Facilities & Real Estate Should-Cost Analysis
A should-cost model for facilities & real estate rebuilds the supplier's price from the bottom up — materials, labor, overhead, margin — so you enter every negotiation with a defensible target instead of a "gut feel" discount.
Facility contracts (cleaning, security, maintenance, leases) run multi-year and rarely get benchmarked mid-term. The model exposes exactly where each dollar goes, so you can pressure the right lever instead of asking for a flat percentage off.
Benchmarking labor hours, capping CPI and unbundling consumables save 8–14%. SourcingHub's should-cost engine builds this model in minutes, with the facilities & real estate-specific drivers pre-loaded.
Fields every Facilities & Real Estate should-cost analysis should cover
- Scope, square footage and service frequency
- Labor hours, rates and shift premiums
- Consumables and equipment pass-through
- SLAs, KPIs and penalty clauses
- Term length and CPI escalation
- Insurance and compliance requirements
How it works in SourcingHub
Choose the category — Facilities & Real Estate — and SourcingHub loads the should-cost analysis template pre-tuned for it.
A 5-minute guided brief captures scope, volume and constraints. AI fills the blanks with category benchmarks.
Download the should-cost analysis as Word or Excel, or send it directly to suppliers from SourcingHub.
Frequently asked
The essentials for facilities & real estate: current price, volume, and the drivers listed above (Scope, square footage and service frequency, Labor hours, rates and shift premiums, Consumables and equipment pass-through). If you don't have every input, the model uses category benchmarks and flags each assumption.
No — the same logic (cost drivers × utilization × margin) works for services and indirect spend. In facilities & real estate, the drivers just shift from raw materials to labor rates, capacity, and pass-through costs.
Within ±5–10% of the supplier's own cost stack is enough to negotiate. The value comes from the conversation the model unlocks, not decimal-precise cost accounting.
Yes. Exports come in a clean executive format (PDF or Excel), and you can share redacted drivers or the full stack depending on your negotiation strategy.
Run your Facilities & Real Estate should-cost analysis now
Free to start. No credit card. Every account gets should-cost analysis generation, side-by-side comparisons and executive-ready exports.
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