CIoB launches FM contract

The Chartered Instite of Building, in association with solicitors Cameron McKenna, used the recent FM Expo at Olympia to launch a new standard facilities management contract. The 20-page document contains 23 sections and three appendices governing the clauses clients and contractors would expect to see when preparing an outsourcing contract for facilities management services.

The document has taken several months to come to fruition after lengthy preparation and consultation within the construction and FM sectors. The final result appears to have been well worth waiting for, and should make an excellent basis on which to start negotiations.

Importantly, the contract specifically spells out the requirements of both clients and contractors under legilsation. Contractors must agree to take on responsibility for services as a "planning supervisor" and a "principal contractor" under the Construction (Design and Management) Regulations 1994, including the requirement to prepare a health and safety plan and health and safety file. While this should be a standard requirement anyway, it is surprising how often in the cases featured in Facilities Management Legal Update the client fails to ensure that the contractor carries out its obligations in full.

In the event of a disagreement, the draft contract explicitly refers to the provisions of the Scheme for Construction Contracts, which was introduced in May last year (see our free Special Report in Vol.2, Iss.4).In the event of any other remaining disagreement, the contract refers both parties either to a single arbitrator (to be jointly agreed) or to the Construction Industry Model Arbitration Rules (CIMAR).

There are two drawbacks with a publication of this kind. The first relates to the facilities management market place itself, which is so varied that the draft contract will doubtless be stretched in a number of places to accommodate special terms, for example when outsourcingcatering or security services. The second issue concerns managers not only using the clauses provided, but understanding the terminology in the event that any changes are needed.

We understand the CIoB is bringing out notes to the contract later this year. Facilities Management Legal Update is also publishing a Guide to FM Contracts later this month.

The contract should prove to be an excellent tool for any organisation which outsources FM services. It remains to be seen what changes may be imposed following the first test cases in the courts.

The'Facilities Management Contract' is available from The Chartered Institute of Building, Tel. (01344) 630700. Price: £15.00.
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