How Universities and Schools Can Reduce Costs by Going to Market for New PPM Contracts

Why this matters now

Across Australia and New Zealand, education providers face a perfect storm: rising utility and labour costs, aging building stock, heavy compliance obligations, and heightened expectations for sustainability and student safety. Property Services—waste, vertical transport (lifts and escalators), mechanical/HVAC, electrical, plumbing, fire & life safety, and general contracting—sit right in the middle of the cost and risk profile.

Many institutions are still operating on legacy contracts signed years ago, often extended multiple times, with schedules and rates that no longer reflect actual demand, modern technologies, or today’s market pricing. A structured go-to-market (GTM) for Planned Preventative Maintenance (PPM) is one of the quickest, cleanest ways to reset costs, lift compliance, and reduce risk—while preserving the on-campus experience.

This article is a practical, copy-and-paste-friendly playbook you can use to plan and run a competitive procurement process. No hype, no jargon—just the steps that work in ANZ education environments.

The outcomes you’re aiming for

Before diving into tender packs and pricing schedules, get crystal clear on the five outcomes that matter:

1. Lowest total cost of ownership (TCO)
   Not just cheaper rates—fewer call-outs, less downtime, optimal replacement cycles, and energy-efficient operation.
2. Assured compliance and safety
   Meeting Australian and New Zealand Standards, Building Codes, WHS legislation, and fire/life safety rules—without administrative drag.
3. Performance you can see and measure
   Defined SLAs, uptime guarantees for lifts and critical HVAC, transparent reporting, auditable evidence, and clear abatement mechanisms.
4. Future-ready operations
   CMMS/BMS integration, data-rich asset registers, smart sensors where they create value, and sustainable practices aligned to institutional targets.
5. Minimal disruption to teaching and student life
   Planned works aligned to term dates, exams, events, and public access.

The business case in plain numbers

A well-run PPM tender often finds savings in three places:

• Unit rate optimisation: Competitive market pricing for standard tasks and parts.
• Scope rationalisation: Removing duplicate tasks, mis-timed frequencies, or activities that don’t materially reduce risk.
• Operating model improvements: Consolidating vendors, aligning service windows to demand, tightening escalation paths, and using data to prevent failures.

Beyond direct cost savings, the real prize is avoided cost: fewer breakdowns, faster recovery, less overtime labour, and lower energy usage from well-tuned plant and equipment.

What good looks like: the PPM procurement blueprint

Think of the process in six stages. Each stage has a clear deliverable and a go/no-go decision.

1) Mobilise and baseline

• Set the mandate: Confirm the contract list in scope (waste, VT, mechanical/HVAC, electrical, plumbing, fire/life safety, general contracting) and the campuses, precincts, or satellite sites included.
• Form the squad: Property/Facilities, Procurement, Finance, WHS/Compliance, Sustainability, IT/Systems (for CMMS/BMS), and key academic stakeholders.
• Baseline the current state: Gather contracts, rate cards, SOWs, performance reports, service history, abatement logs, and ad-hoc variation records.
• Define success metrics: TCO reduction target, compliance KPIs, uptime requirements, energy intensity goals, and service experience measures.

Watch-outs: Don’t let the process be data-blocked. If your asset data is messy (it usually is), plan a quick-and-clean uplift—not perfection—before market.

2) Fix your data (enough to move)

• Asset register uplift: For lifts, HVAC, switchboards, pumps, fire equipment, etc., capture make/model, age, criticality, and last major service.
• Condition and criticality tagging: Not everything needs the same frequency. Tag assets by student safety impact, teaching criticality, and compliance requirement.
• Demand profile: Overlay term dates, events, lab schedules, and holiday shutdown periods to rationalise service windows.
• Systems integration mapping: Confirm how vendors will read/write to your CMMS (e.g., Maximo, Archibus, SAP, TechnologyOne) and relevant BMS.

Rule of thumb: “Right enough” data is the goal—accurate asset lists, frequencies tied to standards and risk, and a clean service history for the last 12–24 months.

3) Decide your sourcing strategy

• Single integrated FM vs multi-category: Universities often benefit from category bundles (e.g., MEP + Fire) where synergies exist, but lifts and waste can remain separate due to specialisation and OEM constraints.
• Campus vs portfolio contracts: ANZ institutions with multiple campuses can consolidate to unlock buying power, while keeping local responsiveness in the SLA structure.
• Term and options: Typical PPM terms are 3+2 or 5+2 years. Align options to capex milestones and planned refurbishments.
• Performance and risk: Choose between prescriptive SOWs (exact tasks and frequencies) and outcome-based models (availability, compliance, and energy performance)—or blend them.

Tip: Keep incumbents honest by designing a process where service quality and continuous improvement matter as much as price.

