Facilities Management Agreement

Facilities Management Agreement Template for United States

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Key Requirements PROMPT example:

"I need a Facilities Management Agreement for our 10-story office building in Chicago, with specific emphasis on sustainable practices and LEED certification compliance, to commence from March 1, 2025."

Document background

The Facilities Management Agreement serves as a critical legal framework for organizations seeking to outsource their facility operations and maintenance to professional service providers. This contract type, commonly used in the United States, ensures clear delineation of responsibilities, performance standards, and risk allocation between parties. It addresses key aspects such as regulatory compliance, service delivery standards, cost management, and operational procedures while adhering to federal and state-specific requirements for facility management services.

Suggested Sections

1. Parties: Identification of the facility owner/client and the facilities management service provider

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

3. Definitions: Key terms used throughout the agreement

4. Scope of Services: Detailed description of facilities management services to be provided

5. Term and Termination: Duration of the agreement and conditions for termination

6. Payment Terms: Fees, payment schedule, and invoicing procedures

7. Service Provider Obligations: Key responsibilities and performance standards

8. Client Obligations: Client's responsibilities and required support

9. Insurance and Indemnification: Required insurance coverage and liability provisions

Optional Sections

1. Performance Metrics: Specific KPIs and service level agreements for complex facilities with specific performance requirements

2. Sustainability Requirements: Environmental and energy efficiency standards for environmentally conscious operations

3. Emergency Procedures: Protocol for handling emergencies in high-risk facilities or 24/7 operations

4. Security Requirements: Security protocols and access control for facilities with sensitive areas or high-security needs

Suggested Schedules

1. Service Level Agreement: Detailed performance metrics and standards

2. Fee Schedule: Detailed breakdown of charges and payment terms

3. Equipment Inventory: List of facility equipment under management

4. Staff Schedule: Personnel deployment and shift patterns

5. Maintenance Schedule: Planned maintenance activities and frequencies

6. Emergency Contact List: Key personnel and emergency contact information

7. Health and Safety Procedures: Detailed safety protocols and requirements

8. Subcontractor List: Approved subcontractors and their roles

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

alex.den.21@genieai.co

Relevant legal definitions

Agreement

Building Systems
Client
Commencement Date

Contract Year

Good Industry Practice

Premises

Services

Term
Termination Date

Clauses

Relevant Industries

Commercial Real Estate
Healthcare
Education
Industrial
Government

Relevant Teams

Facilities Management
Operations
Legal
Procurement
Finance

Relevant Roles

Facilities Manager
Property Manager
Operations Director
Maintenance Supervisor
Chief Operating Officer
Contract Manager
Procurement Manager

Industries

Fair Labor Standards Act (FLSA): Federal law establishing minimum wage, overtime pay, recordkeeping, and child labor standards for full-time and part-time workers in the private sector and government

Occupational Safety and Health Act (OSHA): Federal law ensuring safe and healthful working conditions by setting and enforcing standards and providing training, outreach, education and assistance

Americans with Disabilities Act (ADA): Civil rights law prohibiting discrimination against individuals with disabilities in all areas of public life, including building accessibility requirements

Clean Air Act: Federal law regulating air emissions from stationary and mobile sources, including building HVAC systems and air quality standards

Clean Water Act: Federal law regulating the discharge of pollutants into water sources and quality standards for surface waters

Resource Conservation and Recovery Act (RCRA): Federal law governing the proper management of solid and hazardous waste from generation to disposal

International Building Code (IBC): Model building code that provides minimum requirements for building systems to safeguard public health, safety, and general welfare

Uniform Commercial Code (UCC): Standardized set of business laws regulating financial contracts and transactions across all states

Workers' Compensation Laws: State-specific laws requiring employers to provide insurance coverage for work-related injuries and illnesses

State Contractor Licensing Requirements: State-specific regulations governing the licensing and certification of facilities management contractors and service providers

National Fire Protection Association (NFPA) Standards: Consensus codes and standards for fire prevention, building safety, and other hazard-related conditions

Energy Efficiency Standards: Federal and state requirements for energy conservation and management in commercial buildings

Hazardous Waste Handling Requirements: Federal and state regulations governing the proper handling, storage, and disposal of hazardous materials in facilities

Local Building Codes: Municipality-specific regulations governing building construction, maintenance, and safety requirements

Data Protection Laws: Federal and state regulations governing the protection of sensitive information and electronic systems in facility management

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Authors

Alex Denne

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