The reality is, vendors won’t focus on cost savings unless it benefits them too. That’s why it's crucial to develop a strategy where everyone gains—vendors, FM teams, and clients. Here’s how: Be clear on expectations with transparent contracts and performance metrics. Reward vendors for suggesting cost-saving ideas or more efficient solutions. Build long-term relationships based on trust, not just short-term deals. When everyone benefits, vendors are more likely to prioritize cost-effective solutions. It’s all about creating a partnership where everyone wins.

When overseeing an IFM account with partners / sub-contractors, I always focus on ensuring high-quality, cost-effective operations and maintenance through direct engagement and accountability. I set clear SLAs with expectations and consequences for non-compliance, as I believe in fostering responsibility and a positive attitude over any type of penalties. Regular performance reviews, guided by achievable KPIs, assess service quality and drive improvements. Successful vendors provide detailed activity reports, integrated into client reports. Open communication encourages feedback and proactive problem-solving, with a focus on ideas like KAIZEN and cost-saving. Longer contracts reward those consistently delivering value and improvement.

In facility management, holding vendors accountable for cost-effective maintenance solutions requires strategic oversight. I ensure this by establishing clear SLAs with measurable KPIs, setting expectations upfront. Regular performance reviews are key, where I assess service quality using data-driven metrics. To maintain alignment, I foster open communication channels, encouraging feedback and proactive problem-solving. Additionally, I promote a partnership approach, motivating vendors to innovate while remaining cost-conscious. Continuous monitoring and holding vendors accountable for non-compliance ensures we deliver value for money without compromising quality. How do you ensure cost-effective service delivery?

Any SLA and effective performance measurement has to be agreed as part of the contract negotiations, once the contract has been signed the leverage passes from Customer to Supplier. These should include both incentives as well as deductions for performance otherwise there is no benefit for the Supplier to do more than is necessary to comply with the contract. Furthermore, for a very few select suppliers, it may be worthwhile in investing in a more closer relationship management approach such as 'Vested©️' which, in my experience requires effort at the beginning does deliver significant results over time.

Ooooo good question This is why it’s so important that the Specification/SoW is detailed, tested, discussed and agreed including with the colleagues that will be tasked with managing the activities I bore people stupid with my experience in a former life as a senior FM/Service Director trying to lead & motivate my wonderful Team to deliver against poorly written specs and unachievable KPIs Thankfully Procurement is now recognised in most organisations as a fundamental part of the daily operation and strategic direction I remember Exec Directors palming us off onto Finance or Ops because they didn’t know what we did or understand our value! So in short Get Spec right Check you can manage the Contract properly in-house & allocate time KPI