Circular Facilities Management: Designing Maintenance, Procurement, and Contracts for Reuse and Remanufacture

Abstract

The transition to sustainable built environments has positioned facilities management (FM) as a critical enabler of circular economy principles. Yet, FM practices and supply chains remain predominantly linear, with limited integration of reuse, remanufacture, and circular procurement strategies. This study systematically reviews circular FM practices with a specific focus on (i) maintenance, (ii) procurement, and (iii) contractual models. The scope is limited to FM processes within the built environment, excluding broader circular economic applications such as industrial symbiosis or regional resource loops. A systematic literature review methodology was applied, covering studies published between 2015 and 2025. A total of 46 peer-reviewed journal articles met the inclusion criteria. Supplementary grey literature, including selected industry reports and policy documents, was consulted to capture practical insights.  Findings indicate that circular procurement clauses and pooled spares can reduce life-cycle costs by up to 15–25% and material waste by approximately 20–30%, as evidenced in municipal FM pilots and manufacturing-based case studies. These effects, however, remain context-dependent and indicative, reflecting limited large-scale validation. Material passports enhance traceability but introduce contractual complexities. Further evidence shows that aligning warranty structures and risk-sharing mechanisms with product-as-a-service (PaaS) models is essential for scalability. The review recommends the development of standardized circular procurement guidelines, FM-focused circular performance indicators, and collaborative contract models that embed accountability across supply chains. By integrating scholarly evidence with practice-based recommendations, this study contributes to advancing FM as a driver of circularity in the built environment.