Hard FM Contract definition

View the related practice notes about Hard FM Contract

Facilities Management—contractual issues

When entering into a facilities management (FM) arrangement there are many contractual issues for the parties to consider, ranging from how to best place the contract (procurement options and requirements) all the way through to what will happen if, in practice, the contract doesn't live up to expectations (change mechanisms, termination and dispute resolution).This Practice Note summarises the key contractual issues to be addressed when putting together the formal contract document. Each of the issues requires careful consideration and tailoring to take into account any specific project requirements, but it is essential that during negotiations the parties keep in mind the overall contractual matrix of risks and responsibilities (see diagram: What does a Facilities Management contract look like—diagram).Procurement issuesIssues around the procurement of FM services can be split into two categories:•how will the client go about procuring the FM contract relationship itself? What will be the process for tendering and entering into the contract? Does the client’s identity and status mean that additional procedural requirements will be placed upon it...

Key parties in a PFI/PF2 project

This Practice Note looks at the key parties typically involved in a PFI or PF2 project. It considers the roles of parties in the public sector, of private sector partners, finance parties and sub-contractors, support providers and other professionals.In the 2018 Budget (delivered on 29 October 2018), it was announced that the government would no longer use PF2 on new projects (see News Analysis: Budget 2018—what does it mean for infrastructure and housebuilding?). However, existing PFI and PF2 projects continue to run, and given the typical lifespan of such projects are likely to for many years.Public SectorAuthority/TrustThis is the public sector body that initiates and procures the PFI project and who wants the asset built and maintained (the term 'Trust' is used only in the case of NHS projects). The public sector body will typically be a local authority (including fire and rescue and (formerly) police authorities), an NHS Trust or a government department or non-departmental public body. The Authority/Trust enters into a long-term contract known as the Project Agreement...