What are the most effective ways to ensure your FM contracts communicate all parties' expectations?

Facility management (FM) contracts are essential tools to define the scope, quality, and cost of the services and assets that support an organization's operations. However, poorly drafted or unclear contracts can lead to disputes, delays, and dissatisfaction among the parties involved. To avoid these pitfalls, here are some of the most effective ways to ensure your FM contracts communicate all parties' expectations.

1 Align objectives and outcomes

Before drafting or signing an FM contract, you should have a clear understanding of what you want to achieve and how you will measure it. This means identifying the objectives and outcomes that are relevant to your organization's strategy, performance, and sustainability. You should also communicate these expectations to your FM service provider or client and ensure they are aligned with theirs. By doing so, you can avoid ambiguity, confusion, and conflict in the contract execution.

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Rodrigo Cesar Ueda da Luz

Facility Manager | Hard Facilities Management | Engenheiro Civil | Especialista em Gestão de Negócios e Patologias das Edificações | Palestrante | PCM
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Ao elaborar um escopo bem detalhado, você define quais as necessidades você precisa atender com aquele contrato. Alinhe com o fornecedor as suas expectativas para que ele tenha o entendimento do que precisa fazer para atender as suas necessidades.

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Dattaram Karivadekar

Facility Management (FM) || Administration || Business Operation Specialist || Corporate Services Expert || Vendor Management || 10+ Years of Proven Success
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1. Define objectives and outcomes relevant to organization's strategy. 2. Communicate expectations clearly to FM service provider or client. 3. Ensure alignment between both parties' objectives. 4. Avoid ambiguity, confusion, and conflict in contract execution. 5. Establish measurement methods to track progress and success.

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Naveen Padiyar

Project Lead | SDLC, Waterfall & Agile | DevOps | DPR, RFP & Bid Process | PMP®, TOGAF® Certified
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Ensure effective communication of expectations in Facilities Management contracts by clearly defining scope, performance metrics, and deliverables, conducting thorough negotiations, and incorporating key performance indicators (KPIs) for continuous monitoring and feedback.

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2 Define roles and responsibilities

Another key element of a successful FM contract is to define the roles and responsibilities of each party and how they will interact and collaborate. This includes specifying who will be the main contact person, who will make decisions, who will report and monitor progress, and who will handle issues and risks. You should also outline the communication channels, frequency, and formats that will be used throughout the contract duration. By defining roles and responsibilities, you can establish trust, accountability, and transparency in the contract relationship.

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Dattaram Karivadekar

Facility Management (FM) || Administration || Business Operation Specialist || Corporate Services Expert || Vendor Management || 10+ Years of Proven Success
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1. Specify main contact person, decision-makers, and monitors. 2. Define roles for reporting, issue handling, and risk management. 3. Outline communication channels, frequency, and formats. 4. Establish trust, accountability, and transparency. 5. Ensure clear understanding of each party's responsibilities.

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3 Use clear and consistent language

The language you use in your FM contract can have a significant impact on how it is interpreted and enforced. Therefore, you should use clear and consistent language that avoids jargon, acronyms, and vague terms. You should also use plain English and avoid legal or technical terms that may confuse or mislead the parties. If you need to use specific terms or definitions, you should include them in a glossary or appendix and refer to them throughout the contract. By using clear and consistent language, you can reduce the risk of misunderstanding, miscommunication, and litigation.

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Dattaram Karivadekar

Facility Management (FM) || Administration || Business Operation Specialist || Corporate Services Expert || Vendor Management || 10+ Years of Proven Success
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1. Use clear and consistent language without jargon or acronyms. 2. Avoid vague terms and technical language. 3. Use plain English to enhance understanding. 4. Include specific terms and definitions in a glossary or appendix. 5. Reduce the risk of misunderstanding and litigation.

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Rodrigo Cesar Ueda da Luz

Facility Manager | Hard Facilities Management | Engenheiro Civil | Especialista em Gestão de Negócios e Patologias das Edificações | Palestrante | PCM
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O contrato deve ser claro e transparente, para que qualquer pessoa possa ler e compreender. Um contrato que tenha cláusulas que possam gerar dupla interpretação pode trazer sérios problemas em eventuais resoluções de conflitos.

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4 Incorporate flexibility and feedback

FM contracts are not static documents that can be set and forgotten. They need to be flexible and adaptable to changing circumstances, needs, and expectations. This means you should include clauses that allow for adjustments, modifications, and extensions of the contract terms and conditions. You should also establish a feedback mechanism that enables you to evaluate the contract performance, identify areas of improvement, and implement corrective actions. By incorporating flexibility and feedback, you can ensure your FM contract remains relevant, effective, and satisfactory for all parties.

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Dattaram Karivadekar

Facility Management (FM) || Administration || Business Operation Specialist || Corporate Services Expert || Vendor Management || 10+ Years of Proven Success
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1. Include clauses for adjustments, modifications, and extensions. 2. Establish a feedback mechanism for contract evaluation. 3. Identify areas for improvement and implement corrective actions. 4. Ensure contract remains relevant, effective, and satisfactory. 5. Adapt to changing circumstances, needs, and expectations.

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5 Seek expert advice and support

Finally, one of the most effective ways to ensure your FM contracts communicate all parties' expectations is to seek expert advice and support from professionals who have experience and knowledge in FM contract management. This can include lawyers, consultants, auditors, or mediators who can help you draft, review, negotiate, or resolve your FM contracts. By seeking expert advice and support, you can benefit from their insights, best practices, and solutions that can enhance your FM contract quality and outcomes.

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Dattaram Karivadekar

Facility Management (FM) || Administration || Business Operation Specialist || Corporate Services Expert || Vendor Management || 10+ Years of Proven Success
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1. Seek advice from FM contract management professionals. 2. Engage lawyers, consultants, auditors, or mediators. 3. Receive assistance with drafting, reviewing, negotiating, or resolving contracts. 4. Benefit from their insights, best practices, and solutions. 5. Enhance FM contract quality and outcomes with expert support.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What are the most effective ways to ensure your FM contracts communicate all parties' expectations?

1

2

3

4

5

6

1 Align objectives and outcomes

2 Define roles and responsibilities

3 Use clear and consistent language

4 Incorporate flexibility and feedback

5 Seek expert advice and support

6 Here’s what else to consider

Facility Management (FM)

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What are the most effective ways to ensure your FM contracts communicate all parties' expectations?

1

2

3

4

5

6

1 Align objectives and outcomes

2 Define roles and responsibilities

3 Use clear and consistent language

4 Incorporate flexibility and feedback

5 Seek expert advice and support

6 Here’s what else to consider

Facility Management (FM)

Rate this article

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