Facilities Management Agreement Template for England and Wales

A Facilities Management Agreement sets out how a service provider will handle the day-to-day operations of a building or workplace. It covers everything from basic maintenance and cleaning to security, workspace management, and specialized technical services that keep the property running smoothly.

These contracts are vital for commercial properties across England and Wales, particularly in sectors like retail, offices, and industrial sites. They outline key performance metrics, service levels, pricing structures, and compliance requirements under British health and safety laws. Good FM agreements protect both parties by clearly defining responsibilities, reporting methods, and procedures for handling issues when they arise.

Consider implementing a Facilities Management Agreement when taking on responsibility for a commercial property or expanding your existing building portfolio. This becomes especially important when dealing with multi-tenant buildings, complex technical systems, or properties requiring specialized maintenance under UK regulations.

The right time to put this agreement in place is before you start managing new facilities, during property acquisitions, or when switching service providers. It's particularly crucial for properties with strict compliance needs, like healthcare facilities or data centers. Getting these terms sorted early helps avoid service gaps, unclear responsibilities, and potential regulatory issues down the line.

• Single-Site Basic: Covers essential services like cleaning, maintenance, and security for standalone buildings - ideal for small to medium offices or retail spaces
• Multi-Site Comprehensive: Manages multiple properties under one agreement, with standardized service levels and reporting across locations
• Integrated Services: Combines facilities management with additional services like catering, reception, and IT support - common in corporate headquarters
• Technical Specialist: Focuses on specific building systems like HVAC, electrical, or data center infrastructure, with detailed performance metrics
• Total FM Package: Full-service agreement where the provider takes complete responsibility for property operations, including staff management and budgeting

• Property Owners: Commercial landlords, institutional investors, and corporate property managers who need their buildings professionally maintained
• FM Service Providers: Companies specializing in facilities management, offering maintenance, cleaning, security, and technical services
• In-house FM Teams: Corporate facilities departments who manage the relationship with external providers and monitor service delivery
• Legal Teams: Both in-house counsel and external solicitors who draft and review the agreements to ensure compliance with UK property laws
• Procurement Officers: Professionals who evaluate service providers, negotiate terms, and manage contract renewals

• Property Details: Document building specifications, systems, and current condition with photos and technical reports
• Service Scope: List all required services, from basic maintenance to specialized technical support needs
• Performance Standards: Define measurable service levels, response times, and quality benchmarks
• Cost Structure: Outline pricing, payment terms, and any performance-linked incentives or penalties
• Compliance Requirements: Gather relevant UK health and safety regulations, insurance requirements, and industry standards
• Stakeholder Input: Collect feedback from facility users, technical teams, and department heads about service needs

• Service Description: Detailed scope of facilities management duties, performance standards, and delivery schedules
• Term and Termination: Contract duration, renewal options, and conditions for early termination
• Payment Terms: Fee structure, payment schedules, and mechanisms for price adjustments
• Performance Metrics: Specific KPIs, reporting requirements, and quality assessment criteria
• Insurance and Liability: Required coverage levels, indemnification clauses, and risk allocation
• Health and Safety: Compliance with UK workplace regulations and safety protocols
• Data Protection: GDPR compliance measures and data handling procedures

A Facilities Management Agreement differs significantly from a Property Management Agreement in several key aspects, though both deal with real estate services. Understanding these differences helps you choose the right agreement for your needs.

• Scope of Services: Facilities Management focuses on operational maintenance, building systems, and workplace services. Property Management covers broader aspects like tenant relations, rent collection, and property marketing
• Technical Focus: FM agreements emphasize detailed technical specifications for building systems and services, while Property Management agreements prioritize financial and administrative responsibilities
• Service Delivery: FM agreements typically include specific KPIs for operational performance and technical maintenance. Property Management agreements focus more on financial performance metrics
• Staff Integration: FM providers often embed their staff on-site as part of the client's operational team, while property managers typically operate more independently