Bill Heath Managing Director Mace Macro International
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1 Facilities Management in the Development Process Bill Heath Managing Director Mace Macro International
2 Agenda Understanding FM GCC Construction & FM Markets Potential Issues without FM input Whole life costing Timing for FM involvement Role for FM The impact can FM make Case studies
3 Definition BIFM - Facilities Management is the integration of processes within an organisation to maintain and develop the agreed services which support and improve the effectiveness of its primary activities
4 Perception Perhaps? Customer Service provider TFM provider Managing agent Consultant - cleaning, maintenance, security reduced cost but improved service - volume, pile it high, single focus - best at everything, good to measure own performance - co-ordination & risk adverse - rocket science & explain the obvious
5 Other viewpoints Reducing operating costs within the business Managing facility resources & services to support the operations of an organisation Strategic property plan Provide advice on efficient use of building space
6 FM today? Broad range of property and business related support responsibilities that have an impact on a business on a continuous basis The precise definition is: What you make!
7 Evolution of FM Industry, Compe77on, Efficiency 1970 s 1980 s s In - House Contracted Services Outsourcing Integrated FM Total Estate Management Cleaning Cleaning Security Catering Maintenance Grounds Cleaning Security Catering Maintenance Grounds Mail/Courier Telecomms IT Print FM Admin Security Catering Cleaning Maintenance Grounds Mail/Courier IT & Telecomms Print mgmt Administra7on Training Real Estate Project Mgmt Consultancy PFI Capital funding Design Construc7on Plant Integrated FM Billing Real Estate outsourcing
8 FM in the Middle East Today UAE most advance FM market in GCC KSA has the largest potential Strong competition margins reduced Varied FM contract models being adopted Improving standards MEFMA and RERA Better client awareness
9 GCC Construction & FM GCC FM market significant growth Construction spend in 2013 US$70bn US$84bn EXPO 2020 $9bn of investment, 25m visitors 70% from outside UAE, Public Private Partnership model Market size 2012 US$7bn US$60bn US$394bn by 2017 GCC FM market value circa US$892bn over 25 years UAE- US$679bn, KSA US$95bn, Qatar US$95bn
10 GCC FM Market over 25 years 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Facilities Management Ini7al Development Cost US $892bn (Facilities management cumulative expenditure over 25 years) 80% US $223bn (Development cost 1-3 years) 20% US $1,115bn Total life cycle cost construction projects over 25 years Capital cost vs Opera7onal spend 10
11 Where the money is spent? Poten7al Savings 50% Non- Recurring Costs 35% 12% 3% Design & Planning Preliminary & Detailed Design Construc7on & Commission Facili7es Management
12 Potential issues Building may not suit the business need Not cost effective to operate Difficult to commission & maintain Harder to control & manage Not able to respond to the needs of the occupants
13 Potential issues In-appropriate balance between Capex vs Opex spend Inflexible services i.e. unable to cope with changing business needs Lack of handover documents No Asset information or in different formats Poor accessibility for window cleaning Non-slip flooring that becomes slippery
14 Potential issues Problems with planned maintenance Poor consideration for vehicle deliveries & circulation routes In appropriate landscaping Public health services water features, disabled toilets Insufficient storage facilities Lack of segregated waste disposal e.g. catering
15 Whole life costing Systematic consideration of all relevant costs & revenues associated with the ownership of an asset Maintenance & Building Operating Costs circa 4 times initial Construction cost (over the life of the asset) Greatest opportunity for influencing the Building Operating Costs is in the design stage Why WLC modelling? To improve the understanding of the true lifetime financial impact of an investment in a built asset
16 Whole life cycle costs Opportuni7es for Whole of Life Cost Savings 100% 50% CumulaCve Whole of Life Cost (Projected) Actual Expenditures (Projected) Concept Design & Planning Preliminary Design Detail Design Produc7on and/or Construc7on
17 Timing for FM Involvement Feasibility Strategy considerations Concept & detailed design practical issues Construction Knowledge gathering (BIM) Commissioning systems awareness Handover snagging and defect issues Post occupation on-going operations
