The UK has in recent years seen considerable growth of facilities management (FM) outsourcing across a range of industries. This paper considers the legal problems and risks inherent in FM outsourcing. It also suggests ways to facilitate the transactional negotiating process and discusses the methods by which business and legal risks can be fairly apportioned (between the user and the provider), how to ensure good contract management and, importantly, managing risks on contract termination and exit. The paper is relevant to both users and providers in terms of best negotiating practice and risk management. From a legal perspective, both the UK (and the European Union) are more highly regulated jurisdictions for FM deals than are the US and Canadian markets, and this paper focuses on UK (and European) issues. Cross‐border legal issues are also considered.
Journal of Facilities Management – Emerald Publishing
Published: Sep 1, 2005
Keywords: Invitation to Tender; Letter of intent; Nondisclosure agreements; Freedom of Information Act 2000; Indirect and consequential loss; ;