What are the best methods for ensuring data-driven contracts in FM?

1 Define clear objectives

Before entering into a contract, both the FM provider and the client should have a clear understanding of the objectives and scope of the project, as well as the key performance indicators (KPIs) and service level agreements (SLAs) that will be used to evaluate the contract performance. These should be based on relevant data and benchmarks, and reflect the needs and priorities of both parties. Having clear objectives will help to avoid misunderstandings, disputes, and inefficiencies during the contract execution.

2 Collect and analyze data

Data is the foundation of data-driven contracts, as it provides the evidence and insight to support decision-making, reporting, and improvement. Therefore, FM professionals should collect and analyze data from various sources, such as sensors, meters, surveys, audits, invoices, and feedback, to track and evaluate the contract performance against the agreed KPIs and SLAs. Data analysis tools, such as dashboards, charts, and reports, can help to visualize and communicate the data in a meaningful and actionable way.

3 Implement feedback loops

Data-driven contracts are not static, but dynamic and adaptive, meaning that they can be adjusted and optimized based on the feedback and data collected during the contract execution. Feedback loops are essential for ensuring data-driven contracts, as they allow both parties to share their perspectives, concerns, and suggestions, and to identify and resolve issues and gaps. Feedback loops can be formal or informal, such as regular meetings, reviews, audits, surveys, or online platforms.

4 Leverage technology

Technology can play a key role in facilitating and enhancing data-driven contracts, as it can automate, integrate, and streamline data collection, analysis, and communication processes. For example, cloud-based platforms can enable real-time data access and sharing, smart sensors can monitor and control environmental and operational parameters, and artificial intelligence can provide predictive and prescriptive analytics. Technology can also improve the transparency and accountability of data-driven contracts, as it can provide audit trails and verifiable records.

5 Foster collaboration

Data-driven contracts require a high level of collaboration and trust between the FM provider and the client, as well as among the different stakeholders involved in the contract execution. Collaboration can help to ensure that data is shared and used effectively, that feedback is valued and acted upon, and that contract outcomes are aligned with the objectives and expectations of both parties. Collaboration can be fostered by creating a culture of openness, mutual respect, and continuous improvement, and by establishing clear roles and responsibilities for data management.

Data-driven contracts can offer many benefits for FM professionals, such as improved efficiency, quality, satisfaction, and innovation. However, they also pose some challenges, such as data quality, security, privacy, and ownership. Therefore, FM professionals should adopt best practices and methods to ensure that data-driven contracts are designed, implemented, and managed in a way that maximizes their value and minimizes their risks.