Facilities Management—contractual structure
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 structure
  • The basis of an FM contract
  • Standard form contracts
  • Putting together the FM contract
  • Terms and conditions
  • Schedules to an FM contract

Facilities Management—contractual structure

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 are basically counter-offers.

As such, using an appropriate formal contract and documenting all agreed positions in writing is essential. Then the parties can identify what was agreed and when the binding contract came into effect.

Standard form contracts

There are two standard form facilities management contracts in circulation, both of which are accompanied by guidance notes:

  1. Chartered Institute of Building (CIOB)—Facilities Management Contract (2014)

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