4) Build the market pack properly

Your RFT pack should be simple to navigate and impossible to misinterpret:

• Instructions to tenderers: Timelines, site walks, questions protocol, addenda, and commercial terms.
• Scope of services by category:
  • Waste: Streams (general, recyclables, organics, clinical/lab, e-waste), expected volumes, on-site compaction, Container Deposit Scheme where applicable, contamination thresholds, and reporting.
  • Vertical Transport: Asset list with serial numbers, uptime targets per asset, response/rectification times, entrapment procedures, incident reporting, and after-hours cover.
  • Mechanical/HVAC: Compliance to standards, maintenance task lists by equipment type, performance tuning, filtration standards, seasonal changeover, and energy optimisation.
  • Electrical: Switchboard inspections, RCD testing, thermographic scans, emergency/exit lighting, generator/UPS testing, and statutory reporting.
  • Plumbing: Backflow prevention, thermostatic mixing valves, water quality testing (including Legionella management), pumps and tanks, and emergency response.
  • Fire & Life Safety: EWIS, sprinklers, hydrants/hose reels, extinguishers, passive fire systems, smoke management, evacuation drills, and mandatory certification cadence.
  • General Contracting: Minor works, patching/painting, small carpentry, flooring, glazing, and 24/7 make-safe protocols.
• Asset registers and drawings: “Read-only” canonical lists with IDs that match your CMMS.
• Service level regime: Response and rectification times, uptime targets for critical assets, and a clear escalation pathway.
• Performance and abatement: KPI scorecards, evidence requirements, and a fair abatement structure that rewards improvement and penalises persistent under-performance.
• Sustainability and social procurement: Recycling and circularity targets, waste diversion, Indigenous procurement commitments, modern slavery due diligence, local jobs and apprenticeships, and carbon reporting requirements.
• Safety and compliance: WHS documentation, permits to work, contractor inductions, working with children checks where applicable, and emergency procedures.
• Systems and data: API specs or data templates for CMMS/BMS integration, data ownership clauses, and cyber expectations for vendor connections.

5) Price it the right way

A pricing schedule that’s poorly structured is the fastest path to “apples and oranges” comparisons and hidden cost creep. Get these elements right:

• Fixed PPM: Annual fixed price for defined tasks and frequencies per asset (with inclusions/exclusions clearly marked).
• Reactive call-outs: Hourly rates by trade/qualification, min charges, after-hours multipliers, and call-out bands.
• Materials and parts: Discount structures vs list, preferred brands, OEM vs equivalent policies, and warranty handling.
• Quoted works: Mark-up caps, competitive quoting rules above thresholds, and a transparent variation process.
• Indexation: Define the index (e.g., CPI, Labour Price Index) and timing. Avoid compounding surprises by setting guardrails.
• Incentives: Share-in-savings or performance bonuses tied to energy reductions, uptime improvements, or waste diversion milestones—only where measurement is robust.

Pro tip: For lifts and fire/life safety, pay close attention to OEM proprietary parts and software. Design pricing schedules that limit monopolistic behaviour while preserving safety.

6) Run a fair, competitive process

• RFI/EOI (optional): Pulse the market for capability and shortlist if the field is large.
• RFT: Issue clear packs, hold site walks, and require Q&A through a formal channel.
• Scoring: Use weighted criteria covering price, methodology, compliance, capability, sustainability, and digital integration.
• BAFO/Negotiation: Invite clarifications, test alternative pricing structures, and tighten contract terms.
• Reference and safety checks: Validate safety performance, statutory compliance track record, and campus-like experience.
• Award and standstill: Communicate outcomes professionally and prepare transition plans immediately.

Category-by-category tactics to lower cost without lowering standards

Waste services

• Right-size your streams: Measure actual generation by building type (labs vs general teaching) and adjust bin sizes/frequencies.
• Tackle contamination at source: Clear signage, student ambassadors during peak periods, and vendor education cut landfill costs.
• Plan logistics: Consider BOH constraints, collection windows that avoid student congestion, and container deposit schemes where available.
• Data you need: Weights by stream, contamination rates, and exception logs. Use it to reset pricing annually.

Vertical transport (lifts/escalators)

• Uptime is everything: Tie PPM schedules to availability targets per asset, with response and rectification SLAs clearly defined.
• Independent lift consultancy (where needed): Use for scope validation, OEM neutrality, and major refurb planning.
• Event overlay: Exams, graduations, and open days drive load—align manning and standby accordingly.
• Spare parts & software: Clarify access, versions, and update rights to prevent lock-in.

Mechanical/HVAC

• Energy is the lever: Optimise BMS set-points, filters, and preventative tasks. Demand-controlled ventilation and season-appropriate schedules often yield quick wins.
• Indoor air quality (IAQ): Education spaces need healthy CO₂ and particulate levels; define the monitoring standard.
• Chilled/hot water plant: Condition-based tasks (e.g., vibration analysis) can reduce breakdowns and overtime.

Electrical

• Prioritise risk: RCD and thermography programs catch issues early. Align testing windows to low-occupancy periods.
• Emergency lighting: Move to LED and define failure thresholds to minimise call-outs.
• Generator/UPS: Include load testing schedules that won’t disrupt labs or data centres.

Plumbing

• Compliance first: Backflow and TMV testing regimes must be watertight (pun intended).
• Water efficiency: Leak detection and smart metering often pay back quickly, especially across large campuses.
• Legionella management: Define roles across HVAC and plumbing to avoid gaps.

