Europe’s Facility Maintenance Contracts: Key Developments

Why Are Facility Managers in Europe Rethinking Maintenance Contracts Beyond 2025?

Across Europe, the function of facility management is undergoing a radical shift. At the forefront of this revolution is the way in which maintenance contracts are procured, managed, and re-negotiated. From public hospitals in Scandinavia to commercial parks in Spain, the key concern being posed by facility managers is about the value it bring across the asset lifecycle.

Post-2025, with the ESG requirements becoming more stringent, utility bills rising, and performance-based models gaining more traction, facility managers are rethinking age-old maintenance contracts that have been unchallenged for years. Instead of fixed calendar-schedule-based yearly contracts, the market boasts a growing demand for tech-enabled, dynamic contracts that prioritise outcomes over checklists.

Performance-Based Contracts Are the New Norm

Previously, maintenance contracts in Europe were often time-based, including monthly visits, quarterly maintenance, and yearly equipment tests. While this worked out before, it did not allow much room for the tracking of asset performance accountability.

Now, performance-based contracts (PBCs) are becoming more prevalent, particularly in healthcare, schools, retail, and government buildings. These contracts tie vendor compensation to measurable outcomes such as energy cost savings, equipment uptime, reduced breakdown occurrence, and even user satisfaction.

German logistics centres are converting HVAC contract from conventional to PBC. Instead of being charged for regular visits, they are compensated for tighter temperature control and energy efficiency, connecting facility goals directly to vendor incentives.

Data Visibility and Remote Monitoring Are Redefining Expectations

Growth of smart buildings and IoT-enabled facilities has transformed performance monitoring. Modern facility managers now have access to real-time performance information, equipment temperature, energy load, vibration, fault codes, and can use these insights to quantify the effectiveness of maintenance.

This shift enables contracts to be built on verifiable streams of data instead of intangible SLAs or inspection records. French and Dutch facilities are incorporating remote diagnostics into contracts, with service providers reacting not on a predetermined schedule but according to actual trends in equipment performance. It is saving costs on one hand and minimising unnecessary disruptions on the other.

This increasing data transparency is putting pressure on services vendors to be more proactive with contract frameworks to reflect actual service quality.

Bundled Services and Integrated Contracts Are on the Rise

Facilities managers are also turning away from juggling several standalone single-service contracts, such as one for lifts, one for lighting, and one for plumbing. They are considering integrated maintenance contracts that combine services in one contract.

These Integrated Facilities Management (IFM) solutions are gaining popularity among advanced facilities such as airports, hospitals, and business parks. They promote greater coordination, reduce admin burden, and usually deliver higher cost efficiencies.

Airports are rolling out entire facilities upkeep into one IFM provider, with service KPIs including uptime of security equipment, air conditioning, and escalators. This has resulted in more predictable budgeting, faster response to service, and simpler vendor accountability.

Integrating Sustainability Clauses into Modern Contracts

Following 2025, green clauses in maintenance contracts have become industry standard. Prompted by the urgency to meet energy efficiency and emission targets, facility managers are including sustainability outcomes into service contracts.

These practices have compelled suppliers to use green-labelled cleaning agents, reveal methods of waste disposal, or commit to using components of lower embodied carbon. Public schools in Austria and Belgium now incorporate maintenance contracts with energy audits and continuous improvement plans.

Besides that, contracts are being increasingly linked to building standards like BREEAM or LEED, where upkeep procedures continue to benefit a facility's green rating. This has introduced an added layer of complexity to MRO contracts.

Cost Predictability vs Flexibility: A Strategic Trade-Off

In an age of ongoing inflation and energy instability, facility managers are juggling the requirements for dependable service fees against flexibility to make changes. Fixed-price contracts may be stable, but these can become costly when the performance of assets varies.

Some facilities are increasingly opting for hybrid contract structures, combining a base fee with variable components tied to usage of assets or performance levels. Commercial buildings in London that use a hybrid approach with fixed base HVAC maintenance but per-performance tier callouts or efficiency upgrades. This allows facility teams to budget and promote innovation and flexibility in service delivery.

For deeper insight into contracting trends and supplier shifts, access our Europe Maintenance, Repair and Operations Market

Contracts Are Becoming Strategic Levers, Not Just Legal Formalities

As European facilities continue to become more advanced and sustainability expectations grow, maintenance contracts can no longer be just passive administrative tools. Instead, they are becoming strategic tools for risk avoidance, performance improvement, and cost optimisation.

Moreover, as facility managers reengineering their contracts, with performance KPIs, environmental goals, and smart monitoring, they are expected to experience better vendor relationships, greater uptime, and better alignment with corporate sustainability goals.