Facility Management Contract

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5
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Document Overview

A Facility Management Contract (FMC) is a legally binding agreement between a service provider (facility management company) and a client (property owner, business, or organization) for the management and maintenance of a facility or property.

A well-drafted facility management contract typically includes the following components:
1. Parties to the Contract
2. Scope of Services
3. Service Level Agreements (SLAs)
4. Duration and Renewal Terms
5. Pricing and Payment Terms
6. Roles and Responsibilities
7. Legal and Compliance Requirements
8. Performance Monitoring and Reporting
9. Termination and Exit Strategy
10. Force Majeure Clause

The main objectives of a facility management contract include:
1. Ensuring smooth facility operations by outsourcing non-core functions to experts.
2. Maintaining safety and compliance with legal and regulatory standards.
3. Enhancing efficiency by defining clear responsibilities and SLAs.
4. Reducing operational costs through structured maintenance and service agreements.
5. Providing business continuity by preventing downtime due to maintenance issues.
6. Improving asset lifespan by ensuring regular maintenance and timely repairs.

Facility management contracts are commonly used in corporate offices, hospitals, educational institutions, malls, hotels, manufacturing plants, and government buildings to ensure that the facility remains functional, clean, and safe.

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