Factor

Indicates

Reliance on few suppliers and in particular key suppliers.  This will make the cost of transferring between suppliers greater as a result of a lack of competition in the market.

Higher level of importance

Unique processes or technology.  For example, the provision of specialist laboratories and the facilities management of those facilities may have a limited market compared to more general building services such as cleaning and pest control within a school.

Higher level of importance

Complex construction, or facilities management services.  This makes the cost of replacing a contractor more costly, in terms of time, impact on service and financial impact.  For simple construction, or facilities management contracts the requirements of the project specifications, such as the Output Specification and the Services Specification, may be readily understood and work more readily transferred between one contractor and another.  For a complex construction project it is likely that a replacement contractor would include a significant premium into its price for risk.  

Higher level of importance

Projects with complex interfaces will be more affected by contractor failure than those with straightforward interfaces.  For example, within a prison project there is likely to be a significant interface between the provider of the facilities services and the government, and finding a suitable replacement contractor is likely to be more problematic.

Higher level of importance

Construction, engineering and life-cycle costs include significant exposure to commodity prices affected by global demand, such as steel and copper.

Higher level of importance