AN ADOPTION OF STANDARDIZATION IN FACILITY MANAGEMENT CONTRACTS

Abstract

Despite studies that have been carried out on the standardization for construction projects, little to no studies have been made on the discussion of standardization for facility management. This is especially so in the local context where there is an absence of literature on contract administration for facility management and by extension, the formulation of a standardized contract for facility management. To address this knowledge gap, an analysis has been conducted on the conditions of contract of two (2) facility management (FM) contract based on a selected list of comparison basis. The results have shown that despite selecting two contracts that was of a similar nature and drafted for the same building, facility management contracts adopted for either services were vastly different. From which, reasoning for the inclusion or omission of certain provisions were explored. Upon gaining a full overview of the clauses and learning what is stands to provide for, the pros and cons of each provision were also addressed. In most cases, the Employer (also known as the man paying the bills) is often given better coverage and protection over the Contractor in a contract. However, following the purpose and basis in which a contract is being established in, the most crucial factor of drafting a contract is to maintain fairness in its provision. This study aims to provide an insight on the background, pros and cons of each aspect of contract administration. Based on the comparison, the best qualities of each form of contract shall be incorporated into a general guideline that is being developed for future reference to the industry, or research on a similar topic. This aims to promote a common understanding between all parties that are involved in the contract, allow them to familiarize with the requirements of the industry and subsequently, facilitate a relationship that is highly efficient, effective and cordial.