Services & Facilities Agreements
Business & Commercial
Services & Facilities Agreements in Newcastle NSW
A facilities agreement will outline the provision of facilities and administration services. A company will provide the relevant services. Before entering into such an agreement, a number of considerations are important, including the distribution fees and restraints.
Such an agreement is predominantly utilised in the medical industry where practitioners will give facilities agreements to patients or clients and use them under a company or medical centre banner. If such an agreement exists, it tends to imply that the medical centre will provide the practitioner with a number of services including administration and support, access to practice databases and branding and marketing. The agreements will set out the terms of the relationship between the practitioner and the medical centre, rights, obligations and duties of the parties involved, and fees for the services.
Obligations and duties within a facilities agreement could include maintenance of the facilities and administrative services, providing high quality services to clients and not solicit clients for other premises.
At Burgess Thomson, we can help you in your services or facilities agreements by drafting an agreement which will be agreeable for both parties. We can also look over and analyse an existing agreement to determine what your rights, duties or obligations are, or whether you are being treated unfairly under the agreement. Our experience in commercial agreements and attention to detail will ensure that you are not unfairly disadvantaged in any way by entering or being party to an agreement of this nature.
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Frequently asked questions
What is a restraint?
Restraints can be included in services and facilities agreements for the purpose of protecting ongoing business. They discourage practitioners from soliciting clients to move with them if they leave. For example, it may limit the services the practitioner can provide outside of the specified business within a certain distance from the premises or it may limit the time within which they are able to practice these services.
Whether restraints can be enforced and to the extent to which they can be enforced is still a grey area. To ensure that you are not disadvantaged by such a clause, it is advisable that a legal professional look over or draft such a clause. Our experience in commercial agreements and attention to detail means we are able to ensure all bases are covered, whether you have been given a services and facilities agreement or are drafting one.
What should I consider when entering into a services and facilities agreement?
A preliminary agreement is a separate contract signed by you and the builder to carry out preliminary work. However, this does not mean you have to sign a building contract. The type of work usually defined and undertaken on the preliminary agreement include things like soil tests, plan preparation, engineering, foundation design and site survey.What should I consider when entering into a services and facilities agreement?
- What your obligations will be under the agreement – these should be made as clear as possible e.g. restraints
- What will the rate of fee distribution be?
- Full scope of any additional fees
- How any restraints will impact your future opportunities
What should be included in a services and facilities agreement?
A contract will need to be provided to all of the practitioners who use the premises. This contract will outline important details of the relationship and use of the premises, including payment structure, client bookings, use of the facilities and conduct.
