To contribute to this, we have developed a model for a AUC that provides a clear basis for establishing agreements for individual schools, universities and academies. Regardless of the type of installation, it is necessary to ensure that the facilities management contract controls certain important provisions to ensure that the facilities management contract correctly fulfils its purpose. As you can see from the discussion above, you and your insurer have a lot to lose if you don`t carefully check the terms of the lease before signing it. It`s best to hire a lawyer or, better yet, hire a lawyer who is part of your management team so you can get a few free legal services. If you refuse to seek legal advice, the risk management principles described above will help reduce your risk. The remittance procedure should include a transition programme of the asset management service provider. The outgoing provider may be asked to provide its successor with adequate training as well as a license to use intellectual property rights for the implementation of facilities management services in the future. Wear and tear is a fact of life and it is therefore important that each facility management contract includes appropriate provisions for the planned maintenance. This is usually done according to a maintenance plan previously agreed by the employer (including in terms of volume and costs).

Although the provisions referred to above are the cornerstone of an effective facilities management contract, it is important that other fundamental clauses are duly addressed, taking into account the commercial activity and the tailor-made provisions aimed at complying with the relevant jurisdictional legislation. These include things such as insurance, force majeure, security of services, payment, subcontracting and clauses relating to the liability of the parties concerned. In addition, the facility lease agreement should require the facility owner to provide evidence that it has its own general liability policy to cover incidents resulting from the negligence of the facility owner. Such a general liability directive should be placed with a carrier valued at least with an A- under AM Best for financial capability and which should have a „for each event“ limit of at least USD 1,000,000. While most trade agreements provide for termination rights in the event of a „material“ breach of contract, it is not clear what constitutes a material breach. In the context of facility management contracts, this uncertainty can be avoided by triggering a ground for termination in the event of a breach of the KPI regime. . . .