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Facility Services Agreement

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FACILITY SERVICES AGREEMENT

This Facility Services Agreement ("Agreement") is entered into as of Effective Date: by and between Client Name: ("Client"), and Service Provider Name: ("Provider"). Client and Provider may be referred to individually as a "Party" and collectively as the "Parties."

WHEREAS

WHEREAS, Client owns, occupies or controls the facility located at (the "Facility") and requires facility maintenance and related services; and

WHEREAS, Provider represents that it is duly qualified, experienced, and able to perform the services described in this Agreement in a professional manner consistent with industry standards; and

WHEREAS, the Parties desire to set forth the terms and conditions under which Provider will perform facility services for Client.

SCOPE OF WORK

Provider shall provide facility services at the Facility as set forth below and in any attachments incorporated by reference. Provider shall furnish all labor, supervision, materials (except as otherwise specified), equipment, tools, and transportation necessary to perform the services in a timely and workmanlike manner.

PAYMENT TERMS

Client shall compensate Provider for services performed in accordance with the following terms. Provider will submit invoices in the form required by Client and supporting documentation for reimbursable expenses where applicable.

All payments are due within the period stated on the invoice. Overdue amounts shall accrue interest at the rate specified above and, if no rate is specified, at the maximum rate permitted by law. Client shall pay all amounts due without setoff, deduction or withholding except as required by applicable law. Provider is responsible for all employment taxes and other withholdings for its personnel.

TERM AND TERMINATION

This Agreement shall commence on Start Date: and shall continue until End Date: unless earlier terminated as provided herein.

Either Party may terminate this Agreement for cause if the other Party materially breaches any provision of this Agreement and fails to cure such breach within the notice period specified above after receipt of written notice. Termination for convenience by Client may be subject to reasonable termination charges to cover work performed and commitments made prior to the termination date.

CONFIDENTIALITY

Each Party acknowledges that information disclosed by the other Party that is designated confidential or that should reasonably be understood to be confidential given the nature of the information and the circumstances of disclosure ("Confidential Information") shall be held in confidence. The receiving Party shall not use Confidential Information for any purpose other than performing its obligations under this Agreement and shall protect such information using at least the same degree of care it uses to protect its own confidential information, but no less than a reasonable standard of care. Confidential Information does not include information that (i) is or becomes publicly available through no fault of the receiving Party, (ii) is rightfully received from a third party without breach of any obligation of confidentiality, (iii) is independently developed by the receiving Party without use of the disclosing Party's Confidential Information, or (iv) is required to be disclosed by court order or applicable law, provided the disclosing Party is given prompt notice to seek a protective order.

INDEMNIFICATION

Provider shall indemnify, defend and hold harmless Client, its affiliates and their respective officers, directors and employees from and against all third-party claims, liabilities, losses, damages and expenses (including reasonable attorneys' fees) arising out of or relating to Provider's negligent acts or omissions, willful misconduct, or breach of this Agreement, except to the extent caused by Client's 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

This Agreement, including any attachments and exhibits expressly incorporated herein, constitutes the entire agreement between the Parties with respect to the subject matter and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, written or oral. No amendment or modification of this Agreement shall be binding unless in writing and signed by an authorized representative of each Party.

NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses specified below by hand, certified mail (return receipt requested) or nationally recognized overnight courier, and shall be effective upon receipt.

INSURANCE

Provider shall maintain, at its expense, insurance coverage customary for the type of services provided, including commercial general liability and workers' compensation as required by law. Upon request, Provider shall deliver certificates of insurance evidencing such coverage and naming Client as an additional insured where appropriate.

MISCELLANEOUS

If any provision of this Agreement is determined to be invalid or unenforceable, the remaining provisions shall remain in full force and effect. Neither Party may assign its rights or delegate its duties under this Agreement without the prior written consent of the other Party, except that Client may assign to an affiliate or successor in connection with a transfer of all or substantially all of its assets or business without Provider's consent.

Client:

By:

Date:

Provider:

By:

Date:

Enter text✕

What a Facility Services Agreement Is and When It Applies

A Facility Services Agreement is a legally binding contract that sets out the scope, schedule, pricing, and performance expectations for maintenance, custodial, security, utilities, or other building-related services. It identifies the parties, describes services to be provided at specific locations, sets billing and payment terms, allocates risk and insurance requirements, and establishes termination and dispute resolution procedures. Well-drafted agreements also address subcontracting, confidentiality, data protection for vendor access to systems, and compliance with relevant federal and state rules that affect facility operations and service delivery.

Why a Clear Facility Services Agreement Matters

A clear agreement reduces disputes, clarifies responsibilities, and protects both client and vendor by documenting performance standards, payment schedules, and remedies for breach. It also creates an auditable record for compliance, insurance claims, and contract management.

Why a Clear Facility Services Agreement Matters

Who Typically Prepares and Signs These Agreements

Many organizational roles create or approve facility services agreements; each role uses the document for different operational or compliance reasons.

  • Property managers and asset managers who need standardized vendor obligations and service-level expectations for multiple properties.
  • In-house procurement or facilities teams that centralize purchasing, verify insurance, and enforce invoicing and KPI reporting.
  • Third-party service providers and subcontractors that require clear scope, payment terms, and performance metrics to control liability.

