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What tools can you use to measure facility management contract performance?

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Facility management (FM) is the process of ensuring that the physical assets and services of an organization are aligned with its goals and needs. A key aspect of FM is to monitor and evaluate the performance of the contracts that govern the delivery of these assets and services, such as cleaning, maintenance, security, catering, and utilities. Measuring contract performance can help you identify gaps, risks, and opportunities for improvement, as well as ensure accountability, compliance, and value for money. But what tools can you use to measure contract performance effectively and efficiently? Here are some of the most common and useful ones.

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Diksha Deo ???? (All-in-One Facility Management app)

all-in-one app for Admin, Security, Facility & Infrastructure Management
Sony Cherian

QHSE Practitioner in Facilities & Properties Management, committed to making places safer to live and work in.

1 Key performance indicators (KPIs)

KPIs are measurable and quantifiable metrics that reflect the objectives and expectations of the contract. They can be based on quality, quantity, timeliness, cost, customer satisfaction, or any other relevant aspect of the service. KPIs should be SMART: specific, measurable, achievable, relevant, and time-bound. You should define and agree on the KPIs with the contractor before the contract starts, and track and report on them regularly throughout the contract duration.

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Diksha Deo ???? (All-in-One Facility Management app)

all-in-one app for Admin, Security, Facility & Infrastructure Management
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AI-driven tools can offer robust methods for measuring facility management contract performance. These include AI-powered analytics platforms that can analyze various data points such as maintenance requests, energy usage, occupant feedback, and compliance metrics. Additionally, AI-enabled predictive maintenance systems can forecast equipment failures, minimizing downtime and optimizing resource allocation. Furthermore, sentiment analysis tools can gauge tenant satisfaction and sentiment towards the facility's management. Through AI, facility managers can gain valuable insights, streamline operations, and enhance overall contract performance.

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Rodrigo Cesar Ueda da Luz

Facility Manager | Hard Facilities Management | Engenheiro Civil | Especialista em Gest?o de Negócios e Patologias das Edifica??es | Palestrante | PCM
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Utilizar os indicadores KPIs é fundamental para você medir se as expectativas perante ao contrato em quest?o, est?o sendo atendidas e caso n?o estejam, o que precisa ser alinhado com o fornecedor para que eles possa melhorar. Itens que possam medir a qualidade e satisfa??o do cliente quanto ao servi?o oferecido s?o fundamentais para uma gest?o eficaz.

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2 Service level agreements (SLAs)

SLAs are formal documents that specify the standards and requirements of the service, as well as the consequences of failing to meet them. SLAs can include penalties, incentives, or remedies for underperformance or non-compliance, such as deductions, bonuses, or corrective actions. SLAs can also define the roles and responsibilities of both parties, the communication and escalation procedures, and the dispute resolution mechanisms. SLAs should be aligned with the KPIs and reviewed periodically to ensure they are still relevant and realistic.

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Rodrigo Cesar Ueda da Luz

Facility Manager | Hard Facilities Management | Engenheiro Civil | Especialista em Gest?o de Negócios e Patologias das Edifica??es | Palestrante | PCM
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O SLA é muito importante para você mensurar por exemplo o tempo de atendimento do seu fornecedor às demandas geradas pela sua opera??o, onde deve estar bem estabelecido no contrato o prazo máximo de atendimento e quais as penalidades cabíveis para o caso de n?o cumprimento.

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3 Audits and inspections

Audits and inspections are methods of verifying and validating the quality and compliance of the service, as well as identifying any issues or risks. Audits and inspections can be done by internal or external parties, such as the FM team, the contractor, a third-party auditor, or a regulatory body. They can be planned or unplanned, and cover different aspects of the service, such as safety, security, hygiene, environmental, or technical. Audits and inspections should be documented and followed by corrective actions if needed.

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Sony Cherian

QHSE Practitioner in Facilities & Properties Management, committed to making places safer to live and work in.
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A well structured and comprehensive audit which is specific for the facility and contract can be very effective in evaluating the FM contractor's performance. Audit shall primarily identify cover all relevant statutory, regulatory and contractual requirements and evaluate to what extent the contractor meets the requirements.

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4 Surveys and feedback

Surveys and feedback are ways of collecting and analyzing the opinions and perceptions of the stakeholders involved in or affected by the service, such as the FM team, the contractor, the end-users, or the customers. Surveys and feedback can be done through various channels, such as online forms, interviews, focus groups, or social media. They can measure different dimensions of the service, such as satisfaction, loyalty, expectations, preferences, or complaints. Surveys and feedback should be conducted regularly and systematically, and used to improve the service quality and relationship.

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Sony Cherian

QHSE Practitioner in Facilities & Properties Management, committed to making places safer to live and work in.
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Feedback of the customers/end-users matters the most. It gives you a clear reflection of the quality and effectiveness of your services. Results shall be analyzed carefully to understand what all services are working well and which areas need improvement. Effective action plans and strategies shall be devised for weaknesses identified.

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5 Dashboards and reports

Dashboards and reports are tools for presenting and communicating the results and outcomes of the contract performance measurement. Dashboards and reports can use various formats, such as tables, charts, graphs, or infographics. They can show different types of data, such as KPIs, SLAs, audits, inspections, surveys, feedback, or financials. Dashboards and reports should be clear, concise, and accurate, and tailored to the needs and interests of the audience, such as the FM team, the contractor, the senior management, or the board.

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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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What tools can you use to measure facility management contract performance?

1

2

3

4

5

6

1 Key performance indicators (KPIs)

2 Service level agreements (SLAs)

3 Audits and inspections

4 Surveys and feedback

5 Dashboards and reports

6 Here’s what else to consider

Facility Management (FM)

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What tools can you use to measure facility management contract performance?

1

2

3

4

5

6

1 Key performance indicators (KPIs)

2 Service level agreements (SLAs)

3 Audits and inspections

4 Surveys and feedback

5 Dashboards and reports

6 Here’s what else to consider

Facility Management (FM)

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