Fire & life safety

• No grey areas: Clear delineation between active and passive systems, testing frequencies, and defect rectification timeframes.
• Evacuation and training: Tie vendor responsibilities to drill schedules and documentation, especially for residential colleges.
• Evidence pack: Certificates, logs, and photos stored against asset IDs in your CMMS.

General contracting (minor works)

• Make-safe first: Define a 24/7 make-safe protocol with caps and an approval ladder for follow-on works.
• Small works panel: For jobs above a threshold, use a mini-competition among pre-approved contractors to keep pricing sharp.
• Student-safe sites: Clear requirements for hoardings, traffic, and hours to minimise disruption.

Compliance and risk—done once, done right

ANZ campuses carry a unique mix of public access, heritage buildings, laboratories, and residential facilities. Your contract and governance pack should address:

• Statutory compliance matrix: Map each category to relevant Australian/New Zealand Standards and testing frequencies.
• WHS and child-safe obligations: Contractor inductions, worker clearances where required, and incident reporting templates.
• Insurance and financial surety: Appropriate coverage, performance bonds where proportionate, and rapid rectification provisions.
• Modern slavery and supplier ethics: Practical due diligence questionnaires, escalation steps, and audit rights.
• Cyber and data: If vendors connect to your systems (CMMS/BMS), set minimal security baselines and data ownership rules.

Contracts that actually work on campus

Choose a contract form familiar to the local market (many institutions use standard ANZ forms with schedules tailored to services). Focus on:

• Clarity on inclusions/exclusions: Especially for lift OEM parts, fire rectifications, and after-hours works.
• Performance regime: KPIs, evidence, abatements, improvement plans, and a fair dispute pathway.
• Change control: Simple mechanisms for adding/removing assets, frequency changes, and new buildings.
• Indexation and benchmarking: Annual resets against agreed indices with optional third-party benchmarking at mid-term.
• Continuous improvement: A formal process for proposing and approving savings and sustainability initiatives.

Transition and mobilisation—where tenders succeed or fail

Plan your mobilisation like a mini-project:

1. 90-day plan: Contractor onboarding, inductions, system access, asset verification, and PPM schedule upload to CMMS.
2. Site protocols: Keys and access, hot works, confined spaces, permits, and emergency call-out rosters.
3. Communications: Campus-friendly notices for noisy works, lift shutdowns, and system tests.
4. Safety first: Toolbox talks, SWMS reviews, and joint risk walks.
5. Evidence check: First month’s certificates and logs to validate processes work end-to-end.
6. Early wins: Energy tuning, bin right-sizing, and backlog triage to build momentum.

Governance and reporting that people actually read

• Monthly ops packs: KPI scoreboard, compliance certificates, top risks, and completed/overdue PPM tasks.
• Quarterly performance reviews: Trend analysis, energy/waste results, improvement pipeline, and upcoming risks.
• Campus voice: Feedback from facility managers, student representatives, and residence managers.
• Audit-ready records: Everything tied to asset IDs in your CMMS—no emails as “systems of record”.

How to avoid the five classic mistakes

1. Treating PPM as “set and forget.”
   Build in continuous improvement and benchmarking.
2. Over-specifying tasks that don’t reduce risk.
   Focus on statutory needs and criticality; shift to condition-based where justified.
3. Underweighting uptime and response times.
   For lifts and HVAC, availability is the value driver—price it and measure it that way.
4. Letting data drift.
   Make the vendor responsible for updating asset registers after every change, with QA checks.
5. Ignoring student and teaching calendars.
   Lock your service windows around term dates and exams from the start.

A practical 12-week tender timeline (indicative)

• Weeks 1–2: Mobilise, confirm scope, form the squad, collect current contracts and performance data.
• Weeks 3–4: Asset register uplift, compliance matrix, and pricing structure design.
• Week 5: Issue RFT; run site walks.
• Weeks 6–7: Q&A and addenda; bidders refine technical and pricing proposals.
• Week 8: Receive bids; screen for completeness and commercial compliance.
• Week 9: Evaluate; clarifications; negotiate BAFO.
• Week 10: Recommendation, approvals, and intent to award.
• Weeks 11–12: Contracting and mobilisation planning.

(For multi-campus portfolios or complex lift portfolios, add time for independent technical reviews.)

Digital enablers that pay their way

• CMMS discipline: One asset list, one job history, one source of truth.
• BMS and IoT: Use where they help you predict issues or save energy; avoid gadgetry for its own sake.
• QR on assets: Field techs scan to log works and attach evidence—no back-office paper chase.
• Power BI/analytics: Visualise uptime, compliance, and spend by building and vendor to steer decisions.

Sustainability that actually saves money

• Waste: Reduce contamination, right-size collections, and divert organics where practicable.
• HVAC/Energy: Seasonal tuning, demand control, filter strategy, and metering/monitoring.
• Materials: Preference long-life, repairable components and transparent supply chains.
• Vendor incentives: Link part of the fee to measurable energy or diversion improvements—with clear baselines.

