Services

If you only look at the price, you miss the value

Facility management has undergone radical changes in recent years. It is no longer just about cleaning, technical services or reception. Today, what is needed are digital solutions, sustainable operational concepts, reliable performance, excellent user experiences and a partner who takes responsibility – day in, day out.

Giuseppe Cristofaro
Giuseppe Cristofaro
Chief Commercial Officer
Yonedys Ramirez - 15

Nevertheless, many requests for proposals are still treated as if FM were merely a commodity—interchangeable, comparable, and arbitrary. This is precisely where the dilemma lies: When price takes center stage, it systematically undermines the potential that modern facility management could realize. Those who focus solely on the lowest price today not only risk compromising operational quality but also actively hinder innovation, progress, and collaborative development.

Railway tenders as a strategic lever—or a brake on innovation

The bidding process determines what a facility services provider must deliver in day-to-day operations—and what it is evaluated on. If user experience, innovation, and development are not factored into the bid design from the outset, they often fall by the wayside in everyday operations. Anyone who wants to achieve real impact must establish clear framework conditions. This includes transparent requirements, clear evaluation methods, and a tender document that aims not just for the lowest-cost provider, but for the most suitable partner. It also means less red tape, more dialogue, and a clear understanding of what facility management can achieve today—if given the opportunity.

Long-Term Commitment as a Prerequisite for Real Impact

Successful facility management takes time. It only unfolds its full potential once well-coordinated teams have built trust, processes are aligned, and continuous improvement is underway. Short-term contracts leave no room for this. They force providers into operational chaos and prevent investment. Long-term partnerships, on the other hand, create stability. They enable targeted development, sustainable employee retention, and bold innovation projects. Without this planning horizon, FM remains a tactical discipline—rather than contributing as a strategic element of value creation.

A focus on price and one-sided terms lead to a dead end

The cheapest provider is not necessarily the best. A critical pattern emerges, particularly in public tenders: the boldest provider, the one taking the greatest risks, wins the contract—not the one with the best concept. This leads to operational tensions, a decline in performance, and frustration on both sides. And above all, it hinders innovation and the overall experience. After all, without financial leeway, development remains a nice idea—but not a reality. Those who demand innovation must also finance it. Cost may be a factor—but not the only one. A balanced consideration of price, quality, and development potential is the key to sustainable success. The same applies to payment terms—ideally within the month the service is provided—to cost-of-living adjustments, which should be based on actual inflation, and to liability, which must be limited to a reasonable extent.

Partnership Across Multiple Contract Generations

It is during day-to-day operations that it is determined whether facility management will be a success story or not. This requires more than just well-drafted contracts. The attitude of both sides is crucial: trust, reliability, and mutual respect. Genuine added value is created only when the client and the provider work together to shape the process. This includes a culture of dialogue, flexible mechanisms for further development, and a shared understanding of goals and impact. Oversight may be important—but without a spirit of partnership, it remains ineffective.

The Experience Begins with the RFP

Anyone who wants to offer users experiences, quality, and innovation in facility management must be prepared to create the right conditions for it. This begins with the request for proposals—and continues throughout operations. We need more courage to embrace partnership, more openness to development, and more focus on what facility management can truly achieve. Because in the end, what counts is not the lowest price, but the greatest contribution to the success of companies and the people within them who rely on functional, inspiring spaces or environments every day.

It’s time for a shift in thinking—away from a purely transactional procurement project and toward a strategic management tool for sustainable success—spanning multiple contract generations.

Zum Author

Giuseppe Cristofaro

Ist seit 2018 Chief Commercial Officer bei ISS Schweiz. Mit langjähriger Erfahrung in der FM-Branche begleitet er komplexe Ausschreibungs- und Implementierungsprozesse bei Grosskunden aus verschiedenen Sektoren. Sein Fokus liegt auf partnerschaftlicher Zusammenarbeit, kundenorientierten Lösungen und der Weiterentwicklung von FM als strategischem Werttreiber. 

Giuseppe Cristofaro

Original article published in the trade magazine Facility Services, June 2025 issue