The Request for Price (‘RFP’) process is a monumental undertaking for facility management. Snow and ice management is typically the largest budget line item under exterior maintenance services. There is also an inherent complexity to managing service levels and budgeting a constant price point at acceptable levels for your facilities’ snow clearing. Facility maintenance managers are finding themselves under constant pressure to reduce costs of services. These issues, coupled with the fact that the snow management service industry is riddled with numerous Service Provider (‘SP’) pricing variables, are all problematic for facility management. 

Snow service pricing is dependent upon many factors including the reliance on individual service providers, local market rates, anti-icing and de-icing material availability, the service providers’ understanding of your facilities’ needs, and your expectations for quality of service. Yet while the unpredictability of Mother Nature is one of the greatest factors impacting snow service price models, snowfall tracking and forecasting is barely understood in the industry. Due to the risks and liabilities associated with snow and ice, snowfall probabilities should be one of the most important discussions between your Facility Management team and the SP’s. Snow Service Providers who understand weather probabilities and the potential revenue associated with contracts will be able to make intelligent decisions with regard to equipment and materials. This allows them to execute a successful snow and ice management season that meets or exceeds the client’s expectations. In addition, Facility Managers who are knowledgeable in snowfall probabilities stand a higher chance of selecting the right snow service pricing model and SP for their facilities’ snow clearing.

Reducing some of the variation associated with snow clearing is the key in creating Best-In-Class Snow and Ice Management throughout your portfolio. Planning correctly and procuring properly will maximize your effectiveness and align your strategies and objectives. 

This paper will discuss the types of snow service pricing models, their benefits and disadvantages, development of an effective procurement strategy, and best practices in the procurement process of a snow service provider. Since facility locations and strategies can be unique, the information presented may need to be adapted. Additional items may need to be considered for your facility’s specific snow and ice management or some items discussed may not apply.

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