The Issue

Archbishop Sentamu Academy was constructed in 2011 under the building schools for the future scheme through a Design and Build contract. The operational contract, including Hard FM and Lifecycle, was held by the Academy, the Council, and the Local Education Partnership (LEP) who provided the service. Excessive risk pricing and onerous KPI’s however made this contract poor value for money.

Our Brief

Hard FM and Lifecycle costs respectively were far higher than expected for this type of facility and they caused the Academy serious financial hardship. The Academy had approached the Council about this, and with their full support, commissioned us to review the contracts with the aim of reducing their combined cost. 

Our Solution

We undertook a full review of both contracts as well as a comprehensive statutory compliance survey. We quickly devised a strategy for removing the Academy from both Hard FM and Lifecycle contracts and then negotiated a new contract. To achieve this, we did the following:

• Mapped the Service against the contract and developed both in-house and contracted-out models
• Developed specifications and tender documentation for the introduction of a stand-alone service 
• Tendered and then negotiated a re-contract with the existing Hard FM Contractor
• Developed a management model for the Academy and assisted with interviews for a new FM Manager role.

Our Achievements

• Negotiated the termination of the Hard FM contract with minimal breakage costs.
• In-house delivery of Soft FM and Lifecycle directly by the Academy resulted in significant annual savings. 
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Total Client Savings

A 27% reduction in contract costs which equates to a six-figure saving per annum to the Academy.