The three pricing models you will be offered
Every figure on this page is an indicative UK market range from the published sources listed at the foot of the page, not a quotation. Your own price depends on floor area, service mix, hours of cover and asset condition.
- Fixed price: one annual sum covering an agreed scope and frequency schedule. Easiest to budget, and the model most UK total FM contracts use.
- Schedule of rates: agreed hourly and unit rates drawn down as work is ordered. Fair for unpredictable estates, harder to budget.
- Cost plus management fee: you pay the delivery cost at open book plus a percentage or fixed fee for coordination. Most transparent, and common on larger estates.
63.85%
Share of the UK facilities management market delivered through outsourced contracts, per Mordor Intelligence as cited by Priority First.[2]
Indicative contract values
| Contract type | Indicative annual value | Notes |
|---|---|---|
| Commercial office services contract | £15,000 – £250,000[3] | Private sector, scope and site count dependent |
| School or academy trust | £18,000 – £95,000[3] | Term-time patterns change the labour model |
| Local authority framework | £40,000 – £280,000[3] | Framework call-offs, multi-site |
| NHS trust | £80,000 – £420,000[3] | Higher specification and audit burden |
| University estate | £120,000 – £900,000[3] | Mixed residential, teaching and lab space |
| Total operating expenditure basis | £10 – £25 per sq ft[1] | Utilities, janitorial, management fee, security |
What consolidation is actually worth
15% average
Reported saving from outsourcing FM, with 20–30% achieved through contract consolidation and integrated delivery.[1]
The saving comes from three places: one mobilisation instead of several, shared supervision across services, and fewer callouts because the same team owns both the cleaning specification and the plant that keeps failing. It does not come from cutting labour hours — a bid that reaches its number that way will show up as service failures in month four.
Frequently asked questions
How is a total facilities management contract priced?
Normally as a fixed annual sum per site derived from a per-square-foot rate plus a management fee, with a schedule of rates for additional works. Total operating expenditure benchmarks run £10–£25 per square foot a year.
What does a facilities management management fee cover?
Contract management, supervision, planning of the statutory and planned maintenance calendar, reporting, compliance record keeping and supply-chain management. On open-book contracts it is stated separately from delivery cost.
How much can consolidating suppliers save?
Published benchmarking puts outsourcing savings at around 15% on average, and 20–30% where several contracts are consolidated into one integrated contract.
Sources
- [1] Priority First, 2026. Facilities management costs UK guide
- [2] Priority First, 2026. Cost of outsourced FM and environmental cleaning in Great Britain
- [3] CleanTender, 2026. Commercial cleaning contracts UK guide