You may well be paying too much for these!
The cost of your lifecycle contract – what you pay for when fixtures, furnishing and equipment (FF&E) are replaced – is set at the time the academy is built. Because the contractor makes an average of just under 11% on each item replaced, there is an incentive for the unit costs of each piece of FF&E to be high – the higher the cost, the more profit is generated – at your expense!
We will look at the replacement cost assumptions of FF&E in your contract, and identify ways in which these could be reduced.
Andrew Chubb Consulting 