NEC4: Introduction to the Facilities Management Contract (FMC)

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Click on one of the training format options below to book your training. Select 'classroom' to view and book a place on a scheduled NEC course date and location, select 'online' for online training, or select 'in-house' to enquire about training tailored for your organisation.

Choose Date and Location

Location Date & Duration Price (per delegate) No.Delegates Action
   Virtual 06/10/2021  1 Day £325.00 +VAT
Please Call:
+44(0)20 7665 2446
for an in-house solution
   London 26/01/2022  1 Day £325.00 +VAT
Please Call:
+44(0)20 7665 2446
for an in-house solution


You can book up to 5 delegates online. If you wish to add more delegates please call +44 (0)20 7665 2446 or consider an in-house solution and fill in our online form

If your organisation has specific time, location, and learning and development objectives, we can tailor this programme to suit your needs.

To discuss the tailored training options available to you with one of our In-house training account managers, fill out the enquiry form below or call +44 (0)20 7665 2446

Your Details

 
Description

"The FM sector typically uses bespoke contracts over a standard form. The NEC4 FM Contract has been released to encourage best practice in procurement across the FM industry, and this training will help you see the benefits of an industry standard and supported contract, while still having the flexibility to tailor the contract to your needs."

– Ross Hayes, NEC Consultant, Drafter and Trainer.

Delegates attending this course will gain an insight into when to use the NEC4 Facilities Management Contract (FMC), how to put it together, the contract strategy, and how it is managed effectively.

Background

The NEC4 FMC has been developed particularly for the facilities management sector, but also for those with any asset to maintain, for the appointment of a service provider for a period of time to manage and provide a service. It provides a modern method for clients, service providers and service managers to work collaboratively consistently to achieve their objectives.

People will be motivated to play their part in collaborative management if it is in their commercial and professional interest to do so. Uncertainty about what is to be done and the corresponding risks and liabilities can lead to disputes and confrontation. The FMC clearly allocates risks, and the collaborative approach will reduce those risks and uncertainty for all the parties.

Formats

Classroom

Peer reviewed training courses delivered by NEC experts and industry specialists on scheduled dates and locations across the country. Ideal for those looking for NEC knowledge exchange with other users in an interactive learning environment.

In-house

Our training programmes, tailored to your requirements. Ideal for organisations with specific time, location, and learning and development objectives.

Programme

This training course starts at 09:00 and finishes at 17:00 with refreshment breaks mid-morning and afternoon, plus lunch. All timings, except the start time, are approximate and may be adjusted to suit natural breaks in the lesson.

Session 1 - Overview of the NEC and the Facilities Management Contract (FMC)

  • This session shows how NEC contracts have helped transform contractual behaviours and how the FMC works alongside other contracts in the suite.
  • It covers when the FMC should be used, and its relationship to its subcontract (Facilities Management Subcontract, FMS) and the Facilities Management Short Contract (FMSC) and Short Subcontract (FMSS). Importantly it also considers how work is ordered.


Session 2 - Using the FMC

  • This session covers the contract strategy; an explanation of the main and secondary Options that can be chosen and the other contract documents that need to be produced. It particularly highlights the importance of the Performance Table for setting performance targets and responding to their achievement or failure. It also outlines the difference between defined and identified terms, their significance in the contract and the Contract Data and how they should be used.


Session 3 - Managing the Contract, the FMC Processes

  • 3.1 - General Provisions. This session looks at the general techniques that are used to manage the contract including mutual trust and co-operation, communications, the role of the Service Manager and Service Provider, early warnings, and Service Orders and their requirements.
  • 3.2 - Service Provider's Main Responsibilities. This session outlines the Service Provider’s main responsibilities; covering how the service is provided, the Service Provider’s design, key people and subcontracting.
  • 3.3 - Time. This session considers when the service starts and finishes, the importance of the plan, and how the Accepted Plan is used and revised to help manage delivery. It also considers mobilisation and demobilisation plans.
  • 3.4 - Quality Management. This session clarifies how service failure is identified and managed throughout the Service Period.
  • 3.5 - Payment. This session covers how amounts for payments are calculated and how handling costs can vary with the main Options. It includes when payments should be made as well as Disallowed Costs and the two Schedules of Cost Components.
  • 3.6 - Compensation Events. This session gives an overview of what compensation events are and how they should be managed to ensure neutral cost to the Service Provider and transparency and fairness to the Client.
  • 3.7 - Use of Equipment, Plant, and Materials. This section will review how title for equipment, and Plant and Materials passes between the Parties, particularly at the end of the Service Period, and the relevance of Service Areas.
  • 3.8 - Liabilities and Insurance. This session looks at the way the contract deals with liabilities and maintains a risk profile which complies with the overarching NEC principle of mutual trust.
  • 3.9 - Termination and Dispute Resolution. This session deals with the process of termination and the reasons why the termination process can be invoked, along with the various dispute resolution procedures.


Session 4 - Project Orders

  • As an Option, the FMC includes Projects to allow the Client to instruct small pieces of work where the complexity and interaction with the Client’s normal working requires a detailed programme. This session examines how these are instructed and managed.


Session 5 - Summary and Open Forum

Learning Objectives

At the end of the course participants should be able to:

  • Describe the philosophy of NEC and the behaviours needed to ensure success
  • Provide advice on appropriate contract strategies
  • Appreciate the use of Contract Data, Scope and Performance Table
  • Define the roles and responsibilities of key parties
  • Apply important FMC clauses such as Service Orders, early warning, plan, communications and compensation events
  • Know how to instruct Service Orders and Projects
Who Should Enrol?

This course is designed for those working with or considering using the FMC form including:

  • Service managers
  • Clients
  • Facilities managers
  • Consultants
  • Service providers and their supply chain.

It is designed for those with minimal experience with NEC contracts or the FMC form but can be beneficial to those wishing to recap their knowledge.

Included in the Fee

The classroom course fee includes:

  • Complimentary copy of the NEC4 Facilities Management Contract and a copy of the two guidance books: NEC4: Preparing a Facilities Management Contract and NEC4: Managing a Facilities Management Contract
  • Certification on successful completion of all modules and assessment

 

In-house learning

Fees and particulars for this option, tailored to your specific requirements, are available upon request. Select the In-house icon above for further details

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