Most FM disputes start at month end. The client says a chiller fault took three days to fix; the FM company says it was resolved in four hours and the delay was waiting for access. Without timestamps on every work order, both sides argue from memory, and payment is held.
This guide explains what an FM contract covers, how to set up and measure SLAs, the work order flow from request to sign-off, and a worked monthly bill with SLA deductions. It ends with a monthly routine, common disputes and an FAQ.
What does a facility management contract cover?
Most FM contracts in the UAE and Saudi Arabia combine four elements. Each needs its own records, because each is paid differently.
| Element | What it includes | How it is usually paid |
|---|---|---|
| Planned preventive maintenance (PPM) | Scheduled servicing of MEP systems: chillers, AHUs, pumps, fire systems, lifts, generators | Fixed monthly fee, often linked to an asset list and PPM schedule |
| Reactive maintenance | Breakdown and call-out work raised by the client or occupants | Included in the fixed fee up to an agreed limit, or charged per job |
| Soft services | Cleaning, security, pest control, landscaping, waste | Fixed monthly fee per site or per head |
| Additional works | Work outside scope: alterations, replacement of failed equipment, parts above a threshold | Quoted and approved per job, billed separately |
The contract also defines the rules that drive billing:
- The asset list. Which equipment is in scope, by site. Equipment not on the list is additional work.
- The parts threshold. Consumables and parts below a set value per item are often included in the fee; anything above is charged at cost plus an agreed mark-up.
- SLAs and KPIs. Response and resolution times by priority, PPM completion targets, and the deductions if they are missed.
- Reporting. What the monthly report must include and when it is due, often as a condition of payment.
When these rules sit only in the signed PDF, the monthly invoice becomes a negotiation. When they are set up against each site and contract in the system, the invoice follows from the work done.
How do you set up and measure SLAs?
An SLA is a promised time, measured from a defined start to a defined end. The definitions matter as much as the times.
A typical priority matrix looks like this. The times are an example, and each contract sets its own.
| Priority | Example | Response time | Resolution time |
|---|---|---|---|
| P1 Emergency | Power failure, water leak, fire alarm fault, lift entrapment | 30 minutes | 4 hours (make safe), then permanent fix as agreed |
| P2 Urgent | Air conditioning failure in an occupied area, blocked drain | 2 hours | 24 hours |
| P3 Routine | Lighting fault, door closer, minor plumbing | 24 hours | 3 working days |
| P4 Planned | Cosmetic repairs, small improvements | 3 working days | As scheduled |
Define four timestamps on every work order:
- Logged: when the request reached the help desk.
- Responded: when a technician arrived on site, or made contact if remote response is allowed.
- Resolved: when the fault was fixed or made safe.
- Closed: when the client signed off.
Response time runs from logged to responded; resolution time from logged to resolved. Agree in the contract which pauses stop the clock, such as waiting for client access or client-approved parts, and record the pause with a reason. Most month-end disputes are about pauses that were never recorded.
Measure SLA performance as the share of jobs meeting the target in each priority, for example 95% of P2 jobs responded to within two hours. Report misses with their work order numbers, not just a percentage.
How should a work order move from request to sign-off?
| Stage | Who | What to record |
|---|---|---|
| 1. Request | Occupant, client facility manager or building system alarm | Site, location, asset, description, photo, time logged |
| 2. Triage | FM help desk | Priority, in or out of scope, assigned technician or subcontractor |
| 3. Response | Technician | Arrival time, initial findings, any clock pause with reason |
| 4. Work | Technician | Labour time, parts used, whether parts are above the threshold |
| 5. Resolution | Technician | Time resolved, what was done, before and after photos |
| 6. Sign-off | Client representative | Signature or approval in the app, with any comments |
| 7. Billing | FM finance | Included in fee, or chargeable with an approved quote |
Two rules keep this clean.
