Facilities Management Agreement Template for South Africa

A Facilities Management Agreement sets out how a service provider will handle the day-to-day operations of a property or building complex. It covers everything from maintenance and security to cleaning and technical systems, following South African building regulations and occupational health standards.

These agreements are particularly important for commercial properties, shopping centers, and office parks across South Africa. They specify performance targets, service levels, and cost structures while outlining each party's responsibilities. A well-drafted agreement protects both the property owner and the facilities management company by clearly defining expectations, reporting requirements, and compliance with local municipal bylaws.

Consider a Facilities Management Agreement when taking on significant property responsibilities, especially for multi-tenant buildings, retail centers, or industrial complexes in South Africa. This agreement becomes essential once your property requires coordinated maintenance, security, or specialized technical services from external providers.

The timing is particularly critical when expanding property portfolios, transitioning between service providers, or upgrading building systems to meet new regulatory requirements. Having this agreement in place before operational challenges arise helps prevent service disruptions, manages costs effectively, and ensures compliance with South African property management regulations and occupational safety standards.

• Basic Service Agreement: Covers fundamental property maintenance, cleaning, and security services - ideal for single-tenant buildings or smaller properties
• Comprehensive Management Agreement: Includes advanced technical systems, sustainability measures, and specialized services for large commercial complexes
• Performance-Based Agreement: Links payment structures to specific KPIs and service levels, common in retail and office parks
• Integrated Facilities Agreement: Combines property management with additional services like catering or IT support - suited for corporate headquarters
• Sectional Title Management Agreement: Specifically structured for sectional title schemes under South African property law

• Property Owners: Commercial landlords, property investment companies, or body corporates who need professional management of their buildings
• Facilities Management Companies: Professional service providers who execute the maintenance, security, and operational tasks outlined in the agreement
• Property Lawyers: Draft and review agreements to ensure compliance with South African property law and municipal regulations
• Building Managers: Oversee daily implementation of the agreement terms and coordinate with service providers
• Tenants: Benefit from and must comply with facilities management protocols, especially in multi-tenant buildings

• Property Details: Gather complete building specifications, equipment inventories, and maintenance records
• Service Scope: List all required services, from basic maintenance to specialized technical support
• Performance Standards: Define measurable KPIs and service levels aligned with South African building regulations
• Cost Structure: Document all fees, payment terms, and potential additional charges
• Compliance Requirements: Check relevant municipal bylaws and occupational health standards
• Documentation Tools: Use our platform to generate a legally-sound agreement that includes all mandatory elements
• Stakeholder Input: Collect feedback from building managers and key service providers

• Parties and Properties: Full legal names, registration details, and comprehensive property descriptions
• Service Scope: Detailed breakdown of all facilities management duties and exclusions
• Performance Metrics: Specific KPIs, reporting requirements, and quality standards
• Financial Terms: Fee structures, payment schedules, and cost escalation provisions
• Duration and Renewal: Contract term, extension options, and termination conditions
• Compliance Clauses: References to relevant South African property laws and safety regulations
• Liability and Insurance: Risk allocation, indemnification requirements, and mandatory coverage levels
• Dispute Resolution: Clear procedures aligned with South African commercial law

A Facilities Management Agreement differs significantly from a Property Management Agreement in both scope and focus. While they may seem similar at first glance, their purposes and applications are distinct within South African property law.

• Scope of Services: Facilities Management Agreements focus specifically on physical building operations, maintenance, and technical systems. Property Management Agreements cover broader aspects including tenant relations, financial management, and strategic property decisions.
• Responsibility Level: Facilities managers handle day-to-day operational tasks and maintenance, while property managers make higher-level decisions about property value, tenant mix, and investment strategies.
• Technical Requirements: Facilities agreements include detailed technical specifications and performance standards for building systems. Property management contracts focus more on financial targets and occupancy rates.
• Regulatory Focus: Facilities agreements emphasize compliance with occupational health and safety regulations, while property management deals more with rental laws and property investment regulations.