Client: Donaldson International Managing Agent
Type of contract: Full Utilities Management
Billing Errors Were Going Unnoticed
The International Managing Agent, Donaldson, realised they were losing money to the utility companies, both in terms of tariffs and overpayment of bills. About 800 invoices for gas, electric and water were received per month, across their portfolio of often tenanted properties. Utility contracts had been agreed piecemeal, as new properties were added to their portfolio. Management of these contracts, therefore, was on an ad hoc basis.
Unfortunately, the facilities manager did not have the time to check, query and process every detail on every bill. Inevitably, errors from the utilities companies were being missed, and delays in payments prompted additional reminder bills, exacerbating the problem.
External Resource was the Solution
Our energy expert provided detailed analysis of utility use and our administrators provided meticulous processing of paperwork.
Gas, water and electric contracts were renegotiated and are now managed on an ongoing basis, to ensure all properties are on the lowest possible tariffs.
Invoices are checked, coded for internal processing and sent to Donaldson’s accounts department for payment on the day of receipt. Where meter readings were causing billing inaccuracies, dedicated meter readers were sent regularly to each site.
All calculation of utility usage for tenanted property is undertaken on Donaldson’s behalf and re-charging of directly recoverable payments is carried out at the earliest, practical opportunity.
Reports are created to show usage patterns, issues arising and forecasts, for budgetary purposes. This allows management to review problems by exception, rather than having the burden of detailed analysis and checking.
Managerial Benefits
Ongoing cost savings are achieved through monitored utility contracts: tariff management, correct meter reading, bill checking, querying and timely payment.
Directly recoverable utility payments were calculated and recharged, for earlier recuperation from tenants.
Direct employment of additional staff and increased overheads was averted, with management able to concentrate on other pressing duties.
From Negative to Positive
The Facilities Manager used to worry about losing money on utilities; now they see how much they have saved each month.