What success feels like on campus

• Fewer student complaints about hot/cold rooms or out-of-service lifts.
• Faster response to reactive issues, with better first-time-fix.
• Predictable monthly costs and fewer surprises.
• Compliance evidence at your fingertips when auditors knock.
• A facilities team that spends less time chasing vendors and more time improving the campus experience.

How Trace Consultants can help

Trace Consultants supports education providers across Australia and New Zealand to plan and execute property services procurements that stand up to scrutiny and deliver measurable results—without making big promises we can’t evidence. Typical support includes:

• Rapid current-state and data uplift: We clean and structure asset registers, map compliance requirements, and build pricing schedules that make comparisons straightforward.
• End-to-end GTM execution: From strategy and RFT pack development to evaluation, negotiation, contracting, and mobilisation planning—aligned to term dates and campus realities.
• Performance frameworks and governance: Clear KPIs, SLAs, abatement regimes, and reporting that connect cost, compliance, and student experience.
• Sustainability and social procurement: Practical targets for waste diversion, energy optimisation, local participation, and ethical supply chains.

If you’re planning a refresh of waste, lifts, mechanical/HVAC, electrical, plumbing, fire & life safety, or general contracting—and want a pragmatic ANZ-specific approach—Trace can partner with your property, procurement, and finance teams to deliver a clean, competitive outcome.

Your action checklist (keep it on your desk)

• Confirm your portfolio in scope and the outcomes that matter.
• Lift your asset register enough to make the tender real.
• Decide your bundling (what to consolidate and what to keep specialised).
• Build a pricing schedule that kills ambiguity.
• Lock in compliance, safety, and data requirements from the start.
• Align service windows to academic calendars.
• Govern with simple, visual reporting and firm abatement rules.
• Plan mobilisation like a project with a 90-day clock.

Final word

Going to market for PPM is not about squeezing vendors for one-off savings. It’s about resetting how the campus runs—safer, simpler, cheaper to own, and easier to manage. With a disciplined process and the right partner, universities and schools in Australia and New Zealand can lower total cost, improve compliance, and enhance the student and staff experience—all at once.

If you’d like a sounding board or a second pair of eyes on your pack, Trace Consultants can help you get there—quickly, transparently, and with a method you can reuse across your property services portfolio.

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Trace Consultants – Procurement as a Service

Most organisations know there’s value in their external spend. The challenge is turning that value into bankable benefits while keeping the business moving. Internal teams are stretched; niche category expertise comes and goes; systems are partial; data is messy; and stakeholders want outcomes yesterday.

Procurement as a Service (PraaS) changes the frame. Instead of a one-off consulting project or a big tech program, you subscribe to a flexible, always-on procurement capability—blending people, process, and pragmatic technology—measured on results, not slide decks. It’s procurement you can dial up or down, aligned to how your business actually buys, with a pipeline you can point to and a benefits ledger that stands up to Finance.

This article sets out how PraaS works for Australian and New Zealand organisations, where it delivers the most value, the traps to avoid, and how Trace Consultants stands up and runs the function with you—so it sticks.

What is Procurement as a Service?

PraaS is a managed procurement capability you can scale on demand. Rather than staffing every category in-house or cycling through episodic projects, you access a multidisciplinary team that runs the core procurement value chain to a clear operating rhythm:

• Spend discovery and analytics that reveal where value is hiding.
• Opportunity assessment and a rolling pipeline everyone can see.
• Sourcing strategies matched to category dynamics and market conditions.
• Market engagement, RFx design, evaluation, and negotiation.
• Contracting that protects value (not just price).
• Implementation support, supplier onboarding, and change management.
• Supplier relationship management (SRM), performance and risk monitoring.
• Benefits tracking and reporting that Finance can rely on.

It’s not a temporary blitz. It’s a durable engine that keeps running—month after month—so savings are realised and sustained.

Why PraaS makes sense now in Australia & New Zealand

Our markets are open, concentrated, and sensitive to supply risk. Many ANZ businesses buy from a small set of national and international vendors, where leverage and relationships matter as much as pricing mechanics. Add tight labour markets, evolving ESG requirements, modern slavery reporting, cyber clauses, and local content expectations—and procurement’s workload has grown faster than internal headcount.

PraaS helps by right-sizing capacity, bringing in specialist category and commercial skills only when they’re valuable, and anchoring everything to a rhythm your business can live with. You get outcomes faster, with less internal strain, and no long-term fixed cost you don’t need.

Who benefits most

• Retail, FMCG, and Manufacturing: packaging, logistics, MRO, co-manufacture, ingredients, energy, and capex programs with clear levers and real constraints.
• Healthcare, Aged Care, and Education: clinical consumables, services, agency labour, waste, facilities, and technology—where assurance and auditability matter.
• Hospitality, Integrated Resorts, and Venues: property services, F&B, linen and laundry, security, cleaning, engineering/MEP, and projects—high spend and high visibility.
• Public Sector and Government-funded Services: transparent market engagement, probity, and value-for-money outcomes under clear policy settings.

