6 Tips to Avoid Contractor Nightmares and Ensure Smooth Operations

Simple strategies every facility manager can use to maintain smooth operations and build better contractor relationships.

Author

Abdul Basit
November 22, 2024

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Are your third-party specialized contractors giving you sleepless nights?

Sometimes it's the demand for more money, and other times it's delayed work that makes you feel like pulling your hair out.

If this sounds familiar, my friend, today's newsletter is a must-read.

It’s all about ensuring smooth operations without hampering your contractor relationships.

  1. Clearly Define the Scope of Work


    Every agreement should specify a detailed scope of work. Your RFPs (Request for Proposals) and RFQs (Request for Quotations) must include minute details about your requirements to avoid misunderstandings later.

  2. Thorough Contractor Screening


    Conduct a comprehensive study of the contractor’s presence in the market. Pay special attention to their response time—quick responses often indicate reliability.

  3. Have a Backup Plan


    Despite thorough screening, if a contractor underperforms, always have a second option ready. This ensures a smooth transition with no disruptions.

  4. Probation Period for New Contractors


    For contractors new to the market, include a mandatory probation period of 2–3 months. Evaluate their performance before committing to a long-term contract.

  5. Include Performance-Based Clauses


    Add a clause in the SLA (Service Level Agreement) that allows the facility manager to hire another contractor if the original fails to deliver. The cost for the replacement should be deducted from the original contractor’s invoice.

  6. Check Financial Stability


    Ensure contractors have a solid financial background to withstand unforeseen delays. Review their financial statements from the past three years for assurance.

Managing third-party contractors doesn’t have to feel like a constant battle. With a solid plan, clear agreements, and proactive measures, you can streamline operations and ensure peace of mind while maintaining positive working relationships.


If you found these tips helpful, share this newsletter with your colleagues who might be struggling with contractor management. Let’s help everyone run smoother operations!

Got your own strategies or questions? Hit reply and share—I’d love to hear from you! 🤍