commercial-real-estate-investing-you-must-know-2 copy.jpg

M&E Contract

Tender

M&E Contract Tender

PAS were appointed to undertake an open market tender of the mechanical, electrical and public health services at this City of London property.

The existing contract inclusive of a site supervisor and engineer with a contract value in excess of £250,000 and comprehensive level of £500 on materials only, with the contractor’s labour at an additional cost.

PAS undertook the full ITT to a pre-qualified list of M&E suppliers and upon completion of the exercise, secured the contract at circa £20,000 less with a comprehensive cover on both parts and labour at £1,000. This was achieved, but no limited to a mixture of innovation, the fact there was an active plant replacement strategy in place and training for the site team to reduce the reliance on subcontractors.

Due to the increase in comprehensive cover, our client was also able to reduce the building service charge annual M&E repairs line by a further £20,000.

Following the tender, we were appointed to manage the mobilisation and ongoing operation of the contract. We also interviewed the engineers to assess their technical capabilities and agree training requirements with the new contractor.

During this process, our client appointed PAS to undertake an exit audit on the incumbent contractor where shortfalls in sub contractor visits and PPM activities were noted, with further credits of circa £15,000 being obtained.