Regardless of the nature of the facility, it is important to ensure that the facility management contract contains certain important provisions to ensure that the facility management contract properly meets its objective. The KPI mechanism must take into account the planned maintenance plan (which should cause as little disruption as possible) and contains appropriate carve-outs. However, it is important to ensure that violations committed by the service provider are not misreported as planned maintenance, which wrongly relieves the service provider of liability. In addition, caution should be exercised in determining the amount of penalties (which the employer must note without loss). A balance needs to be struck between the imposition of fines large enough to induce the claimant to properly discharge his obligations under the facility management contract, which are not excessively burdensome. Indeed, the imposition of severe sanctions can be counterproductive, as it can affect commercial relations and affect the services provider`s cash flow and hence its ability to supply the facilities. This type of arrangement can be distinguished from an ease management agreement in which the clinic or office manager makes the administration and facilities available to the physician or tradesman for an administrative fee. Before entering into an ease agreement, both the company and the practitioner should agree on the fixed rate of royalty allocation. In this case, it was essential that the services be provided by the clinic`s dentist for a service fee. In order to ensure responsibility for each item, it is important that the service provider ensure that it has carried out all appropriate asset investigations and inspections and that the asset is able to be managed to the standards set out in the facility management contract.
This eliminates the risk that the service provider will try to make the contractor liable for any deficiencies in facility management services. Moffet`s most recent case against Dental Corporation Pty Ltd  FCA 344 involved a dentist acting as an independent contractor under a service contract. In accordance with the service agreement, the services were provided by the dentist to the dental clinic in exchange for the renumeration. The main rule of any facility management contract is that the exact extent of the facility management services provided by the service provider in the facility management contract (usually on a schedule) is clearly defined with the relevant key performance indicators (or KPIs) that the service provider must achieve.