Final answer:
Understanding the terms of leases in facility management is critical for effective operation and avoiding costly disputes. It remains important even as a firm grows and attracts outside investors.
Step-by-step explanation:
Knowing the provisions of the various leases that apply to the facility management operation is important because leases are legal contracts that define the terms and responsibilities of both the landlord and the tenant. In a facility management context, the comprehension of these terms is crucial for ensuring effective operation and management of property assets.
For instance, unclear and confusing agreements can heighten stress in case of disputes, making proficient knowledge of leases necessary to avoid relying excessively on legal aid, which may be costly.
Additionally, especially as a firm grows and information about its activities becomes more accessible, understanding the operational details, such as lease agreements, is still significant for maintaining managerial oversight and attracting outside investors like bondholders and shareholders who rely on credible and well-managed operations.