Attracting Excellence: How to Create FM Contracts Worth Bidding For

Securing high-quality bids in facilities management (FM) procurement requires more than just a detailed specification. Contractors are increasingly discerning, meticulously evaluating not just your tender’s specification, but also its clarity, data transparency, and commercial fairness. If your FM contracts aren't drawing the quality or quantity of bidders you'd hope for, it’s crucial to re-examine your procurement strategy.

Provide Detailed, Reliable Data

High-quality, accurate data is essential for effective FM procurement. Insufficient or unclear data can lead suppliers to add risk premiums to their bids or withdraw entirely. To avoid this, ensure your procurement documents include comprehensive TUPE details such as roles, working patterns, remuneration, and employment terms. Detailed floor plans, zoning diagrams, and historical maintenance data (both Planned Preventative Maintenance (PPM) and reactive maintenance), clearly segmented by location and service category, are equally crucial. Additionally, maintain an up-to-date asset register with condition assessments, asset age, service history, and details of existing subcontractor arrangements.

Clearly Define Business Requirements

To attract serious bidders, your FM tenders must reflect the current needs and aspirations of your organisation rather than simply recycling past specifications. Start by clearly defining what outcomes you expect from the contract, identify any current service gaps or issues, and clarify whether your organisation is open to innovative or technology-driven solutions. A well-articulated set of requirements results in targeted, practical, and innovative proposals from suppliers.

Develop a Fair and Balanced Commercial Model

Suppliers prioritise contracts where success is achievable and equitable. It’s vital that your commercial model incorporates realistic contract durations, such as three years with a possible two-year extension, or five years with an additional two-year option. Include clear inflation mechanisms aligned with current market conditions, performance incentives to encourage innovation and excellence, and reasonable mobilisation periods. Transparent governance structures with clear escalation routes also help build trust and confidence among potential suppliers.

Avoid Common Procurement Errors

Even carefully planned tenders can falter due to avoidable mistakes. To maintain supplier interest and ensure competition, avoid issuing tenders with incomplete documentation or unrealistic timelines for bid submission and mobilisation. Additionally, clarity in documentation is essential; excessive supplementary material or unclear documents can significantly deter potential bidders. Facilitating bidder engagement through organised Q&A sessions or site visits is also crucial to maintaining supplier interest.

Frame the Contract as an Opportunity

Present your FM contracts as genuine opportunities for partnership, growth, and innovation. Clearly communicate your commitment to collaboration and outline the strategic benefits suppliers will gain from working with your organisation. By highlighting mutual benefits and opportunities for development, you will attract bidders who are committed to delivering high-quality services.

If Your Practice Falls Short of Good Procurement

Even if your current procurement practices do not align with best practice standards, improvements can be quickly achieved. Focus initially on validating and enhancing your data accuracy, improving clarity in documentation, and adopting transparent and fair commercial terms. These targeted improvements can immediately enhance your market appeal and attract more competitive and high-quality bids.

Checklist for Creating Attractive FM Contracts

• Provide comprehensive and accurate data.

• Clearly articulate business requirements.

• Develop fair and realistic commercial models.

• Avoid procurement pitfalls such as incomplete documentation and unrealistic timelines.

• Position your contract as a strategic partnership opportunity.

Landmark and Associates: Your Strategic Partner in FM Procurement

At Landmark and Associates, we specialise in transforming your FM procurement contracts into a compelling, market-ready proposition. With extensive industry expertise, we assist organisations in developing robust, transparent, and fair FM tenders that attract serious suppliers and deliver exceptional value.

Ready to secure the best from the FM market? Contact us today and discover how we can ensure your next tender attracts the high-quality bids your organisation deserves. info@landmark-and-associates.com