I have substantial experience of setting up long term operation and maintenance/facilities management (O&M/FM) contracts.

Besides documenting the services that are to be provided, I advise on the importance of setting out the measures that will be applied to monitor the performance of the service provider to ensure that it is improving over time.

My experience includes:

  • advising on advantages and disadvantages of O&M/FM contracts;
  • choosing an appropriate contract format (which may be a standard form, or based on a standard form and various project-specific schedules);
  • drafting and negotiating the facilities management contract.

I also understand that with such arrangements, it is vital to reality test how they may work in practice as the law of unintended consequences has a habit of undermining such arrangements.

For further information or to discuss a matter, please Contact me.

What is FM Contracting

Facilities management (FM) contracting is a commercial services contract arrangement, which can be for:

  • the maintenance and fabric of a building such as mechanical and electrical services (Hard FM)
  • support services within a building such as cleaning, security and helpdesking (Soft FM)
  • a combination of the above services (Total FM)

Entering into an FM contract enables a business to redefine its business activities—the FM contractor and the client enter into a binding contractual arrangement under which the FM contractor undertakes to carry out services which were traditionally carried out by the client itself.

An FM Contract is, typically, complex because it must carefully balance all the interrelated contract elements related to the transfer and future delivery of those services.

Where the contract involves Hard FM services, it also brings into play the provisions and specific drafting requirements of the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996).

In addition, along with the transfer of the services goes the transfer of the relevant client personnel and this means that additional factors have to be considered, including the impact of employment law compliance i.e. Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE Regs 2006), wider community issues such as industrial relations negotiations and knowledge management (because operational know-how which exists within the business itself frequently transfers from the client to the provider side).

For further information or to discuss a matter, please Contact me.