Escalation
Is the rate fixed for the full term, or does it escalate? If it escalates, by what mechanism — a fixed percentage, an official index, or provider discretion?
If an index is named, which one, and is it relevant to your service? A construction materials index is not a facility-services wage index.
Flexibility
What are the exit terms if service levels fail, and what do early termination costs look like at each year?
Can quantities be adjusted mid-term if your property's needs change, and at what rate?
Total cost over term
Model the full term cost including escalation and any one-off fees before comparing a longer term against a shorter one. FAHIM's term scenarios do this arithmetic with the escalation rate you enter.
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