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A Facilities Management Agreement sets out how a service provider will handle the day-to-day operations of a building or workplace. It covers everything from cleaning and maintenance to security and utilities management, establishing clear service levels, costs, and responsibilities between the facility manager and property owner.

Under Australian contract law, these agreements typically include workplace health and safety obligations, compliance with building codes, and sustainability requirements. They're especially common in commercial properties, healthcare facilities, and educational institutions where professional management helps owners meet their legal duties while maintaining asset value.

Consider a Facilities Management Agreement when your property requires professional oversight of daily operations and maintenance. This becomes essential for commercial buildings, shopping centers, or multi-tenant complexes where coordinated management of services, security, and maintenance directly impacts tenant satisfaction and asset value.

The agreement proves particularly valuable when expanding operations, taking over new properties, or upgrading facility services to meet Australian compliance standards. It helps property owners delegate complex operational responsibilities while maintaining clear accountability, especially in situations requiring specialized expertise in areas like environmental sustainability, workplace safety, or building code compliance.

• Single-Service Agreements: Focus on one specific aspect like cleaning or security, with detailed performance metrics and specialized requirements for that service
• Integrated FM Agreements: Cover multiple services under one contract, ideal for large commercial properties needing comprehensive management
• Performance-Based Agreements: Structure payments around specific KPIs and service levels, common in premium office buildings and shopping centres
• Cost-Plus Agreements: Base fees on actual costs plus management fee, typically used for properties with variable operational needs
• Fixed-Price Agreements: Set predetermined fees for defined services, popular with smaller properties seeking budget certainty

• Property Owners: Engage facility management services to maintain their assets, including commercial buildings, shopping centers, and industrial complexes
• Facility Management Companies: Provide the contracted services and coordinate day-to-day operations under the agreement terms
• Legal Teams: Draft and review agreements to ensure compliance with Australian property and workplace laws
• Building Tenants: Benefit from and often contribute to the cost of managed services through their lease arrangements
• Service Contractors: Perform specific duties like cleaning, security, or maintenance under the facility manager's direction

• Property Details: Document the exact scope of facilities, including building specifications, equipment inventory, and service areas
• Service Requirements: List all required services, performance standards, and response times for maintenance and operations
• Cost Structure: Determine pricing model, payment terms, and any performance-based incentives or penalties
• Compliance Requirements: Gather relevant Australian building codes, workplace safety regulations, and environmental standards
• Key Contacts: Identify authorized representatives, emergency contacts, and reporting hierarchies for both parties
• Review Process: Use our platform to generate a legally-sound agreement that includes all mandatory elements and minimizes drafting errors

• Parties and Scope: Clear identification of parties and detailed description of managed facilities and services
• Service Standards: Specific performance metrics, quality benchmarks, and reporting requirements
• Term and Termination: Contract duration, renewal options, and conditions for early termination
• Payment Terms: Fee structure, payment schedule, and provisions for cost adjustments
• WHS Compliance: Work health and safety obligations under Australian regulations
• Insurance Requirements: Mandatory coverage types and minimum insurance levels
• Dispute Resolution: Clear procedures for handling disagreements under Australian jurisdiction

A Facilities Management Agreement differs significantly from a Property Management Agreement in several key aspects, though both deal with property oversight. The main distinction lies in their scope and focus.

• Service Scope: Facilities Management Agreements concentrate on operational services, maintenance, and workplace functionality, while Property Management Agreements focus on tenant relations, rent collection, and property marketing
• Technical Focus: Facilities agreements emphasize building systems, infrastructure maintenance, and workplace safety compliance. Property management deals more with financial and administrative aspects
• Skill Requirements: Facilities managers need technical expertise in building operations and workplace safety. Property managers require real estate knowledge and tenant management skills
• Performance Metrics: Facilities agreements measure operational efficiency and service delivery. Property management tracks occupancy rates and financial returns