The NEC4 Facilities Management Contract (FMC) appoints a Service Provider, for a period of time, to manage and provide a facilities management service. Published in 2021 with support from the sector's professional institute, it gives FM buyers an NEC form written with their work in mind.
It has the same collaborative basis as the rest of the suite, and in structure it's close to the Term Service Contract. All the options are compared under NEC contract types.
What it can cover
The FMC is suited to services such as:
- Planned and reactive maintenance of building services
- Cleaning, security, catering and decorating
- Data processing and other support for a facility
- Any operational estate or asset with a similar need for ongoing service
Parties and Options
| Item | In the FMC |
|---|---|
| Paying party | Client |
| Provider | Service Provider (not "Contractor") |
| Administrator | Service Manager |
| How specific work is called off | Service Orders for responsive work, and Project Orders for additional project work under Option X27. The FMC doesn't use the name Task Order |
| Option A | Priced contract with price list |
| Option C | Target contract with price list |
| Option E | Cost reimbursable contract |
| Sector-specific Options | X27 (Project Orders) and X28 (change of control) |
The structure of the Options is the same as in the TSC main Options, but the two forms aren't identical, so take your clause references from the FMC itself. Use your own copy.
The wider FM family
- Facilities Management Subcontract. Used by a Service Provider appointed under the FMC to bring in a Subcontractor for part of the service.
- Facilities Management Short Contract. For simpler, lower-risk services that don't need sophisticated management.
FMC or TSC?
| Think about | Leans towards the FMC | Leans towards the TSC |
|---|---|---|
| Nature of the service | Running buildings and estates | Maintaining infrastructure, such as highways or networks |
| Language your team uses | Service Provider and FM terms | Contractor and engineering terms |
| Supply chain familiarity | FM providers | Civil and maintenance contractors |
| Existing templates | Being set up from new | Mature TSC arrangements that work well |
NEC has published a practice note comparing the two. If in doubt, a good test is who you expect to bid, and which form they will price most accurately.
What to settle before tendering
- Describe the estate. Asset lists are usually incomplete. Say how the list will be kept up to date and what happens when the estate changes, since this is often where change arguments start.
- Separate routine and reactive work. Decide what the price covers and what needs a Service Order or a Project Order.
- Set meaningful performance targets. They go in the FMC's core Performance Table, which takes the place of the TSC's X17 and X20. Link them to the service users' experience, without creating a reporting burden nobody reads.
- Handle TUPE and incumbents. Staff transfer issues can dominate FM tenders. Take specific advice, as the standard terms won't solve this for you.
- Decide about the term. Consider an extension Option, and how a long period handles inflation.
- Plan the mobilisation. Give the Service Provider time to survey and take over without disrupting the users.
What people get wrong
- Assuming the TSC clause references carry over. Letters citing TSC numbers look careless, even where the subject is the same.
- Ignoring administration. FM contracts generate many small instructions. The compensation event procedure still applies to changes, however small, so agree in advance how you'll handle the volume.
- Calling the provider the Contractor. Sloppy naming in Scope documents can cause real confusion when clauses are read together.
- Using it for a construction project. Larger capital work within the estate may need its own ECC.
Related guides
- NEC Contract Types: Which Form Do You Need?
- NEC4 Framework Contract (FC)
- NEC4 Dispute Resolution Service Contract (DRSC)
- ECC vs ECSC: Full or Short Contract?
- NEC4 Design Build and Operate Contract (DBO)
- NEC4 Alliance Contract (ALC)
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This guide is general information in our own words, not legal advice. Your contract and its Contract Data always govern. NEC, NEC3 and NEC4 are trade marks of Thomas Telford Ltd; Contract Status is not affiliated with or endorsed by NEC.