Facility Management Service Agreement: Everything You Need to Know

Facility management is an integral part of any commercial building or property. It involves the management and maintenance of the building`s systems, equipment, and operations. Facilities management service agreements are legal documents that outline the terms and conditions of the services provided by the facility management company.

The purpose of a facility management service agreement is to protect both the facility management company and the client. The agreement defines the scope of work, outlines the services to be provided, and sets out the responsibilities of both parties. It also includes pricing, payment terms, and any special terms and conditions.

If you are a facility manager or a business owner who is in need of facility management services, it is important to understand the basics of a facility management service agreement. Here is a breakdown of what you need to know:

Scope of Work

The scope of work section is one of the most important sections of the agreement. It outlines the specific services that the facility management company will provide. This can include maintenance and repair of HVAC systems, electrical systems, plumbing systems, and other building systems. It can also include cleaning services, landscaping services, and security services.

Pricing

The pricing section outlines the cost of the services provided by the facility management company. This can include a flat fee for all services, or it can be broken down into individual services with separate pricing for each. It is important to understand all of the costs associated with the services being provided, including any additional fees for after-hours or emergency services.

Payment Terms

The payment terms section outlines how and when payment will be made to the facility management company. This can include a one-time payment, monthly payments, or payments based on specific milestones. It is important to understand the payment terms and ensure that they are acceptable to both parties.

Responsibilities

The responsibilities section outlines the responsibilities of both the client and the facility management company. This includes the client`s responsibility to provide access to the building and any necessary information about the building`s systems and operations. It also includes the facility management company`s responsibility to provide timely and effective services.

Term and Termination

The term and termination section outlines the length of the agreement and the circumstances under which the agreement can be terminated. This can include termination for breach of contract, non-payment, or other reasons.

Conclusion

A facility management service agreement is an important legal document that protects both the facility management company and the client. It outlines the specific services to be provided, pricing, payment terms, and responsibilities. If you are in need of facility management services, it is important to understand the basics of a facility management service agreement to ensure that you are getting the services you need at a fair price.