Shared Facilities Agreement Template for Malaysia

A Shared Facilities Agreement sets out how multiple parties share and maintain common areas or equipment in a property development. In Malaysia, these agreements are crucial for managing shared spaces in commercial buildings, mixed-use developments, and industrial parks - covering everything from parking lots and lobbies to security systems and utilities.

Building owners, tenants, and property managers rely on these agreements to clearly define cost-sharing formulas, maintenance responsibilities, and usage rights. The agreement follows Malaysian property and strata laws, helping prevent disputes by establishing clear guidelines for facility access, operating hours, cleaning schedules, and payment obligations for shared services.

You need a Shared Facilities Agreement when multiple businesses or owners share common spaces or equipment in Malaysian commercial properties. This becomes essential when setting up operations in shopping complexes, office towers, or industrial parks where tenants share elevators, parking areas, security systems, or utility infrastructure.

Put this agreement in place before occupancy begins or when taking over existing shared spaces. It's particularly important for managing high-value facilities like specialized equipment rooms, loading bays, or central cooling systems. Many Malaysian property managers also use these agreements when converting single-tenant buildings to multi-user facilities, helping prevent costly disputes over maintenance costs and access rights.

• Basic Shared Area Agreement: Covers fundamental sharing of common spaces like lobbies, walkways, and parking in Malaysian commercial buildings. Focuses on basic maintenance and cost allocation.
• Multi-Tenant Infrastructure Agreement: Details sharing of complex building systems like HVAC, security, and utilities. Includes technical specifications and service levels.
• Mixed-Use Development Agreement: Addresses unique needs of retail, office, and residential users sharing facilities in integrated developments.
• Industrial Facility Agreement: Specialized for manufacturing or warehouse complexes sharing loading docks, waste management, or specialized equipment.
• Temporary Sharing Agreement: For short-term or project-based facility sharing, with flexible terms and clear exit provisions.

• Property Developers: Draft initial Shared Facilities Agreements when creating multi-tenant buildings or complexes in Malaysia, setting the foundation for facility management.
• Building Owners: Negotiate and enforce agreements, responsible for overall facility governance and cost recovery from tenants.
• Property Managers: Handle day-to-day implementation, maintenance scheduling, and tenant coordination under the agreement terms.
• Commercial Tenants: Sign and comply with agreements, share costs, and maintain access rights to common facilities.
• Legal Advisors: Review and customize agreements to ensure compliance with Malaysian property laws and protect client interests.

• Facility Details: List all shared spaces, equipment, and utilities, including their locations, specifications, and current condition.
• Usage Patterns: Document expected operating hours, access requirements, and peak usage times for each tenant or user.
• Cost Allocation: Calculate maintenance expenses, utility charges, and how costs will be divided among users based on space or usage.
• Maintenance Schedule: Plan regular upkeep timelines, responsibility assignments, and emergency repair procedures.
• Compliance Check: Review Malaysian strata laws and local building regulations affecting shared facility management.
• Documentation: Gather floor plans, equipment warranties, and existing service contracts related to shared facilities.

• Facility Definition: Clear description of shared areas, equipment, and infrastructure covered by the agreement.
• Party Details: Complete identification of all participating entities, including registration numbers and addresses.
• Usage Rights: Specific terms outlining access permissions, scheduling, and restrictions for each facility.
• Cost Structure: Detailed breakdown of sharing ratios, payment terms, and utility charge calculations.
• Maintenance Terms: Responsibilities for upkeep, repair procedures, and quality standards.
• Dispute Resolution: Malaysian-compliant procedures for handling disagreements and breaches.
• Termination Clauses: Conditions for ending participation and facility handover requirements.

A Shared Facilities Agreement differs significantly from a Facilities Management Agreement in several key aspects, though both deal with property management in Malaysia.

• Scope and Purpose: Shared Facilities Agreements focus on how multiple parties share and access common spaces, while Facilities Management Agreements outline how a single provider maintains and operates an entire property.
• Party Relationships: Shared Facilities Agreements create mutual obligations between co-users of spaces, whereas Facilities Management Agreements establish a service provider relationship with one managing entity.
• Cost Structure: Shared Facilities Agreements divide costs among users based on usage or area, while Facilities Management Agreements typically involve fixed management fees and operational budgets.
• Operational Control: Shared Facilities Agreements distribute decision-making rights among users, but Facilities Management Agreements delegate operational control to the management company.