If your spend is dispersed across many categories, suppliers, and sites—and benefits feel sporadic—PraaS gives you discipline and flow.

Outcomes you should expect

A credible PraaS model is accountable for outcomes you can measure and defend:

• Bankable cost reductions and cost avoidance, tracked to general ledger where possible.
• Service and quality improvement through clearer scope, KPIs, and supplier performance management.
• Risk reduction across supply continuity, safety, environment, cyber, and modern slavery obligations.
• Speed to contract with fewer handoffs and less rework.
• Stakeholder satisfaction because the process is transparent, decisions are evidence-based, and suppliers know what’s expected.

The anatomy of effective PraaS

1) A simple, visible operating rhythm

Monthly opportunities council, weekly project stand-ups, and an agreed intake process. Everyone can see the pipeline, stage gates, and what’s needed from them. The cadence fits your business: quick where it must be quick, thorough where the risk warrants it.

2) Spend analytics that drive action

Not just dashboards. We reconcile spend to vendors, categories, and contracts; spot fragmentation and off-contract buying; and quantify leverage and consolidation opportunities. We look at total cost of ownership, not just unit price—labour content, compliance, transport, energy, wastage, and rework.

3) Category strategies grounded in the market

We pick the right levers for the context: aggregation, rationalisation, alternative specs, should-cost, volume commitments, logistics redesign, service level and scope clarity, or outcome-based contracting. We don’t force every category through the same playbook.

4) Market engagement that respects suppliers and competition

Clear RFx packs, sensible evaluation criteria, commercial models that align incentives, and a process that suppliers can navigate without guesswork. The result: better bids, stronger relationships, and contracts that stand up when tested.

5) Contracts designed to protect value

The clauses that matter are clear and enforceable: scope definition, KPIs and SLAs, pricing formulas and indexation, service credits or abatements, change control, transition plans, termination rights, data and cyber, modern slavery, health and safety, and ESG commitments that are achievable and auditable.

6) Implementation support and supplier onboarding

Value evaporates when contracts sit in drawers. We plan handovers, align to P2P, set up catalogues and rates, brief stakeholders, and deliver quick reference guides. Suppliers know what “good” looks like from day one.

7) SRM that actually happens

We schedule supplier reviews, run them to an agenda, and record actions. Performance is tracked and shared; issues are solved with facts; continuous improvement is expected and recognised.

8) Benefits tracking Finance will sign off

We attribute benefits to budgets where appropriate, avoid double-counting, distinguish once-off from recurring, and make the assumptions explicit. No mystery maths.

How PraaS compares to typical approaches

A one-off sourcing project can deliver savings—but benefits fade without SRM, data care, and a pipeline. Buying a procurement suite helps—but tech alone doesn’t negotiate, write scope, or manage suppliers. Hiring more permanent headcount can be right—but you’ll still need niche expertise on demand.

PraaS orchestrates people, process, and technology so you get enduring results without over-building internally. If you later choose to insource, you’ll inherit a clean operating model, templates, and data that work.

A pragmatic stance on technology

We’re solution-agnostic. Many ANZ organisations already have ERP and P2P platforms—they’re often under-utilised. We start by making your existing stack work harder: guided buying, catalogues, approval flows, rate cards, and contract repositories that people actually use. We then automate the boring parts: intake, RFx templates, evaluation scoring, contract clause libraries, supplier performance forms, and simple dashboards.

Where helpful, we use lightweight components from our broader toolkit—for example, structured supplier performance capture (helpful for DIFOT and service KPIs) or workflow apps to keep approvals moving. The point is utility, not bells and whistles.

How we structure a PraaS engagement

Phase 1: Mobilise and baseline (first 4–6 weeks).
We clarify governance, define the intake process, baseline spend, and establish the initial opportunity pipeline. We align on benefits definitions with Finance and agree reporting. We set the cadence: a monthly council and weekly stand-ups, plus a simple project tracker stakeholders can trust.

Phase 2: Execute priority waves (first 90 days).
We run a handful of high-impact sourcing events to prove value while building confidence. In parallel, we clean up contract data, implement simple P2P fixes (catalogues, rate cards), and stand up SRM for strategic suppliers. Outcomes are visible: signed contracts, updated budgets where appropriate, and supplier reviews that produce actions.

Phase 3: Run the engine (months 4–12).
The pipeline matures. We expand to secondary categories, embed benefits tracking, and deepen SRM. We refine commercial models, risk registers, and ESG/modern slavery reporting. We keep improving the experience for stakeholders and suppliers, and we train internal teams where you want to insource.

Roles and responsibilities that avoid confusion

• Business owners bring requirements, confirm scope and service levels, participate in evaluation, and own go-live outcomes.
• Finance agrees benefits definitions, validates savings, and ensures alignment to budgets and forecasts.
• Legal/Risk shapes templates and engages at the right moments—no last-minute surprises.
• IT and P2P teams enable the mechanics: access, catalogues, approvals, integrations.
• Trace (PraaS) runs the cadence, analytics, sourcing, negotiations, contracting, onboarding, SRM, and benefits tracking—bringing in specialist category or commercial skills as needed.
• Executive sponsor removes blockers, champions the process, and helps sequence the pipeline.

