Last updated on 2024年8月28日

What are the best ways to negotiate FM contracts for your organization?

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Facility management (FM) contracts are essential for ensuring the quality, efficiency, and cost-effectiveness of your organization's physical assets and services. However, negotiating them can be challenging, especially if you are not familiar with the best practices and strategies. In this article, you will learn some of the best ways to negotiate FM contracts for your organization, such as:

本文章的要点总结

Know your budget:

Understanding your financial constraints is key to a successful negotiation. Document and communicate these clearly to set realistic expectations and stay on track with your organization's fiscal goals.
Research and confidence:

Before entering negotiations, do thorough research on the contract and market trends. This knowledge gives you the confidence to negotiate effectively. Use it to read the room and react accordingly for a win-win outcome.

本摘要由 AI 和以下专家提供支持

Shivani Seunarine

I believe that practice makes perfect…
Oluwatomisin Arogundade (M.Sc, FMT, HSE.)

A facility manager, currently leading a…

1 Understand your needs

Before you enter any negotiation, you need to have a clear understanding of your organization's goals, expectations, and requirements for the FM contract. This includes defining the scope, specifications, performance indicators, service levels, and risks of the contract. You also need to assess your current and future needs, such as expansion, renovation, or relocation plans, and how they will affect the contract. By knowing your needs, you can communicate them effectively and avoid unnecessary or unrealistic demands.

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Shivani Seunarine

I believe that practice makes perfect so I teach in order to constantly improve my skills. Project Management Practitioner| Facility Manager Practitioner| Agile Practitioner | Trainer |Business Owner
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In my experience you cannot negotiate without having a clear understanding and knowledge of budgetary constraints. I always receive facilities requests but this must be documented clearly more prescriptive scope I would say in order to converse with the contractor.

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Omotosho Omolola

Associate @ Food Concepts PLC | HND in Urban Planning
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- Involve legal counsel in the negotiation process - Be flexible and open to creative solutions - Use data and metrics to support your negotiation position - Ensure compliance with organizational policies and procedures - Document all negotiations, agreements, and changes

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2 Do your research

Another important step in preparing for the negotiation is to do your research on the market, the potential suppliers, and the best practices. You need to gather relevant and reliable information on the FM industry trends, benchmarks, standards, and innovations. You also need to analyze the strengths, weaknesses, opportunities, and threats of each potential supplier, as well as their reputation, experience, and references. Moreover, you need to learn from the best practices of other organizations that have successfully negotiated FM contracts, and avoid the common pitfalls and mistakes.

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Shivani Seunarine

I believe that practice makes perfect so I teach in order to constantly improve my skills. Project Management Practitioner| Facility Manager Practitioner| Agile Practitioner | Trainer |Business Owner
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I found that creativity and innovation is needed for this one. There is no one best way for negotiating with your contractor. At times I use a knowledge sharing exchange of services in order to get the job done with limited resources.

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3 Establish a relationship

Negotiating an FM contract is not a one-time transaction, but a long-term partnership that requires trust, respect, and collaboration. Therefore, you need to establish a positive and professional relationship with the potential suppliers, and show them that you value their expertise, input, and feedback. You can do this by being transparent, courteous, and responsive, and by acknowledging their concerns and interests. You can also build rapport by finding common ground, sharing your vision and values, and expressing appreciation and recognition.

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4 Be flexible and creative

Negotiating an FM contract is not a zero-sum game, where one party wins and the other loses. Rather, it is a process of finding a mutually beneficial solution that meets the needs and expectations of both parties. Therefore, you need to be flexible and creative in your approach, and be willing to compromise and adapt to changing circumstances. You can do this by exploring different options, alternatives, and scenarios, and by using techniques such as brainstorming, bundling, and trade-offs. You can also leverage your strengths and opportunities, and address your weaknesses and threats.

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5 Follow up and monitor

The negotiation does not end with the signing of the contract, but continues throughout the duration of the contract. You need to follow up and monitor the implementation and performance of the contract, and ensure that both parties comply with their obligations and responsibilities. You can do this by setting up regular meetings, reviews, and audits, and by using tools such as reports, dashboards, and surveys. You can also provide feedback, support, and recognition, and address any issues or challenges that may arise.

By following these best ways to negotiate FM contracts for your organization, you can achieve optimal outcomes that enhance your organization's productivity, efficiency, and sustainability.

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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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Oluwatomisin Arogundade (M.Sc, FMT, HSE.)

A facility manager, currently leading a team of Hard and Soft FM which includes grounds men, Gardeners, janitors, security protocols on two sites with about 50 flats, These evolves duplex, bungalows and detached houses
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From own experience, I make an intense research about the contract, that's if I have little or no knowledge about it. Please note the following in your research. The aim, objective and scope of the contract must be throughput. Having done research, the next thing to do is to be confident in contract negotiations, know market prices. Relate current trends. Then read reaction of the negotiator. If not in total agreement, try the convincing approach. don't forget that the aim is to win the contract. Be a little bit jovial. Constant check up to win subsequent contract having won the previous one. It funnies me how managers in FM don't check up on clients even after winning awarding contracts.

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Ikechukwu Anene ANIVS, CIWFM

Facilities Maintenance and Management ||Business Development|| Project Management|| Property Management || Procurement|| Certified Workplace and Facilities Manager
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My take from experience, If I have no knowledge of the existing contract, I will carry out an extensive research with key pointers on the aim, objectives, contract scope, financial implication, KPI and any legal loop holes. Secondly, determine the approved budget for the contract in question, current going market offer of similar scope Thirdly, have the mindset of a win-win approach while being flexible and creative in your offer considering your initial research, budget analysis, using lean approach. Finally, Project monitoring and evaluation skills, performance metrics to ensure t all terms of the contract are carried out efficiently and provide feedback and sanction where necessary.

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What are the best ways to negotiate FM contracts for your organization?

1

2

3

4

5

6

1 Understand your needs

2 Do your research

3 Establish a relationship

4 Be flexible and creative

5 Follow up and monitor

6 Here’s what else to consider

Facility Management (FM)

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What are the best ways to negotiate FM contracts for your organization?

1

2

3

4

5

6

1 Understand your needs

2 Do your research

3 Establish a relationship

4 Be flexible and creative

5 Follow up and monitor

6 Here’s what else to consider

Facility Management (FM)

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