Is FM Driving Value for Money or Burdening Contractors with Unnecessary Costs?

Is FM Driving Value for Money or Burdening Contractors with Unnecessary Costs?

The Facilities Management (FM) industry prides itself on delivering value for money, but there’s a growing concern that the sector is inadvertently driving up costs for contractors and, ultimately, for clients. At the heart of this issue lies the proliferation of accreditation schemes like CHAS, Constructionline, SafeContractor, and others, all demanding fees from contractors for compliance, often providing overlapping services.


This situation raises some critical questions:

? Are these schemes truly adding value?

? Why is there little alignment across FM organisations to standardise compliance processes?

? And, most importantly, how can we address this issue without compromising on quality and safety standards?


The Cost Burden on Contractors

For contractors, the current landscape is challenging. Many are required to pay for multiple accreditations to meet the demands of different FM clients, even when the services provided by these schemes are largely identical. These costs—often running into thousands of pounds annually—are eventually passed on to customers in the form of higher fees.


This creates a vicious cycle where contractors are frustrated, clients pay more, and FM’s reputation suffers. In fact, some contractors actively avoid working with FM organisations, citing excessive bureaucracy and a perception that the sector prioritises tick-box exercises over genuine partnerships.


Is This Value for Money or Extortion?

From a contractor’s perspective, the proliferation of these schemes can feel more like extortion than a value-driven process. Here’s why:

1. Duplication of Services: Many schemes assess the same areas—health and safety, insurance, and training records—yet contractors must pay multiple times for essentially the same approval.

2. Lack of Standardisation: Each FM organisation seems to have its own preferred accreditation, creating inefficiencies and unnecessary complexity.

3. Little Added Value: Beyond ticking a compliance box, contractors often don’t see the tangible benefits of these schemes in their day-to-day operations.


For an industry focused on cost optimisation and operational efficiency, this is a glaring contradiction.


Impact on the FM Industry

This fragmented approach doesn’t just hurt contractors—it damages the FM industry as a whole.

? Reputation Damage: Contractors view FM as overly bureaucratic and disconnected from their realities, which erodes trust and collaboration.

? Higher Costs: The costs of multiple accreditations are ultimately borne by the client, undermining the “value for money” promise.

? Reduced Pool of Contractors: Smaller contractors, unable to afford multiple accreditations, are excluded from FM supply chains, reducing competition and innovation.


What Can FM Do to Fix This?

To address this issue, FM organisations need to take the lead in aligning standards, reducing duplication, and fostering genuine partnerships with contractors. Here’s how:

1. Adopt a Single Accreditation Framework

FM organisations should collaborate to adopt a single, unified accreditation framework. This could be an industry-standard platform, recognised across all FM contracts, which would save contractors time and money while maintaining high standards.

2. Focus on Output, Not Tick-Boxing

Shift the focus from purely checking paperwork to assessing actual performance and outcomes. Accreditation schemes should prioritise site inspections, project delivery metrics, and contractor reviews over redundant documentation.

3. Streamline Contractor Requirements

Create a clear and consistent set of requirements for contractors. If a contractor has CHAS accreditation, for example, that should suffice across all FM organisations without the need for additional schemes.

4. Incentivise Collaboration

Offer incentives for contractors who align with FM’s goals of safety, sustainability, and innovation. For example, discounted rates on accreditations for contractors who meet or exceed performance benchmarks.

5. Leverage Digital Solutions

Use centralised digital platforms to manage contractor compliance. Instead of requiring multiple accreditations, contractors could upload their certifications, training records, and insurance details to a single portal, accessible by all FM clients.


Balancing Costs and Standards

FM’s primary goal should always be to deliver value for money to clients. This includes ensuring that contractors are compliant, safe, and capable, but it also means being mindful of the financial and administrative burdens placed on them.


By reducing duplication, aligning standards, and fostering collaboration, FM can create a win-win scenario where contractors feel supported, costs are kept down, and clients receive better service.


The Call to Action


FM leaders must ask themselves:

? Are we truly adding value with our current processes, or are we perpetuating inefficiencies?

? How can we better support contractors while maintaining high standards?

? What steps can we take today to create a more unified, efficient approach?


The time to act is now. FM has the opportunity to reshape its relationship with contractors, streamline processes, and deliver on its promise of value for money. Let’s not waste it.


What are your thoughts on this issue? How can we make FM a more contractor-friendly industry while maintaining high standards? I’d love to hear your perspective.

Zabir Kapasi

Workplace Facilities Specialist

1 个月

Hi Matt Wilkie It's a good discussion point esp. with the increased M&A activity in the industry presently ?? I don't necessarily have such a sympathetic view of contractors/service providers being 'forced' to join such acredditated organisations. From a customer perspective, I have experienced first hand, (specifically in the areas of fire doors, mansafe systems and Loler eqpt.) where contractors have chosen to capitalise on the commercial benefits associated with such memberships (or manipulating there % of their market share through M&A,), fully aware they risk established customer/client relationships. Those so called commercial benefits serve the interests of the contractors bottom line only. FM's are best to familiarise themselves with the actual BS (that British Standards btw ??) to ensure they are not being fleeced and whenever possible ensure they don't have all their eggs in one basket when it comes to Contractors/Suppliers. I guess there are alwaysat least two sides to every story ! All the best and thanks for sharing ??

Mike Green

Project Management and FM Consultant. MD at The Mike Green Consultancy - 07909 908335 or [email protected]

2 个月

Matt, i suppose for me the answer is yes! There is now a hugely expensive layer of "non core activities" that get in the way of what the client sets out to procure. Diversity, Equality, ESG, Over the top H&S, Wellbeing blah blah blah. All this comes at a cost that gets wrapped up in the Main Contractor / Provider overhead passed on to the client. In turn the subcontractors are expected to go "back to back" with all this. For me the key to unlocking this lays somewhere between a complete shift in political climate and a complete change of mindset in the industry. The industry, both Owner, Occupier and Service Provider need to understand that premises will not be used the same as 20 years ago and on the Political side we need to see a clamp down on "Wokeism"

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