Clarity here keeps things moving and avoids the “who decides?” loop.

Common pitfalls—and how we avoid them

Scope blur and “lift-and-shift” pricing.
Re-tendering the same scope for a better unit price rarely fixes the problem. We clarify scope, service levels, and KPIs, then rebalance pricing models (fixed vs variable, outcome-based where it fits) so the incentives line up.

Underestimating change effort.
Savings are real only when the business buys differently. We plan the change—catalogues, go-live guides, communications, and training—so adoption is baked in.

Probity theatre in public settings.
Procurement must be transparent and fair, but also efficient. We design the process to meet policy requirements without unnecessary delay.

Benefits that don’t land in Finance.
We agree definitions and baselines up front, avoid double-counting with other programs, and track benefits to budget lines where appropriate.

SRM collapses after go-live.
We schedule reviews, set agendas, and make action tracking unavoidable with light tooling. Value protection is treated as seriously as value creation.

The KPIs that matter

• Savings and cost avoidance by category and business unit, with clarity on one-off vs recurring.
• Contract coverage: percentage of spend under contract with current, accessible terms.
• Supplier performance: service levels, DIFOT/OTIF where relevant, quality metrics, safety/environmental incidents, and continuous improvement actions.
• Cycle times: intake to RFx, RFx to award, award to go-live.
• Risk posture: concentration risk, critical supplier health, cyber and modern slavery findings, and remediation progress.
• Adoption: on-contract vs off-contract spend, catalogue utilisation, and maverick buying trends.

We track these together so trade-offs and progress are visible.

What we need from you

A visible sponsor, access to spend data (we’ll help tidy it), a list of live pain points, and a willingness to follow a rhythm that makes decisions quickly. We don’t need perfect systems to begin; we need enough signal to prioritise the right categories and enough engagement to move decisively.

How Trace Consultants helps

Operators first, consultants second.
We’ve run large, complex procurement programs across property services, logistics, MRO, F&B, healthcare, and technology—where contracts are lived every day, not just signed. We design for reality: site operations, supplier capacity, legacy systems, and governance requirements.

Right-sized, on-tap capability.
You get the category and commercial skills you need, when you need them—no idle bench. We bring frameworks, templates, and negotiation experience that lift outcomes without slowing you down.

Pragmatic technology.
We make your current stack work harder and add lightweight tools where they earn their keep—guided buying, clause libraries, RFx packs, supplier performance capture, and benefits dashboards. Nothing ornamental.

Transparent, defensible benefits.
We align with Finance, avoid double-counting, and keep a benefits ledger that connects to the chart of accounts where it makes sense.

Designed for insourcing.
If you want to build internal capability, we plan that from day one. We document, train, and progressively hand back categories and processes at your pace.

What we won’t do.
We won’t fabricate case studies or claim savings we can’t substantiate. We won’t sell technology for its own sake. And we won’t bury stakeholders in jargon or paperwork that doesn’t move the dial.

A straightforward roadmap to get started

Weeks 0–2: Orientation and access.
Confirm governance and escalation paths. Get spend extracts and contract lists. Capture immediate pain points and quick wins.

Weeks 3–6: Baseline and pipeline.
Clean and classify spend. Map contracts and expiry risk. Build the first wave of opportunities with indicative benefits ranges and delivery effort. Agree definitions with Finance.

Weeks 7–12: Execute and prove.
Run priority RFx events, negotiate, and sign. Onboard suppliers, update catalogues/rates, and put SRM meetings in flight. Share early outcomes and lessons learned with the business.

Month 4 onwards: Run and expand.
Extend to secondary categories, deepen SRM, refine templates and playbooks, and embed benefits tracking. Plan insourcing where that’s your goal.

Commercial models that encourage the right behaviours

We favour models that balance predictability and performance: a base service fee for the standing capability, with a sensible, clearly defined performance component tied to agreed measures (for example, realised savings validated by Finance, improved contract coverage, or cycle-time reduction within probity constraints). Scope can start narrow—high-impact categories, a region, or a division—and scale as outcomes land.

Change management that sticks

People adopt what is simple, fair, and helpful. We keep the process transparent, shorten training into bite-sized sessions, and make “the new way” easier than the old—clear intake, clear RFx packs, fast decisions, and catalogues that work. We also retire outdated reports and parallel processes rather than layering more on top.

Frequently asked questions

Do we need to change systems before we start?
No. We start with your current ERP/P2P and tidy what matters—catalogues, approvals, data hygiene—then decide if further tech is warranted once benefits are flowing.

How do you handle probity and fairness in public or quasi-public settings?
We design the process to meet policy and probity requirements without unnecessary friction, documenting decisions and ensuring transparency for auditors and boards.

Can we keep strategic categories in-house?
Yes. We tailor scope to your goals. Many clients keep a handful of relationships in-house while we handle the rest—or we co-source during a transition.

