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Facilities Management Agreement

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FACILITIES MANAGEMENT AGREEMENT

This Facilities Management Agreement ("Agreement") is entered into as of (the "Effective Date"), by and between:

RECITALS

WHEREAS, Owner operates or controls the facility(ies) identified herein and desires to engage Manager to provide facilities management services in accordance with the terms of this Agreement; and

WHEREAS, Manager represents that it has the skill, experience, personnel and resources necessary to perform the scope of services described in this Agreement and agrees to perform such services in a timely, professional and workmanlike manner; and

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties agree as follows:

SCOPE OF WORK

Manager shall provide facilities management services for the Facility(ies) described below. Manager's responsibilities shall include routine operations, preventive maintenance, corrective repairs, vendor coordination, safety compliance monitoring, and reporting as specified in this Agreement and as documented in Owner-approved schedules and task lists.

PAYMENT TERMS

Owner shall pay Manager for services performed under this Agreement in accordance with the following terms.

Manager will submit itemized invoices in accordance with the payment schedule. Owner must notify Manager in writing of any disputed invoice amount within ten (10) business days of receipt; undisputed amounts remain payable and late charges apply as set forth above.

TERM AND TERMINATION

This Agreement shall commence on and continue until unless earlier terminated as provided herein.

Either party may terminate this Agreement for material breach by the other party if the breaching party fails to cure such breach within thirty (30) days after receipt of written notice specifying the breach. Termination for convenience by Owner prior to the end of the Term shall require thirty (30) days' written notice and payment of any unpaid fees and reasonable wind-down costs.

CONFIDENTIALITY

Manager shall hold in strict confidence all non-public information and records of Owner received in the course of performance and shall not disclose such Confidential Information to any third party except to the extent required by law or as necessary to perform the services hereunder. Manager shall implement commercially reasonable safeguards to prevent unauthorized disclosure and shall ensure that its employees and subcontractors are bound by confidentiality obligations consistent with this Section.

INSURANCE, INDEMNITY AND LIABILITY

Manager shall, at its expense, maintain insurance of commercially reasonable types and limits for services performed, including general liability, workers' compensation and automobile liability as applicable. Manager shall provide proof of insurance upon reasonable request.

Manager agrees to indemnify, defend and hold harmless Owner, its officers, directors and employees from and against any claims, losses, damages, liabilities or expenses arising out of Manager's negligence, willful misconduct or breach of this Agreement, except to the extent caused by Owner's gross negligence or willful misconduct. The parties' liability to each other under this Agreement shall be limited to direct damages; in no event shall either party be liable for consequential, incidental, punitive or special damages.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the state of , without regard to its conflicts of laws principles.

ENTIRE AGREEMENT

This Agreement, including any attachments, schedules or statements of work executed by the parties, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, negotiations and understandings, whether oral or written. Any amendment or modification to this Agreement must be in writing and signed by authorized representatives of both parties.

MISCELLANEOUS

Notices required under this Agreement shall be in writing and delivered to the addresses set forth above or to such other address as a party may designate in writing. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Owner / Client:

By:

Date:

Facilities Manager:

By:

Date:

Enter text✕

What a Facilities Management Agreement Covers

A Facilities Management Agreement is a contractual document that defines services, responsibilities, performance standards, billing, and access rights between a property owner (or corporate client) and a facilities manager or service provider. Typical clauses cover scope of maintenance, preventive schedules, response times, corrective repairs, subcontracting, insurance, indemnity, recordkeeping, reporting, and termination. The agreement can specify key performance indicators (KPIs), service-level agreements (SLAs), invoicing cadence, and remedies for nonperformance. In the United States these agreements can be executed electronically consistent with ESIGN and state e-signature laws.

Why a Clear Agreement Protects Operations

A well-drafted Facilities Management Agreement reduces disputes, clarifies responsibility for maintenance and safety, sets measurable response standards, and establishes predictable costs and reporting channels for owners and managers.

Why a Clear Agreement Protects Operations

Who Typically Prepares and Signs This Agreement

Typical parties include commercial property owners, facility management companies, and service subcontractors involved in maintenance, security, or operations.

  • Property owners and landlords who delegate day-to-day facility upkeep and vendor management.
  • Third-party facility managers handling maintenance, janitorial, HVAC, security, and groundskeeping.
  • Service contractors and vendors engaged to perform specific tasks under the manager’s supervision.

Clear role definitions help avoid later disputes and ensure the right person signs with proper authority.

Core Clauses That Every Agreement Should Include

These six elements form the backbone of a professional Facilities Management Agreement and reduce ambiguity about responsibilities, performance, and costs.

Scope of Services

A precise description of included and excluded services, work schedules, expected frequencies, and deliverables to avoid scope creep and billing disputes.

Term & Renewals

Start and end dates, automatic renewal terms, and notice periods for nonrenewal or termination to manage long-term commitments and budget planning.

KPIs & SLAs

Measurable performance targets (response times, uptime, task completion rates) with remedies, credits, or service plans tied to missed SLAs.