Out-of-scope work needs approval before it starts, except emergencies. If a technician finds a failed compressor that is not covered, the work order should become a quotation for the client to approve. For emergencies, make safe first and quote the permanent fix.
PPM visits are work orders too. Generate them from the PPM schedule for each asset, and close them with the same record of time, findings and sign-off. PPM completion is usually a KPI, and it can only be proved if each visit has a record.
What does a monthly FM bill look like? A worked example
An FM company maintains a mixed-use tower in Dubai for a fixed fee of AED 185,000 a month. The contract sets these KPI rules:
- PPM completion target 98%. For each full percentage point below, deduct 1% of the monthly fee.
- P1 and P2 jobs that miss their response or resolution SLA: deduct AED 750 each, unless a clock pause agreed in the contract was recorded.
- Parts above AED 500 per item are charged at cost plus 15%.
October's records show:
| Measure | Result |
|---|---|
| PPM visits scheduled / completed on time | 412 / 398 (96.6%) |
| Reactive jobs | 236, of which 6 P1 and 40 P2 |
| P1 and P2 jobs outside SLA | 3, one with a recorded pause for client access |
| Approved additional works | AHU motor replacement AED 9,800; CCTV camera AED 3,400 |
| Parts above threshold | AED 2,150 at cost |
The October invoice:
| Line | AED |
|---|---|
| Fixed monthly fee | 185,000.00 |
| Additional works (2 approved quotes) | 13,200.00 |
| Parts above threshold (2,150 + 15%) | 2,472.50 |
| Less PPM KPI deduction (1 full point below 98%: 1% of fee) | (1,850.00) |
| Less SLA deductions (2 jobs × 750) | (1,500.00) |
| Subtotal | 197,322.50 |
| VAT at 5% | 9,866.13 |
| Total | 207,188.63 |
The third SLA miss was excluded because the technician recorded a 2-hour wait for access to a tenant's unit, with the tenant's name, at the time. Without that entry, the deduction would have been AED 2,250.
The invoice goes with the monthly report: PPM completion by system, SLA performance by priority with the missed work order numbers, and the approved quotes. The client's facility manager can check any line against the work orders, so the payment is not held while the numbers are argued.
What should the monthly FM routine include?
Which disputes come up most, and how do you prevent them?
| Dispute | Cause | Prevention |
|---|---|---|
| "The SLA was missed" | Times recorded from memory, or not at all | Timestamps from the mobile app or help desk, not typed in later |
| "We didn't approve that" | Out-of-scope work done on a verbal OK | Written or in-app approval of every quote before work starts |
| "That equipment is in scope" | Asset list unclear or out of date | A signed asset register per site, updated when equipment changes |
| "PPM wasn't done" | Visits done but not recorded | PPM work orders closed with findings and client sign-off |
| "Parts should be included" | Threshold rules interpreted differently | Threshold and mark-up set in the contract and applied per item |
The common thread is evidence created at the time of the work. FM companies that capture it on a technician's phone, rather than on paper sheets typed up at month end, spend far less time defending their invoices.
What does HYP see at FM companies?
At facility management companies in the UAE and Saudi Arabia, our implementation team usually finds three systems that do not talk to each other: a help desk tool or WhatsApp group for requests, paper or spreadsheet job cards for technicians, and the accounting system for invoices. The monthly bill is assembled by hand from all three, which can take a week per large contract.
The biggest gain usually comes from putting contracts, sites, asset lists and SLA rules in one place, so each work order knows which contract it belongs to, whether it is in scope and which clock applies. Month-end then becomes a review of exceptions instead of a reconstruction.
In HYP, FM contracts, sites, PPM schedules and reactive work orders are linked, with SLA times tracked per job and billing built from the contract terms. See how it works on our Facility Management & Maintenance Services page.
Related reading: PPM schedules are the backbone of most FM contracts. See Preventive Maintenance Schedules: Planning Service by Date, Running Hours or Meter Reading.