Total Facility Management, 4th Edition

Appendix D

Contract provisions

Contractual approach and terms

The contract should normally be for a period of three to five years. The organization might consider the option of extending by one or two further years. It should ensure that contract documentation is consistent with the specification.

The contract should include provisions for:

1. The organization (as employer) to retain ownership of, and access to, all relevant records and knowledge.
2. The arrangements for another service provider to take over the service at short notice in the event of the financial failure of the incumbent service provider.
3. The handling of changes in the organization’s requirements.
4. Full disclosure of all data by means of open-book accounting, which gives the organization access to the service provider’s premises, systems, books and records.
5. The organization’s right to check the qualifications and competences of the personnel who the service provider proposes to use and to approve any appointment beforehand.
6. Requiring the service provider and any subcontractors to have in place a quality system.
7. Contingency arrangements.
8. The arrangements for the transfer of assets at the start and end of the contract.
9. The mechanisms for dispute resolution.
10. The arrangements for handover to a succeeding service provider at the end of the contract.

If the contract involves a one-off transfer of assets to the successful tenderer, it should include a clawback provision to allow the organization to share the benefit ...