Measuring Vendor Performance in Facilities: Measuring Results With Your Project Documents

January 5, 2018 Greg Fasullo

Depending on the size and geographic spread of your facilities, measuring vendor performance can range from vetting, communicating with, scheduling, paying, and following up with vendors in dozens of individual facilities management areas, like plumbing, data services and more. However, you can effectively reduce the burden of measuring vendor performance with these tips.

Use Analytics to Derive Value From Vendor Performance in Facilities Management

Analytics have advanced light years beyond the age-old standards of analytics that merely described current operations and processes. Today’s analytics include descriptive, predictive, and prescriptive analytics, helping facility managers to move seamlessly from understanding a problem to knowing exactly what to do to correct it. The same types of analytics can be applied to vendor performance and facilities management, allowing you to determine which vendors uphold their contractual obligations to your facility, provide the best service, and have fewer problems after completing the repair.

Include Tangible and Intangible Metrics

When tracking vendor performance in facilities management systems, it is essential to include tangible and intangible metrics. Tangible metrics include those that have a quantifiable value, such as the number of supplies or components that were dead on arrival, the cost to complete a work order, average time to complete work orders, and time until a component or system failure after a repair has been completed by a specific vendor. Intangible metrics are those that are difficult to quantify, such as customer service provided by the vendor or ease in contacting a vendor scheduling repairs. In a sense, these factors are about the quality of vendors.

Measure Quality of Vendors, Including Expertise of Staff, Staff Turnover Rates, Defects and Performance, Conformance to Specs and More

Measuring the quality of vendors is a complex task. To measure quality, an analysis of the vendor-business relationship should consider the expertise of vendor technicians, including field service workers, staff turnover rates, defects in equipment, performance, timeliness when completing repairs, conformance to specifications for a given asset or system, and your company’s overall satisfaction with the specific vendor and technician.

Use the Internet of Things in Equipment to Track Vendor Activities

As explained by Stephen Guth of, the internet of things is an extraordinarily helpful tool in measuring all aspects of vendor performance in facilities management. Using analytics and systems that can report on maintenance and work performed, such as smart HVAC systems, facility managers can efficiently track vendor performance in greater detail and develop a comprehensive vendor performance scorecard.

Rank Vendors by Performance and Use Results in Your Asset Management Playbook

A vendor performance scorecard is an integral tool in developing your asset management playbook, which helps facility managers determine the best course of action when faced with a given maintenance need.

For example, if an HVAC unit fails, the asset management playbook compares the age of equipment, average preventative maintenance costs, reactive maintenance costs, and detailed information about the specific unit to today’s available systems. Using this playbook, facilities managers can develop a course of action, including selecting which vendor will complete the given repair or replacement.

Outsource Complex Vendor Performance to Simplify the Process

Vendor performance is easier to understand when you know which vendors have a proven record of accomplishment, but vendor management is getting even more complicated. Thousands of vendors exist, and even more, may be working across multi-site portfolios. 


Editor's Note: Today's guest blog is from national facilities management company, QSI Facilities.

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