Cons

Cons

  • Cost overruns are not passed to the buyer
  • Labor and material cost increases require authorized approval
  • High control over operating budget
  • Less requirement to manage or control the process
  • Supplier does not inflate costs
  • Supplier is motivated to drive optimization
  • Supplier will apply more supervision to the account  

Pros

1. Fixed Fee

  • Quick response to market changes
  • Higher focus to produce quality
  • Full transparency 

JAN-015 - Ver 2.0 (May 23)

Pros

  • Slower response to changing conditions
  • Supplier may cut corners to reduce costs
  • Supplier may focus on cost vs quality
  • Supplier profit margin and benefits costs may be over inflated
  • Higher chance for contract dispute if the SOW is not clearly defined

2. Cost Plus

  • Reduced budget control
  • Requires input to manage variable costs
  • No benefit for driving cost optimization
  • CBRE margins at risk if client wont accept cost changes (increases) 

3. Prescribed SOW

  • Higher level of transparency over job routines, hours and productivity
  • Ability to control service frequencies for day porter / matron tasks
  • Easier to audit task completion requirements to market change
  • May drive higher costs due to excessive service frequencies for certain areas
  • May not produce desired outcome results
  • Removes vendor creativity and job routine flexibility
  • Change control process administration.

Cons

Pros

4. Outcome Based SOW

Pros

Cons

  • Greater alignment regarding desired outcome vs service task frequency
  • Job routine flexibility and ability to pivot as occupancy levels change
  • Ability to reduce hours in areas that were over serviced
  • Higher levels of service consistency 
  • Requires higher level of employee engagement "heads-up attitude" to ensure all areas are service to achieve desired outcome levels
  • Difficult to adapt in high turnover environments

5. Hybrid Cleaning Programs

  • Effective model to drive cost saving associated with increased productivity levels
  • Drives Increased customer satisfaction scores as building occupants develop bonds with custodians and obtain clearer insight of the janitorial service program

Pros

Cons

  • Program requires a high level of customization to deal with different areas of the facility to minimize occupant interruption 
  • May require significant "cultural change" with the client for day-cleaning in non-core areas

Confidential & Proprietary | 2023 CBRE, Inc.

Janitorial

Choosing Commercial Models

BID

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