Facilities Management—contractual issues
Produced in partnership with Karen Clarke of CMS

The following Construction practice note produced in partnership with Karen Clarke of CMS provides comprehensive and up to date legal information covering:

  • Facilities Management—contractual issues
  • Procurement issues
  • Parties, privity and third party interests
  • Duration
  • Governance
  • Active contract management
  • Disaster planning and business continuity
  • Contractor's key obligations
  • Client's key obligations
  • Change mechanisms
  • More...

Facilities Management—contractual issues

IP COMPLETION DAY: The Brexit transition period ended at 11pm on 31 December 2020. At this time (referred to in UK law as ‘IP completion day’), transitional arrangements ended and significant changes began to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: What does IP completion day mean for Construction?

When entering into a facilities management (FM) arrangement there are many contractual issues for the parties to consider, ranging from how to best place the contract (procurement options and requirements) all the way through to what will happen if, in practice, the contract doesn't live up to expectations (change mechanisms, termination and dispute resolution).

This Practice Note summarises the key contractual issues to be addressed when putting together the formal contract document. Each of the issues requires careful consideration and tailoring to take into account any specific project requirements, but it is essential that during negotiations the parties keep in mind the overall contractual matrix of risks and responsibilities (see diagram: What does a Facilities Management contract look like—diagram).

Procurement issues

Issues around the procurement of FM services can be split into two categories:

  1. how will the client go about procuring the FM contract relationship itself? What will be the process for tendering and entering into the contract? Does the

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