actual landscape vendor contract is in the landlord’s name with no clear allocation mechanism.
Retail and residential uses create natural friction points. Your CAM program and governance documents must address:
A simple diagram showing the flow of money and obligations helps immensely:
Owner/Developer
↕
Master Association (per CC&Rs/REA)
↙ ↘
Residential Association Commercial Units
(Davis-Stirling) (CAM leases)
↓ ↓
Residents Retail Tenants
(monthly assessments) (CAM as add’l rent)
↓ ↙
Shared Vendors
(landscaping, security, janitorial, elevator, HVAC)
Every arrow in that diagram should correspond to clear contractual language specifying what costs flow where, how they’re allocated, and who has audit/approval rights.
Your commercial lease CAM provisions are the front-line defense against disputes. They must be clear, comprehensive, and compliant with California-specific rules—especially the new SB 1103 Commercial Tenant Protection Act.
Every commercial lease addressing CAM should include:
Here’s a detailed breakdown of typical CAM categories and how California courts and statutes treat them:
| Cost Category | Typical Treatment | CA Considerations |
|---|---|---|
| Utilities (Common Areas) | ✅ Included | Electricity, water, gas for lobbies, parking, landscaping. Must be separately metered or allocated reasonably. SB 7 water submetering rules apply if passing through to residential units. |
| Janitorial & Porter | ✅ Included | Common restrooms, lobbies, walkways. Ensure service standards match lease language. |
| Landscaping & Irrigation | ✅ Included | Grounds maintenance, plants, hardscape repairs. Budget should reflect California drought regulations and water-efficient practices. |
| Security | ✅ Included | Patrols, cameras, monitoring. Document benefit to all tenants to avoid claims of landlord-only benefit. |
| Management Fees | ⚠️ Capped | Typically 3-5% of gross receipts. Must be reasonable. Excessive fees or double-charging (e.g., management fee + separate admin overhead) invites challenge. SB 1103 requires documentation. |
| Insurance (Common Areas) | ✅ Included | Property, liability, earthquake/flood for common areas. Must be proportionately allocated under SB 1103. |
| Repairs & Maintenance | ✅ Included | Routine repairs to common areas. Major capital improvements are typically excluded unless amortized per lease terms or mandated by code. |
| Capital Improvements | ❌ Excluded (usually) | New parking lot, roof replacement, major HVAC. MAY be included if: (a) mandated by law/code, (b) lease allows amortization over useful life, (c) improvement reduces operating costs. Must be clearly documented and justified. |
| Real Estate Taxes | ✅ Included (usually separate) | Often billed separately from “CAM” but same pro-rata principles. Ensure pass-through complies with lease and doesn’t include penalties/interest from landlord’s late payment. |
| Debt Service & Depreciation | ❌ Excluded | Mortgage, interest, depreciation are landlord’s ownership costs, not operating expenses. |
| Leasing Costs | ❌ Excluded | Commissions, TI allowances, legal fees for lease negotiations—these benefit landlord, not tenants collectively. |
| Marketing/Advertising | ⚠️ Gray Zone | If marketing benefits the entire center (e.g., holiday events, center-wide promotions), may be included if lease allows. If it’s leasing-focused or benefits only certain tenants, exclude. |
Controllable CAM Caps: Tenant may negotiate “controllable operating expenses shall not increase more than 5% per year.” This typically applies to janitorial, landscaping, management fees—costs landlord controls.
Uncontrollable Exclusions: Real estate taxes, insurance, utilities often excluded from caps because landlord has no control over tax assessments or utility rate increases.
Drafting Tip: Define “controllable” and “uncontrollable” explicitly. Don’t leave it ambiguous or you’ll have disputes every reconciliation.
If the building isn’t fully occupied, landlord may “gross up” variable expenses (e.g., janitorial) to reflect what costs would be at, say, 95% occupancy. This prevents tenant from subsidizing vacant space.
Formula: Actual Variable Cost ÷ (Actual Occupancy %) × (Gross-Up Occupancy %)
Example: $50,000 janitorial cost at 60% occupancy, grossed up to 95% = $50,000 ÷ 0.60 × 0.95 = $79,167. Tenant’s share is calculated on $79,167, not $50,000.
Mixed-Use Consideration: Retail and residential lease-up curves differ. Your gross-up assumptions must account for phased occupancy per use.
Most commercial leases grant tenants the right to audit landlord’s CAM records. Typical conditions:
- Tenant must request audit within 60-120 days of receiving reconciliation statement.
- Audit must be conducted by independent CPA (not contingency-fee auditor).
- Tenant pays for audit unless error exceeds 5%, in which case landlord reimburses.
- Landlord must provide books, invoices, allocation worksheets within reasonable time.
