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A Facilities Management Agreement spells out how a service provider will handle the day-to-day operations of a building or property on behalf of its owner. In Indonesia, these contracts typically cover essential services like security, cleaning, maintenance, and repairs while following local building management regulations and safety standards.

Beyond basic upkeep, these agreements set clear performance metrics, outline emergency procedures, and establish reporting requirements. They're especially important for Indonesian commercial properties, office complexes, and industrial facilities where proper maintenance directly impacts business operations and tenant satisfaction. The agreement must align with Indonesian Civil Code provisions on service contracts and meet specific municipal requirements for building operations.

Consider implementing a Facilities Management Agreement when your property requires professional oversight and you need to delegate operational responsibilities. This is particularly crucial for Indonesian commercial buildings, shopping centers, or office complexes where consistent maintenance and service quality directly impact tenant satisfaction and property value.

The agreement becomes essential when coordinating multiple service providers, managing complex building systems, or ensuring compliance with local regulations. Many Indonesian property owners use these agreements when expanding their portfolio beyond what in-house teams can handle, or when seeking specialized expertise for technical installations like HVAC systems, elevators, or advanced security setups.

• Single-Service Agreements: Focus on one specific area like security, cleaning, or maintenance - ideal for smaller properties or specialized needs
• Integrated Service Agreements: Cover multiple facility services under one contract, common in large commercial complexes
• Performance-Based Agreements: Link payment to specific service metrics and KPIs, popular in premium office buildings
• Cost-Plus Agreements: Provider charges actual costs plus management fee, typically used for variable-scope services
• Fixed-Price Agreements: Set monthly fee for defined services, preferred by Indonesian property managers for budget certainty

• Property Owners: Commercial building owners, developers, or real estate investment trusts who need professional management services
• Facility Management Companies: Professional service providers who execute daily operations, maintenance, and building services
• Legal Teams: In-house counsel or external law firms who draft and review agreements to ensure compliance with Indonesian regulations
• Building Tenants: Commercial occupants who benefit from and often contribute to facility management costs
• Property Managers: On-site professionals who oversee agreement implementation and coordinate between owners and service providers

• Property Details: Document building specifications, existing systems, and current maintenance requirements
• Service Scope: List specific services needed, from basic maintenance to specialized technical support
• Performance Standards: Define measurable KPIs and service levels aligned with Indonesian building regulations
• Cost Structure: Determine pricing model, payment terms, and budget allocations for different services
• Operational Hours: Specify service schedules, emergency response times, and staff deployment plans
• Documentation: Gather licenses, permits, and insurance certificates required under local regulations
• Reporting Requirements: Outline communication protocols and periodic performance review procedures

• Parties' Details: Complete legal names, addresses, and registration numbers of facility owner and service provider
• Service Scope: Detailed description of all maintenance, security, and operational services to be provided
• Term and Renewal: Contract duration, extension options, and termination conditions
• Payment Terms: Fee structure, payment schedule, and performance-based adjustments
• Performance Standards: Specific KPIs, quality metrics, and compliance requirements
• Insurance Requirements: Mandatory coverage types and minimum amounts under Indonesian law
• Dispute Resolution: Clear procedures for handling conflicts, including local jurisdiction choice
• Force Majeure: Provisions addressing unforeseen circumstances affecting service delivery

A Facilities Management Agreement differs significantly from a Property Management Agreement in several key aspects, though both deal with building operations. The main distinction lies in their scope and focus.

• Service Scope: Facilities Management Agreements concentrate on technical operations, maintenance, and building systems, while Property Management Agreements cover broader aspects like tenant relations, rent collection, and property marketing
• Expertise Required: Facilities managers need technical and operational expertise, whereas property managers focus on business and tenant management skills
• Contract Structure: Facilities agreements typically include detailed service levels and performance metrics for specific building systems, while property management contracts emphasize financial and administrative responsibilities
• Legal Authority: Property managers often have broader decision-making powers and can act as the owner's representative, while facilities managers have limited authority focused on operational matters