A Proper Fix (JPM)
Ensure Reliability and Owner Protection When Developing Maintenance Agreements with Contractors
by John N. Gallagher, CPM®
The following is an excerpt from the Jul/Aug 2010 issue (Volume 75, Number 4) of JPM, Journal of Property Management.
The following article is an excerpted and revised chapter from the IREM Key Report, Managing Your Maintenance Programs: A Guide to Implementing Cost-Effective Plans for Properties
More than ever before, maintenance contracts are an integral part of managing real estate. The success of your maintenance management program will rest on your ability to contract for services with reliable vendors, and to make sure the program specifications are being met and your owner is properly protected.
Your property likely requires a variety of maintenance, such as janitorial services for cleaning a residential building’s common areas or an entire office building. Landscape services are now common and necessary for most properties to maintain grass, shrubs, trees and seasonal plants. Metal and stone cleaning in lobbies, as well as the brass or metal door and window frames and canopies, may be contracted to a specialty metal polishing company. High-rise buildings require cleaners to wash the exterior windows and window frames. The list goes on.
Just about any service to a property may be contracted. The maintenance contract needs to identify the scope of work, the relationships and responsibilities of the contracting parties, the terms and conditions under which the services will be provided, and compensation tendered.
THE BIDDING PROCESS
To ensure you are getting a qualified contractor at a competitive price, you should conduct a detailed bid process, which is often referred to as a Request for Proposal (RFP). First, you must identify qualified contractors.
“Make sure you thoroughly review references, including visual inspections of work performed on similar size and types of properties,” said Lee Whitman, CPM, general manager for MC Realty Group in Kansas City, Mo., AMO®.
You may prequalify them yourself, or include those guidelines in your RFP documentation. You should always consult with your client in case he or she has specific requests for any particular contractor. Establish basic minimum requirements for your contractor. In general, you want the contractor to have prior experience with similar properties. The dollar value of a project can help determine how much prior experience a contractor should have.
“The higher the project cost, the more experience you should demand from the contractor,” Whitman said.
The full article is available as an online exclusive in the Jul/Aug 2010 issue of JPM, Journal of Property Management.
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