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

M&E Contract


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 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.

Due to the increase in comprehensive cover, our client was also able to reduce the building service charge annual M&E repairs projection by a further £20,000 and the long term outcome saved our client in excess of circa £60,000 across the new contract measured term.

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, an exit audit was undertaken on the incumbent contractor where shortfalls in sub contractor visits and PPM activities were noted, with further credits of circa £15,000 being obtained by PAS.