18 FM in the Development process FM Service Deliverable Flow Process Design Development Construction and Commissioning Transition/Fit Out Occupation Design Input On-site design input FM Strategy Project information collection/development Witnessing & commissioning support Project knowledge transfer CAFM/Library System Implementation FM Master Plan Life-cycle development Life-cycle refinement 1 st & 5 yr Capital plans High level operating statements Detailed operating statements Management procedure development FM Service implementation audit Estimated operational budget refinement Operational budget confirmation Post occupation review Sub-contract Service Specification Development FM Operations Manual CAFM/Library System Implementation Sub-contract mobilisation IT Support Systems Implementation Ongoing FM Management and Service Delivery Owner/Tenant warrantee pack development Retail & resident move support
19 FM role FM strategy how to run and operate Life cycle planning avoid financial surprises H&S safety conscious Serviceability practical operations Flexibility & adaptability Sustainability & Environmental policy BIM Building Information Modelling
20 BIM Building Information Modelling Briefing Design Knowledge IDM DemoliCon / Refurbishment BIM SpecificaCons IDM IDM Facility Management Cost Management ConstrucCon IDM Procurement
21 The Impact can FM make
22 Case Study 1 RBS Bank Headquarters
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24
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26 RBS Bank HQ - UK The project new headquarters in Edinburgh 300k sq ft 6 interlinked buildings Internal street, ¼ mile long shops, post office, travel bureau
27 FM role Critical design review Member of design team Develop operational standards & policies Input to construction contracts Life cycle cost in use analysis
28 Key outputs Operating statements: defining building functionality On-going design commentary Year 1 Operational budget 25 year life cycle model Asset register - consistent with PPM Developed maintenance strategy Handover procedures developed
29 Cost Benefits Capex reductions 9m AED Opex savings 2.3m p.a. AED Notional savings space efficiency 5m AED
30 Case Study 2 Jumeirah Beach Residence
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34 Jumeirah Beach Residence The project 22m sq ft development 40 tower blocks 6,500 apartments 400 retail units 4 hotels 3 beach clubs
35 FM role Operational strategy development Detailed design review High level operational statements Develop service specifications Operational budget Establish service charge model
36 Some Design considerations Visitor Parking Underground access headroom Security tailgating, lack of segregation Resident furniture Pool maintenance Storage facilities and Control room
37 FM key outputs FM Business opportunity Design issues identified security, asset info, headroom for trucks underground Pneumatic waste management system vs manpower payback 5yrs Operational statements leading to service specifications FM service procurement process defined Service charge model detail
38 Case Study 3 Saraya Aqaba, Jordan
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40
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42 Saraya Aqaba - Jordan The project High end mixed-use development in the port city of Aqaba, Jordan Multiple zones incl. hotels, residential, water park, offices, retail, F&B, convention centre, beach club Central man-made lagoon with 1.5km of beachfront Currently under construction
43 FM role Review & Evaluation Design reviews Sales & lease agreements Homeowner's Association terms FM strategy development Service delivery models Cost modelling operations, lifecycle, service charges Market analysis service providers
44 Benefits Improved operability and maintainability of design downstream services Cost and service charge structure suited to development zones and tiers HOA inputs based on best practice Recommended delivery models appropriate for market/location
45 Case Study 4 Abu Dhabi Ports Company
46
47 ADPC The project State of the art container terminal port facility Khalifa Port, Taweelah High level of automation port operations Adjacent industrial zone (KIZAD) Development of formalised standards for asset maintenance operations
48 FM role Creation of: Quality Management policy Operations Manual Development of 38 Standard Operating Procedures (SOPs) - asset maintenance operations RACI matrices KPIs Training Provision
49 Benefits Documentation in accordance QMS ISO 9001:2008 Formalisation of processes Measurable activities Identified responsibilities and delegation of authority Audit trail Formal training Supports ISO certification (Asset Management)
50 Thank You
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