How can you get the best deal from your facilities management or ESCO providers?

Energy and Facilities outsourcing has evolved over many years as an important strategy by which organisations can effectively manage non-core activity and reduce costs.

Posted on 02 May 2017.

Outsourcing can be a difficult and complex process and organisations often struggle to align their organisational objectives with the outsourcing programme and to optimise the potential benefits of the strategy.

Conversely, those companies that successfully implement tailored and well managed outsourcing programmes can realise real tangible and long lasting business benefits and enjoy partnering relationships with trusted suppliers who focus on the client’s organisational goals and objectives.

So what can you do to make sure you pick the right provider and get the right deal?

Carrying out a Facilities Management or ESCO Provider Audit can be a very effective way to interrogate the appropriateness or otherwise of a provider and improve efficiency and effectiveness of any existing facilities management arrangements.  This approach:

  • Reduces negotiation time for new contracts
  • Ensures the selection of the most suitable provider.
  • Optimises self-delivery byidentifying areas for improvement
  • Provides sense/health check of existing providers as a basis for reviewing KPIs and contract terms.
  • Enables decisionsbased on organisational priorities
  • Provides comprehensive information on which to base informed decisions

JRP Solutions’ Facilities Management Provider Audit covers 25 different areas of both hard and soft service provision, of either a client, if they manage facilities in house, their outsourcing partner or someone they are considering having as an outsourcing partner.

Using a robust set of questions and their skills and experience as auditors JRP interrogate an provider’s operational performance across areas such as supply chain management, health and safety processes, customer complaints and corrective actions, continuous improvement, training and training records.  Responses are scored in a similar way to any QA process.  Minor and major non conformities and opportunities for improvements are all fed into a final assessment that benchmarks that organisation, whether the client themselves, an FM provider or ESCO, against expectations of that kind of company.

This approach delivers a robust report which helps reduce the negotiation time required for new contracts and leads to the selection of the provider and contract that best meets the organisations objectives and that also delivers a value for money, quality service.

For organisations that manage their own facilities, this approach identifies areas where improvements can be made, the provision optimised and cost savings identified.

Where a provider is already in place, this approach provides a sense or health check as a basis for reviewing KPIs and contract terms.     

JRP’s facilities management outsourcing expert services helped these organisations in the to successfully implement tailored and well managed outsourcing programmes that realise real tangible and long lasting business benefits, focussing on the client’s organisational goals and objectives.

AstraZeneca - was half way through a 20 year contract with a FM provider for the installation and management of a CHP plant.  JRP proposed ways in which the client could optimise the contract and identified £0.25m pa savings.  More

American global pharmaceutical company - This client had tendered the installation and management of a CHP and boiler plant facility and had selected an organisation to provide the service.  JRP evaluated the proposed contract, helped to negotiate the inclusion of service KPIs and also to renegotiate the price.  This resulted in an efficient, best value, measurable contract.  More

British multinational telecommunications company - JRP Solutions assisted this company in the structure and signing of an Energy Performance Contract and support was also given to create a robust business case and to develop a longer term strategy for energy across the organisation.  This resulted in an efficient, best value, measurable contract. More

British multinational speciality chemicals and sustainable technologies company - JRP Solutions helped this client to outsource major CHP plant at two of its significant energy consuming sites that also had supply availability issues.  JRP proposed a timely best practice solution that meant production could continue on site.  More

Eli Lilly - engaged JRP Solutions to look at the practicality of outsourcing its non-production hard services to compliment the already (and more easily) outsourced soft services.  JRP’s intervention resulted in significantly better financial control.  More

If you would like us to undertake a facilities management provider audit for your organisation, or would like any further information on the above, please don’t hesitate to contact us at info@jrpsolutions.com or on 0800 6127 567.