Facilities Management—contractual structure
Produced in partnership with Karen Clarke of CMS
Practice notesFacilities Management—contractual structure
Produced in partnership with Karen Clarke of CMS
Practice notes
The basis of an FM contract
When entering into a Facilities management (FM) contract there is a lot to consider (see Diagram: What does a Facilities Management contract look like) and to agree.
As with all forms of contract there must be offer, unconditional acceptance and due consideration for it to be legally binding.
The issue of an initial invitation to tender for FM services does not generally amount to an 'offer' in the legal sense—it is the FM Contractor’s response which would constitute the first 'offer' and negotiations which follow
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Jurisdiction(s):
United Kingdom
Key definition:
Facilities management definition
What does Facilities management mean?
Facilities management contracting is essentially a commercial services contract arrangement, whether that be for 'hard fm' (which relates to the maintenance and fabric of a building such as mechanical and electrical services), 'Soft fm' (which relates to support services within a building such as cleaning, security and helpdesking) or 'Total fm' (which may combine a number of hard and soft facilities management services).
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