19 January 2021
A new suite of contracts has been developed specifically for the facilities management industry, developed by NEC, one of the construction industry’s leading procurement contract providers.
The suite has been developed with the support of the Institute of Workplace and Facilities Management (IWFM).
Consisting of four contracts, six user guides and two flow charts, the new suite is designed to cover most facilities management procurement and delivery strategies. These include “total FM” / integrated services FM contracts, managing contractor FM contracts, and single and / or multiple supplier FM contracts.
Picture: a photograph of the NEC4 contract box set
New Facilities Management Contract (FMC)
The new contracts include the Facilities Management Contract (FMC), to be used by a client to appoint a provider to manage and deliver any type of facilities management services, and the Facilities Management Subcontract (FMS), which can be used by an FM provider to appoint a subcontractor to help deliver its service.
There is also the Facilities Management Short Contract (FMSC), which can be used to appoint an FM provider to deliver any type of straightforward, low-risk services which do not require sophisticated management techniques, and the accompanying Facilities Management Short Subcontract (FMSS), which covers the same services for subcontractors.
The contracts have been updated from the NEC4 suite specifically for the FM industry, using tailored research, stakeholder workshops with IWFM members and individual consultations to ensure the suite was built fit for purpose while retaining the best practice principles and features of NEC4 contracts.
These principles include ensuring contracts work to support good relationships between all parties, can be used in a wide variety of commercial situations or locations, and are written in clear, simple terms.
“The facilities management sector is extensive, with estimates of it being worth as much as £120 billion in the UK alone. As with any contractor/client industry though, it can suffer from contract disputes, inconsistency and ‘us and them’ thinking. This is why we were determined to create a contract suite which can support FM through our guiding principles of mutual trust and co-operation, and provide more consistent procurement strategies which strengthen the sector as a whole.”
–Rekha Thawrani
Global Head, NEC
Rekha Thawrani, Global Head of NEC, said: “The facilities management sector is extensive, with estimates of it being worth as much as £120 billion in the UK alone. As with any contractor/client industry though, it can suffer from contract disputes, inconsistency and ‘us and them’ thinking. This is why we were determined to create a contract suite which can support FM through our guiding principles of mutual trust and co-operation, and provide more consistent procurement strategies which strengthen the sector as a whole.
“We’ve worked closely with the IWFM in the creation of this suite to make sure they meet the sector’s needs and we want to thank them, and all collaborators on helping bring them to fruition. We look forward to seeing them used and urge anyone who may be interested in learning more to get in touch.”
NEC and IWFM (then BIFM) initially worked together on a Facilities Management Box Set for NEC3 contracts and formalised a Memorandum of Understanding in 2016, of which the new NEC4 FM suite is the latest piece of work to stem from this collaboration.
The new NEC4 Alliance Contract is designed for use on major projects where longer-term collaborative ways of working can be created, reflecting best practice in procurement and project management. The Hallam Alliance is one of the first partnerships to use this type of contract for a university building programme. It involves three of its partner suppliers: Arup (design-led consultancy), BAM (construction) and CBRE.
Linda Hausmanis, CEO of IWFM added: “We’re very excited about the pre-publication of the new NEC contract dedicated to facilities management (FM). Members have told us for some time about the need for a standard FM contract that would not just bring greater clarity about services contracted, enabling FM teams to work more effectively, but that would also push best practice in areas of importance to FM.
“We are grateful for the time the IWFM Steering Group of volunteers has dedicated over the last few years to support the development of the contract, which is a great step forward to enabling the sector to achieve greater consistency of standard delivery.”
Picture: a close-up photograph of a glass-fronted building
Article written by Ella Tansley | Published 19 January 2021
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