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Facilities Management Contract

Facilities Management Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Facilities Management Contract

"I need a Facilities Management Contract for a new shopping mall in Riyadh, with services commencing January 2025, that includes comprehensive maintenance, cleaning, security, and waste management services, with specific provisions for Ramadan operating hours and crowd management during peak seasons."

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Document background
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.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Acceptance Criteria
Affiliate
Applicable Laws
Approved Subcontractor
Assets
Authority
Base Services
Best Industry Practice
Building
Building Systems
Business Day
CAFM System
Change Order
Client Representative
Commencement Date
Competent Authority
Confidential Information
Contract Price
Contract Year
Contractor Representative
Core Hours
Corrective Maintenance
Critical Systems
Defects
Deliverables
Emergency
Emergency Response Time
Environmental Requirements
Equipment
Expiry Date
Facility
Force Majeure Event
Good Industry Practice
Governing Law
Health and Safety Requirements
Help Desk
Initial Term
Intellectual Property Rights
Key Performance Indicators
Key Personnel
Maintenance Schedule
Material Breach
Mobilization Period
Non-Core Hours
Notice
Operating Hours
Optional Services
Performance Bond
Performance Standards
Planned Maintenance
Premises
Preventive Maintenance
Quality Management System
Reactive Maintenance
Regular Hours
Regulatory Requirements
Response Time
SAR
Saudization Requirements
Service Credits
Service Level Agreement
Service Provider
Services
Site
Specification
Staff
Standard Operating Procedures
Subcontractor
Term
Termination Date
Third Party
Transition Period
VAT
Warranty Period
Work Order
Working Hours
Clauses
Interpretation
Scope of Services
Term and Duration
Contractor Obligations
Client Obligations
Service Standards
Performance Management
Key Performance Indicators
Staffing and Personnel
Saudization Requirements
Health and Safety
Environmental Protection
Quality Management
Fees and Payment
Invoicing
Price Adjustment
Insurance
Liability and Indemnity
Force Majeure
Subcontracting
Assignment
Confidentiality
Data Protection
Intellectual Property
Warranties
Compliance with Laws
Anti-corruption
Contract Management
Reporting Requirements
Audit Rights
Change Control
Dispute Resolution
Termination
Exit Management
Notices
Governing Law
Emergency Response
Business Continuity
Asset Management
Risk Management
Performance Security
Mobilization
Training Requirements
Documentation
Customer Service
Equipment and Materials
Maintenance Standards
Security Requirements
Utilities Management
Waste Management
Relevant Industries

Real Estate

Commercial Property

Residential Property

Healthcare

Education

Retail

Industrial

Hospitality

Government Buildings

Mixed-use Developments

Shopping Centers

Office Complexes

Manufacturing Facilities

Logistics and Warehousing

Religious Facilities

Relevant Teams

Facilities Management

Operations

Legal

Procurement

Commercial

Property Management

Technical Services

Health Safety and Environment

Asset Management

Contract Administration

Real Estate

Risk and Compliance

Building Services

Project Management

Relevant Roles

Facilities Manager

Operations Director

Property Manager

Contract Manager

Commercial Director

Technical Services Manager

Maintenance Manager

HSE Manager

Procurement Manager

Legal Counsel

Chief Operating Officer

Asset Manager

Building Services Manager

Real Estate Manager

Compliance Officer

Project Manager

General Manager

Industries
Saudi Commercial Law (Royal Decree No. M/32): Governs commercial transactions and business contracts in Saudi Arabia, providing the basic framework for commercial agreements
Saudi Labor Law (Royal Decree No. M/51): Regulates employment relationships, working conditions, and rights of workers, which is crucial for FM contracts involving staff management
Saudi Building Code (SBC 201): Provides standards for building maintenance, safety requirements, and technical specifications that FM providers must comply with
Environmental Protection Standards (Royal Decree No. M/34): Sets requirements for environmental protection and waste management, which are often part of FM services
Contractor Classification Law: Regulates the licensing and classification of contractors, including facilities management service providers
Saudi Civil Defense Requirements: Specifies safety and emergency management requirements for buildings and facilities that FM providers must maintain
Saudization (Nitaqat) Regulations: Mandates minimum percentages of Saudi national employment in companies, affecting staffing requirements in FM contracts
Value Added Tax (VAT) Law: Governs the application of VAT to facilities management services and related transactions
Municipal and Rural Affairs Technical Requirements: Specifies local requirements for facility operations and maintenance within different municipalities
Saudi Standards, Metrology and Quality Organization (SASO) Regulations: Provides technical standards and quality requirements that may apply to equipment and services in FM contracts
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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