How to ensure you only pay for what you receive

Are you being overcharged by your contractors?

If your mechanic were to invoice you for a full car service, yet only changed the oil and checked the tires, would you question it?

Absolutely! Why would you pay for a service you didn’t receive?

The same rationale applies to your contractor maintenance. If only 70% of your contractor jobs are completed, why would you pay 100% of the bill?

Why does this situation prevail for (almost) all organisations who require building maintenance?

For routine maintenance jobs, a schedule of activities are established; test the fire extinguishers, test the automatic doors, etc. Usually, the mandated tasks for each maintenance check are mapped out by either a regulatory or a client requirement.

Pretty straight forward, right?

After defining the scope of the tasks, the service provider then provides a quote for the delivery of the work. Because it is a defined scope, you get an annual figure divided by 12, in other words, a fixed invoice each month.

This fixed invoice relates to 100% of your proposed contractor tasks being completed, and completed on timeHerein lies the problem.

What if a contractor doesn’t complete a task, or they are late in their delivery? Do you still receive your fixed invoice at the beginning of each month? Or are you billed in proportion to the amount of planned work they have completed?

Do you have visibility of completed contracted work at all?

Are you over-paying your contractors for incomplete maintenance jobs?

If there is no link between the work management system and the invoicing system, then Facility Managers and building owners run the risk of over-paying their contractors.

There are multitudes of reasons why a contractor may not be able to finish a job, but at the end of the day, if you are paying for a service, it is reasonable to expect a desired outcome.

It is critical that you have a process in place that validates all completed contractor jobs. Without one, you will pay the full invoice every time, irrespective of what is actually delivered.

Gain visibility over your repairs and maintenance activities

Visibility over your repairs and maintenance activities will not only ensure that your safety systems are functional, but that you are not paying for work that has not been done.

Experience and research shows that if companies cannot measure contractor activity, they are generally over-paying.

In some cases, companies were not only overpaying by 30%, but the lack of contractor accountability also led to exposing their employees to serious compliance and safety risks.

Alternatively, for further information on how you can drive transparency through contractor engagements to ensure your invoicing matches the work done in the field, call 03 9544 4500 or email me directly at phillip@verified.com.au.

 

By | 2018-05-22T15:01:15+00:00 September 29, 2017|
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