- Dispute resolution: mediation/arbitration clauses common.
SB 1103 Impact: Now landlords must provide documentation before charging for building operating costs (see below). This front-loads transparency and may reduce audit disputes.
SB 1103 adds California Civil Code §§1954.40–1954.46, creating new protections for “qualified commercial tenants”—microenterprises, small restaurants, small nonprofits in retail/restaurant space.
Who is a Qualified Commercial Tenant?
- Microenterprise: Commercial tenant with ≤5 employees (including owner) in retail/restaurant premises ≤2,500 SF.
- Small Restaurant: Restaurant with ≤10 employees in premises ≤2,500 SF.
- Small Nonprofit: Nonprofit with ≤10 employees in retail/restaurant premises ≤2,500 SF.
1. Proportionate Allocation of Building Operating Costs
Landlord must allocate “building operating costs” (maintenance, repairs, utilities, insurance for common areas) proportionately based on the benefit received by each tenant. No shifting costs from vacant spaces or other tenants onto qualified tenants.
2. Documentation Before Charging
Before landlord can charge a qualified tenant for building operating costs, landlord must provide written documentation showing:
- The actual cost incurred
- The method of allocation (why tenant owes their share)
- Compliance with lease terms
This is a front-end transparency requirement—you can’t bill first and document later.
3. No Changes Without Notice
Landlord can’t change the allocation method mid-lease without 30 days’ written notice and explanation.
4. Statutory Damages
If landlord violates these rules, tenant can recover:
- Actual damages (overcharges, out-of-pocket costs)
- Reasonable attorney’s fees and costs
- Up to treble damages if violation was willful, fraudulent or oppressive
- Identify Qualified Tenants: Flag leases meeting the size/employee thresholds.
- Document Allocation Methods: Create written allocation policies showing how CAM is divided among tenants, including gross-up assumptions, pool definitions, and proportionate-share calculations.
- Front-Load Transparency: Provide detailed backup with CAM estimates and reconciliations—invoices, allocation worksheets, vendor contracts.
- Review and Update Leases: Ensure CAM language allows the documentation and allocation methods required by SB 1103.
- Train Property Managers: They need to understand the new rules and maintain records to defend against audits or claims.
Bottom line: SB 1103 raises the bar for CAM transparency and fairness, especially for small commercial tenants. Even if your tenants don’t qualify, adopting these practices reduces dispute risk across your portfolio.
When your mixed-use project includes residential units, you’re subject to California’s tenant protection laws that constrain how you can charge for common-area costs, utilities, and other fees.
AB 1482 imposes statewide rent control and just-cause eviction requirements on most residential properties built before February 1, 2010 (with exemptions for single-family homes owned by individuals, condos, etc.).
Rent Cap Formula: Lesser of 5% + CPI or 10% annually.
Example: If regional CPI is 3.5%, maximum rent increase is 8.5% (5% + 3.5%). If CPI is 6%, cap is still 10%.
Landlords can’t circumvent AB 1482’s rent cap by imposing new “fees” or “assessments” that function as rent increases. Here’s what that means:
- CAM-like charges to residential tenants are rare, but if you try to add a “common-area maintenance fee” or “amenity fee” mid-lease, courts may treat it as a rent increase subject to the cap.
- HOA assessments for residential condos/units within the development aren’t technically “rent,” but if you control the HOA and raise assessments to shift costs from rental units, you risk claims of evasion.
- Utility pass-throughs (water, sewer, trash) are permitted if disclosed at lease signing and structured per Civil Code and local ordinances (see SB 7 below).
Practical Tip: Disclose all recurring charges at lease inception. Don’t surprise tenants with new fees mid-lease—it invites AB 1482 claims and tenant organizing.
California Civil Code §§1941–1942.5 impose an implied warranty of habitability on residential landlords. For mixed-use projects, this means:
Landlord must maintain premises in habitable condition, including:
- Effective waterproofing and weather protection (roof, walls, doors, windows)
- Functional plumbing and gas facilities
- Hot and cold running water
- Heating facilities
- Electrical lighting and wiring
- Clean and sanitary buildings, grounds, and common areas free from debris, vermin, and filth
- Adequate trash receptacles and removal
- Floors, stairways, and railings in good repair
Common-Area Implications: If residential hallways, lobbies, elevators, or shared parking areas become unsafe or unsanitary due to deferred maintenance, landlord breaches habitability warranty—even if the “CAM” budget is underfunded.
In mixed-use projects, retail CAM and residential association budgets must coordinate to ensure habitability duties are met. If the residential association is responsible for common-area cleaning per CC&Rs but lacks budget, and landlord controls the association, landlord may still be liable for habitability breaches.