Pricing & Billing

Fee structure (fixed, unit-based, or time-and-materials), invoicing frequency, payment terms, and pass-through costs for parts or subcontractors.

Insurance & Indemnity

Required insurance limits, additional insured status, and indemnification language allocating risk for property damage, bodily injury, and third-party claims.

Termination & Remedies

Grounds for early termination, cure periods, transition assistance, and post-termination obligations for records and property access.

Step-by-Step: From Draft to Signed Agreement

Follow this simple sequence to prepare, approve, and store a Facilities Management Agreement with minimal delay.

  • 01
    Prepare Draft: Assemble scope, exhibits, and insurance certificates.
  • 02
    Internal Review: Legal and operations verify terms and costs.
  • 03
    Obtain Signatures: Execute in correct order with authorized signers.
  • 04
    Distribute & Archive: Share executed copies and preserve records securely.

Digital Workflow Settings for Electronic Completion

Configure these settings before sending the agreement to streamline routing and ensure auditability.

Field Configuration
Document Template Use a locked template with editable exhibits only
Approval Order Set signer sequence: Owner → Manager → Contractor
Authentication Email plus SMS code for critical signers
Notifications Automate reminders at 3 and 7 days

Typical eSigning Flow for Facilities Agreements

Electronic execution reduces turnaround and creates an auditable trail; configure authentication to match contract risk.

  • Upload Document: Start with validated template PDF or DOCX
  • Assign Fields: Place signature, initials, and date fields
  • Send to Signers: Email or secure link in signer order
  • Audit Capture: Platform records timestamps and IP addresses

Technical Considerations for Digital Execution

Choose a platform that supports secure eSignatures, audit trails, and integrations you use for contract management.

  • Integrations: Salesforce, NetSuite, Google Workspace
  • Document Types: PDF, DOCX, HTML
  • Security: TLS in transit, AES-256 at rest

eSignature Vendor Pricing Snapshot

Compare common plan-level features and starting prices for widely used eSignature providers; signNow is listed first per platform comparison guidelines.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial No No Yes, limited Yes, limited
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Security and Compliance Controls to Include or Verify

Encryption: TLS 1.2/1.3; AES-256 at rest
Audit Trail: Timestamped actions and signer metadata
Certifications: SOC 2 Type II; ISO 27001
HIPAA: BAA required for PHI handling
21 CFR Part 11: Support for FDA-regulated records
Access Controls: SSO, role-based permissions

Risks and Potential Consequences of Contract Errors

Data Breach: Regulatory fines and remediation costs
Service Failure: Operational disruption and tenant claims
Noncompliance: Fines for regulated industries
Misfiled Agreement: Lost warranty or dispute evidence
Ambiguous Scope: Costly change orders and disputes
Invalid Signature: Enforceability challenges in court

Common Preparation Errors to Avoid

  • Vague scope language that omits specific tasks, frequencies, or locations often leads to disputes and unplanned expense allocations between owner and manager.
  • Missing or insufficient insurance and indemnity clauses create exposure when contractors perform hazardous tasks or cause third-party damage at a site.
  • Failure to define KPIs and remedies leaves performance issues unresolved and increases administrative overhead for tracking and enforcing obligations.
  • Using inconsistent party names, unsigned exhibits, or undated signatures undermines enforceability and complicates audit and renewal processes.

Real-World Examples of Facilities Agreements in Use

These concise case examples show how organizations applied standardized agreements to reduce friction and improve accountability.

Martin Properties

A property manager centralized maintenance across a multi-site portfolio to standardize response protocols and invoicing.

  • Reduced turnaround time and improved compliance.
  • "I can process and execute all of these documents online with 100% compliance and built-in security. Whether on mobile or working offline, I can get forms back to their necessary parties efficiently."

Optica Ventures LLC

A small commercial landlord standardized vendor contracts and performance metrics to shorten onboarding and reporting cycles.

  • Simplified vendor onboarding and reporting.
  • "The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers."

Key Dates and Notice Periods to Include

Specify dates and recurring timeframes clearly to avoid ambiguity around commencement, billing, and renewal obligations.

Effective Date:

MM/DD/YYYY; when obligations begin

Service Start:

Date services commence after mobilization

Billing Cycle:

Monthly or quarterly invoicing schedule

Reporting Frequency:

Weekly or monthly performance reports

Renewal Notice:

60–90 days prior written notice typical

Milestones from Negotiation to Ongoing Management

Track these milestone stages to coordinate approvals, mobilization, and periodic reviews over the contract life.

01

Negotiation

Finalize scope, pricing, and KPIs with stakeholders

02

Execution

Obtain authorized signatures and confirm insurance

03

Mobilization

Vendor ramps resources and starts scheduled services

04

Periodic Review

Quarterly or annual SLA review and adjustments

Frequently Asked Questions

Answers to common questions about execution, signatures, and post-signature tasks for Facilities Management Agreements.


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