Facilities Management to be managed across multiple sites and time

zones.
Chapter 5: Workplace Productivity
The following are only a few of the numerous problems
that are considered to have an impact on production:
Introduction
Understanding Workplace Productivity in Facilities • Prevention of accidents and diseases, resulting in
Management reduced costs.
• Reduction of sick leave and lower personnel
Important factors turnover.
• Space Utilization • Improvement of communication – consent on the
• Comfort & Well-being topic of working conditions.
• Safety & Security • Commitment of personnel and improvement of
• Technology Integration industrial relations.
• Sustainability Practices • Enhancement of quality in the internal
• Employee Engagement environment as well as in the job itself.
• Improvement of productivity and efficiency.
Measuring Productivity • Better position in the job market – more attractive
There are 4 factors on productivity relating to: work.
• The Nature of Work
• The Organization
• Communication Six aspects of the work environment have been identified
• The Working Environment from the perspective of users:
• Indoor air quality
The Nature of Work • Noise control
• The nature of work is an essential aspect of • Thermal comfort
employment for organizations and professionals • Privacy
because it can affect productivity and job • Lighting comfort
satisfaction. • Spatial comfort
The following are options open to some personnel, often The Internal Environment
in combination:
• The internal environment of an organization
Homeworking or telecommuting: use of ICT and, in includes things like the company's culture,
particular, virtual private networks.
organizational structure, policies, resources,
Flexible working hours: can support a better work-life employees, and leadership.
balance, especially for those with atypical family • Air Quality
arrangements. • Lighting
• Noise and Vibration
Out-of-office working: use of satellite centers and the • Heating
concept of the virtual office.

The Organization Sick Building Syndrome (SBS)

• The virtual organization is now a reality, but
• Sick Building Syndrome is a term that is used to
hardly not commonplace. Many changes have
describe a circumstance or situation where the
been taking place that make the forward-looking
residents of a facility face or experience acute
organization of the present highly differentiated
health or comfort-related issues that seem to be
from the traditional organization.
directly caused by the state or condition of the
facility or building that they are occupying.
Communication
• ICT can enable greater flexibility in work patterns
and breaking down physical barriers between The Signs & Symptoms of Sick Building Syndrome
different office functions. It can also allow work
• Headaches
 • Dizziness and nausea
• Eye, nose or throat irritation
• Difficulty concentrating
• Dry cough
• Dry or itchy skin
• Fatigue
• Sensitivity to odors
Main Causes of Sick Building Syndrome
• Poor building design or ventilation.
• Chemical contaminants from indoor sources.
• Biological contaminants.
• Chemical contaminants from outdoor sources.
How Can Sick Building Syndrome Be Prevented?
• Follow proper cleaning procedures with low
VOC cleaning agents.
• Install and maintain air filters.
• Perform regular HVAC maintenance.
• Choose low-VOC products.
• Clean any wet or damp areas and control building
humidity levels.
• Research
Design Issues
• The design of the workspace must comply with
both needs such as safety and self- esteem, as well
as needs such as amenities, view, decoration,
provision of space, and standards of furniture to
ensure that they are safe, it can also improve their
productivity. Open-plan layouts may not offer
much flexibility, but planning measures such as a
universal footprint or fixed service spine can
minimize disruption to productivity. A dedicated
workspace may not be optimal for all activities,
and a more efficient workplace can lead to
increased satisfaction and productivity.
• Inadequate Space Planning
• Accessibility and Compliance
• Energy Efficiency
• Maintenance Accessibility
• Safety and Security
• Flexibility and adaptability
• Sustainability
• For facilities management to guarantee effective,
safe, and economical operation, design
considerations are essential. Identification and
resolution of these issues throughout the design
and construction stages need close coordination
between architects, designers, and facility
managers.
Unconventional Working Arrangements
• Unconventional working arrangements refer to
non-traditional or alternative ways of organizing
work that deviate from the standard 9-to-5 office
job. These arrangements can include remote
work, flexible hours, freelance or gig work, job
sharing, compressed workweeks, and more.
