A facility construction agreement is one that is entered into between two parties where one wants to have some facility such as hospital, electric power generation unit, toilets etc and the other company is one who undertakes the completion of the project. The construction project provides facilities management to the first company and the second company has to construct according to the needs and requirements of the first company.

The facility construction agreement has some of the features includes in it such as names and addresses of the construction company and the owner company, registration number and profile of the construction company, commercial construction specifications, technical specifications of the facilities project, confidentiality clause agreed upon by the construction company, applicable standards according to state regulations of facility construction provided by construction company, effective date of start of the project, effective date for completion of the project, breach of terms of the agreement, resolution of breach and penalty applicable etc.

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