Facilities Management Agreement Template for Australia

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Key Requirements PROMPT example:

Facilities Management Agreement

"I need a Facilities Management Agreement for a 20-story commercial office building in Sydney, with a particular focus on sustainability requirements and green building maintenance, starting from March 2025."

Document background
The Facilities Management Agreement is a critical document used when engaging professional services for the comprehensive management and maintenance of facilities in Australia. This agreement is essential when a property owner, corporation, or institution requires outsourced facility management services, covering aspects such as building maintenance, cleaning, security, space management, and operational support. The document establishes the legal and operational framework for service delivery, incorporating Australian regulatory requirements, industry standards, and best practices. It is particularly vital for organizations seeking to ensure professional management of their facilities while maintaining compliance with Australian workplace safety, environmental, and building regulations. The agreement typically includes detailed service specifications, performance metrics, pricing structures, and risk allocation mechanisms, making it suitable for various facility types from commercial buildings to institutional complexes.
Suggested Sections

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

2. Background: Context of the agreement, facility details, and purpose of the engagement

3. Definitions and Interpretation: Defined terms, rules of interpretation, and hierarchy of documents

4. Term and Extension: Duration of the agreement, renewal options, and extension conditions

5. Services: Detailed scope of facilities management services to be provided

6. Service Provider's Obligations: Key responsibilities, performance standards, and compliance requirements

7. Client's Obligations: Access provisions, information sharing, and client responsibilities

8. Fees and Payment: Payment terms, fee structure, expenses, and invoicing requirements

9. Performance Management: KPIs, performance monitoring, reporting requirements, and review processes

10. Staff and Subcontractors: Requirements for personnel, subcontractor management, and key staff provisions

11. Work Health and Safety: Safety obligations, risk management, and compliance requirements

12. Insurance and Liability: Required insurance coverage, liability limits, and indemnities

13. Default and Termination: Events of default, termination rights, and consequences of termination

14. Transition and Exit: Handover requirements and transition assistance obligations

15. General Provisions: Standard boilerplate clauses including notices, governing law, and dispute resolution

Optional Sections

1. Environmental Management: Include when specific environmental compliance or sustainability requirements apply

2. Security Services: Include when security services are part of the scope

3. Asset Management: Include when the provider is responsible for asset lifecycle management

4. Energy Management: Include when energy efficiency and utilities management are key requirements

5. Innovation and Continuous Improvement: Include when seeking ongoing service improvements and innovations

6. Disaster Recovery and Business Continuity: Include for critical facilities requiring specific continuity planning

7. Technology and Systems: Include when specific facility management systems or technology are required

8. Change Management: Include when significant facility changes or upgrades are anticipated

Suggested Schedules

1. Schedule 1 - Service Specifications: Detailed breakdown of all services, service levels, and frequency

2. Schedule 2 - Fee Schedule: Detailed pricing, payment structure, and fee adjustment mechanisms

3. Schedule 3 - Performance Standards and KPIs: Specific performance metrics, measurement methods, and targets

4. Schedule 4 - Site Information: Facility details, plans, and specific site requirements

5. Schedule 5 - Staff Requirements: Required positions, qualifications, and experience levels

6. Schedule 6 - Equipment and Assets: List of equipment, maintenance requirements, and asset registers

7. Schedule 7 - Reporting Requirements: Required reports, formats, and submission timeframes

8. Schedule 8 - Forms and Templates: Standard forms for reporting, requests, and communications

9. Appendix A - Emergency Procedures: Emergency response procedures and contact information

10. Appendix B - Compliance Requirements: Specific regulatory and compliance obligations

Authors

Alex Denne

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

Relevant legal definitions
Clauses
Relevant Industries

Commercial Real Estate

Healthcare

Education

Government and Public Sector

Retail

Industrial and Manufacturing

Hospitality

Corporate Offices

Data Centers

Infrastructure

Shopping Centers

Residential Complex Management

Relevant Teams

Facilities Management

Operations

Property Management

Procurement

Legal

Risk and Compliance

Finance

Asset Management

Building Services

Health and Safety

Commercial

Sustainability

Relevant Roles

Facilities Manager

Property Manager

Operations Director

Chief Operating Officer

Procurement Manager

Contract Manager

Building Services Manager

Asset Manager

Maintenance Manager

Risk and Compliance Manager

Commercial Manager

Property Services Director

Building Operations Manager

Health and Safety Manager

Sustainability Manager

Industries
Work Health and Safety Act 2011 (Cth): Primary legislation governing workplace health and safety obligations, risk management, and duty of care requirements in facility operations
Fair Work Act 2009 (Cth): Governs employment terms, conditions, and relationships for facility management staff, including minimum wages, leave entitlements, and workplace rights
Environmental Protection and Biodiversity Conservation Act 1999 (Cth): Federal environmental law relevant to waste management, environmental compliance, and sustainable facility operations
National Construction Code (Building Code of Australia): Sets minimum requirements for safety, health, amenity, and sustainability in building design and maintenance
Competition and Consumer Act 2010 (including Australian Consumer Law): Governs service agreements, consumer protections, and fair trading practices in facility management contracts
Privacy Act 1988 (Cth): Regulates the handling of personal information of building occupants and tenants
Building and Property Management Legislation (State-specific): State-based regulations governing building maintenance, essential safety measures, and property management requirements
Security Industry Act (State-specific): Regulates security services and access control systems in managed facilities
Disability Discrimination Act 1992 (Cth): Ensures facilities are accessible and non-discriminatory for people with disabilities
Work Health and Safety Regulations 2011: Detailed regulations supporting the WHS Act, including specific requirements for facility maintenance and operations
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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