• The productivity increases offered by
telecommuting and other non-traditional work
arrangements can only be maximized if the right
sort of space is provided in the office for the times
when personnel are working there. If the office
cannot offer appropriate support, then
productivity gains might be negated.
• A system of loosely coupled settings linked
physically by the movement of personnel and the
electronic exchange of information could
maximize productivity in the organiza- tion. The
need for an integrated workplace strategy to
accommodate and support new modes of work is
essential.
Designs that actively support teamwork, collaboration
and chance interaction might be highly beneficial to
productivity within an organization.
• Breaking down barriers to encourage functional
diversity and mixing people who would not
normally mix, increasing stimulating and
beneficial exposure to differences and diversity.
• Access to the physical resources necessary for
effective work, with environ- mental equity.
• Varying the optimal setting for accomplishing
work according to variations in an individual’s
work over time.
The concept of the total workplace takes a dual approach
to effecting productivity: it accommodates the individual
to the greatest extent in some respects, while encouraging
mobility and interaction through not making every facility
as accessible as possible.
Conclusion
Workplace productivity is the value each team brings to
the success of the overall business. It measures the output
of individuals or teams to better understand how an
organization can optimize
 Chapter 6: Health, Safety, and Security
Introduction
• The workplace is, to a large extent, defined by a
large body of legislation designed primarily to
protect the health and safety of personnel. Today,
concern extends to security and, increasingly, the
environment.
Health, Safety, and Security Policy
The organization must have a general policy on health and
safety and this should extend to matters of security. The
requirements of this policy are to:
● Provide and maintain, as far as is practicable, a
safe, healthy and secure place.
● Take responsibility for compliance with
relevant legislation.
Zero Accidents
Zero accidents are a safety philosophy that states that no
accidents are acceptable. It requires a commitment to
safety from everyone in the organization, from top
management to frontline employees.
•Reducing Accidents
•Designing out Accidents
Here are some benefits of zero accidents:
• Reduced accidents and injuries
• Improved employee morale and productivity
• Reduced costs associated with accidents
• Enhanced reputation
Occupational Health and Safety
Occupational health and safety are a broad term that
encompasses the physical, mental, and social well-being
of workers in the workplace.
• Musculoskeletal disorders (MSDs)
• Hand-arm vibration syndrome (HAVS)
• Asbestos
Recommendations for Employers
• Conducting risk assessments to identify hazards
in the workplace
• Implementing controls to reduce or eliminate
hazards
• Providing training and education to workers on
occupational health and safety
• Monitoring workers for exposure to hazards
Recommendations for Workers:
• Be aware of the hazards in their workplace
• Take precautions to protect themselves from
hazards
• Report any hazards to their employer
• Wear PPE when required
Compliance
• Compliance is when the organization needs to
assess the risks to the health and safety of
personnel and anyone else affected by the
activities of the organization (e.g. personnel,
external customers, other visitors, and the general
public) and will need to devise means for
implementing preventive and protective
measures, including arrangements for disabled
people and others with equalities-related needs.
Hazard and Assessment
• The organization should assess risks and other
hazards at all stages in a facility’s life cycle.
Identified risks should be monitored and,
wherever possible, their potential impacts should
be mitigated. The organization should implement
a formal system of risk and opportunity
management, including establishing and
maintaining a risk and opportunity register.
Periodic reassessment of risks should be
undertaken to update the register and associated
risk treatment.
THE RISK AND OPPORTUNITY MANAGE MENT
SYSTEMSHOULD COVER THE FOLLOWING, AS
A MINIMUM:
• Identification of health and safety hazards arising
from maintenance and other work determined by
workplace inspections, behavioral observations,
safety tours, and formal and informal discussions
with personnel.
• Identification of people who might be at risk from
maintenance and other work; for example,
maintenance operatives, occupants, visitors,
passers-by and trespassers.
• Evaluation of the risks to which individuals
and/or the organization might be exposed.
• Devising ways of eliminating, reducing and
controlling risks; for example, guarding and
fencing, method statements, safe system of work,
permit-to-work, training and supervision.
