Changes in location, occupancy make up and status, usage requirements, service technology and methods, industry initiatives, etc. mandate an on-going evaluation of services and charges to ensure cost effectiveness.

 

Multi Generation Family In Sand Dunes On Winter Beach

Our team of facility management, lease audit, accounting, legal, tax and labor relations experts uncover retroactive and future savings in a wide range of areas for all types of clients and facilities regardless of lease structure.

Top 10 Ways to Save

Excessive Service Rates

Industry models often support vendor profit margins of 50% or more despite best procurement practices. Our process works through restrictive vendor choice scenarios so you know you are paying a fair rate.

Extra Charges

Additional service request charges can add as much as 20% or more to your monthly costs. We differentiate between legitimate extra charges requiring labor outside your contract staff and those that involve no additional vendor costs, as well as service and complaint resolution work orders which should be provided at no charge under your contractual agreement.

Rate Increases

Many clients negotiate annual price increases based on the fair premise to reimburse vendors for general cost increases, but neglect to evaluate efficiencies achieved since the last review. Our negotiators investigate and challenge vendors to disclose any additional profit benefits, as well as actual labor, supply and equipment costs adjustments, before finalizing a revised rate.

Sales Tax

State and local taxes vary by location, service and contract model. If your monthly invoice for various services has only one tax percentage applied to all charges, chances are we can eliminate inappropriate or unnecessary sales tax costs.

Operating Expenses

Our complete examination of building staff assignments and operational methods, in addition to the typical audit procedures based on percentage of site occupancy, ensure you only pay for efficient common area labor levels and never have to pay for building labor employed to satisfy a neighboring tenant’s unique space requirements.

Hidden Lease Items

Lease janitorial provisions and vendor landlord agreements often include the same or similar scope items as client vendor supplemental service agreements. We review all documents, identify the necessary supplemental services scope and enforce landlord and vendor obligations.

Service Delivery Issues

Many service agreements do not represent itemized charges for specific service items. Our ability to operationally determine the correct rate for each item ensures proper credits for unsatisfactory performance or services not delivered and eliminates missed services as a vendor strategy to improve profits.

Service Duplication

The use of specialized vendors often creates service overlaps that duplicate costs. We review each specific task requirement of all associated agreements to terminate counter productive services and eliminate unnecessary costs.

Bundling of Services

Client choices to use integrated service versus single service providers lose their value quickly when user requirements or market offerings change. Our facility service expertise allows for an ongoing impartial evaluation of bundling benefits.

Specification Adjustments

Clients typically reduce or eliminate services to try to save money, only to find out they sacrificed service levels and did not receive a satisfactory price adjustment. Our recommendations eliminate non necessary and non delivered services, employ alternate techniques, identify appropriate rate reductions and avoid vendors seizing the opportunity to improve margins.



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