QUESTION OF THE WEEK: Contract Consolidation

QUESTION OF THE WEEK: Contract Consolidation | Facility Executive - Creating Intelligent Buildings
When considering outsourcing, how do you determine which contractors can—or SHOULD—be consolidated (if any)?

QUESTION OF THE WEEK: Contract Consolidation


QUESTION OF THE WEEK: Contract Consolidation

This Question of the Week comes from the Facilities Management Professionals International group on Linkedin.

Q. When consolidating service contracts under one contract, how do you determine which services to consolidate and which ones to manage individually?

I’m a buyer at a government research lab in California. My facilities customers want to consolidate various services such as in-house construction, landscaping, and a myriad of landscaping contracts under one or a few larger contracts. While I think that is a good idea, I want to know how other facilities management professionals manage the operational needs of their sites.

Krystal Kelley
Facilities Contract Management
Livermore, CA

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  1. Contracts for consolidation are those with:
    1)High human resources requirement
    2)Large cost outlay
    3)Relatively high time lines on task achievements.
    However,contracts that one can manage individually will include:
    1)Contracts with low cost outlay
    2)Geographical considerations on task activities
    3)Low time lines on task achievements
    4)Relatively low human resources requirement

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