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Facility Management Contract for Saudi Arabia

Facility Management Contract Template for Saudi Arabia

A comprehensive contract governed by Saudi Arabian law that establishes the terms and conditions for the provision of facility management services. This document outlines the responsibilities of the facility management provider, service level agreements, performance metrics, and compliance requirements with Saudi regulations including labor laws and Saudization requirements. It incorporates Sharia-compliant provisions and addresses key aspects such as maintenance, security, cleaning, technical services, and building operations while ensuring alignment with Saudi building codes and environmental regulations.

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Facility Management Contract

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What is a Facility Management Contract?

The Facility Management Contract is essential for organizations requiring professional management and maintenance of their facilities in Saudi Arabia. This document is typically used when a property owner or operator needs to outsource the comprehensive management of their facilities to a specialized service provider. The contract must comply with Saudi Arabian law and Sharia principles while incorporating local regulatory requirements, including Saudization policies, labor laws, and safety standards. It covers all aspects of facility operations, from daily maintenance and cleaning to technical services and emergency response, with detailed service level agreements and performance metrics. The document is particularly important in ensuring clear delineation of responsibilities, risk allocation, and operational standards while maintaining compliance with local municipal regulations and industry best practices.

What sections should be included in a Facility Management Contract?

1. Parties: Identification of the facility owner/client and the facility management company

2. Background: Context of the agreement and brief description of the facility and services required

3. Definitions: Detailed definitions of terms used throughout the contract

4. Scope of Services: Comprehensive description of facility management services to be provided

5. Term and Renewal: Duration of the contract and conditions for renewal

6. Contractor's Obligations: Detailed responsibilities of the facility management company

7. Client's Obligations: Responsibilities and obligations of the facility owner/client

8. Personnel and Staffing: Requirements for staffing, including Saudization requirements and key personnel

9. Performance Standards: Service level agreements and performance metrics

10. Payment Terms: Fees, payment schedule, and payment mechanisms

11. Health, Safety and Environment: HSE requirements and compliance obligations

12. Insurance and Liability: Insurance requirements and allocation of risks

13. Termination: Grounds and procedures for contract termination

14. Dispute Resolution: Procedures for resolving disputes in accordance with Saudi law

15. Governing Law: Confirmation of Saudi law as governing law and Sharia compliance

What sections are optional to include in a Facility Management Contract?

1. Emergency Services: Additional section for facilities requiring 24/7 emergency response services

2. Specialized Technical Services: For facilities with specific technical requirements (e.g., data centers, healthcare facilities)

3. Energy Management: For contracts with specific focus on energy efficiency and management

4. Asset Management: When the contract includes comprehensive asset management services

5. Transition Services: When handover from previous facility manager is required

6. Security Services: For facilities requiring specific security arrangements

7. Force Majeure: Detailed provisions for force majeure events, particularly relevant in high-risk areas

What schedules should be included in a Facility Management Contract?

1. Schedule 1 - Service Specifications: Detailed breakdown of all facility management services and requirements

2. Schedule 2 - Key Performance Indicators: Specific metrics and targets for performance measurement

3. Schedule 3 - Pricing and Payment Schedule: Detailed breakdown of fees, costs, and payment terms

4. Schedule 4 - Site Plans and Facility Details: Plans, drawings, and specific details of the facilities covered

5. Schedule 5 - Equipment and Assets Inventory: List of equipment and assets under management

6. Schedule 6 - Staff Organization Chart: Required staffing structure including key positions and Saudization requirements

7. Schedule 7 - Required Permits and Certifications: List of mandatory permits and certifications

8. Schedule 8 - Health and Safety Requirements: Detailed HSE procedures and requirements

9. Appendix A - Emergency Response Procedures: Detailed procedures for emergency situations

10. Appendix B - Reporting Templates: Standard formats for required reports and documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions



















































Clauses









































Relevant Industries

Real Estate

Commercial Property

Healthcare

Education

Retail

Hospitality

Industrial

Government & Public Sector

Data Centers

Mixed-use Developments

Religious Facilities

Transportation Facilities

Relevant Teams

Legal

Operations

Facility Management

Procurement

Health Safety & Environment

Technical Services

Commercial

Risk & Compliance

Property Management

Asset Management

Building Services

Contract Administration

Relevant Roles

Facility Manager

Operations Director

Property Manager

Maintenance Manager

Contract Manager

Procurement Manager

Legal Counsel

Technical Services Manager

HSE Manager

Commercial Director

Chief Operations Officer

Real Estate Manager

Asset Manager

Building Services Manager

Compliance Officer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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