Team Project MGMT MPM 541: Contract Analysis and Legal Issues in FM

This project analyzes a Building Facility Management and Service Agreement between ALDAR Properties PJSC and a facility manager. The project examines contract formation, highlighting the need for registration numbers and more detailed minimum service levels. It reviews remedies for contract breach, specifically termination clauses, and discusses the dispute resolution process, focusing on arbitration. The analysis identifies missing legal issues, including penalty clauses, schedule maintenance provisions, third-party interface regulations, and handback procedures. The project concludes by acknowledging the contract's detail while pinpointing areas for improvement by incorporating these missing legal elements, ultimately aiming to create a clearer and more comprehensive agreement. References include resources on contract remedies and facilities management contracts.

Project MGMT
MPM 541
Team Project- Team Work
How to read a contract or
agreement and implement legal
issues in a project

Background of the presentation
 The contract is a valid agreement that is
enforceable to each party and the same consists of
certain terms and conditions, which reflect
obligations and entitlements of parties.
 Here to state that in case of breach of contract,
another party can sue the defaulting party.

Introduction
 Contract selected for the preparation of this
presentation is a Building Facility Management
and Service Agreement that is developed between
ALDAR Properties PJSC and a facility manager.
 It is a standard contract and name of other party is
not mentioned in the same.

Contract formation
A contract is formed when offer and acceptance are
there in addition to a valid consideration and intention
to create legal relation (Epstein, 2012). All these factors
seem to be validly incorporated in the subjective
contract. Nevertheless, in the introductory part of the
contract, registration number of parties should have
been mentioned, as the same is a company and not an
individual.

Contract formation (cont.)
Under clause 4 of the selected contract, obligations of
the facility manager are mentioned and stated that such
a manager is required to perform the functions
considering Minimum Service Levels. This term could
be more detailed. Minimum service levels are
mentioned under schedule 2 of the contract, but in
addition to this, the key indicators should have been
measurable, relevant and time-based.

Remedies for Contract Breach
 Reformation and restitution are some of the major
remedies that are available to an innocent party in
case of a contract breach (Contracts.uslegal.com,
2019).
 In the respective contract, remedy related to
termination is mentioned.
 Clause 16 of the contract is developed in the topic
of default and termination.

Dispute Resolution System
 Clause 24 of the subjective contract is based on the
dispute resolution process.
 Apart from the mutual discussion, only one kind of
dispute resolution process is mentioned under this
contract, which is arbitration.
 The selected contract only provides the manner in
which a dispute will be resolved between the
parties but did not cover other aspects such as it do
not include anything related to the cost of the
arbitration process.

Method of payment and compensation
 There may be various method to make the
payment such as cash, internet banking transfers
and cheque.
 This method must be clearly mentioned under the
contract in order to remove any confusion
regarding payment between the parties.

Legal issues missing in the contract: In the following
section, some legal issues are mentioned which should
have been there in the contract but are not
 Penalty clause: It is an important clause of each
contract, where the parties to the contract decide
their obligations with respect to the payment of
penalties.
 Schedule maintenance: - Provisions related to
schedule maintenance are very important as wear
and tear is fact of life and therefore the same is an
important part of the facility management contract.

Legal issues missing in the contract (Cont.)
 Interface with third parties: - The interaction of the
facility manager with the third parties must be
regulated (Lloyd, 2016).
 Handback Procedure: - Handback provisions state
the manner in which work should be hand over to
another facility manager (in the context of facility
management and service agreement.

Conclusion
 In a conclusive way, this is to state that the
agreement reviewed hereby is very detailed and is
very inclusive in nature yet some gaps are there in
the same which have been identified and discussed
in this presentation.
 In addition to these reports, some areas of legal
issues also been found and discussed which were
not there. By inserting these terms, this agreement
can make better and clear.

References
 Contracts.uslegal.com. (2019). Breach Of
Contract: Remedies. Retrieved From:
https://contracts.uslegal.com/breach-of-contract-
remedies/
 Epstein, A. (2012). Sports Law. Australia:
Cengage Learning.