Facilities Management Agreement Template for the UK
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What is a Facilities Management Agreement?
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.
Sample clauses: standard wording in a UK facilities management agreement
6. Service Levels and Service Credits
6.1 The Provider shall perform the Services so as to meet or exceed each key performance indicator set out in Schedule [2] (the "Service Levels"), measured over each [calendar month] and reported to the Customer within [10] Business Days of the end of that period.
6.2 If the Provider fails to meet a Service Level, the Customer may deduct the corresponding service credit from the next invoice, provided that the aggregate service credits accrued in any Contract Year shall not exceed [10]% of the Annual Service Charge.
6.3 Service credits are a reduction in the Charges reflecting reduced value received and are not a penalty, and their application shall not limit the Customer's right to terminate under clause [14] for persistent failure.
6.4 Where the Provider fails the same Service Level in [three] consecutive measurement periods, it shall within [10] Business Days submit a rectification plan for the Customer's approval and implement it at its own cost.
9. Statutory Compliance and Health and Safety
9.1 The Provider shall perform the Services in compliance with the Health and Safety at Work etc. Act 1974, the Regulatory Reform (Fire Safety) Order 2005, the Control of Substances Hazardous to Health Regulations 2002 and all other legislation applicable to the Services.
9.2 The Customer shall remain the duty holder in respect of the Premises under the Control of Asbestos Regulations 2012 and shall provide the Provider with the asbestos register and any relevant risk assessments before the Commencement Date.
9.3 The Provider shall maintain complete records of statutory inspections, testing and maintenance, make them available to the Customer on [5] Business Days' notice, and deliver them to the Customer on expiry or termination.
9.4 Each party shall notify the other without delay of any accident, dangerous occurrence or enforcement action at the Premises arising in connection with the Services.
Illustrative extract showing typical drafting under the law of England and Wales. Documents generated with GenieAI are tailored to your rules, standards and context.
Frequently Asked Questions
When should you use a Facilities Management Agreement?
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.
What are the different types of Facilities Management Agreement?
- 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
Who should typically use a Facilities Management Agreement?
- 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
How do you write a Facilities Management Agreement?
- 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
What should be included in a Facilities Management Agreement?
- 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
What's the difference between a Facilities Management Agreement and a Property Management Agreement?
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
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About the Facilities Management Agreement
- 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
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