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What is the Average Value & Duration of the FM Contracts in the UK?

Baskar Sundaram

The UK facilities Management comprises of a wide range of players that offer services across various sectors and the key players offer services utilizing their size & scale. So, the average contract value and duration is varied based on the sector, service provided and the type of sector. Overall, FM providers have secured various contracts with an average total contract value TCV of ~£10.9Mn and an average contract duration of 3.9 years.

To know more on the average TCV & Average Duration for all the contracts awarded across various FM market by sectors, by service and by type.. Subscribe to Rain Plus Membership and get access to our 50+ thought leadership articles, 10+ reports, round tables & insight sessions. Check Out Our Membership Plans Here.

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Transaction Management – FM players seeking foothold

Do you know that Transaction Management Companies is on the top end of the FM value chain and with future of Workplace dilemma may companies are relying on these providers to help shape their real estate and workplace portfolio.

One of the main reason buyers take them on- board is cost savings. By hiring these providers, Clients save on lease costs, floor space, Op. Ex and setting up cost on management office. Also covid19 has demonstrated,  integration of FM and TM will improve performance and efficiency, i.e Real estate transaction management is one area where synergy with FM can be harnessed extensively and lead to profitable portfolio expansion for FM players. Interestingly, transaction management services also enables FM providers to tap into double digit profitability.

To know the Key Transaction Management Advisory Deals in the UK, Key players and their competitive landscape.

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Impact of COVID-19 in UK FM Market

As global concerned about the COVID-19 outbreak and still dealing with it, we’re doing our best to keep everyone healthy and safe in the workplace while also minimizing the disruptions to our day-to-day operations. Still, dealing with the challenges of it. As workplaces prepared to reopen there was requirements make the buildings covid-19 safe, with demand for screens, hand cleansing stations etc.

Key challenges are that Cleaning services are highly impacted as FM companies have started building capabilities to avoid infection at client sites. Not only this, There is a decline in profits for FM players .

The Cleaning Services spends circa ~£21.3 Bn in terms of Total Contract Value (TCV), accounting for 18.3% of the total UK FM Market.

To have more knowledge on the UK FM Market covering Key trends, Top players, Market breakdown, Market drivers, Challenges, Growth forecasts and Covid -19 impact.

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