What are some strategies for negotiating an FM contract for a facility with unique maintenance requirements?

The key to this requirement is "UNIQUE" maintenance requirements. This means it's going to be non-standard and not run of the mill resourcing. I had one of these "pink elephants" and it required a significant amount of teaming outside FM because uniqueness defines different stakeholders involved. So, I would go to the various directors who had unique requirements and have them identify one or two representatives to be part of the projects that uniquely affected them. This way there was transparency in the project process. No one is going to get it exactly right 100% of the time, but ownership was shared when we needed to adjust those contracts -- politics were minimized in the "blame game".

As a Group CEO, I've negotiated several FM contracts for my companies in he past. it's very important to understand the industry dynamics & FM needs of your organisation and develop personal rapport with your interlocutors. FM is a major part of your cost centre. Regulatory and statutory compliances can consume precious time, resources and money. This will also decide how frequent those compliances need to be monitored and approvals obtained. Negotiating the best pricing in a mutually collaborative environment is most important and build requisite trust among partners. Other key parameters that need to be considered are QA and risk management. Having a win-win mindset will lead to better productivity & profitability.

The party being considered is required to carry out a thorough assessment before negotiating the FM contract, it is essential to have a clear understanding of the unique maintenance requirements of the facility. This may involve assessing the equipment, systems and infrastructure that need to be maintained, as well as any specific regulations or standards that apply. And set clear expectations?which is to clearly outline specific maintenance requirements and performance expectations in the contract. This may include details such as response times, service levels and reporting requirements.

Negotiating an FM (Facilities Management) contract for a facility with unique maintenance requirements requires careful consideration and strategic planning; so here are some strategies to consider: - Identify and Document Unique Requirements: - Evaluate Potential FM Providers: - Customize Service Level Agreements (SLAs): - Negotiate Pricing and Payment Terms: - Include Flexibility and Scalability: - Risk Mitigation and Contingency Planning: - Build a Strong Relationship: - Monitor Performance and Review Contracts:

Key point #1 here is to gather your data. FM providers will ask, and you should have, the following: 1. Asset/Equipment data - to know what skills, tools, people to have onsite, we need to know what they will be working on. 2. Work order data - how are we supposed to give you truly defensible bids when we don't know what work you have or have not done? 3. Historical expense data - apples to apples means we need to know what you spend 4. Site and operational data - working hours, scope of work, and location are critical for us to send bodies to sites 5. Strategic goals - let's align on what matters If you don't have, just tell the bidders, but don't expect apples to apples! Treat each bid as a vision, which suits your needs best?

Market research goes a long way to getting the right supplier at the right price and who can deliver quality goods and services. If you stick with what you know you will get what you have always got.

Before requesting for proposals from eligible service providers, ensure that the sourcing procedure comply with organizational procurement procedures in case of private entities, and public procurement guidelines in case of state owned entities. This will help to avert unnecessary delays which may be caused by litigations from unsuccessful bidders challenging the selection methodology. Does the organizational procurement policy allow for single sourcing in case the service is too specialized? Are you going to use open domestic bidding or closed bidding? Are you going to employ selective bidding and only invite proposals from particular providers? These are some of the questions that need to be given due attention.

Identify potential FM service providers with experience in managing facilities similar to yours or with expertise in handling unique maintenance requirements. Evaluate their reputation, track record, certifications, and references. Analyze the range of services offered by different providers and how they align with your needs.

Research and gather information on FM service providers who have experience and expertise in managing facilities with similar unique maintenance requirements. Look for providers who have a track record of success and can demonstrate their ability to meet specialized needs.

Researching the Market goes a long way in choosing the most appropriate vendor at the right cost and with good expertise in the industry. At this point you are not walking in the dark as you know the potentials of each and every vendor choosen

I always set up an evaluation matrix with performance criteria and weighting for each. This keeps the decision process quantitative and objective. Partnering with my company’s procurement and contract departments can make this much easier.

Request detailed proposals from selected FM service providers, outlining their approach, methodologies, staff qualifications, and pricing structures. Assess how well each proposal addresses your unique maintenance requirements and aligns with your budget and goals. Consider the flexibility and scalability of the proposed solutions to accommodate any future changes or expansions in your facility.

Conduct a Comprehensive Assessment: Conduct a detailed assessment of your facility's current state, maintenance history, and future needs. Identify any areas where specialized expertise or equipment may be required. This information will help you tailor the contract to address your facility's specific challenges. Research Potential Service Providers: Look for FM companies with experience in managing facilities similar to yours or with expertise in handling unique maintenance requirements. Consider their track record, client references, and range of services offered.

Work with the FM service provider to customize the contract to address the unique maintenance requirements of the facility. This may involve including specific performance metrics, response times, and service level agreements tailored to the facility's needs.

Evaluate proposals based on understanding of maintenance needs, feasibility, and solutions offered. Compare costs, quality, scope, timelines, and performance indicators. Utilize a scoring system or matrix to rank proposals and select the best match within budget and expectations.

When negotiating the contract terms, focus on the value that the facility management company can provide in meeting the unique maintenance requirements, rather than solely on cost. This may involve considering factors such as quality of service, expertise, and reliability in addition to pricing.

Risk mitigation: Negotiating payment terms helps mitigate the risk of late or non-payment. By clearly defining the payment schedule and terms, both parties can establish a level of trust and reduce the risk of financial disputes or default. Negotiating payment terms in a fair and transparent manner helps maintain positive relationships between parties. By addressing any concerns or preferences related to payment terms early on, both parties can work towards a mutually beneficial and sustainable business relationship.

