The handshake deal is dead. And good riddance.
For decades, commercial contractors built relationships on verbal agreements, informal understandings, and the assumption that good work would naturally lead to ongoing business. Those days of "we'll take care of you if you take care of us" are over.
Today's facility managers operate in a world of documented procedures, compliance requirements, and detailed budget justifications. They need formal agreements not because they don't trust you, but because their organizations demand transparency and accountability.
The Evolution of Client Expectations
The facilities management industry has fundamentally changed. Modern facility managers aren't just maintenance coordinators—they're strategic business partners responsible for operational efficiency, cost control, and risk management.
These professionals need service agreements that address specific challenges:
Predictable budget planning for maintenance expenses
Compliance documentation for regulatory requirements
Performance metrics that demonstrate value to management
Clear accountability when systems need attention
ServiceTitan's research confirms this shift: "Maintenance agreements, for a lot of customers, are some of their most profitable lines of work. It's recurring revenue. Once you sell a maintenance agreement, there's a lot of pull-through work. And they tend to be higher-margin."
The Anatomy of Agreements That Last
Successful service agreements share common characteristics that handshake deals never provided:
Clear Scope Definition: Instead of "we'll maintain your HVAC systems," specify exactly what maintenance includes: quarterly inspections, filter changes, coil cleaning, refrigerant level checks, and performance optimization.
Response Time Guarantees: Replace "we'll get there as soon as we can" with "4-hour response for emergencies, next business day for routine service calls."
Performance Standards: Define success with measurable metrics like system uptime percentages, energy efficiency targets, and first-time fix rates.
Transparent Pricing: Eliminate surprise costs with clear pricing for covered services, preferred rates for additional work, and annual adjustment procedures.
The Three-Tier Structure That Works
The most successful contractors have moved beyond single-option agreements to tiered structures that give facility managers choice and control:
Essential Tier: Basic preventive maintenance and compliance services for budget-conscious facilities that need professional oversight.
Professional Tier: Comprehensive maintenance with priority response and some labor coverage—the sweet spot for most commercial relationships.
Partnership Tier: All-inclusive service with guaranteed response times, dedicated account management, and advanced reporting for critical facilities.
This structure transforms pricing conversations. Instead of defending a single price point, contractors become consultants helping facility managers choose the service level that fits their operational needs and risk tolerance.
Technology as the Foundation
Here's what handshake deals could never provide: systematic execution and transparent documentation.
Modern service agreements succeed because they're supported by technology platforms that ensure consistent delivery. When maintenance schedules automatically populate technician calendars, when equipment histories are instantly accessible, and when performance metrics are continuously tracked, agreements become self-executing partnerships rather than ongoing negotiations.
Consider how one contractor describes the transformation: "ServiceTitan provided visibility within maintenance visits that are due and helped the reduction of canceled jobs by seeing what recurring events are due. This prevented canceled events close to 10%."
That level of systematic execution transforms casual relationships into professional partnerships.
The Legal Protection Both Sides Need
Formal agreements protect both parties in ways handshake deals never could.
For contractors, written agreements establish clear boundaries around scope, pricing, and performance expectations. They prevent scope creep and provide legal protection when disputes arise.
For facility managers, formal agreements provide the documentation their organizations require and the performance guarantees their operations demand.
The goal isn't to create adversarial relationships—it's to establish frameworks that support successful long-term partnerships.
Implementation Without Intimidation
The transition from informal relationships to formal agreements doesn't have to be awkward. Most facility managers appreciate contractors who bring structure and professionalism to their interactions.
Start the conversation by focusing on their needs: "I want to make sure we're providing consistent value and meeting all your operational requirements. Would it be helpful to formalize our arrangement with a service agreement that guarantees response times and documents our maintenance procedures?"
This positions the agreement as a benefit to them rather than a requirement from you.
The Competitive Advantage
While your competitors continue operating on handshake deals and hoping for the best, formal service agreements position you as a strategic partner rather than an interchangeable vendor.
Facility managers consistently report that their most valued contractors are those who function as building systems advisors rather than just service providers—professionals who understand their facilities and anticipate needs before problems emerge.
That level of partnership only happens within the framework of formal agreements that define expectations, ensure consistency, and create accountability for both parties.
The handshake deal might have worked when business was simpler. Today's commercial environment demands more sophisticated partnerships.
The question isn't whether to formalize your client relationships. The question is whether you'll structure those agreements to create lasting value for both parties.
