Confidential & Proprietary | 2024 CBRE Inc.
Ver 1.0 (May 24)
Savings Levers
Suppliers / Pricing
Electrical
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Top 10 Savings Opportunities
Typical savings on Electrical maintenance is around 4%-6% (case dependent) which can be achieved through partnership between sourcing and operations teams. Below are 10 savings ideas - use these as a starting point to identify which apply. Be careful to evaluate the opportunity prior to deep diving into a drawn out RFP.
Multi Year Fixed Price for preventative maintenance / inspections
Establish repair time and materials rates with volume discount in a contract
Value Engineering the frequency of maintenance – equipment optimization
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Utilize PEP Suppliers (consolidate spend)
Leverage Non-OEM suppliers for service where applicable
Multi-year contract with gradual Consumer Price Index (CPI) increases
Evaluate benefits of PM contract vs. All-Inclusive model
Evaluate self-performance opportunities (PMs, visual inspections, etc.)
Appropriate labor rate by skill-set for service needed (i.e. ensure right level of resource is being deployed)
Ensure non-union resources are deployed if service does not require union resources
Ensure service delivery is being performed during normal working hours wherever possible (i.e. overtime elimination / reduction)
Link: CBRE Inflation Mitigation Strategies