Example: Shared parking garage elevator breaks. Retail lease says “Landlord maintains elevators,” residential CC&Rs say “Association maintains elevators,” but no one budgeted for major repairs. Residential tenants can’t access units easily—landlord faces habitability claims even if blame is split contractually.
Effective January 1, 2020, SB 7 allows landlords of multi-unit properties to submeter or use a ratio-utility-billing system (RUBS) to charge tenants for water, but only under strict conditions:
1. Applies to Buildings with Building Permits Issued on or After January 1, 2018
Older buildings are grandfathered unless they install submeters.
2. Landlord Must Install Submeters or Use RUBS
- Submetering: Individual meters for each unit, billing based on actual usage.
- RUBS (Ratio Utility Billing System): Allocate master-meter bill based on occupancy, square footage, or other reasonable formula.
3. “Just and Reasonable” Standard
Charges must be “just and reasonable”—no markup beyond actual cost. Landlord can recover:
- Actual water/sewer/trash charges from utility provider
- Reasonable administrative fee (typically capped at $5/unit/month or similar under local ordinances)
4. Disclosure Requirements
- Landlord must disclose submetering/RUBS in writing at lease inception.
- Must provide monthly statements showing usage, rate, calculation method.
- Tenant has right to request billing records.
5. Coordination with Mixed-Use CAM
If your project shares water service (e.g., irrigation, retail restroom water, residential unit water all on one master meter), allocation becomes complex. Options:
- Separate meters for retail vs. residential (cleanest solution)
- RUBS allocation splitting costs proportionately between retail CAM and residential submetering pools
- Carefully document allocation method to satisfy SB 7’s “just and reasonable” test
- Separate Residential from Retail Charges: Don’t lump residential assessments into commercial CAM. Maintain separate budgets, separate line items, separate governance (residential association vs. commercial CAM pool).
- Disclose All Fees at Lease Inception: AB 1482 rent cap, SB 7 water charges, HOA assessments—disclose everything upfront to avoid claims of backdoor rent increases or surprise fees.
- Ensure Habitability Funding: Budget enough for common-area maintenance to meet habitability standards. Don’t defer maintenance on shared systems (elevators, HVAC, plumbing) because retail and residential budgets don’t align.
- Document Utility Allocation: If you’re passing through water/sewer/trash to residential tenants, follow SB 7 precisely—submeters or RUBS, “just and reasonable” charges, monthly statements, no markup beyond cost + reasonable admin fee.
- Coordinate CC&Rs and Leases: Residential leases should reference the CC&Rs and HOA assessments so tenants understand they’re paying both rent and association dues (if applicable). Avoid conflicting language about who maintains what.
AB 1482: Violations (e.g., excessive rent increase or wrongful eviction without just cause) can result in civil penalties, attorney’s fees, and actual damages.
SB 7: “Unjust or unreasonable” water billing can lead to tenant withholding rent, suing for refund, or reporting to local rent boards or consumer protection agencies.
Habitability Breaches: Tenant can repair-and-deduct (Civil Code §1942), withhold rent, sue for damages, or report to code enforcement—any of which can trigger inspection and retrofit orders.
Bottom line: Residential units in mixed-use projects require separate, careful treatment. Don’t treat them like commercial tenants when it comes to fees, utilities, or maintenance obligations.
Your CAM program is only as good as the vendor contracts that generate the underlying costs. If your service agreements don’t align with your lease language, CC&Rs, and budgets, you’ll face allocation disputes, coverage gaps, and cost overruns that no one anticipated.
Most CAM costs are pass-throughs of vendor invoices:
- Landscaping contract: $250,000/year → allocated across tenants as “landscaping and grounds maintenance” CAM.
- Security patrol contract: $150,000/year → allocated as “security” CAM.
- Janitorial contract: $100,000/year → allocated as “janitorial and porter services” CAM.
- Elevator maintenance contract: $50,000/year → allocated based on which tenants/uses benefit from elevators.
If these vendor contracts don’t define scope, performance standards, and cost allocation clearly, your CAM reconciliations will be messy and tenants will challenge them.
- Scope mismatch: Lease says “Landlord maintains parking lot,” vendor contract covers “paved areas” but excludes striping and re-paving—who pays for that?
- Performance standards missing: Lease promises “daily janitorial service,” vendor contract says “as-needed basis”—tenant claims breach when restrooms aren’t cleaned daily.
- Cost escalation clauses: Vendor contract allows 10% annual increases, but tenant lease caps CAM increases at 5%—landlord eats the difference or violates lease.
- Invoicing doesn’t match allocation method: Vendor bills lump-sum for “all property maintenance,” but CAM program needs line items for landscaping, parking lot, trash enclosures separately to allocate across pools.