 • Monitoring and recording the effectiveness of fundamental right for anyone. Health, safety and
risk control measures and systems; for example, security cover many common-sense requirements
inspections, observations, safety tours and that are generally defined within the law and so
checklists. ought to be familiar to competent practitioners.
• Taking coordinated corrective action.
• Providing feedback to personnel and other Chapter 7: The Outsourcing Decision
stakeholders.
Establishing the baseline
• Training, together with health and safety checks,
• Setting up a baseline for service delivery is
of operatives.
essential for decision-making and evaluating how
• Auditing and reviewing the system and,
well the selected course of action works.
therefore, health and safety performance.
Businesses should take a realistic viewpoint and
distinguish between services that are essential
Security and Well-being
and those that can be deferred until resources or
Protection of users - Protecting individuals in the
circumstances permit.
workplace has become a common theme within health
and safety regimes.
The following matters should be considered when
defining the baseline for service delivery as part of a
Why do organizations need to Protect users from
decision on whether or not to outsource:
unknown Sources?
Because no facility is immune to potential threats. • relationship to business objectives;
• drivers and constraints;
Stress • portfolio and sustainable space provision;
• Work-related stress is now a common reason for • risks and opportunities;
absenteeism, it limits organizational • stakeholder engagement and communication;
effectiveness; at worst, it can lead to conflict, • end-user requirements;
sickness, and even litigation. • scope of services and supplies;
• Matters are likely to get worse as reorganizations, • attributes of service provision;
relocations of personnel, redesign of jobs, and • options for service delivery;
reallocations of roles and responsibilities make
• current arrangement(s) for service delivery; and
changes to the normal way of doing business.
• markets for services.

Factors within the workplace causing Stress including

Relationship to Business Objectives
the following:
• Facility management plays a crucial role in
1. Unsatisfactory Working conditions
supporting an organization's business objectives
2. Mental and physical overload from excessive
and achieving its overall goals. A clear
work-related demands
understanding of the organization's business
3. Role ambiguity and inconsistency in management
objectives and operations, including plans for
style
expansion, downsizing, or closure, is essential for
4. Responsibility for other personnel
effective facility management.
5. Unsatisfactory working and personal
relationships
Drivers and Constraints
6. Underpromotion or overpromotion
• Understanding the factors driving or constraining
7. Poor organizational structure/culture
the organization's current and future business is
crucial for making informed outsourcing
decisions. These factors, both external and
Conclusion
internal, can significantly impact the
• Providing a safe, healthy and secure place of
organization's operations and decision-making
work for occupants and other users is more than a
processes. Internal drivers and constraints include
matter of compliance with legislation; it is a
 personnel, work, and information, while external • Prioritization of needs
factors encompass resource availability,
competition, finance, and credit.
Risk and Opportunities Reconciliation
• Efficient service delivery requires proactive risk • Understanding diverse needs
and opportunity management. Organizations • Striking a balance
should identify, assess, and address potential risks • Utilizing reliable feedback
and opportunities that could impact service
delivery. Significant risks should be prioritized Scope of Services
and quantified to develop appropriate • Defining the Extent of Services and Supplies
contingency plans. • Ensuring Clarity and Delimitation
• Unbalanced risk allocation between service • Avoiding Scope Creep
providers and organizations can increase costs • Developing an All- Encompassing Statement of
unnecessarily. Questionnaires and checklists can Needs
aid in identifying potential risks, followed by a
• Aligning Scope Definition with Facility
preliminary assessment to determine Management Strategy
significance. Quantitative evaluation of
• Creating Coherent and Self-Contained Service
significant risks should guide contingency
Descriptions
planning in budgets and schedules.
Sourcing Policy
Stakeholders as Qualified End-Users
• Considerations for Sourcing Decisions
• Engage
• Ensuring Seamless Service Delivery
• Recognize
• Organizational Policies and Review Cycles
• Prioritize
• Decision Finality and Resource Optimization
• Control
Offshoring
Stakeholders in Facility Management
• The practice of moving your company’s core
• End User
competence in a foreign region enough for it
• Service Providers support its own to take advantage of lower costs.
