The Facilities Management Contract serves as a crucial legal framework for organizations requiring professional management of their facilities in Saudi Arabia. It is designed to establish a comprehensive service agreement between facility management providers and property owners or operators, covering aspects such as maintenance, cleaning, security, and technical services. The document ensures compliance with Saudi Arabian regulations, including Sharia law principles, labor laws, and municipal requirements, while incorporating specific provisions for Saudization quotas and HSE standards. This contract type is essential for maintaining operational efficiency and regulatory compliance in various facility types, from commercial buildings to industrial complexes, and includes detailed service level agreements, performance metrics, and risk allocation mechanisms.
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1. Parties: Identification of the contracting parties including full legal names, commercial registration numbers, and authorized representatives
2. Background: Context of the agreement including facility details and purpose of the contract
3. Definitions and Interpretation: Detailed definitions of terms used throughout the contract and rules of interpretation
4. Scope of Services: Comprehensive description of facilities management services to be provided
5. Term and Commencement: Duration of the contract, commencement date, and renewal provisions
6. Contractor's Obligations: Detailed responsibilities of the FM contractor including service levels, compliance requirements, and reporting obligations
7. Client's Obligations: Responsibilities of the client including access provision, information sharing, and cooperation requirements
8. Personnel and Staffing: Requirements for staffing, including Saudization requirements, qualifications, training, and supervision
9. Fees and Payment Terms: Pricing structure, payment schedule, invoicing procedures, and VAT provisions
10. Performance Monitoring: KPIs, performance measurement methods, and reporting requirements
11. Health, Safety and Environment: HSE requirements and compliance with Saudi regulations
12. Insurance and Liability: Required insurance coverage and allocation of liabilities
13. Termination: Grounds for termination, termination procedures, and consequences
14. Force Majeure: Definition of force majeure events and their implications
15. Dispute Resolution: Procedures for resolving disputes under Saudi law
16. Governing Law: Confirmation of Saudi law as governing law and relevant jurisdictional provisions
1. Transition and Mobilization: Include when there's a complex mobilization phase or transition from another provider
2. Energy Management: Include for contracts with specific energy efficiency requirements or targets
3. Asset Management: Include when the scope includes comprehensive asset management responsibilities
4. Technology and CAFM Systems: Include when specific facility management software or systems are required
5. Business Continuity: Include for critical facilities requiring specific business continuity planning
6. Sustainability Requirements: Include when specific environmental or sustainability targets are required
7. Special Security Requirements: Include for facilities with enhanced security needs
8. Variations and Change Management: Include for contracts where significant variations are anticipated
1. Schedule 1 - Service Specifications: Detailed technical specifications for each service area
2. Schedule 2 - Key Performance Indicators: Detailed KPIs, measurement methodologies, and penalties/rewards
3. Schedule 3 - Pricing and Commercial Terms: Detailed breakdown of fees, pricing mechanisms, and payment calculations
4. Schedule 4 - Site Information: Facility details, plans, and relevant technical information
5. Schedule 5 - Staff Organization: Organizational structure, key personnel, and minimum staffing requirements
6. Schedule 6 - Equipment and Assets: List of equipment provided by each party and maintenance responsibilities
7. Schedule 7 - Required Reports: Templates and specifications for required reporting
8. Schedule 8 - Form of Performance Bond: Format and requirements for performance security
9. Schedule 9 - HSE Requirements: Detailed health, safety, and environmental requirements
10. Schedule 10 - Handover Requirements: Specifications for contract completion and facility handover
11. Appendix A - Required Permits and Licenses: List of mandatory permits and licenses required for service delivery
12. Appendix B - Emergency Procedures: Detailed emergency response procedures and protocols
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