Facility Management Contract for Malaysia

Facility Management Contract Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the terms and conditions for the provision of facility management services. The contract details the scope of services, performance standards, operational requirements, and commercial terms between a facility management service provider and the client. It incorporates specific provisions to comply with Malaysian regulations including the Employment Act 1955, Occupational Safety and Health Act 1994, and other relevant legislation. The document addresses key aspects such as service delivery, staff management, maintenance requirements, health and safety protocols, and performance monitoring within the Malaysian legal framework.

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What is a Facility Management Contract?

The Facility Management Contract serves as the primary legal instrument for establishing and governing the relationship between facility management service providers and their clients in Malaysia. This document is essential when engaging professional facility management services for commercial, industrial, or institutional properties. It encompasses comprehensive provisions for building maintenance, cleaning, security, technical services, and other facility-related services while ensuring compliance with Malaysian regulations. The contract addresses crucial elements including service levels, staff management, health and safety requirements, and performance monitoring, making it suitable for various facility types from office buildings to specialized facilities. This document type is particularly important in the Malaysian context where facility management services must align with local building standards, environmental regulations, and employment laws.

What sections should be included in a Facility Management Contract?

1. Parties: Identification of the service provider and client, including their registered addresses and company details

2. Background: Context of the agreement, facility details, and purpose of the contract

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Appointment and Term: Formal appointment of facility manager, contract duration, and renewal terms

5. Scope of Services: Comprehensive outline of facility management services to be provided

6. Service Provider's Obligations: Detailed responsibilities and duties of the facility management company

7. Client's Obligations: Responsibilities and obligations of the client, including access and information provision

8. Performance Standards: Required service levels, KPIs, and quality standards

9. Staff and Subcontractors: Requirements for personnel, training, and subcontractor management

10. Fees and Payment Terms: Pricing structure, payment schedule, and related financial terms

11. Health, Safety and Environmental Requirements: Safety protocols, environmental compliance, and risk management procedures

12. Insurance and Liability: Insurance requirements and allocation of liabilities between parties

13. Termination: Grounds for termination, notice periods, and consequences of termination

14. Confidentiality: Protection of confidential information and data privacy requirements

15. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration

16. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law

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

1. Special Facility Requirements: For specialized facilities like hospitals or data centers, including specific regulatory compliance requirements

2. Energy Management: For contracts with specific focus on energy efficiency and sustainability

3. Asset Management: When the scope includes detailed asset lifecycle management and replacement planning

4. Technology and Systems: When specific building management systems or technology platforms are part of the service

5. Transition Services: When taking over from an incumbent service provider or complex mobilization is required

6. Emergency Response: For high-risk facilities requiring detailed emergency procedures

7. Cultural or Religious Requirements: For facilities requiring specific cultural or religious considerations in Malaysia

8. Value Added Services: For additional services beyond basic facility management scope

What schedules should be included in a Facility Management Contract?

1. Schedule 1 - Facility Details: Detailed description of the facility, including floor plans and asset registers

2. Schedule 2 - Scope of Services Matrix: Detailed breakdown of services, frequencies, and responsibilities

3. Schedule 3 - Service Levels and KPIs: Specific performance metrics, measurement methods, and reporting requirements

4. Schedule 4 - Pricing and Commercial Terms: Detailed fee structure, pricing mechanisms, and payment terms

5. Schedule 5 - Staff Organization: Organization structure, key positions, and minimum staffing requirements

6. Schedule 6 - Operating Procedures: Standard operating procedures for routine and specialized services

7. Schedule 7 - Reporting Requirements: Templates and specifications for required reports and documentation

8. Schedule 8 - Health and Safety Requirements: Detailed safety procedures and compliance requirements

9. Appendix A - Equipment List: Inventory of equipment and assets under management

10. Appendix B - Forms and Templates: Standard forms for various operational processes and reporting

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

Malaysia

Publisher

Genie AI

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Commercial Real Estate

Healthcare

Education

Industrial

Retail

Hospitality

Government and Public Sector

Technology

Manufacturing

Banking and Financial Services

Telecommunications

Transportation and Logistics

Relevant Teams

Facilities Management

Operations

Legal

Procurement

Property Management

Maintenance

Health Safety and Environment

Security

Commercial

Risk Management

Asset Management

Technical Services

Relevant Roles

Facility Manager

Operations Director

Property Manager

Maintenance Manager

Contract Manager

Procurement Manager

Legal Counsel

Chief Operations Officer

Building Services Manager

Health and Safety Manager

Asset Manager

Technical Services Manager

Sustainability Manager

Security Manager

Commercial Director

Industries
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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