How quickly will we see results?
Most organisations see early wins within the first 90 days as priority categories close and contract coverage improves. The bigger dividend comes as SRM prevents leakage and more categories flow through the engine.

What about ESG, modern slavery, and local content?
We incorporate these into sourcing design, evaluation, contract clauses, and SRM—practical, auditable, and proportionate to the risk and regulatory context.

Signs you’re ready for PraaS

• Contracts are expiring without a plan, or renewals are rushed.
• Spend is fragmented across too many suppliers, with inconsistent rates and scope.
• Stakeholders are frustrated by slow cycles—or by no cycles at all.
• Benefits are claimed but not visible in budgets.
• Risk and ESG obligations are growing faster than internal bandwidth.

If two or three of these ring true, an on-tap procurement engine can restore order quickly and sustain it.

How to brief us

Keep it practical. Tell us the spend in scope, the categories that hurt, must-make deadlines, system realities, and your appetite for change. We’ll propose a first-wave pipeline, the cadence, who needs to be involved when, and what benefits we think are credible—and we’ll track them in a way Finance will support.

Final word

Procurement as a Service isn’t a shortcut; it’s a smarter path. It gives you the capacity, expertise, and rhythm to turn spend into value consistently—without building a permanent team you don’t need or waiting on a tech transformation to finish. In Australia and New Zealand, where supplier markets are concentrated and compliance expectations are rising, a disciplined, right-sized procurement engine delivers outsized returns.

Trace Consultants can stand this up quickly, run it well, and—if you want—hand it back on your timeline. No theatrics. No jargon. Just measurable savings, better supplier performance, and a calmer path from need to contract to delivery.

Interested in exploring PraaS with Trace Consultants?
Let’s start with a short conversation about your categories, timelines, and targets—and map a 90-day plan you can execute.

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Property-Based Businesses – Procurement for Cleaning Services

Walk into any shopping centre before opening hours, and you’ll likely see cleaners moving through the space at pace – vacuuming walkways, polishing tiles, and preparing food court seating areas. The same scene plays out across office towers, stadiums, universities, and hospitals. For property-based businesses, cleaning isn’t just a hygiene factor. It’s central to customer experience, regulatory compliance, and brand reputation.

Yet cleaning services often represent one of the largest categories of indirect spend. Despite this, many organisations approach procurement for cleaning services with outdated scopes, loosely defined service requirements, and insufficient performance structures. The result? Overpaying for under-delivered outcomes, strained supplier relationships, and little ability to adapt as business needs evolve.

This is where strategic procurement can transform cleaning services from a cost burden into a managed investment. By optimising scopes, leveraging technology such as demand sensors and robotic cleaners, and carefully structuring contracts with well-defined KPIs and pricing schedules, property-based businesses can achieve both cost efficiency and improved service quality.

Why Cleaning Procurement Matters for Property-Based Businesses

Cleaning isn’t a one-size-fits-all service. A high-rise office tower has different requirements compared with a shopping centre, airport terminal, or hospital. The challenge lies in balancing three competing factors:

• Cost – ensuring cleaning spend is efficient and market competitive.
• Service outcomes – meeting the hygiene and presentation standards expected by customers, tenants, regulators, and the public.
• Flexibility – allowing service levels to flex with business needs, seasonal demand, and unexpected events.

For property-based businesses, the procurement of cleaning services directly impacts:

• Customer and tenant experience – a spotless foyer, sparkling food court, or well-maintained bathroom shapes first impressions.
• Regulatory compliance – especially in healthcare and food environments where hygiene requirements are non-negotiable.
• Operational risk management – effective cleaning reduces hazards such as slips, trips, and contamination.
• Cost base – often accounting for millions annually across large property portfolios.

Done well, procurement creates value far beyond cost savings. Done poorly, it exposes the business to complaints, risks, and waste.

Common Challenges in Cleaning Services Procurement

Many property-based organisations face similar issues in procuring cleaning services:

1. Outdated scopes of work
   • Scopes often remain unchanged for years, despite changes in foot traffic, tenant mix, or regulatory requirements.
2. Ambiguity in work packages
   • Vague instructions (e.g., “clean daily” without defining method or expected standard) leave room for inconsistent delivery and disputes.
3. Inflexible pricing structures
   • Lump-sum pricing doesn’t account for fluctuating demand, leading to either overpayment or inadequate coverage.
4. Limited technology adoption
   • Many contracts don’t integrate opportunities for automation, robotics, or sensor-driven cleaning.
5. Poorly defined KPIs
   • “Satisfaction-based” measures make accountability difficult.
6. Fragmented supplier management
   • Multiple small providers can create inconsistency and increase management overhead.

Opportunities for Smarter Cleaning Procurement

1. Optimising Scopes of Work

A modern cleaning scope should reflect actual business needs, not historical assumptions. That means:

• Conducting demand analysis – mapping foot traffic patterns, peak times, and seasonal variations.
• Segmenting areas by criticality – e.g., bathrooms, entrances, and food service areas require higher frequency and standards than back-of-house corridors.
• Defining methods and outcomes clearly – specifying whether an area requires vacuuming, mopping, or disinfection, and how “clean” is measured.
• Aligning with brand and regulatory standards – ensuring presentation reflects expectations of premium environments such as luxury retail or healthcare.

