FACILITY MANAGEMENT & PROCUREMENT

FACILITY MANAGEMENT & PROCUREMENT Considerations for procuring the right FM solution

Questions/Comments/Discussion

Current FM Market Trends Top 5 Considerations

This presentation will cover the following:

02 03

INTRODUCTION

01

TRENDS AFFECTING FM PROCUREMENT

INTERNALLY OPERATIONAL TO INTERNALLY STRATEGIC

A MOVE AWAY FROM LARGE INTERNAL RESOURCE WITH OPERATIONS TO MORE

STRATEGIC LEVEL RESOURCE

• Internal resourcing issues

• The perception that the market are better than internal resource for delivery

• Reduction of cost especially around training, software licences, dedicated FM roles etc

• Ability to manage risk via a contract rather than a person


IMPROVED DATA DRIVEN DECISION MAKING

THE ABILITY TO COLLECT CRITICAL DATA EVERY TIME AN ASSET IS TOUCHED TO

HELP INFORM FUTURE DECISION MARKING.

• Historical lack of funding

• Requirement to understand trends in contracts

• Internet of Things and Smart Buildings

• Business intelligence software e.g. PBI


TOTAL COST OF OWNERSHIP/ WHOLE OF LIFE COSTS

THE ABILITY THROUGH FM CONTRACTS TO UNDERSTAND THE OVERALL COST OF A

BUILDING FROM CRADLE TO GRAVE.

• AoG Requirement

• Ability to predict costs

• Treasury Requirement for funding levels


SaaS – Software as a Service

THE PROVISION OF SOFTWARE AS A CONTRACTUAL SERVICE TO SAVE INTERNAL COST, RESOURCE AND

INTEGRATION

• A verity of savings including costs, time, procurement, etc

• The ability to get a “better” product through aggregating cost through and FM provider

• Very little effort of ownership with not much downside

• Data that is easily accessible via cycled uploads/CSV files etc


DIGITAL REPORTING –POWER BI

THE USE OF PLATFORMS SUCH AS POWER BI IS BECOMING THE NORM AND

IN SOME CASES SPECIFIED AS A CONTRACTUAL REQUIREMENT OVER

TRADITIONAL METHODS

• Ability to get real time, dashboard style reporting

• Ability to cut the data in more or less any way imaginable.

• Extremely versatile platforms which are based on build by imagination


CLIMATE CHANGE

THE REQUIREMENT THROUGH PROCUREMENT TO ENSURE CLIMATE

CHANGE IS THOUGHT OF IN FM CONTRACTS

• NZ Govt carbon neutral by 2025

• NZ as a whole carbon neutral by 2050

• Likely upcoming requirement to measure and monitor the embodied carbon of buildings down to the asset level – with carbon credit offsets possible

Top 5 considerations

& why they are important

FM Model & Procurement

What FM model best suits the Requirements and aligns to the aspirations.

e.g. “we need to procure a model that integrates data through a common structure and platform and partner with an organisation with the ability to provide insights into future spend”

Organisational Aspirations

What strategic objectives does this procurement align with. What is the long term vision of the organisation. What organisational trends need to be considered. e.g. “As an organisation we want to get better at Asset Management to better understand future costs”

1. LET YOUR ASPIRATIONS AND REQUIREMENTS DRIVE YOUR MODEL –NOT THE OTHER WAY AROUND

Requirements

What are the requirements from an FM perspective to meet the organisational aspirations. How well do they fit with current process and procedure etc

e.g. “ To get better at Asset Management we need to improve our data to understand the condition of our assets, the means that we need a system that can hold and collect this information”

What data are you going to need and use in the future, where will it be kept and what structure will it be in.

Determine workflow including – job initiation, call centre, dispatch, update of task, close out, invoicing for each work category, RM, PPM, MW etc

What level of Strategy VS Operations are you intending for the future –and how does this fit with you internal structure

what are the key drivers of the change e.g. cost reduction, improved overall condition, higher levels of service and maintenance, H&S improvements, run to fail asset strategies.

2. GET INTO THE DETAIL OF THE REQUIREMENTS

What problems are you trying to solve? e.g.Operational “noise”Poor building conditionDeferred maintenance

Typical Considerations:

Resourcing model (internal and external)Management ServicesWorkflow of RM/PPM/MWData Hierarchy & StructureSpend Limits/DFA’sPriority Classifications required Level of Service required KPI’s CMMS/CAFM system requirements e.g. APIsH&S, Inductions & Pre Qualifications Critical Spares/Consigned MaterialsNominated Sub-C’s/ Panelled ServicesCall centre operations Critical Response requirements

Site data

• Full site list inc GIS• Addresses• Ownership info • BWOF schedule • Condition assessment

data• Construction Type

Spend Data

• Spend by category• Spend by trade• Spend by property

3. DATA, DATA, DATA

Volume Data

• Volume of jobs per month/year

• Volume by category e.g. RM

• Volume by Trade• Priority Classification

Upcoming works data

• Future PPM schedules • Upcoming Capital works

programs • Volume by Trade• Priority Classification

Within the gaps between data sets, lies risk. The more gaps you have, the greater the risk to the market

4. CREATE A PROCUREMENT THAT IS DETAILED AND SPECIFIC AROUND OUTCOMES

RFP & CONTRACT

• RFP & CONTRACT DETAIL NEEDS TO MATCH THE DETAIL OF THE REQUIRED OUTCOME (E.G. DATA REQUIREMENTS)

• PROVIDE ALL INFORMATION AVAILABLE – ITS ALL RELEVANT TO THE MARKET

• PROVIDE FOR 1 ON 1’S WITH POTENTIAL PROVIDERS

• DON’T UNDERESTIMATE THE TIME TAKEN TO RESPOND

• ASK RESPONSE QUESTIONS WHICH ARE EQUALLY DETAILED – NOT GENERIC

5. CONSIDER A DIFFERENT YEAR 1

Depending on the size of the organisational change choosing have “discovery” period can be beneficial

Differences may include:

1. The collection of condition and criticality data

2. A relaxation of KPI’s

3. Transfer of services from previous sub-contractors/providers

4. Catch up of historic “Aged” work orders

5. Ability for the provider to created key documents with more time and information e.g. Contract Management Plan/PPM Schedules

Questions/Discussion

Bill BarrassManaging Director

Alex HampshireNZ Advisory Manager

Shannon McQueenAdvisor

Paulo NaititiAdvisor

Michael BrownAdvisor

WT ADVISORY LEADERSHIP

Alex’s role for WT sees him lead the advisory business throughout New Zealand. Alex performs the role of key advisor as well as being responsible for developing the advisory team and undertaking business development. Based in Wellington, Alex has formed relationships with many government departments and local body authorities who have used WT Advisory to successfully implement new FM & AM delivery solutions.

OUR VISION IS TO TRANSFORM THE WORLD OF THE COST CONSULTANT INTO A GLOBAL BUSINESS PARTNER.

Our expertise covers the building, construction and infrastructure sectors, as well as consultancy services that assist with the acquisition, operation and divestment of assets. WT draws on the collective experience, knowledge and capability of our professional staff in locations throughout Oceania, Asia, UK & Europe, North America and India/Middle East to provide our clients with the right advice on all aspects of cost, value and risk to assist in achieving optimum commercial outcomes.

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FACILITY MANAGEMENT & PROCUREMENT

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