AFM encourages review of facilities management procurement strategies

Monday 26 February 2018

In the wake of Carillion’s collapse, AFM is encouraging companies to be mindful of procuring facilities management services based primarily on price.

Ben Le Huray, Commercial Director at AFM, cautions that procuring facilities management services essentially on price can ultimately be detrimental to the wellbeing and productivity of a building’s occupants.

"Recently, local businesses have been receiving conflicting advice when it comes to the procurement of facilities management services. We appear to be at risk of going back to the days when price was king and quality an afterthought. However, what Carillion shows, and many others have discovered, is that this approach can be harmful to both service providers and clients alike," Mr Le Huray said.

"If the emphasis is predominantly on price it not only tightens operator margins but impacts the performance of the building itself. Reducing the standard and frequency of routine plant and equipment maintenance compromises the operational capability of premises. It can also lead to significant cost implications for clients down the line.

"Less obviously perhaps, client staff wellbeing and productivity is also put at risk as research shows employees are happier and more productive when working in well managed and maintained premises."

Mr Le Huray added that rising costs came as a result of increasing regulation, which was a concern within the low-margin industry, but he added there was some good news:

"The good news is that most modern-day approaches to procurement tend to value quality and price equally. We see the procurement of facilities management services being no different and would encourage business decision-makers to consider strategies that enable sustainable, cost-sensitive partnerships to be nurtured between provider and client."

Carillion plc is a British multinational facilities management and construction services company. Carillion announced compulsory liquidation on 15 January 2018.