Building Management Contract for the United Kingdom

Building Management Contract Template for England and Wales

A Building Management Contract under English and Welsh law is a comprehensive agreement that establishes the terms and conditions for the professional management of a property or building complex. It outlines the responsibilities of the building manager, including maintenance, security, cleaning, and other essential services, while defining the relationship between the property owner and the management company. The contract incorporates relevant provisions from the Construction Act 1996 and other applicable legislation, ensuring compliance with current building regulations and health and safety requirements.

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What is a Building Management Contract?

The Building Management Contract is essential for property owners seeking professional management services for their buildings. This contract type, governed by English and Welsh law, defines the scope of building management services, payment terms, and performance standards. It's particularly important for ensuring clear accountability, maintaining property value, and compliance with regulatory requirements. The agreement typically includes provisions for maintenance scheduling, emergency responses, staff management, and financial reporting, while incorporating necessary legal protections for all parties involved.

What sections should be included in a Building Management Contract?

1. Parties: Identification and details of the contracting parties including registered addresses and company numbers

2. Background: Context of the agreement, including the property details and purpose of the management arrangement

3. Definitions: Key terms and interpretations used throughout the contract

4. Scope of Services: Detailed description of management services to be provided, including core duties and responsibilities

5. Duration: Contract term, commencement date, and renewal provisions

6. Payment Terms: Fee structure, payment schedule, and mechanisms including VAT treatment

7. Obligations and Responsibilities: Specific duties of both building manager and client, including compliance with relevant legislation

8. Insurance Requirements: Mandatory insurance coverage specifications and minimum coverage amounts

9. Health and Safety: Health and safety obligations including CDM Regulations compliance

10. Termination: Conditions and procedures for contract termination, including notice periods

What sections are optional to include in a Building Management Contract?

1. Performance Standards: Specific KPIs and service levels for complex management requirements

2. Sustainability Requirements: Environmental management obligations and targets

3. Technology Integration: Building management systems and software requirements for smart buildings

4. TUPE Provisions: Transfer of employees provisions where applicable

5. Crisis Management: Specific procedures for handling emergency situations and crisis events

What schedules should be included in a Building Management Contract?

1. Schedule 1 - Property Details: Detailed description of the managed property including floor plans and facilities

2. Schedule 2 - Service Level Agreement: Specific performance metrics, standards and reporting requirements

3. Schedule 3 - Fee Schedule: Detailed breakdown of management fees, additional charges and payment terms

4. Schedule 4 - Staff Requirements: Required staffing levels, qualifications and training requirements

5. Schedule 5 - Maintenance Schedule: Planned preventative maintenance program and frequencies

6. Schedule 6 - Key Performance Indicators: Detailed performance metrics and measurement methodology

7. Appendix A - Emergency Procedures: Emergency response protocols and contact details

8. Appendix B - Insurance Certificates: Copies of required insurance documentation and certificates

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Industries

Construction Act 1996: Housing Grants, Construction and Regeneration Act (amended by Local Democracy, Economic Development and Construction Act 2009) - covers payment provisions, adjudication rights, and notice requirements

Contracts (Rights of Third Parties) Act 1999: Governs third-party rights and obligations in construction contracts

Supply of Goods and Services Act 1982: Establishes quality of service requirements and obligations for reasonable care and skill

Building Act 1984: Sets out building regulations compliance and building control requirements

Health and Safety at Work Act 1974: Primary legislation for workplace health and safety in construction

Construction (Design and Management) Regulations 2015: CDM Regulations governing safety and health management in construction projects

Work at Height Regulations 2005: Specific regulations for managing work at height in construction

Environmental Protection Act 1990: Key environmental legislation affecting construction projects

Control of Asbestos Regulations 2012: Regulations for managing asbestos risks in buildings

Building Regulations 2010: Current building standards and requirements for construction

Transfer of Undertakings Regulations 2006: TUPE regulations protecting employees during business transfers

Working Time Regulations 1998: Governs working hours and conditions in construction

Employers' Liability (Compulsory Insurance) Act 1969: Mandatory insurance requirements for employers

Modern Slavery Act 2015: Legislation preventing forced labor and human trafficking in supply chains

Data Protection Act 2018: UK implementation of GDPR, governing personal data protection

Equality Act 2010: Legislation ensuring non-discrimination and equal treatment in construction workplace

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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