Learn how technology is transforming maintenance services and affecting their procurement

by Brianna Crandall — October 20, 2017 — Global procurement intelligence advisory firm SpendEdge has announced the release of its Building Maintenance Procurement Research Report, which serves as a guide for the smart procurement of outsourced maintenance services and also explores the effect of various emerging technologies on the industry.

The insights and data in this report provide a strategic analysis of the supply markets, factors influencing purchasing decisions, procurement best practices, pricing models, supplier landscape, and an analysis of the supplier capability matrix of the facilities management (FM) industry. The report breaks down the data and analysis behind the procurement of building maintenance services and acts as an all-inclusive guide for making smart purchasing decisions.

According to lead SpendEdge procurement analyst Angad Sing:

Increased adoption of IoT technologies, RFIDs, app-based wearables, and mobile devices are revolutionizing the building maintenance services market. These technologies are helping suppliers monitor and control building equipment and installations, receive alarms for equipment failure, and check work requests and workflow status from remote, centralized locations.

Key report features:

  • Supply market insights
  • Procurement best practices
  • Cost saving opportunities
  • Pricing models
  • Negotiation strategies
  • Category risk analysis
  • Key supplier analysis
  • Supplier capability matrix

Report highlights:

  • The global building management services market is projected to grow at a compound annual growth rate (CAGR) of 5.2% over the next five years, mainly due to an increase in commercial activities in the developing markets in the Asia-Pacific and Latin America.
  • Buyers are advised to define different contract terms and periods for different building maintenance services to measure performance effectively, and suppliers to subcontract/partner with other building maintenance service providers to provide integrated service delivery options to consumers.

Building maintenance services pricing trends

The time and material pricing model is the most widely adopted pricing model in the global building maintenance services market. In this model, a price is assigned based on the value of the time and the prices of materials provided by suppliers for maintenance projects. However, SpendEdge procurement analysts observe that guaranteed maximum pricing offers the highest potential, as it is open to penalties for the suppliers in case of any deviations, and lowers the administrative workload.

SpendEdge’s Global Building Maintenance Services Category — Procurement Market Intelligence Report is available to purchase from the firm’s Web site. This report is available at a discount for a limited time only; view the report snapshot before purchasing. The firm says it also customizes reports to meet clients’ requirements. Sample reports are also available free of charge and provide insights that focus on cost-saving aspects of procurement and optimization of category spend.