• Senior Management
• Financial Stakeholders Statutory and Other Regulatory Considerations
• Regulatory Authorities • When delegating the tasks to service providers,
business or organizations should understand that
Service Level Agreements they still bear legal and company obligations to
• Avoiding overspecification meet.
• Applying value management and value
engineering Attributes of Service Provision
• Actively involving stakeholders • Identifying the crucial attributes of service
• Maintaining effective communication provision within each specified service area is
essential for establishing a foundation to assess
Stakeholder Engagement the appropriateness of various service delivery
• Early and active involvement options. These attributes serve as the criteria for
• Ongoing communication evaluating the different alternatives.
• Addressing end-user concerns
The attributes of service provision that are deemed
Feedback From End-user most important for the organization and serve as the
• Questionnaires criteria for evaluation should begin with the following:
• Tailored questions • End-user service
 • Uniqueness of service
• Priority of service, flexibility, and speed of
response
• Direct cost
• Management and Indirect cost; and
• Control
End-user Service
• End-user service generally refers to the various
aspects of services and support provided to the
end users of a product or service. The
organization has to clearly outline what services
it requires and set the standards for how those
services should be provided.
Uniqueness of Service
• The uniqueness of service arises from the specific
characteristics and demands associated with
managing diverse types of service. It refers to the
ability to offer tailored, flexible, and responsive
solutions that cater to each facility's and
consumer's distinct needs
Priority, Flexibility and Responsiveness
Priority - Priority refers to the ability to identify
and address the most critical and time-sensitive
issues promptly.
Flexibility - Flexibility involves the capacity to
adapt to changing circumstances and diverse
requirements.
Responsiveness - Responsiveness is the ability to
react promptly and effectively to requests, issues,
or changes in the facility's environment.
Direct Cost
• In outsourcing, the contract sum signifies the
direct cost, offering transparency in financial
calculations.
• In insourcing, direct cost includes salaries and
benefits, but uncertainty may arise due to
unknown productivity and performance.
Management Implications and Indirect Cost
• Total cost assessment involves not only direct
costs but also internal management of service
contracts, training, and administrative expenses.
• Organizations must recognize the importance of
indirect costs and their impact on the overall cost-
effectiveness of service delivery options
Control
• Concerns about loss of control can be addressed
through various contractual arrangements.
• The level of control desired or required is closely
correlated with the nature of service delivery and
the contractual relationship established.
• Information and Communication Technology
(ICT) play a significant role in providing reliable
management information, enhancing control, and
resolving issues.
Options for Service Delivery
• Options for service delivery refers to the various
methods or channels through which an
organization provides its services to its clients or
customers. The choice of delivery options
depends on the specific needs and capabilities of
the organization, as well as the demands and
preferences of its target market.
The Managing Agent
• The "Managing Agent" is an option served as a
strategic approach to facilities management by
engaging an external entity or individual to
oversee services while retaining organizational
control.
• This approach allows competitive advantage for
both the managing agent and service providers.
Dissatisfaction with one provider doesn't affect
other contracts.
The Managing Contractor
• In Managing Contractor, the organization
engages a single contractor responsible for
service delivery. While the contractor handles
most services internally, they may subcontract
some work to secondary service providers.
• This setup demands careful planning for contract
changes, as alterations after formalization are
more complex compared to the managing agent
arrangement unless anticipated and stipulated
within the contract in advance.
The Managed Budget
• The managed budget addresses concerns faced by
organizations with established management
 systems who seek to minimize transactional
volumes.
• It does not only simplify the payment process but
also encourages a more cooperative and efficient
partnership between the organization and the
managing contractor while reducing
administrative burdens.
Total Facility Management
• Total facility management (TFM) is an integrated
approach to managing all aspects of a facility's
lifecycle, from planning and design to operation
and maintenance.
