Can this agreement be signed electronically?

Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided intent, consent, attribution, and record retention requirements are met.

Is notarization required?

Typically not required for service contracts, but state or lender requirements may demand notarization for related exhibits or assignments; verify local rules and use RON if permitted.

Who must sign on behalf of a company?

An authorized officer or an agent with delegated authority should sign; maintain delegation records or corporate resolutions to prove signature authority if challenged.

How long should I keep the executed agreement?

Retain for at least the contract term plus 3 years; for healthcare-related records follow HIPAA rules (45 CFR §164.530(j)), and consult IRS guidance for tax-related retention periods.

What supporting documents are recommended?

Attach insurance certificates, vendor licenses, service schedules, and change-order procedures to the agreement to provide a complete contractual record for audits and claims.

How do I amend or cancel the agreement?

Follow amendment provisions in the agreement requiring written amendments signed by both parties; for cancellation follow stated notice and cure procedures to avoid breach liability.

Electronic Signature
Templates
Miscellaneous
Facility Management Agreement

Facility Management Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

FACILITY MANAGEMENT AGREEMENT

This Facility Management Agreement (the "Agreement") is made effective as of by and between Manager Name: (the "Manager") and Client Name: (the "Client").

WHEREAS

1. The Client owns, operates or controls the property and facilities described as Facility Address: (the "Facility") and requires professional facility management services to maintain, operate and safeguard the Facility.

2. The Manager represents that it has the qualifications, personnel and resources to perform facility management and related services in accordance with this Agreement and applicable law.

3. The parties wish to set forth their understandings and obligations with respect to the provision and compensation of facility management services.

SCOPE OF WORK

The Manager shall provide facility management services including, but not limited to, preventive maintenance, corrective repairs, building systems operations, groundskeeping, janitorial coordination, vendor management, security coordination and procurement of supplies as required to maintain the Facility in a safe, functional and code-compliant condition. Manager obligations shall include compliance with all applicable codes, permits and licenses and timely notification to Client of material defects or hazards discovered during performance.

Detailed Scope (describe tasks, frequencies, exclusions)

PAYMENT TERMS

As consideration for the Services, Client shall pay Manager the fees set forth below. All fees are exclusive of applicable taxes, which shall be charged to Client where required by law.

Management Fee Amount Payment Schedule Invoice Submission and Due Date Late Payment Fee

TERM AND TERMINATION

This Agreement shall commence on Start Date: and shall continue until End Date: unless earlier terminated in accordance with this Section.

Either party may terminate this Agreement for convenience upon written notice to the other party delivered at least days prior to the intended termination date. Either party may terminate immediately for cause upon written notice if the other party materially breaches this Agreement and fails to cure such breach within thirty (30) days after receipt of written notice specifying the breach.

CONFIDENTIALITY

The parties acknowledge that in the course of performance each may receive or have access to Confidential Information of the other. "Confidential Information" means non-public business, financial, technical or operational information disclosed in any form. Each party shall: (a) hold Confidential Information in strict confidence; (b) not disclose it to any third party except to employees, contractors or advisors who have a need to know and are bound by confidentiality obligations no less protective than those in this Agreement; and (c) use Confidential Information only for performance of this Agreement. The obligations in this section shall not apply to information that is or becomes publicly available through no breach by the receiving party, is rightfully received from a third party without restriction, is independently developed without use of Confidential Information, or is required to be disclosed by law or order of a court or governmental authority, provided the disclosing party gives prompt notice to permit seeking protective relief.

INSURANCE, LIABILITY AND INDEMNITY

Manager shall maintain commercial general liability insurance and workers' compensation insurance in amounts customary for the industry and shall name Client as an additional insured on the general liability policy with respect to the Services. To the fullest extent permitted by law, each party shall indemnify and hold harmless the other from claims, liabilities, losses or expenses arising from the indemnifying party's negligence, willful misconduct, or breach of this Agreement. Neither party shall be liable for consequential, incidental, special or punitive damages except to the extent such damages result from gross negligence or willful misconduct.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of laws principles.

ENTIRE AGREEMENT; AMENDMENT

This Agreement, together with any schedules or exhibits expressly incorporated herein, constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior and contemporaneous agreements, proposals and communications, whether written or oral. No modification, waiver or amendment of this Agreement shall be effective unless in writing and signed by authorized representatives of both parties.

NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered to the parties at the addresses below or to such other address as a party may designate by written notice in accordance with this section. Notices delivered by personal delivery, certified mail, or nationally recognized courier shall be deemed given on the date of delivery.

Manager Notice Address Client Notice Address

MISCELLANEOUS

If any provision of this Agreement is held invalid or unenforceable, the remainder of the Agreement shall remain in full force and effect. The parties are independent contractors; nothing in this Agreement creates a partnership, joint venture or employment relationship. The headings in this Agreement are for convenience only and do not affect interpretation.

Manager Printed Name:

Client Printed Name:

By:

Date:

What a Facility Management Agreement Covers

A Facility Management Agreement is a written contract that assigns responsibility for operating, maintaining, and servicing a property or facility to a third party. It typically defines the scope of services, performance standards, staffing responsibilities, insurance and indemnity provisions, payment terms, term and renewal mechanics, and termination rights. The agreement may cover routine maintenance, repairs, security, janitorial services, groundskeeping, systems monitoring, and vendor management. Clear allocations of liability and measurable service-level obligations reduce disputes and create predictable budgets for owners and facility managers.

Why use a Facility Management Agreement

A formal agreement clarifies responsibilities, protects both parties from unexpected costs, and creates measurable performance expectations. It supports regulatory compliance, clarifies insurance and indemnity obligations, and creates a contract baseline for change orders, audits, and dispute resolution.

Who commonly completes a Facility Management Agreement

Typical parties include building owners, property managers, facility management firms, and corporate real estate teams who need to assign ongoing operational duties.

Building owners and landlords who outsource day-to-day operations and maintenance.
Facility management companies that provide integrated services across sites and campuses.
Corporate real estate and property management departments handling multiple vendor contracts.

The agreement also benefits legal, procurement, and risk teams by documenting service levels, insurance requirements, and remedies for underperformance.

Core clauses to include in a professional agreement

A robust Facility Management Agreement groups obligations into enforceable sections so responsibilities and consequences are explicit. Well-drafted clauses reduce ambiguity about scope, risk allocation, payment, and termination.

Scope of Services

Detailed list of covered tasks, exclusions, frequency, and response times for maintenance, cleaning, security, and systems monitoring.

Performance Standards

Measurable KPIs, inspection procedures, remedies for missed SLAs, and escalation channels for service failures.

Compensation

Fee structure, invoicing schedule, adjustments for CPI or volume changes, and change-order pricing methodology.

Insurance and Indemnity

Minimum insurance limits, certificate requirements, additional insured, waiver of subrogation, and indemnity scope.

Term and Termination

Initial term, renewal mechanics, notice periods, termination for convenience, and termination for cause provisions.

Compliance and Records

Regulatory obligations, access to records, right to audit, data protection, and confidentiality requirements.

Step-by-step: completing a Facility Management Agreement

Follow these steps to prepare a clear, enforceable agreement and reduce back-and-forth during negotiation.

01

Draft scope: Define services, frequency, and exclusions in exhibit form.
02

Set metrics: Add KPIs and remedies for missed performance standards.
03

Confirm insurance: List minimum limits and certificate holder requirements.
04

Authorize signing: Have an officer or delegated representative sign and date.

Typical digital workflow settings for online completion

When configuring an electronic workflow, set roles and authentication to match legal requirements and internal approvals.

Field	Configuration
Template	Create master template with exhibits and conditional sections.
Signer Roles	Assign Owner, Manager, and Finance approver roles by email.
Authentication	Use email plus SMS code or advanced signer authentication for high-value contracts.
Archive	Set signed PDFs to auto-save to secure cloud storage.

Technology and integration considerations

Choose a signing platform that supports secure storage, audit trails, and integrations with back-office systems.

Integrations: Salesforce, NetSuite, Microsoft 365, Google Workspace
Document formats: PDF, Word DOCX, Excel supported
Security: Audit trail, encryption, and role-based access

Ensure the platform you use provides tamper-evident signed PDFs, detailed audit logs for compliance, and access controls aligned with company policies.

Typical e-signing flow for a Facility Management Agreement

Electronic signature workflows reduce turnaround time and centralize records while preserving legal enforceability when ESIGN and UETA conditions are met.

