How To Start A Facility Management Company

An architect designs a building, a construction crew builds it and an interior designer turns it into a functioning space. However, who looks after the building once it’s complete? Taking care of buildings and property is no simple task as you need someone who really knows what they’re doing. 

Enter facility management companies. A facility management company provides this service, as they come with knowledge and expertise required to properly manage and sustain property. If you’re considering starting a facility management company, it’s equally important to understand the legal aspects of running your company. We know there’s a lot to consider, but don’t worry – we’ve got you covered.

Keep reading to learn more. 

What Is Facility Management? 

Facility management or facilities management refers to the maintenance of buildings, properties and infrastructure. Commonly used by apartment buildings, healthcare facilities, schools, workplaces and event venues, facility management is there to ensure that a premise is well maintained so it doesn’t cause harm to anyone entering it. 

What Do Facility Management Companies Do? 

Facility management companies provide various services related to the management of buildings, properties and infrastructure. These services often include: 

• Maintenance and repairs 
• Health and safety compliance
• Cleaning and janitorial services
• Security services
• Sustainability measures 
• Space management 
• Contractor or vendor management 
• Financial management 
• Implementing maintenance related technologies 
• Emergency responses 

When starting your own facility management company, it’s necessary to have a clear idea on exactly which services you will be offering and plan your business operations accordingly. It’s a good idea to draw up a business plan with all your goals and objectives as it can help keep you on track. 

How Do I Start My Own Facility Management Company?

To start a facility management company, you’re required to properly register your company. In Australia, every company, from every industry needs to be registered with the Australian Securities and Investments Commission (ASIC).  

ASIC isn’t just there for company registration though, ASIC also sets out the rules and regulations companies need to abide by. This way, companies can be properly regulated and ASIC can ensure there’s nothing going on that shouldn’t be happening. To make sure your company is legally compliant, you will need to keep up with your ongoing obligations with ASIC. This generally involves letting them know when your company details change, paying annual fees and complying with any auditing requirements. 

However, before you get to that stage – you will need to set your facility management company up first. To set up a company, some  pretty important decisions need to be made. You will need to choose the legal structure you want your company to have, decide how your company will be governed as well as the directors and shareholders. Once you’ve got these details and more sorted, you can fill out an application form with ASIC online. 

It’s always better to have the help of a legal expert when registering your company. A legal expert can help set up your company in a way that is beneficial for your facility management future, plus they can provide helpful guidance on your legal obligation with ASIC so you’re well prepared to run your facility management company. 

Are There Any Legal Requirements For Starting A Facility Management Company? 

There’s a number of legal requirements you need to adhere to when starting a facility management company – ASIC aren’t the only legal obligations you will need to comply with. From making sure you’re in line with consumer laws to ensuring your employees are receiving the correct benefits, running a facility management company means complying with various legal requirements. 

We’ve listed some legal requirements you’ll need to keep an eye out for below. Keep in mind though, the specific regulations you need to follow will depend on your individual company, so getting expert legal guidance is highly recommended. 

Australian Consumer Law (ACL)

The Australian Consumer Law (ACL) regulates how businesses interact with consumers and provides protection to small businesses. Understanding the ACL not only helps your facility management company comply with the law but also ensures you are aware of your rights. The ACL covers issues such as unfair contract terms, refunds, warranties, quality of services, deceptive conduct, and more. Understanding your obligations under the ACL is the first step towards legal compliance.

Data And Privacy Law

When you run a facility management company, you will have access to private information. This information could be directly related to your company, your clients or even other businesses you may be working with. It’s vital to take appropriate measures to secure this information, as not doing so can lead to others losing trust in your business and in some cases, legal consequences. Chatting with a Data and Privacy expert can provide better clarity on the steps you need to take to protect your facility management company’s data. 

Employment Law 

When hiring employees to work in your facility management company, it is necessary to take care of them right from the start. In order to do this, you will need to adhere to minimum requirements regarding pay, leave and other entitlements. It’s a good idea to properly communicate any rights and duties your employees may have in a well drafted Employment Contract. 

Another employer obligation to think about is ensuring your employees have a safe working environment. Depending on what activities your employees will be undertaking, providing a safe environment can look like anything from giving your employees protective equipment to wear or monitoring workplace chats/interactions for harmful behaviour. Communicating your professional expectations in a Staff Handbook or a Workplace Policy is a place to start.   

Industry Specific Regulations 

As a facility management company, there will be industry specific regulations, local or state laws you’ll need to look out for. Doing your research or getting in touch with a Regulatory Compliance expert is a good way to go, as it can be difficult to keep up with all the different rules. For instance, you could be required to adhere to certain sustainability measures or keep an eye out for noise regulations – it will all depend on your unique circumstances. 

What Legal Agreements Will I Need To Start A Facility Management Company? 

Legal agreements are one of the most important aspects of starting your facility management company. Not only do they help protect your company, they also aid in legal compliance. A few legal agreements you may want to consider getting professionally drafted include: 

• Service Agreement
• Non-Disclosure Agreement
• Shareholders Agreement 
• Privacy Policy 
• Business Terms and Conditions 

Every agreement serves a different purpose. It’s important to get tailored advice on your facility management’s specific needs and go from there – our legal experts are ready to chat whenever you are. 

Next Steps 

Starting a facility management company can be a great new business venture however, it’s vital to be legally compliant to secure your company’s future. To summarise what we’ve discussed: 

• Facility management involves maintaining buildings, properties, and infrastructure, ensuring they are safe and functional
• Starting a facility management company requires registering with ASIC, choosing a legal structure, and understanding ongoing compliance obligations
• Legal requirements include adhering to Australian consumer law, data and privacy laws, employment laws and industry-specific regulations
• Important legal agreements include Service Agreements, Non-Disclosure Agreements, Shareholders Agreements, Privacy Policies, and Business Terms and Conditions
• Proper planning and legal compliance are crucial for the success and sustainability of a facility management company

If you would like a consultation on starting a facility management company, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.

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