The Importance of Vetting Facility Management Providers
Yesterday, we were contacted by a facility management company representing a well-known nationwide business. They had a leaking water heater and asked if we could take the work order. Before accepting, I researched the company and found that over 90% of their Google reviews were 1-star. Nearly every negative review mentioned vendors not receiving payment after completing work.
Despite the credibility of their client, we declined the work order due to this history of delayed or non-payment.
If your company is considering working with a facility management company, it is critical to vet them thoroughly. Check reviews, ask industry peers, and assess their reputation. High-quality plumbing, electrical, HVAC, and other skilled trades typically do not rely on facility management work. These companies often prioritize cost over quality, seeking the cheapest providers rather than the best. Skilled trade professionals who deliver excellent service generally have strong local reputations and steady work from referrals. If payment issues arise, they will quickly move on rather than risk ongoing financial disputes.
Beyond payment concerns, many facility management companies require cumbersome check-in/check-out procedures and overly complex invoicing. The additional administrative burden can deter quality service providers from engaging with them.
This is not an isolated issue. Many in the trades have encountered similar situations. In fact, we have a list of companies where we require upfront payment or refuse to waive our lien rights due to non-payment risks. However, there is one facility management company we continue to work with successfully, proving that not all are problematic.
The key takeaway: conduct due diligence before entering into a partnership with a facility management company. Protect your business, your time, and your finances by ensuring you are working with a company that values integrity and prompt payment to their vendors.
Craig Baker
Business Coordinator at Gaiser Plumbing
Owner at Brothers Restoration
8moGreat post. It’s pretty unfortunate. I did a large job at a local Bank of America in CDA this last year and it bid by a contracting company in a different state. I won’t take another job from them. Their superintendent quit on the job and said he’s tired of the company not paying their contractors. Took 4 months to get paid..only got a response after I issued a preliminary lean. Some of these larger jobs could really hurt a smaller business if they get stiffed on them.