“Eenie meenie miney mo, which commercial model could save me some dough?”

I would add collaborative working as a fifth key driver for selecting the contact model route

whitbagsinfm

Which way to go?

 The choice of which contract model to adopt is just as important as the actual choice of contractor themselves.

The key issue here is that there is no one model which is right for all. There are a host of different variable factors which can influence the decision and the model selected needs to reflect this.

In tendering for services and selecting the appropriate commercial model, it is firstly importantly to understand what the model is aiming to achieve. In my experience there are four key drivers which are:

Four drivers

  • Organisations and Finance Directors in particular want accurate budgetary forecasting in their FM spend and no ‘hidden’/unexpected major expenditures appearing.
  • If possible, a full or part transfer of both the risk of such unexpected costs and in accountability for reducing cost to a contractor is a key driver.
  • A cost model which reduces administration and the frequency of queries and/or…

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