Facilities management agreement

by Practical Law Commercial

A facilities management (FM) agreement for use in a business-to-business context, drafted to be broadly neutral to both parties. This document is suitable for relatively long-term arrangements where a customer requires a supplier to manage large, complex, or multiple properties, covering hard FM (for example, building maintenance), soft FM (for example, security and cleaning) services, or both. It establishes a framework for the entire service lifecycle, from an initial implementation phase through to the provision of ongoing operational services. Key provisions address service levels and performance monitoring, a service credit regime, and a formal change control procedure to manage variations. The agreement also navigates crucial compliance issues, including data protection obligations, staff transfers under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (SI2006/246) (TUPE), and specific compliance with legislation relating to fraud and bribery. It also features clauses on limitation of liability, subcontracting, and termination, as well as an exit management plan to ensure a smooth transition of services upon expiry or termination.