FM Outsourcing: Negotiating the Business Model

The complexities of a Facilities Management (FM) outsourcing deal require a well-negotiated contract between the Client (Facility Owner) and the Service Provider designed to address all probable issues which could occur during the course of the business relationship. The business model should ensure that the pricing structure is tailored to the nature of services being provided. Carefully aligned incentives should guide both parties to the desired business performance. Cost transparency, well-specified pass through costs, and the vigilant monitoring of both spending and non-invoiced Service Provider accruals by way of targeted contractual requirements are critical to success. Future services must be anticipated and priced in order to maximize the Client‟s upfront deal leverage. Receiving a service delivery proposal from a qualified Service Provider that addresses these business objectives is the first step to achieving these goals.

This viewpoint article discusses the nuances and best practices associated with constructing and negotiating an appropriate FM Outsourcing Business Model with the intention of maximizing cost efficiency and best aligning Client and Service Provider business interests. It is based on the author‟s ten years experience structuring and negotiating FM outsourcing agreements.


Facility Management Outsourcing (389.4 KiB) [Debe estar registrado para ver el archivo]

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