Prioritize key aspects of the contract, such as service levels, response times, performance metrics, and pricing. Negotiate terms that reflect your facility's unique requirements, such as customized maintenance schedules, specialized training for staff, or access to specific technologies. Be prepared to compromise on certain aspects while ensuring that essential needs are adequately addressed. Clarify responsibilities, liabilities, and dispute resolution mechanisms to avoid misunderstandings later on.

In my experience, terms are best negotiated if the same vendor supplies, installs and commissions the equipment. This way the client can negotiate benefits like extended warranties, fix cost of maintenance and consumables at the point of purchase to ensure predictable lifetime cost for the equipment.

"Com base na minha trajetória profissional, destaco a importancia crucial de negociar os termos de um contrato de forma estratégica. é fundamental estabelecer claramente os critérios para medir a eficácia do contrato e garantir que ambas as partes estejam cumprindo com o que foi acordado. é primordial n?o apenas definir como os termos ser?o cumpridos, mas também estabelecer protocolos claros para lidar com possíveis insatisfa??es ou desacordos ao longo do processo. A transparência e a comunica??o aberta s?o fundamentais para manter a integridade e o sucesso de qualquer acordo comercial."

All terms and condition negotiation for contracts whether for FM services, addition and alteration works etc should happen before signing. 'Shifting the goal post' after contract is not healthy for the long-term working relationship between buyer and vendors.

Before signing, thoroughly review the FM contract to ensure alignment with agreed terms. Check for errors, omissions, and ambiguities. Consult legal or procurement if needed. Seek feedback from stakeholders impacted by the contract.

Thoroughly review the finalized contract to ensure that all agreed-upon terms and conditions are accurately reflected. Seek legal advice if necessary to clarify any ambiguous clauses or mitigate potential risks. Ensure that the contract includes provisions for periodic performance evaluations, feedback mechanisms, and opportunities for adjustments if needed.

Negotiate Service Level Agreements (SLA): Establish clear SLAs that outline the level of service expected from the FM provider, including response times, resolution times for maintenance issues, and availability of support resources.

Check everything on the specifications, everything, plus the term of services and good to be delivered, and the days of delivery.

Maintain open communication channels with the FM service provider to address any issues or changes in requirements promptly. Monitor performance against agreed-upon metrics and provide feedback regularly. Foster a collaborative partnership aimed at achieving mutual success and continuously improving maintenance operations. Review the contract periodically to assess its effectiveness and make adjustments as necessary to adapt to evolving needs or market conditions.

Along with the formal requirements of contract management establish a partnering relationship with your serrvice providers, especially those that maintain critical equipment. This helps with contractor engagement with the maintenance strategy you’re trying to achieve. Additionally the more your service providers are encouraged to take ownership of the assets they are working on the higher the quality of work and speed of response in the event of an emergent event.

To manage the relationship effectively after signing the FM contract, you need to establish regular and effective communication channels and methods, such as meetings, reports, surveys, or audits, to exchange information and feedback with the provider. Set clear and measurable goals and expectations, and track and evaluate the provider's performance and quality against them. Address any issues or problems promptly and constructively, seeking to resolve them collaboratively and respectfully. Monitoring their performance and compliance is crucial in maintaining a successful partnership.

Among scholars and expert of project and Facility management, contractor-client relationship affects the overall result of a project. A facility/project manager often represent the client. Hence, I will refer to managers as clients. Beside communication, collaboration and effective supply chain, sentiment is among the aspects of contractor-client relationship management. Sentiments are feelings and opinions a client have about a contractor that are translated into actions. Clients in love with their contractors pay little attention to errors in projects. Similarly, a client who hates a contractor will work to frustrate project success. Bias actions have done fewer good to projects. It is recommended that manager should avoid sentiment.

Consider long-term partnerships: Building a long-term partnership with a facility management company that understands and can effectively manage the unique maintenance requirements of the facility can provide stability and continuity in service delivery. This can also lead to better outcomes and cost savings over time.

(a) Define clear and measurable KPIs and establish a robust reporting structure. (b) Emphasise the need for a flexible contract that allows for adjustments to the scope of work based on evolving maintenance needs. (c) Encourage vendors to propose continuous improvement initiatives within their service delivery. (d) Ensure that the vendor's staff are well-equipped to handle the unique aspects of the facility's maintenance. (e) Include IoT (Internet of Things) solutions, predictive maintenance tools, or other advanced systems to optimise facility management. (f) Incorporate a discussion on the vendor's commitment to environmentally friendly practices. (g) Benchmark the proposed contract against industry standards and best practices.

1. Benchmarking the proposal. 2. Closes of terminations in case not satisfactory. 3. Spare parts included in the contract. 4. Duration of Warranties of spare parts and quality of service.

In my experience, and especially in Africa, there are very few maintenance practitioners with the requisite certification/OEM training. In negotiating a unique maintenance contract, an FM must consider the certification status of all persons that will interact with the assets/facilities under management. Persons with OEM certification establishes confidence with the facility users and investors. It also ensures that the right maintenance regime prescribed by the OEMs are followed and adhered to. This guarantees efficiency and reliability in the facility under management.

Scoping of contract for 'unique' or 'non-unique' maintenance requirement are not much different: more specific requirements written out by buyer helps vendor to cost the proposal more accurately; Unclear scope of work will likely push vendor to buffer in higher cost to compensate for unknown risk of committing to the FM contract/ SLA, ultimately increases buyer's maintenance spend.