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Facilities Management Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the terms and conditions for the provision of facility management services. The document outlines the responsibilities of the facility management service provider, performance standards, payment terms, and operational requirements while ensuring compliance with Malaysian regulations including the Contracts Act 1950, Employment Act 1955, and Occupational Safety and Health Act 1994. It serves as a foundation for maintaining and operating facilities efficiently while clearly defining the rights, obligations, and liabilities of all parties involved.

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What is a Facilities Management Agreement?

The Facilities Management Agreement is essential for organizations requiring professional management of their properties and facilities in Malaysia. This agreement type is commonly used when engaging external service providers to handle various aspects of facility operations, including maintenance, cleaning, security, and other support services. The document must comply with Malaysian legal requirements, including the Contracts Act 1950 and relevant employment and safety regulations. It typically includes detailed service specifications, performance metrics, payment structures, and operational procedures. The agreement is crucial for establishing clear accountability, service standards, and risk allocation between the facility management provider and the property owner or occupier, while ensuring sustainable and efficient facility operations.

What sections should be included in a Facilities Management Agreement?

1. Parties: Identification of the service provider and client

2. Background: Context of the agreement and brief description of the facility and services required

3. Definitions and Interpretation: Definitions of key terms and interpretation rules

4. Appointment and Term: Formal appointment of facility manager and duration of agreement

5. Service Provider's Obligations: Core responsibilities and service delivery requirements

6. Client's Obligations: Client's responsibilities and obligations to enable service delivery

7. Performance Standards: Required service levels and performance metrics

8. Fees and Payment: Payment terms, fee structure, and invoicing procedures

9. Staff and Resources: Requirements for personnel, equipment, and resources

10. Health and Safety: Health, safety, and environmental requirements

11. Insurance and Liability: Insurance requirements and liability allocation

12. Termination: Termination rights and procedures

13. Confidentiality: Protection of confidential information

14. Force Majeure: Provisions for unforeseen circumstances

15. Dispute Resolution: Procedures for resolving disputes

16. General Provisions: Standard boilerplate clauses

What sections are optional to include in a Facilities Management Agreement?

1. Multi-site Operations: Additional provisions for managing multiple facilities

2. Specialized Equipment Maintenance: Specific provisions for specialized facility equipment

3. Energy Management: Specific provisions for energy efficiency and management

4. Sustainability Requirements: Green building and sustainability obligations

5. Security Services: Specific provisions for security service delivery

6. Emergency Response: Detailed emergency response procedures

7. Technology and Systems: Requirements for facility management software and systems

8. Transition Services: Provisions for handover from previous service provider

9. Asset Management: Specific provisions for asset tracking and management

10. Tenant Interface: Procedures for dealing with building tenants if applicable

What schedules should be included in a Facilities Management Agreement?

1. Schedule 1 - Services Specification: Detailed description of all required services

2. Schedule 2 - Service Levels: Detailed performance metrics and KPIs

3. Schedule 3 - Fee Schedule: Detailed breakdown of fees and payment structure

4. Schedule 4 - Facilities Description: Detailed description of facilities covered

5. Schedule 5 - Equipment Inventory: List of equipment to be maintained

6. Schedule 6 - Staff Requirements: Detailed staffing requirements and qualifications

7. Schedule 7 - Reporting Requirements: Format and frequency of required reports

8. Schedule 8 - Operating Procedures: Standard operating procedures for various services

9. Schedule 9 - Emergency Procedures: Detailed emergency response procedures

10. Schedule 10 - Forms and Templates: Standard forms and templates for reporting and documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Malaysia

Publisher

Genie AI

Cost

Free to use

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