Property Advisory Services
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Term Consultancy

Maintenance Management Consultancy Appointment and Contract Tender

When PAS were appointed maintenance management consultant at this 165,000 sqft commercial office block in London our initial focus was to review the existing contract requirements for the new managing agent to ensure that the incumbent contractor was fulfilling their obligations. Following our initial review, we identified that there was a number of items that were being quoted as additional to the contract.

Following a comprehensive review of the contract specification we noted that the components and consumables that were being charged as additional to the contract were actually included within the maintenance specification. Following a series of meetings, PAS successfully negotiated a £14,000 credit for the client.

 A full review was also undertaken of the specified sub contractors paying particular attention to faults identified during service visits and the frequency of which the subcontractors had attended site over a 12 month period. During this process we identified that a number of subcontractor visits had been missed and obtained further credits for the client.

As part of the tender process that followed (and as part of the standard PAS management protocol) the site engineering team were given a site-specific technical interview. It became evident that the operatives did not have the technical skills to meet the contract specification deliverables. We also noted that staff salaries were significantly lower than industry norm, salaries were then enhanced by us for the site positions to ensure that the correct calibre of staff and training could be provided.

As part of the tender process, particular attention was paid to the financials, project markup and hourly charge rates. This was due to the age of the building and plant equipment/assets that would require imminent significant expenditure. With regards to the chargeable out of hours rate, circa 25% saving was secured, coupled with a 2% reduction on project work percentage mark up.

The final contract was negotiated with an unlimited comprehensive allowance per individual occurrence and life cycle expired assets not being excluded from the comprehensive allowance if found in good working order when the contractors dilapidation report was issued. To date and due to the age of the property we have saved in the region of £20,000 on additional works, identifying options for the contractor to carry out future works in a more cost effective manner in addition to year on year energy savings.

We also introduced an annual contract review with the client and contractor in attendance. This was to ensure that the contract was operating as intended for both parties and any challenges or innovations could be discussed in an open forum.