Upload document: Prepare final draft and attach exhibits.
Place fields: Add signature, initials, and date fields for each signer.
Send to signers: Use email link or bulk send for multiple sites.
Capture audit: System records IP, timestamp, and signer actions.

Key timing elements to include

Document specific deadlines and notice periods to avoid disputes—include dates and relative notice windows tied to contract events.

Effective date:

Date obligations begin and affects service commencement.

Initial term:

Specify term length, often one to five years.

Renewal notice:

Require 60–90 days written notice before renewal.

Termination notice:

State days required for convenience or for cause.

Service mobilization:

Specify lead time to begin on-site operations.

Milestones from negotiation to mobilization

Track milestones as numbered stages to keep the project on schedule and ensure all preconditions are satisfied before services begin.

01

Proposal and scope approval

Owner approves scope and budget before contract drafting.

02

Contract negotiation

Parties finalize terms, insurance, and KPIs.

03

Execution and signatures

Authorized signatories execute the agreement.

04

Mobilization and handover

Supplier deploys staff and provides onboarding documents.

Security and compliance controls to verify

Encryption in transit: TLS 1.2 and 1.3 for data in transit

Encryption at rest: AES-256 encryption for stored documents

Audit trails: Detailed timestamp and IP audit records

Regulatory compliance: ESIGN, UETA, HIPAA (BAA available)

Certifications: SOC 2 Type II and ISO 27001 certified

FDA/21 CFR: 21 CFR Part 11 compliant capabilities

Principal legal and operational risks

Ambiguous scope: Leads to disputes and unexpected costs

Insurance gaps: Can expose parties to uncovered liabilities

Data breach: May trigger regulatory fines and remediation costs

Invalid signature: ESIGN exceptions can jeopardize enforceability

Late performance: Operational penalties and reputational harm

Termination exposure: Buyout or transition costs if poorly defined

Common preparation mistakes to avoid

Using vague service descriptions without measurable KPIs leads to differing expectations and frequent disputes between owner and provider.
Failing to require adequate insurance certificates and limits can shift uninsured losses to the non-breaching party after an incident occurs.
Omitting a clear change-order process causes scope creep and unapproved charges during the contract term, complicating budget forecasts.
Neglecting data protection clauses and access controls increases liability when vendors handle sensitive building systems or tenant information.

How organizations apply facility agreements in practice

Real-world examples show how clear contracts and digital workflows speed execution and improve compliance across property portfolios.

Martin Properties — Onboarding at Scale

A single-property operator moved to online execution to avoid in-person signings and delays.

Rapid document turnaround reduced site onboarding time.
The company reported consistent compliance with insurance and vendor onboarding requirements and fewer scheduling conflicts after adopting standardized electronic templates and centralized records.

Optica Ventures — Simpler Customer Experience

A small portfolio owner streamlined leasing and FM contracts using digital templates.

Templates ensured consistent clauses across locations.
The standardized approach reduced negotiation cycles, improved clarity on maintenance responsibilities, and allowed the owner to scale property oversight without adding administrative headcount.

eSignature vendor comparison for executing agreements

Compare basic plan pricing and key capabilities commonly needed to execute and manage Facility Management Agreements electronically.

	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	Yes, 7-day trial	Varies	Varies	Varies	Varies
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	Varies	Varies

Frequently asked questions about Facility Management Agreements

Practical answers to common legal, signing, and recordkeeping questions for owners and service providers.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided intent, consent, attribution, and record retention requirements are met.
Is notarization required?
Typically not required for service contracts, but state or lender requirements may demand notarization for related exhibits or assignments; verify local rules and use RON if permitted.
Who must sign on behalf of a company?
An authorized officer or an agent with delegated authority should sign; maintain delegation records or corporate resolutions to prove signature authority if challenged.
How long should I keep the executed agreement?
Retain for at least the contract term plus 3 years; for healthcare-related records follow HIPAA rules (45 CFR §164.530(j)), and consult IRS guidance for tax-related retention periods.
What supporting documents are recommended?
Attach insurance certificates, vendor licenses, service schedules, and change-order procedures to the agreement to provide a complete contractual record for audits and claims.
How do I amend or cancel the agreement?
Follow amendment provisions in the agreement requiring written amendments signed by both parties; for cancellation follow stated notice and cure procedures to avoid breach liability.

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