Depending on the organization, legal, procurement, or operations leaders will review and execute the agreement to ensure obligations and controls are properly documented.

Who Can Sign on Behalf of Each Party

Client Signatory

An authorized officer, director, or employee with delegated contracting authority should sign. Confirm signing authority in procurement policy or corporate resolution to avoid invalidation or payment disputes; countersignature by a legal representative is recommended when value or risk is significant.

Vendor Signatory

A company officer or designated contracting agent should sign for the provider, and if subcontracting is allowed, the agreement should require written delegation and evidence of equivalent insurance and credentials.

Core Sections Every Professional Facility Services Agreement Should Include

A comprehensive agreement balances operational detail with legal protections; include clear, measurable terms to reduce ambiguity and enable enforceability.

Scope of Services

Describe services in specific terms, include frequency, measurable deliverables, excluded tasks, and any required vendor certifications or licenses to prevent scope creep and billing disputes.

Term and Termination

Specify start and end dates, renewal mechanics, notice periods, and termination rights for convenience and material breach to control contract lifecycle and exit costs.

Pricing and Invoicing

Set fixed fees, unit rates, escalation formulas, invoicing cadence, payment terms, and late fee provisions to avoid disputes and ensure predictable cash flow.

Performance Standards

Include SLAs, KPIs, inspection acceptance criteria, remedies for missed targets, and corrective action plans to align operational expectations with accountability.

Insurance and Liability

State required insurance types and limits, indemnity obligations, and limitations on consequential damages to allocate financial risk and preserve recoverability.

Confidentiality and Data

Address access to sensitive information, data handling, breach notification, and any HIPAA or FERPA constraints when services touch protected data or occupant records.

Step-by-Step: How to Prepare and Execute a Facility Services Agreement

Follow a consistent sequence to complete, review, and execute the agreement to reduce rework and ensure legal compliance.

  • 01
    Draft: Populate template fields and attach SOW or exhibits.
  • 02
    Review: Legal and procurement review key risk and pricing terms.
  • 03
    Authorize: Obtain required internal approvals and signatures.
  • 04
    Distribute: Provide executed copies to parties, insurance, and records.

How to Configure a Digital Workflow for This Agreement

Design a signing workflow that enforces sequencing, authentication, and document retention while reducing signer friction and audit risk.

Field | Configuration Field name | Setup note
Template Create reusable template with named fields for quicker repeat use
Conditional Fields Show liability or insurance fields only when subcontracting is selected
Authentication Use email plus optional SMS code or ID verification for higher assurance
Notifications Automate reminders and delivery of final signed PDF to all signers

Where to Send, File, and Store the Executed Agreement

After execution, distribute copies to operational, financial, and compliance stakeholders and file originals in the corporate contract repository.

  • Client Records: Store signed agreement in procurement or facilities system.
  • Vendor Records: Vendor retains an executed copy for service delivery reference.
  • Insurance: Send to insurer or risk manager when coverage is verified.
  • Legal File: Retain final executed PDF with audit trail in legal repository.

Digital Delivery and System Requirements

Choose a platform that supports PDF/Word uploads, audit trails, authentication, and integration with business systems.

  • Integrations: Salesforce, NetSuite, Microsoft 365, Google Workspace, Procore supported
  • File Formats: Accepts PDF, DOCX, HTML, and Excel files
  • Authentication: Options include email, SMS code, and advanced methods

Ensure the chosen solution provides secure storage (AES-256 at rest, TLS 1.2/1.3 in transit), a tamper-evident audit trail, and the ability to export signed documents with signature metadata for compliance and recordkeeping.

Key Timing and Notice Deadlines to Track

Track effective dates, start-of-service milestones, payment due dates, renewal windows, and notice periods to avoid unintended renewals or termination costs.

Effective Date:

The MM/DD/YYYY date when obligations begin

Service Start:

Operational start date for first scheduled service

Payment Due:

Net terms (e.g., Net 30) specify invoice payment deadline

Renewal Notice:

Notice period required prior to auto-renewal

Notice of Default:

Cure period length and delivery method for breach notices

Common Preparation and Execution Mistakes to Avoid

  • Incomplete scope descriptions that leave key tasks undocumented and create disputes over what is billable or excluded.
  • Missing or inconsistent signer authority where individuals sign without documented delegation, risking enforceability or payment delays.
  • Failure to align insurance certificates and indemnity limits with contractual requirements, leading to uncovered claims or canceled policies.
  • Using ambiguous payment terms or vague escalation clauses that result in late payments, withheld services, or litigation.

Risks and Potential Consequences of an Improper Agreement

Breach Damages: Monetary liability, lost business, and recovery costs
Indemnity Exposure: Unlimited indemnities can create disproportionate vendor risk
Regulatory Noncompliance: Violations when services touch HIPAA or safety rules
Tax Withholding: Incorrect contractor classification can trigger IRS penalties
Invalid Signatures: Improper execution may render the contract unenforceable
Insurance Gaps: Claims may be denied if coverage requirements are unmet

eSignature Pricing Snapshot for Facility Services Workflows

Compare common vendor entry-level prices and capability markers relevant to facility agreement workflows; signNow is listed first per platform comparison conventions.

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 Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes Varies by plan
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

Frequently Asked Questions About Facility Services Agreements

Answers to common execution, enforceability, and compliance questions related to facility services agreements and electronic workflows.


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