Study of Facilities Management Contractual and Payment Practices Towards Specialist Service Providers and Adequacy of Facilities Management Procurement Guidance

Mr Victor Lye asked the Minister for National Development (a) whether the Building and Construction Authority has studied contractual and payment practices between facilities management (FM) companies and specialist service providers, particularly SMEs, including payment periods, back-charges, pass-through liquidated damages and termination provisions; and (b) whether the Government considers existing FM procurement guidance sufficient to encourage equitable allocation of risks throughout the FM supply chain.

The Building and Construction Authority (BCA) has obtained and incorporated feedback from facilities management (FM) companies and specialist service providers in updating the Guide on FM Procurement (Guide). The Guide, last updated in July 2026, promotes good practices across the FM supply chain, including prompt payment practices and performance-based incentives and deductions. BCA will continue to review and update the Guide periodically, and stakeholders are encouraged to share feedback and suggestions with BCA.

To further encourage equitable risk allocation, BCA has published sample contract clauses for buyers to place reasonable limits on the liabilities of service providers. BCA also organises industry workshops to promote collaborative contracting practices.