Terms and conditions for a facilities management contractor

A facilities contractor is asked to keep a building running and is blamed for whatever stops, in or out of scope. The terms have to define the services in a schedule, separate planned from reactive work, set service levels and credits, keep statutory duties with the building's duty holder, provide for price review and subcontractors, and deal with the staff when the contract moves. I draft those terms for a fixed fee of £995, delivered in five working days.

Who this is for

Facilities management contractors in England and Wales providing hard services (maintenance, mechanical and electrical, fabric), soft services (cleaning, security, reception, grounds) and helpdesk to commercial, retail, education and healthcare premises. These are business-to-business terms.

What matters in facilities management terms

The service schedule and what is in scope

The terms should attach a schedule of services by site, asset and frequency, say that anything not in it is chargeable, and provide a change process for adding assets and sites. Planned maintenance is defined by the schedule; reactive work is defined by the call-out process, priorities and rates. A schedule that lists the assets is what prevents the lift becoming your responsibility by assumption.

Service levels, response and credits

Response times by priority should be stated as commitments to attend, with resolution depending on the fault, parts and access, and the remedy for a missed target being a service credit rather than damages. Helpdesk hours, out-of-hours rates and how requests are logged should be described. Materials and parts are charged as stated, with a spending authority limit for reactive work.

Statutory testing and the duty holder

The contractor carries out the inspections and tests in the schedule and reports the results, but the client remains the duty holder for the building under the Regulatory Reform (Fire Safety) Order 2005, the Lifting Operations and Lifting Equipment Regulations 1998 for lifts, the Control of Asbestos Regulations 2012 and the Health and Safety at Work etc. Act 1974, and responsible for acting on the reports, and the terms should say so. Certificates evidence the tests done; they do not transfer the client's obligations. Where the contractor identifies a defect outside scope, it reports it and quotes.

Subcontractors, access and the client's obligations

The terms should allow subcontracting of specialist services with the contractor remaining responsible, require the client to provide access, keys, information, welfare facilities and a safe workplace, and say that delays caused by the client's failure to provide them extend the contractor's time without breach. The client's own staff and other contractors on site are the client's responsibility.

Price review, staff, liability and exit

Fees are monthly in advance for the schedule and on invoice for reactive work, with an annual review mechanism and interest and fixed compensation on late payment under the Late Payment of Commercial Debts (Interest) Act 1998. Staff assigned to the contract may transfer on a change of contractor under the Transfer of Undertakings (Protection of Employment) Regulations 2006, and the terms should say who bears the cost and provide for an orderly handover of records and assets on exit. Liability should be capped at a figure matching the contractor's insurance, with consequential loss excluded, tested for reasonableness under the Unfair Contract Terms Act 1977.

What it costs

Customer or supplier terms and conditions, £995. One set of terms, customer-facing or supplier-facing, drafted for your business. Five working days.

Review of your existing terms, £495. You already have terms and want them checked and brought up to date. Returned marked up with my amendments and an explanation of the changes. Three working days.

Buying online forms the engagement on payment. The scope is what the terms and conditions drafting page describes, you accept the Terms of Service at checkout, and I email you within four working hours to get started. If you would rather ask something first, email me.

What you get

• A full set of bespoke terms drafted for your business, reflecting the legal requirements that apply to your business and sector
• A note in plain English explaining the terms I have drafted for you
• Liability, payment, termination and IP provisions that protect your position and are drafted to withstand scrutiny from the other side
• Guidance on how to incorporate the terms properly
• Your questions and comments answered by email or phone
• One round of amendments to finalise the terms ready for use

What is not included

• Negotiating your terms with individual customers (I am happy to quote for this as an additional service if required)
• Sector-specific regulatory compliance beyond the contract terms themselves
• Website privacy notice and cookie compliance, which I quote separately
• Terms governed by the law of another country
• Tax advice

Questions I am often asked

The client says the lift is our responsibility. It is not in the schedule. Where do we stand?

If the terms say the services are those in the schedule and anything else is chargeable, the lift is not yours. Offer to add it to the schedule at a price.

Our inspection found a defect the client did not fix, and the regulator has taken action. Are we liable?

If the terms say the client remains the duty holder and is responsible for acting on reports, and the report was delivered, the action is the client's. Keep the reports and the dates they were sent.

Can we pass on the cost of a wage increase?

The terms should provide for an annual review and for adjustment when statutory wage rates or other direct costs change, with a calculation and notice. Without it the increase is yours.

Related guidance and services

• Terms and conditions drafting, £995, the service this page describes
• Contract review, £495
• Terms and conditions for a security guarding company
• Terms and conditions for a block management company

This page is general guidance for businesses in England and Wales, not advice on your own circumstances. Last reviewed: September 2026. Email geoffrey@caesar.co.uk.