An optimised scope avoids both under-servicing (which creates risk) and over-servicing (which drives unnecessary cost).

2. Leveraging Technology – From Sensors to Robots

The cleaning industry is undergoing rapid technological change. Procurement strategies that embrace innovation can unlock both efficiency and quality improvements.

• Demand sensors – installed in bathrooms, bins, and high-traffic zones, these trigger cleaning tasks based on actual usage rather than fixed schedules. For example, a bathroom may only require servicing after 50 uses, not every 30 minutes regardless of need.
• Robotic cleaners – automated floor scrubbers and vacuums can handle repetitive, low-value tasks in large open areas, freeing human cleaners to focus on detail and high-touch tasks.
• Digital workflow tools – apps allow supervisors to allocate tasks in real-time, record completion, and capture photos for accountability.
• Data analytics dashboards – centralised reporting provides visibility on task completion, resourcing, and service levels across multiple sites.

When written into procurement requirements, these technologies can shift cleaning services from being purely labour-based to becoming a blend of human and digital capability.

3. Thoroughly Defined Work Packages and Pricing Schedules

Cleaning services work best when clear and measurable work packages are in place.

• Work package definition – breaking services into discrete tasks (e.g., “clean and disinfect 10 bathrooms, twice daily”) ensures transparency.
• Pricing schedules – separating fixed costs (e.g., management, base staffing) from variable costs (e.g., event cleaning, seasonal peaks) allows flexibility.
• Benchmarking unit rates – comparing costs across properties and providers ensures competitiveness.
• Scenario modelling – testing how changes in foot traffic or operating hours impact cleaning needs, to ensure contracts are scalable.

This level of granularity makes it easier to adjust services without renegotiating entire contracts, while also providing transparency for cost reviews.

4. Structuring Contracts, KPIs, and Governance

Contracts for cleaning services should create alignment between business outcomes and supplier performance.

• Performance-based KPIs – e.g., cleanliness audit scores, task completion rates, customer complaint response times.
• Outcome-linked incentives – bonus or penalty regimes linked to compliance, presentation standards, or sustainability targets.
• Clear escalation protocols – ensuring issues are resolved quickly and transparently.
• Sustainability considerations – specifying environmentally friendly products, recycling, and waste diversion targets.
• Regular review cycles – quarterly performance reviews ensure services remain aligned to evolving needs.

With structured governance in place, organisations can shift from reactive supplier management to proactive partnership.

The Role of Procurement in Driving Value

Procurement leaders have an important role in balancing operational needs, supplier innovation, and commercial outcomes. Key considerations include:

• Market engagement – running robust tenders that test incumbents and challenge the market.
• Supplier evaluation – weighting technical capability, innovation, and cultural fit alongside price.
• Commercial negotiation – securing flexibility in scope, pricing, and technology adoption.
• Ongoing contract management – embedding governance to ensure long-term success.

The result is not just cost savings, but a more reliable, flexible, and future-ready cleaning service model.

How Trace Consultants Can Help

At Trace Consultants, we understand that cleaning services are more than just an operating cost – they are a driver of brand, customer experience, and efficiency for property-based businesses.

We help organisations in Australia and New Zealand by:

• Reviewing and optimising scopes to align with actual business needs, regulatory requirements, and presentation standards.
• Leveraging technology – from demand sensors to robotic cleaning – and ensuring procurement strategies capture the benefits of innovation.
• Defining work packages and pricing structures that provide transparency, flexibility, and scalability.
• Structuring contracts and KPIs to align supplier performance with business outcomes.
• Providing independent benchmarking to test competitiveness and highlight opportunities.

Our team brings deep operational expertise, independence, and a pragmatic approach that ensures procurement delivers measurable results – not just theoretical savings.

Looking Ahead – The Future of Cleaning Procurement

As labour markets tighten and sustainability expectations grow, the cleaning industry will continue to evolve. Property-based businesses should expect:

• Greater automation – with robotic cleaning becoming mainstream in large, open environments.
• Sensor-driven services – enabling true demand-based resourcing.
• Sustainability at the forefront – low-toxicity chemicals, recycling, and reduced water usage will be mandated.
• Outcome-based contracting – moving away from inputs (hours worked) towards measurable results.

Those who invest in modern procurement approaches today will be best placed to adapt tomorrow.

Cleaning services are essential to the operation and reputation of property-based businesses. Yet they are often procured in ways that lock in inefficiency, limit innovation, and obscure value. By optimising scopes, embracing technology, defining transparent work packages, and structuring robust contracts with clear KPIs, property owners and managers can transform cleaning from a sunk cost into a strategic enabler.

With expertise in procurement strategy, contract design, and supplier management, Trace Consultants is here to help Australian and New Zealand organisations achieve smarter outcomes from their cleaning services.

The question is no longer whether cleaning procurement can deliver value – but whether your business is ready to unlock it.

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