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Hard FM Contract meaning

What does Hard FM Contract mean?
A hard fm Contract is the agreement under which the facilities management provider maintains and operates the physical assets of a building or infrastructure—its fabric, mechanical and electrical systems and life-safety plant. In UK and Irish PFI/PPP and DBfm projects this is typically the contract between the project special purpose vehicle (project co) and the hard fm contractor for the delivery of hard facilities management services, though in some models the authority contracts directly. The term is not defined in legislation or case law; it is a widely used industry and project finance expression. Typical scope covers planned preventive and reactive maintenance, statutory inspection and compliance, lifecycle renewal, asset management, helpdesk and record-keeping. Key legal features usually include: pass-down of the project agreement’s availability and performance regime; payment and deductions linked to KPIs and asset availability; interface obligations with construction and soft FM providers; warranties, insurance and step-in/termination rights aligned to the concession term; and provisions addressing employment transfer on retender (e.g. TUPE in the UK, equivalent regulations in Ireland). Usage and legal drafting are broadly consistent across England & Wales, Scotland, Northern Ireland and Ireland, with model variants (e.g. PF2, hub, NPD, DBFM) affecting structure rather than substance.
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View the related Practice Notes about Hard FM Contract

PRACTICE NOTES
UK Construction Law Glossary: F—Facilities Management, FIDIC, Final Account, Fitness for Purpose, Force Majeure, Frameworks and Funding

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Facilities management Facilities management contracting is, at its core, a commercial services contract arrangement, covering ‘Hard FM’ (relating to the upkeep and fabric of a building, for example mechanical and electrical systems), ‘Soft FM’ (relating to in-building support functions such as cleaning, security and helpdesk services) or ‘Total FM’ (which can combine a number of hard and soft facilities management services), as required within buildings. See subtopic: Facilities management for construction lawyers. Fédération Internationale des Ingénieurs-Conseils (FIDIC) The International Federation of Consulting Engineers. FIDIC issues a suite of standard-form contracts for deployment on international construction projects. In common usage, ‘FIDIC’ typically refers to that family of contracts rather than the institution itself. See subtopics: FIDIC contracts 2017 onwards and FIDIC contracts pre-2017 editions in practice by practitioners. Feed-in tariff The Feed-in tariff (FIT) scheme—also sometimes known as the...

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PRACTICE NOTES
PFI/PF2 project structures: parties, roles and interfaces in the UK

This Practice Note explores the principal parties commonly engaged in a PFI or PF2 project. It outlines the functions of public sector participants, private sector counterparts, finance providers and sub-contractors, together with support providers and other professionals involved. In the 2018 Budget (delivered on 29 October 2018), the government confirmed it would cease using PF2 for new schemes (see News Analysis: Budget 2018—what does it mean for infrastructure and housebuilding?). Nonetheless, live PFI and PF2 arrangements remain in operation and, given the usual duration and lifespan of these schemes, are expected to do so for many years to come. Public Sector Authority/Trust This is the public sector organisation that originates and procures the PFI scheme in question and seeks to have the asset constructed and properly maintained (the label 'Trust' applies only to NHS schemes). The public body will typically be a local authority (including fire and rescue and (formerly) police authorities), an NHS Trust or a government department or non-departmental public body. The Authority/Trust enters into a...

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PRACTICE NOTES
Construction law glossary—H: HSE, health and safety file, HGCRA 1996, higher-risk buildings, hot-tubbing, HVAC

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Hard FM Facilities management (FM) appointments are, in essence, commercial service contracting agreements. Hard FM refers to works tied to the upkeep and physical fabric of premises, for example landscaping, routine repairs, and mechanical and electrical systems maintenance. By contrast, Soft FM concerns in-building support functions such as cleaning, security, and helpdesk provision within a building. See subtopic: Facilities management for construction lawyers. Head contract This expression describes the overall agreement for the whole of the works and their delivery between the employer and the contractor, including circumstances where parts are let to sub-contractors by the contractor. It is commonly recognised as the head, or main, contract, clearly setting it apart from any sub-contracts...

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