Which contract model will you choose for your FM service delivery?

Baskar Sundaram
Baskar Sundaram

As with so many other areas of FM, there is no best answer – it’s a case of identifying what is right for your organization. Let’s explore some of the most common approaches.

Single Services: Sometimes called “best of breed”, this approach sees separate contracts for each service placed with specialist providers.  If you’re the FM it’s your job to ensure that all these different organizations deliver in harmony.

Bundled Services: Most commonly, services are grouped into hard and soft bundles. For example, one package will cover building fabric, M&E, lifts; and another will cover catering, cleaning, reception, and security.  This enables you to choose one provider who you think will focus on looking after your assets, and another who will focus on looking after your people.

 Total Facilities Management: TFM means all of your service delivery is outsourced under a single contract to a single provider organization (who may self-deliver all of the services, or subcontract some of them to specialist providers).

  • Managing Agent: Rather than selecting and organizing your service providers yourself, you appoint an organization to represent you and manage your FM supply chain.● FM Integrator: A company is appointed to oversee and manage the performance of service providers and tends to be focused on metrics and KPIs. This model is beginning to emerge in the UK; the jury is still out on whether it’s an evolution or a revolution. 
  • What does the market say about the preferred model?



Companies that provide a full range of FM services under a TFM arrangement will still often bid for single-service or bundled contracts. Companies that we know as managing agents in the UK and Europe are self-delivering operational FM in emerging markets.  Some providers will act as either a managing agent or service deliverer, according to the opportunity.  Integrators also offer operational FM.

Question – Do you think your current delivery model will be fit for purpose for 2020 and beyond?

Watch our ON DEMAND webinar here:

P.S. Join 2000 of your peers. Subscribe to the Baachu FM Insider

Every Friday evening we'll send you a roundup of the best content and events from Baachu. Make sure you're ready for the week! Subscribe now.

Subscribe Now