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How do you identify the needs and requirements for FM service contracts?

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Facility management (FM) service contracts are agreements between facility owners or managers and service providers that define the scope, quality, cost, and duration of the services to be delivered. Negotiating effective and efficient FM service contracts requires a clear understanding of the needs and requirements of both parties, as well as the market conditions and best practices. In this article, we will discuss how you can identify the needs and requirements for FM service contracts in six steps.

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Jahanzaib Qureshi

Facility Business Partner| Unilever, Frieslandcampina Engro, Tapal |
Hussan Syedzadah Saeed

Independent Construction & Facility Management Professional

1 Assess your facility

The first step is to assess your facility and its current condition, performance, and functionality. You need to identify the assets, systems, and components that require maintenance, repair, replacement, or improvement. You also need to evaluate the compliance, safety, and sustainability aspects of your facility, as well as the expectations and satisfaction of the occupants and stakeholders. This will help you determine the gaps and priorities for your FM service needs.

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Hussan Syedzadah Saeed

Independent Construction & Facility Management Professional
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Conduct a facility survey in the following order: 1. Compare existing facility asset register with existing facility assets on ground, and acertain the actual dilllapidation in the asset life cycle. Know the gaps. 2. Aquire familiarity with the local codes and best practices. Based on locality & Genre of usage. Draw out a gap analysis, if any. 3. Study & absorb Facility design parameters, scalability provisions and compare with actual density, usage and ergonomics. 4. Meet with key stake holders, draw out a usage analysis, based on: a) Current user satisfaction b) User Expectations: i. Immediate & Critical ii. Planned & Necessary iii. Nice to have & Wish list 5. Visit budget allocations, Prepare and put up CEPs for approval

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David Pe?aranda

People | Wellness | Safety & Health at Werfen Iberia
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La evaluación de las instalaciones consiste en identificar aquellos activos que requieren de un mantenimiento o conducción. Este proceso consiste en identificar y detallar por uno o varios expertos las necesidades de las instalaciones en cuanto a: - Tipología de la instalación (eléctrica, mecánica, seguridad, PCI, etc...) - Tipo de servicio necesario (mantenimiento, inspección (periódica o legal), etc... - Gestión del activo (mantenimiento correctivo, preventivo, conductivo, etc..) Para ello necesitaremos disponer de la documentación e información del fabricante, como manuales técnicos o recomendaciones de mantenimiento entre otros, que nos servirán de guía para definir el servicio necesario.

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Rasool Mydeen

Tender and Contract Management
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1.Stakeholder Consultation: Engage with facility users, owners, and key stakeholders. 2.Facility Assessment: Conduct a thorough evaluation of the facility's current state. 3.Regulatory Compliance: Identify legal and regulatory requirements impacting FM services. 4.Risk Analysis: Assess potential risks and vulnerabilities in facility operations. 5.Budgetary Constraints: Understand financial limitations and allocate resources accordingly. 6.Service Level Expectations: Define the desired quality and scope of FM services. 7.Asset Inventory: Create an inventory of all assets requiring maintenance and management. 8.Historical Data Review: Analyze past performance and service issues for improvement insights.

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Brent Lovings

Experienced Business Operations and Management Professional | Specializing in Optimization and Driving Success ??
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To shape a facility management (FM) service contract effectively, start by explicitly defining objectives, encompassing maintenance, safety, and operational efficiency goals. Gather input from all stakeholders to incorporate diverse expectations. Prioritize services based on their significance, ensuring compliance with regulations and standards. Establish measurable performance metrics, promote flexibility, and include adaptable provisions. Clearly define service levels, budget parameters, and communication protocols, while addressing risk management. This comprehensive approach ensures the development of a robust FM service contract aligned with facility objectives and stakeholder needs.

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2 Define your objectives

The second step is to define your objectives and desired outcomes for your FM service contracts. You need to align your objectives with your organizational strategy, vision, and values. You also need to consider the benefits and risks of outsourcing or insourcing your FM services, as well as the trade-offs between cost, quality, and flexibility. Your objectives should be specific, measurable, achievable, relevant, and time-bound (SMART), and they should guide your decision-making and evaluation processes.

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Hussan Syedzadah Saeed

Independent Construction & Facility Management Professional
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Study in depth organisation standards & critical areas. Involve the procurement department & know the minimum requirements of your organisation, to sign a comprehensive integerated facilities management contract. Keeping in mind the above draw out specific parameters like square footages of occupied and non occupied areas. Detailed list of equipment & machineries installed, draw out minimum OEM required PPMs & consumabales of the equipment & machinery, check for last major overhauls and repairs done. Note past at least 3 years average repairs and overhaul costs, seperate out the materials and labour costs, for hard & soft services. Now set KPIs based on downtimes for hard services, & monthly survey audits for cleaning & soft services.

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3 Research the market

The third step is to research the market and the available options for your FM service contracts. You need to analyze the supply and demand of the FM service providers, their capabilities, reputation, and pricing. You also need to benchmark your facility against the industry standards and best practices, and identify the gaps and opportunities for improvement. You should also review the legal, regulatory, and contractual frameworks that govern the FM service contracts, and understand your rights and obligations as a client.

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Arjun Rishi

Product Head at (Team Mateo) Neucomed Health & Hygiene Pvt. Ltd.
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To identify needs and requirements for facility management service contracts, consider conducting a thorough assessment of the facility's size, usage, and specific operational demands. Engage with stakeholders to understand their expectations and prioritize key services such as maintenance, security, and cleaning. Additionally, evaluate regulatory compliance, budget constraints, and potential future growth to ensure the contract aligns with long-term goals. Regularly review and update the contract to adapt to evolving needs.

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4 Develop your specifications

The fourth step is to develop your specifications and requirements for your FM service contracts. You need to describe the scope and level of the services you need, the performance indicators and targets you expect, and the payment and incentive mechanisms you prefer. You should also specify the roles and responsibilities of both parties, the communication and reporting protocols, and the dispute resolution and termination procedures. Your specifications should be clear, concise, and consistent, and they should reflect your objectives and needs.

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5 Select your provider

The fifth step is to select your provider and negotiate your FM service contracts. You need to follow a fair and transparent procurement process that ensures the best value for money and the best fit for your facility. You should also conduct a due diligence and risk assessment of the potential providers, and verify their credentials, references, and track record. You should also engage in a constructive and collaborative dialogue with the providers, and seek to establish a mutually beneficial and long-term relationship.

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6 Monitor and review

The sixth step is to monitor and review your FM service contracts and their outcomes. You need to measure and evaluate the performance and quality of the services delivered, and compare them with the agreed specifications and targets. You should also provide feedback and recognition to the provider, and address any issues or concerns promptly and effectively. You should also review and update your FM service contracts periodically, and adapt them to the changing needs and requirements of your facility.

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Jahanzaib Qureshi

Facility Business Partner| Unilever, Frieslandcampina Engro, Tapal |
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Best is to engage your procurement team to identify best services available in market. Needs come from compliances requirements, corporate vision. Align services with these too. Research other industries too, what contract services are the receiving and what benefits they have got through any contract services

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Ayaz Ahmad

Senior Facilities Manager
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1. Asses and align your needs of facility. 2. Issue RFQ/ Ask and discuss your connections as per your needs in the market. 3. Short list the service provider. 4. Discuss and evaluate how they best fit to your needs. 5. Negotiate the contract(Never exceed your OPEX/ never accept conditional services) 6. Don't miss to involve procurement in all the above steps.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you identify the needs and requirements for FM service contracts?

1

2

3

4

5

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1 Assess your facility

2 Define your objectives

3 Research the market

4 Develop your specifications

5 Select your provider

6 Monitor and review

7 Here’s what else to consider

Facility Management (FM)

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How do you identify the needs and requirements for FM service contracts?

1

2

3

4

5

6

7

1 Assess your facility

2 Define your objectives

3 Research the market

4 Develop your specifications

5 Select your provider

6 Monitor and review

7 Here’s what else to consider

Facility Management (FM)

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