Getting Value Out of Your Maintenance Contracts
Today’s Facilities Managers (FMs) continue to face significant hurdles obtaining cost-effective and efficient maintenance solutions. Restrictive procurement processes, non-transparent pricing and administrative inefficiencies all mean escalating costs of repairs.
Addressing these challenges is critical to unlocking greater value from Preventative Maintenance (PM) and Reactive Maintenance (RM) contracts. Discover how FMs are leveraging data-driven solutions to cut costs, improve contractor transparency, and deliver timely, compliant maintenance outcomes for their businesses.
TL:DR – Key Takeaways
- Procurement Inefficiencies: Limited oversight in maintenance management and outdated processes continue to inflate costs for repairs and maintenance.
- Transparency as a Solution: Data-driven workflows provide pricing clarity and streamline processes, preventing overcharging and clarity for all.
- Operational Improvements Mean More Value, and Less Costs: Updating your approach and systems can cut costs by up to 50%, reduce admin workloads, and improve contractor pricing competitiveness.
Managing Today’s Maintenance Workflows
FMs often must go through restrictive procurement processes that complicate the management of defects and repairs. Many Preventative Maintenance (PM) contracts also include Reactive Maintenance (RM) work, which is urgent and unplanned. These PM contracts traditionally are underpriced, initially enticing FMs into long-dated agreements, only to be overcharged by contractors for their RM services.
Whilst this approach is generally accepted as part of the maintenance landscape it’s important to understand why FMs are often forced to accept these practices:
- Limited Contractor Competition: Lengthy onboarding of new suppliers and time constraint challenges force FMs to rely on incumbent contractors, driving up costs and reducing market competitiveness.
- Tracking Challenges: Without the ability to validate labour, materials, and mark-ups, costs escalate, and quality assurance is compromised.
- Time-Consuming Processes: Getting a competitive quote is a time-consuming process without a centralised system to streamline workflows. A lack of complete oversight means facility managers must manually compare and verify quotes, leading to inefficiencies, delays, and a system reliant on trust alone.
How Modern Solutions Address FM Pain Points
With over two decades of industry insights, we have compiled a list of key issues and how to simplify the procurement of PM and RM related work. The table below highlights how embedding a centralised data platform with full transparency on contractor pricing an performance can drive significant cost savings and operational efficiency for FMs and their businesses.
| Common Problems for FMs | Practical Examples | Solution | Business Result |
| 1. Lack of competitive quotes for repair work | Obtaining comparative quotes for HVAC system repairs across multiple sites. | A centralised, data driven platform for streamlined contractor quote comparison. Digitised workflows reduce paperwork and minimise errors. | Significant cost savings, competitive pricing (with up to 50% lower than incumbent contractors). |
| 2. Difficulty tracking pricing discrepancies | Identifying overcharges on Reactive Maintenance by comparing vendor invoices to pre-approved rates. | Digital tracking of agreed rates and alerts for mismatched costs and quotes. | Accurate pricing on an ongoing basis and prevention of overcharges. |
| 3. Excessive subcontractor mark-ups | Flagging a subcontractor’s inflated material costs for a critical lift repair. | Evidence-based invoice system for subcontractor charges. Eliminates inflated pricing and ensures adherence to agreed rates. | Full transparency and verification of fair pricing. |
| 4. Inflated labour times on quotes | Verifying contractor hours for plumbing repairs in a high-rise building. | Real-time comparison of quoted vs actual time spent on site. Full visibility into contractor performance, parts, labour, and job completion timelines. | FMs can address discrepancies over the entire contractor life cycle and ensure they are paying contractors for work actually delivered. |
Delivering Measurable Cost Improvements for Your Business
As portfolios expand, achieving cost-effective and transparent maintenance processes is no longer optional-it’s essential. By leveraging modern digital platforms, FMs can regain control over contractor pricing, compliance, and maintenance quality. The result? Tangible savings, streamlined workflows, and the confidence that every dollar spent delivers maximum value.
To gain full visibility over your repairs and maintenance work, call 1300 133 950 or email us for a demo.