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What are the best practices for evaluating a facility management contractor before renewing their contract?

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Facility management (FM) contractors are essential partners for many organizations that need to maintain and optimize their physical assets and work environments. However, not all contractors deliver the same level of quality, efficiency, and value. Therefore, before renewing a contract with an FM contractor, it is important to evaluate their performance and alignment with your goals and expectations. Here are some best practices for conducting a thorough and fair assessment of your FM contractor.

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1 Review the contract scope and terms

The first step is to review the original contract scope and terms, and compare them with the actual services and outcomes delivered by the contractor. You should check if the contractor has met or exceeded the agreed-upon key performance indicators (KPIs), service level agreements (SLAs), and quality standards. You should also verify if the contractor has complied with the contractual obligations, such as reporting, invoicing, and safety protocols. Additionally, you should consider if the contract scope and terms are still relevant and adequate for your current and future needs, or if they need to be revised or renegotiated.

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Nishant Pandey

Director of Product Management @ JLL Technologies | Driving Product Innovation
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No two Facility Management contracts are identical. The evaluation process should be thorough and objective, taking into account both quantitative and qualitative factors - that apply to the facility being managed in the context of the contractual terms of the contract. Seek to make an informed decision about renewing your facility management contractor's contract, ensuring continuous quality service and a successful partnership. Generally important aspects to look at include: 1. Performance Review 2. Contract Compliance 3. Quality of Service 4. Various Others based on the context!

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Paul Y.

Vice President of Business Development | New Business Development, Key Account Management
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I'd suggest focusing on the value the contractor has brought to your organization. Have they helped improve efficiency, reduce costs, or enhance the workplace environment? These are key indicators of a contractor's performance that may not be explicitly outlined in the contract but are crucial for overall business success. What value do they provide? What problems do they solve? Are they a vendor or a true partner?

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Paul Y.

Vice President of Business Development | New Business Development, Key Account Management
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In the landscaping industry, reviewing the contract scope and terms is crucial not just for compliance, but also for ensuring the health and aesthetic appeal of the green spaces managed. It's important to assess if the contractor has adhered to the agreed-upon KPIs, SLAs, and quality standards, as these directly impact the visual appeal and sustainability of the landscape.

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2 Solicit feedback from stakeholders

The second step is to solicit feedback from various stakeholders who are involved or affected by the FM contractor's work. This may include your internal staff, customers, suppliers, regulators, and other third parties. You can use different methods to collect feedback, such as surveys, interviews, focus groups, or online platforms. The feedback should cover aspects such as the contractor's communication, responsiveness, professionalism, reliability, innovation, and customer satisfaction. You should also encourage the stakeholders to share any issues, concerns, or suggestions they have regarding the contractor's performance.

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Danielle Bergel

? Facility Management ?
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A opini?o do cliente interno também deve contar ! Muitas vezes um fornecedor com contato com seu cliente interno tem uma forma de tratar e agir na frente do cliente contratante e outra na frente do cliente interno. Dificilmente o contratante conseguirá ter a vis?o do cliente interno enquanto esse fornecedor te conhece. Pode ser importante avaliar internamente como é a tratativa deste com seu cliente interno e entender quais aspectos podem ser melhorados.

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3 Conduct site visits and audits

The third step is to conduct site visits and audits to observe and verify the contractor's work quality and compliance. You should visit different locations and facilities where the contractor operates, and inspect their equipment, processes, procedures, and documentation. You should also interview the contractor's staff and managers, and assess their skills, knowledge, and attitude. During the site visits and audits, you should look for evidence of best practices, continuous improvement, risk management, and value creation by the contractor.

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Danielle Bergel

? Facility Management ?
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Entender como esse fornecedor trabalha, como trata seus funcionários e suas instala??es é um ponto importante para avalia??o. Fornecedor que trata bem seus funcionários, vai fazer com que seu funcionário trate bem seu cliente

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4 Benchmark against industry standards and competitors

The fourth step is to benchmark the contractor's performance against industry standards and competitors. You should compare the contractor's KPIs, SLAs, and quality metrics with the best practices and norms in the FM sector. You should also research how other similar organizations manage their FM contracts, and what kind of benefits and challenges they experience. By benchmarking, you can identify the strengths and weaknesses of your FM contractor, and determine if they offer a competitive advantage or disadvantage for your organization.

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Danielle Bergel

? Facility Management ?
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Benchmark é um passo muito importante. Mesmo que você fa?a compara??es com setores diferentes, pode trazer situa??es e acomodá-las no seu modelo de trabalho, podendo avaliar, como seria a resolu??o, ou como foi a tratativa se isso acontecesse dentro da sua empresa. Mas um ponto de aten??o é avaliar que o contrato pode ter clausulas diferentes em algumas situa??es que n?o cabem no seu formato de trabalho, principalmente falando em KPIs e SLAs.

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5 Discuss the results and expectations with the contractor

The final step is to discuss the results and expectations with the contractor. You should share your findings and feedback with the contractor, and acknowledge their achievements and areas of improvement. You should also communicate your goals and priorities for the next contract period, and ask the contractor to propose solutions and strategies to meet them. You should negotiate the contract terms and conditions based on the value and performance of the contractor, and ensure that they are clear, fair, and mutually beneficial. You should also establish a regular review and feedback mechanism to monitor and improve the contractor's performance throughout the contract duration.

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Danielle Bergel

? Facility Management ?
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Detalhes muito importante dos dois. Todos os pontos devem ser abordados, discutidos para que o contrato n?o seja prejudicado. Exigir coberturas que seu fornecedor n?o consegue cumprir, é melhor trocar de fornecedor, por isso todos esses detalhes precisam ser colocados na mesa para discuss?o.

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6 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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Nishant Pandey

Director of Product Management @ JLL Technologies | Driving Product Innovation
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After the evaluation of contract performance and other criteria mentioned above, if you decide to proceed with renewing the contract, take the opportunity to renegotiate certain terms and conditions. Address any areas of concern raised during the evaluation process and ensure that the new contract reflects your expectations and delivers the desired outcomes.

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What are the best practices for evaluating a facility management contractor before renewing their contract?

1

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3

4

5

6

1 Review the contract scope and terms

2 Solicit feedback from stakeholders

3 Conduct site visits and audits

4 Benchmark against industry standards and competitors

5 Discuss the results and expectations with the contractor

6 Here’s what else to consider

Facility Management (FM)

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What are the best practices for evaluating a facility management contractor before renewing their contract?

1

2

3

4

5

6

1 Review the contract scope and terms

2 Solicit feedback from stakeholders

3 Conduct site visits and audits

4 Benchmark against industry standards and competitors

5 Discuss the results and expectations with the contractor

6 Here’s what else to consider

Facility Management (FM)

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