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Facilities management (FM) is an all-encompassing discipline covering the whole life cycle of the property asset, the working environment and support services provided to building users. It takes a holistic approach to the overall contribution the property and facilities make to the core business.
"True value for money is achieved by identifying the core business needs of an organisation and providing the most cost-effective solution to its facilities needs," says Paul Maddison, senior consultant, EC Harris - Dubai.
By incorporating facilities management into any stage of the life cycle as early as the design planning, EC Harris has demonstrated that considerable cost benefit - can be achieved.
Why FM?
There are several reasons as why facilities management is necessary. Property should be an asset to a business and not simply a means to an end. Property brings with it four issues a company must contend with:
In an age when businesses focus even more closely on what they do, all four of these areas can distract a company from its core business.
However, all four directly impact on profitability, regardless of how efficiently a company conducts its core business. The skills needed to manage facilities and properties are very different from the core competencies of most companies.
The objective of facilities management is to allow a business to focus its attention on its core business by outsourcing the non-core activities. "This is achieved by reducing fixed and variable costs through streamlining non-core functions into efficient processes, which allows a business to track expenditure on asset investment, maintenance and non-core activities and gives greater control of the facilities budget," says Simon Dove, resident director, EC Harris - Dubai.
Key functions
The function of facilities management is structured around the understanding of the operation of the asset (see chart above).
Strategies: The FM needs of a client are clearly defined and the assessments and audits used to formulate a range of strategy options that are independently evaluated for best value. "Our experience in applying in-house and outsourcing solutions enables us to advise on lower-cost, higher-value strategies," says Maddison.
Operational efficiency assessments and audits: A combination of life-cycle cost information, benchmarking techniques, surveys and audits are used to assess the efficiency of the facility and the services to it. "Our aim is to drive down costs while maintaining a high standard of operational performance of the facility, hence value in the asset," says Dove.
Estate and property management: The holistic management of property includes setting contracts for planned maintenance schemes or high-performance reactive maintenance, the procurement of service delivery teams, setting up control structures, reporting and establishment of continuous improvement programmes. The strength of EC Harris' combined range of expertise is drawn on to minimise downtimes and disruption to operations.
Management of facilities: Client participation is highly regarded in formulating service level agreements and key performance indicators giving a clear focus on the needs of the business. EC Harris assists clients in the cost-effective management of their facilities for all their requirements, including initial occupation, procurement of 'hard' and 'soft' FM suppliers, and the measurement and improvement in performance, quality and cost of their facilities.
Reporting and information management: Facilities management information is often captured by companies but remains unusable, says Neil Harding of EC Harris UK. "We have established strategies for improved MIS including the use of our 'help desk' facility and the development of software to meet specific clients' needs."
Due diligence: Advising investors, owners, lenders and developers on the performance and fitness for purpose of facilities, the running costs, risk mitigation or the costs of risk, form a significant part of the work that EC Harris undertakes for its clients.
Life cycle costing: The common definition of life cycle costing is the understanding of the frequency and cost of replacing components - both of the fabric and services - of a capital asset over its life cycle. The replacement cycles of components need to be assessed, along with their associated costs.
The full life costs of a building have been identified as long-term risk, which in the finance world has to be quantified and mitigated as far as possible before any long-term deals are struck. "The whole life cycle cost information is an area that the UAE needs to improve on," says Dove. "Through benchmarking, EC Harris can advise clients on norms and trends."
EC Harris' approach
Facilities management is one of EC Harris' core disciplines. Its single aim is to add value for its clients. The EC Harris team is backed by its other core disciplines in management services. The expertise can be called upon where necessary to problem-solve or bring expert advice to bear without the need to hire additional consultants.
"Our approach is to review the interaction between facilities, services and property with the functional requirements of the business in mind, highlighting the critical aspects of the facility that impact on the function of the business," says Maddison. "We will evaluate the performance of operational procedures and benchmark against best practice, leading to realistic options for change reflecting optimum efficiency. Our solutions to client needs will be sensitive and responsive to the agreed priorities and budgets."
Dove adds: "Our approach is 'solution-based' looking for innovative ways to solve client problems from an independent standpoint. We have practical experience of the many pitfalls and pros and cons of different approaches."
At EC Harris, the company will:
