Facility Management Services in Bangladesh

Facility management is often treated as housekeeping, until a generator fails during a buyer audit, a fire inspection finds expired extinguishers, or a security contractor's unpaid workers become a labour dispute at your gate. A structured approach turns scattered service contracts into a planned, documented operation that management can oversee and budget for.

This page is for admin heads, factory managers, foreign-owned companies and property owners in Bangladesh. It explains the scope of facility management, the safety and licensing points regulators look at, how to manage outsourced service contractors, and the VAT and withholding treatment of facility service payments.

What facility management covers

Services are usually split into hard services, related to the building and its systems, and soft services, related to people and the workplace.

• Hard services: electrical systems, substation and generator, lifts, HVAC, plumbing, fire detection and suppression, building repairs
• Soft services: cleaning, security guarding, pest control, waste disposal, pantry, mailroom and reception
• Planned preventive maintenance schedules and breakdown response
• Utilities: electricity, gas, water and internet accounts and consumption tracking
• Asset register for equipment, warranties and AMC contracts
• Space planning, moves and fit-out coordination

Safety and regulatory requirements

Requirements depend on building type, use and size, and are enforced by several authorities. A facility plan should map which apply to you.

• Fire licence and fire safety arrangements under the Fire Service and Civil Defence (FSCD) regime, including equipment maintenance and drills
• Building use and safety in line with the Bangladesh National Building Code and approvals from RAJUK or the relevant development authority
• For factories and establishments, health, safety and welfare duties under the Bangladesh Labour Act 2006, inspected by DIFE
• Boiler, lift and electrical installations requiring periodic inspection or certification by the competent authority
• Environmental clearance and waste handling where the Department of Environment requires it

Managing outsourced facility contractors

Most facility services are delivered by contractors: security agencies, cleaning companies, lift and generator maintenance firms. The principal employer is not free of risk when work is outsourced. Under the Bangladesh Labour Act 2006, workers supplied through contractors are entitled to lawful wages and conditions, and disputes or unsafe practices can reach the principal's premises and reputation, particularly for exporters subject to buyer audits.

Good practice is to screen contractors before appointment, require evidence of wage payments and statutory obligations, specify staffing levels and qualifications in the contract, and audit periodically. Security agencies should hold the required licence.

VAT and withholding on facility services

Security, cleaning, maintenance and similar services are generally VATable, with the applicable rate depending on the service category set by the VAT and SD Act 2012, rules and SROs. Ask for Mushak 6.3 invoices from registered contractors. If your organisation is a VAT deduction at source entity, deduct VAT at payment and issue Mushak 6.6. Income tax at source on contractor and service payments applies under the Income Tax Act 2023 at the rates currently in force. Getting these wrong is one of the most frequent findings in VAT audits of facility costs.

Building a facility management plan

A practical plan includes an asset register, a preventive maintenance calendar, a compliance calendar with licence and inspection due dates, service level agreements for each contractor, an emergency response plan and a monthly cost report. Even a small office benefits from a one-page version; a factory needs the full set.

How the process works

1. Site assessmentWe walk the premises, list assets and services, and review existing contracts and licences.
2. Compliance mapWe identify applicable licences, inspections and renewal dates and flag gaps.
3. Contract reviewWe review scope, staffing, SLAs, labour compliance and VAT and TDS treatment for each contractor.
4. Maintenance and compliance calendarWe build preventive maintenance and renewal schedules with responsibilities.
5. Ongoing oversightMonthly reporting on costs, incidents, open issues and upcoming renewals.

Typical timeline: An initial assessment and plan for a single office or small factory typically takes a few weeks; correcting licence or inspection gaps depends on the authorities involved and the work required.

How Tax & VAT Associates helps

• Facility and compliance assessment with a prioritised action list
• Contractor screening and contract templates with SLAs and labour compliance clauses
• VAT, VDS and TDS treatment matrix for all facility service payments
• Licence and inspection renewal calendar for fire, lifts, boilers and trade license
• Monthly facility cost and compliance reporting for management

Frequently asked questions

Related services

Last reviewed: 6 October 2026. Bangladesh tax and regulatory rules change with each Finance Act, SRO and authority circular. This page is general guidance; confirm current requirements for your case before filing.