A Service-Level Agreement (SLA) is the section of your vendor contract specifying performance standards, frequency, and remedies. For CAM-related services, your SLA should cover:
1. Scope of Services
- Precisely define what areas the vendor will service: “All common-area restrooms, lobbies, hallways, stairwells, parking garage levels 1-4, exterior walkways, and loading dock.”
- Exclude tenant-exclusive spaces (unless tenant contracts separately).
2. Performance Standards
- Frequency: “Daily janitorial service Monday-Friday, weekly deep-cleaning Saturdays.”
- Response Times: “Emergency spills or hazards addressed within 2 hours of notice.”
- Quality Metrics: “Landscaping maintained per ANSI A300 standards; turf mowed weekly, hedges trimmed quarterly.”
3. Reporting and Verification
- Vendor submits monthly service logs, photos, or checklists.
- Property manager conducts quarterly inspections and rates performance.
- Tenant complaints tracked and vendor must respond within X days.
4. Remedies for Non-Performance
- Service credits: If vendor misses performance targets, landlord gets X% credit on invoice.
- Right to cure: Written notice, vendor has Y days to cure deficiency before landlord can terminate.
- Termination for cause: If vendor fails to cure after notice, landlord can terminate without penalty.
5. Coordination with Other Vendors
- If multiple vendors share access (e.g., landscaping and irrigation vendor, separate pest control, separate trash hauler), define coordination responsibilities.
- Who schedules access? Who manages conflicts? Who’s liable if one vendor’s work damages another’s equipment?
If your vendor contract has weak or missing SLAs, you can’t hold the vendor accountable when performance slips. And when performance slips, tenants complain—and may withhold CAM payments claiming landlord breached the lease promise to maintain common areas.
Example: Retail lease says “Landlord shall maintain parking lot in clean, safe condition.” Parking lot sweeping vendor only comes monthly per contract. Lot fills with trash, tenants complain. Landlord can’t force vendor to sweep weekly without amending contract, and tenants claim breach of lease.
Your vendor contracts must allocate risk appropriately to protect landlord and tenants from third-party claims arising from vendor negligence.
1. Vendor Indemnity
Vendor agrees to indemnify, defend, and hold harmless landlord, tenants, and property manager from claims arising out of vendor’s negligence or misconduct.
Example: “Vendor shall indemnify Owner from all claims, damages, and expenses (including attorney’s fees) arising from Vendor’s performance of services, except to the extent caused by Owner’s sole negligence.”
2. Insurance Requirements
- Commercial General Liability (CGL): Minimum $2M per occurrence, naming landlord and property manager as additional insureds.
- Workers’ Compensation: Statutory limits for all vendor employees.
- Auto Liability: If vendor uses vehicles on-site (e.g., landscaping trucks, sweepers).
- Professional Liability/E&O: For specialized services (e.g., engineering, consulting).
Require vendor to provide certificates of insurance before commencing work and to notify landlord of cancellation or reduction in coverage.
3. Independent Contractor Status
Clarify that vendor is an independent contractor, not an employee or agent of landlord. This limits landlord’s vicarious liability for vendor’s torts.
4. Damage to Property
Vendor is liable for damage to landlord’s or tenant’s property caused by vendor’s negligence. Vendor must repair or reimburse promptly.
Tenants paying CAM often ask: “Why am I paying for common-area insurance and also required to carry my own liability policy?”
Answer: Landlord’s CAM-funded insurance covers common areas and landlord’s liability. Tenant’s policy covers tenant’s premises, tenant’s liability, and tenant’s property. They’re complementary, not duplicative.
Vendor insurance is a third layer—it covers vendor’s operations and indemnifies landlord/tenants from vendor negligence. This reduces claims against landlord’s master policy and keeps insurance premiums (which flow through CAM) lower.
Before signing a vendor contract, model how the costs will flow through your CAM system:
- ✅ Scope of services matches common-area definitions in leases and CC&Rs
- ✅ Performance standards (frequency, quality, response times) documented in SLA
- ✅ Reporting and verification procedures to track compliance
- ✅ Remedies for non-performance (service credits, termination rights)
- ✅ Indemnity and insurance provisions protecting landlord and tenants
- ✅ Invoicing format supports CAM allocation method (line items, not lump sums)
- ✅ Cost escalation clauses align with tenant CAM caps or lease terms
- ✅ Coordination with other vendors (if applicable) to avoid gaps or overlaps
- ✅ Independent contractor status and workers’ comp coverage confirmed
- ✅ Termination provisions allow exit if vendor underperforms or costs spike
Bottom line: Your vendor contracts are the engine of your CAM program. If they’re well-drafted, aligned with lease terms, and include strong SLAs and risk allocation, your CAM reconciliations will be smooth. If they’re sloppy or misaligned, you’ll spend more time and money fighting disputes than maintaining the property.