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Totally agree with Mr Fazlur Rahman. Very eloquent answer
The best contract shall be based on is full schedule of rates as it has the following advantages.
1. It encourages the contracting authority to check the status of facilities frequently and order on monthly or weekly basis based on schedule rates.
2. Weekly or Monthly order will based be on necessity only thus there will be cost saving
3. Since there is schedule of rates, contracting authority has the freeness to improve the outlook or services at their choice
I can recommend to go for a monthly fixed price linked to some deliverable (like number of manpower, resources, working hours .. etc.) inaddition, you also have to sign a Service Level Agreement with the Service provider to ensure the provider will provide the required service, with the required quality and standards, and will not compromise on the deliverables, so as long as the service provider is complying you will pay the fixed monthly rate, yet in case of any deviation or low performance, a certain liquidated damages can be applied, this can be linked to the above deliverables, this scenario will be fair and win-win for both parties for this type of Facility Management Contract.
Agree with Mr. Rahman. But in order to be more accurate to your decision, analyse your data and make up your mind accordingly
Fixed price will be appropriate for facilities management contract as the usage and pricing by schedule rates would be tedious
