Facility Management Contract for the United Kingdom

Facility Management Contract Template for England and Wales

A Facility Management Contract is a comprehensive legal agreement governed by the laws of England and Wales, establishing the terms and conditions for the provision of facility management services. It covers various aspects including maintenance, cleaning, security, and other support services essential for the operation of buildings and facilities. The contract defines service levels, performance metrics, compliance requirements, and the responsibilities of both the service provider and the client.

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What is a Facility Management Contract?

The Facility Management Contract is essential for organizations seeking to outsource their facility management operations to specialized service providers. This contract type, governed by English and Welsh law, establishes a framework for managing buildings and facilities, ensuring compliance with relevant regulations, and maintaining operational efficiency. It typically includes detailed service specifications, performance standards, pricing structures, and risk allocation mechanisms. The document is particularly relevant in situations where professional facility management services are required for complex buildings or multiple properties, requiring systematic management of maintenance, security, cleaning, and other support services.

What sections should be included in a Facility Management Contract?

1. 1. Parties: Identification and details of the service provider and client

2. 2. Background: Context of the agreement and facility management requirements

3. 3. Definitions: Key terms used throughout the agreement

4. 4. Services: Detailed scope of facility management services to be provided

5. 5. Term and Renewal: Duration of the agreement and renewal provisions

6. 6. Payment Terms: Fees, payment schedule, and related financial terms

7. 7. Service Levels: Performance standards and KPIs

8. 8. Health and Safety: Health and safety obligations and compliance requirements

9. 9. Staff and Personnel: Requirements for service delivery personnel

10. 10. Insurance and Liability: Insurance requirements and liability allocation

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

1. Environmental Management: Additional section covering specific environmental obligations and targets, including waste management, sustainability requirements, and environmental reporting

2. Energy Management: Section detailing energy efficiency requirements, monitoring, and management procedures for facilities with specific energy management needs

3. Security Services: Detailed provisions for security requirements, including access control, surveillance, and security personnel management

What schedules should be included in a Facility Management Contract?

1. Schedule 1: Service Specification: Detailed breakdown of services to be provided including scope, frequency, and quality standards

2. Schedule 2: Pricing Schedule: Detailed pricing structure, rates, and payment mechanisms

3. Schedule 3: KPI Schedule: Detailed performance indicators, measurement criteria, and reporting requirements

4. Schedule 4: Site Information: Details of facilities covered under the agreement including floor plans and asset registers

5. Schedule 5: Staff Information: Details of transferred staff including roles, responsibilities, and TUPE implications

6. Schedule 6: Equipment Register: Comprehensive list of equipment provided or maintained under the contract

7. Schedule 7: Planned Preventative Maintenance Schedule: Detailed maintenance planning and scheduling requirements for all facilities and equipment

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

Health and Safety at Work Act 1974: Primary legislation governing workplace health and safety in the UK, setting out employers' responsibilities to ensure the health, safety and welfare of their employees

Management of Health and Safety at Work Regulations 1999: Requires employers to assess and manage risks to their employees and others arising from work activities

Workplace (Health, Safety and Welfare) Regulations 1992: Sets minimum standards for workplace facilities including ventilation, temperature, lighting, cleanliness, workspace, and welfare facilities

Control of Substances Hazardous to Health Regulations 2002: Requires employers to control substances that are hazardous to health in the workplace

Transfer of Undertakings (Protection of Employment) Regulations 2006: Protects employees' rights when the business or service they work for transfers to a new employer

Working Time Regulations 1998: Governs the hours that employees can work, including provisions for breaks, holidays, and maximum weekly working hours

Equality Act 2010: Prohibits discrimination and promotes equality in the workplace based on protected characteristics

Environmental Protection Act 1990: Sets out fundamental structures and authority for waste management and control of emissions into the environment

Waste (England and Wales) Regulations 2011: Governs the collection, disposal, and treatment of waste, including requirements for waste segregation and recycling

Building Regulations 2010: Sets standards for the design and construction of buildings, including requirements for safety, energy efficiency, and accessibility

Regulatory Reform (Fire Safety) Order 2005: Requires fire risk assessments and appropriate fire safety measures in non-domestic premises

Contracts (Rights of Third Parties) Act 1999: Allows third parties to enforce terms of contracts that benefit them, affecting how facility management contracts can impact building users

UK General Data Protection Regulation: Regulates the processing of personal data and sets requirements for data protection in all business operations

Data Protection Act 2018: Implements and supplements the UK GDPR, providing the framework for data protection in the UK

Employers' Liability (Compulsory Insurance) Act 1969: Requires employers to maintain insurance against liability for injury or disease to their employees arising out of their employment

ISO 41001: International standard for facility management systems, providing a framework for effective facility management

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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