How can you regularly review and update contracts in Facility Management?

Why to update and review contracts… if you don’t do a regular check on the contracts and services you request from service providers it might happen that at a certain point you will realise the scope they provide is no longer in lign with what your company expects. Don’t forget companies are always evolving and this means contracts for services within facilities have to evolve to. Regular checks assure that your contracts stay in lign with company goals, pricing and new legislation. Certainly within facilities everything is rapidly evolving. Questioning from time to time if your contracts are still up to date for your organisation is a good thing to reflect and also to reflect at the same time about the services you provide as facilities

Regularly reviewing and updating FM contracts is like giving your car a tune-up to ensure it runs smoothly. It’s crucial for spotting issues early, adapting to new laws, and squeezing more value from each agreement. Start with annual reviews, aligning contract goals with your strategic vision. Use these checkpoints to negotiate better terms and incorporate innovations or improvements. It's about staying proactive, not reactive. This approach not only keeps you compliant but also ahead of the curve, ensuring your facilities are managed efficiently and cost-effectively.

In Facility Management, align contract reviews with key performance and industry changes. Proactively adjusting contracts ensures they remain current and competitive, reflecting the latest standards and market trends. This strategy enhances service quality and maintains cost efficiency, preventing budget overruns. By staying ahead with flexible, timely updates, facilities run smoothly, ensuring operations are efficient and agreements are up-to-date. Regular, adaptive reviews are crucial for optimal facility management.

Reviewing of contracts is essential to make sure the contract and services are still aligned with the needs of the company. When to do a review of a contract will depend on the importance and impact of that type of contract on the business. But the best advice is to check minimum once a year if the contract and scope of the contract is still in lign with the expectations of the business and internal client. For “high” impact or risk contracts like technical maintenance it is even to be considered to check on a more regular basis the scope. In general it’s also advised to go check the market for benchmark every 3 to 5 years to assure pricing or contracts is up to date and valid.

Regularly reviewing and updating contracts in Facility Management is vital. Here's a streamlined approach: 1. Schedule reviews bi-annually to stay ahead of changes. 2. Use a checklist for consistency—include performance metrics, feedback, and financials. 3. Automate reminders and document storage for efficiency. 4. Prioritize open dialogue with suppliers for proactive adjustments. 5. Ensure updates align with both current needs and future goals. This method not only maintains service quality but also leverages negotiation opportunities, ensuring your contracts evolve with your operational needs.

In Facility Management, staying ahead means proactive contract review. Schedule quarterly audits to align contracts with current needs and market trends. Embrace digital tools for real-time tracking and updates, ensuring agility in responding to changes. Prioritize flexibility in contracts to adapt to new technologies and sustainability practices. This approach not only optimizes operations but also drives innovation and efficiency, securing long-term value and satisfaction for all stakeholders.

In my experience the best way to improve your contract skills in FM is to keep yourself up to date with what is happening on the market. Look for best practices, new developments and opportunities that might be interesting to implement in contracts for your company. Try to follow courses or seek advice from more experienced people within contract management to improve your skills in negotiation and contract management. You can always involve departments like purchase for first negotiations or updates from contracts to learn how to handle this. Listen and learn from this and apply the best practices or examples that they give to you in later discussions about contracts

Set a schedule to review FM contracts annually or biannually, aligning with business cycles. Utilize technology to monitor contract performance, identifying renegotiation needs. Involve stakeholders for feedback on vendor effectiveness. Staying adaptable and informed ensures contracts meet evolving business and market demands.