This is where NEC can step in, with its global standard NEC4 Facilities Management Contract (FMC) and associated subcontract and short contracts. The contracts will help FM professionals create better tender documents and improve the management of their contracts.
This aligns with the International Facility Management Association (IFMA) Hong Kong Chapter, which aims to, ‘advance our collective knowledge, value and growth for Facility Management professionals to perform at the highest level’.
NEC is a corporate member of the IFMA Hong Kong Chapter and presented at its annual conference in September, entitled ‘Integrate 2022: Driving ESG through FM Leadership’. As explained to delegates, NEC4 FMC has various clauses to help FM clients drive sustainability and improve their environmental, social and governance (ESG) performance.
The recently launched secondary option X29 on climate change enables an FM client to contractualise its climate change requirements and state these in the scope. The FM service provider in turn develops a climate change plan to meet those requirements and can be further rewarded if the targets are exceeded, if such a provision is made in the performance table. The service provider can also propose that the scope is changed to reduce the impact of operating and maintaining the client’s asset.
Secondary option X12 on multiparty collaboration allows an FM client to set key performance indicators for sustainability provisions through key members of the supply chain. Targets for sustainability provisions can also be set in the performance table (see clause 53).
Furthermore, the FM service provider can propose changes to the scope to create value-engineering savings through clause 16. Finally, secondary option X21 on whole-life cost allows the FM service provider to propose changes to the scope to reduce the cost of operating and maintaining the client’s asset.
A good fit with FM
NEC’s aim in Hong Kong is to promote the use of FMC in the FM industry and dramatically improve the sector’s commercial outcomes. No other contract suite aspires to improve the procurement and delivery process rather than just facilitate it.
Like all NEC4 contracts, the FMC is designed around the following three principles. First, it stimulates good management of the relationship between the two parties to the contract and, therefore, of the work involved in the contract. Second, it can be used in a diverse range of situations, for a wide variety of work and in any location around the world. And third, it is clear, simple and written in plain English, using language and a structure which is straightforward and easily understood.
NEC will be promoting the FMC and associated contracts at future FM events in Hong Kong. Academia can play a part too, by teaching NEC principles to the region’s next generation of FM professionals. NEC will also be providing comprehensive training and consultancy to FMC users in Hong Kong from its local office.
Making the change
Changing to a different form of contract is never a simple step to make. But NEC is a modern, standardised contract written in a very readable style. It encourages users to do more of the right thing in contract management in a collaborative way.
If the industry is serious about changing the FM professional landscape in Hong Kong and achieving increasingly urgent sustainability targets, then the NEC4 FMC will be an invaluable tool for users to rise to the challenges that lie ahead.