Commercial Property Manager Improves Management Control

The Challenge

NAI/Merin Hunter Codman is one of South Florida’s leading commercial real estate services firms with over three decades of experience in commercial property management and construction management services. It has a decentralized approach to procurement: On-site property managers are responsible for sourcing and managing supplier contracts for janitorial, landscaping, construction, and other services. While this is approach had many advantages, it also created many challenges for management:

  • Inadequate competition resulting from property managers relying heavily on a small pool of vendors.
  • Incomplete and outdated “supplier lists”
  • Little collaboration between property managers on procurement processes or supplier quality.
  • Inconsistent application of the bidding processes
  • Lack of a Vendor “Performance Grading” system.
  • Limited standardization of the bidding processes and documents, leading to inconsistency

These challenges culminated into time-consuming bidding and contract processes where management had limited insight into the sourcing effectiveness of its managers.

The Solution

To improve operations and lower costs for its clients NAI/Merin Hunter Codman implemented eBid Systems products. The solution included online supplier registration to increase the pool of vendors and to make all vendor information, including supplier performance, centrally available to all staff. Solicitation templates were implemented to make it easier and more consistent to prepare RFx documents and receive bids for all types of construction and services while bid management tools made it easier to manage supplier communication, tabulate bids, and make awards. The Contract Management module was implemented to centralize contract information and track contract compliance and performance. Staffs receive notifications for key dates like contract expiration, milestones, and supplier insurance expirations.

The Results

As a result, management has better oversight over the procurement process for properties under management. They can ensure that an adequate level of competition is applied to every contract and that property managers are following company standards. Property managers have been able to reduce the time to manage a bid by over 60% and competition is being more universally applied. As a result, NAI MHC clients are saving money on contracted services and NAI MHC is enjoying greater client satisfaction.