Benefits of TFM
• Reduced costs
• Improved efficiency
• Enhance occupant satisfaction
Challenges of TFM
• Finding the right TFM provider
• Managing the relationship with the TFM provider
• Measuring the success of TFM
Single versus Multiple Services
• When organizations decide to outsource facility
management services, they face a crucial
decision: to engage single-service providers or
opt for multiple service providers.
Single-Service Providers
• Partnering with single-service providers offers
organizations a high degree of granular control
over individual services. This approach allows
organizations to tailor each service to their exact
requirements, ensuring that they receive the
precise level of support and expertise they need.
Multiple-Service Providers
• Multiple-service providers consolidate multiple
services under a single contract, simplifying
procurement processes and reducing
administrative burdens. This approach can lead to
substantial economies of scale, translating into
cost savings for the organization.
Hybrid Approach
• In many instances, organizations find that a
hybrid approach, combining both single and
multiple providers, effectively addresses their
facility management needs. This strategy allows
organizations to capitalize on the strengths of
each approach, utilizing single providers for
customized services and multiple providers for
bundled services where economies of scale can be
achieved
Evaluating Options: The Option Evaluation Matrix
• When organizations are faced with the decision of
whether to outsource a service or keep it in-house,
they must carefully evaluate all of their options.
One way to do this is to use an option evaluation
matrix.
Markets for Facility-Related Services
• Facility-related service markets are dynamic and
constantly changing. The nature of these markets
is specific to a location or region, and the demand
for services can vary significantly depending on
the needs of the organization.
Factors Influencing Facility-Related Service Markets
• Economic cycles
• Organizational needs
• Geographical considerations
Market Testing: Assessing Supply and Demand
• Engaging with service providers
• Investigating prospective providers
• Gathering cost estimates
Market Testing: Key Considerations
• Avoid premature prequalification
• Limit requests for detailed costs
• Focus on gaining general insights
Next Steps....
• Prequalification of service providers
• Request for proposal (RFP)
• Focus on gaining general insights
• Evaluation of proposals
• Contract negotiation

Chapter 8: Procurement
Introduction
• Outsourcing services from external providers is a
crucial aspect of an organization's facility
management, requiring consistency and
thoroughness to ensure end-user satisfaction and
best value.
Centralized vs Decentralized Procurement
Centralized Procurement: Centralized procurement
involves maintaining control over specific service
contracts, driven by factors like service uniqueness,
security, and the pursuit of economies of scale. This
method ensures consistency but may lack the flexibility
required in certain situations, such as those demanding
quick responses or aligning with corporate social
responsibility goals.
Decentralized Procurement: On the other hand,
decentralized procurement allows for local awarding and
management of service contracts, providing flexibility,
speedy responses, and a focus on local needs or corporate
social responsibility. While decentralized procurement
offers agility, it might lead to inconsistencies without a
clear demarcation between centralized and decentralized
control
Control Over Service Contracts
Centralized: High level of control for unique
services, security, or achieving economies of
scale.
Decentralized: Localized control for flexibility,
quick responses, and potential corporate social
responsibility
Policy Approach
Centralized: Policies, like prequalification for
preferred tenderers, uniformly applied across the
organization
Decentralized: Policies may be adapted to local
needs, reflecting a decentralized approach.
Financial Authorities
Centralized: Clearly defined financial
authorities outlined in a manual, ensuring
consistency and oversight.
Decentralized: Financial authorities may vary at
the local level, allowing for more autonomy.
Stakeholder Engagement
Centralized: Resources and time are directed
centrally to address stakeholder interests
applicable at the organization-wide level.
Decentralized: Stakeholder engagement is
adapted to local contexts, avoiding unnecessary
resource allocation where stakeholders have little
influence or interest.
Procurement Policy and Procedures
• Compliance – applicable legislation on HSSE,
access, inclusion and equalities
• Manual of authorities – authorized personnel,
budgetary limits, contract awards, payments and
actions in the event of significant changes in the
scope of contracts or their value.
• Stakeholders – the nature of engagement at each
stage in the procurement process.
• Corporate social responsibility – principles and
initiatives.
• Bribery and anti-competitiveness – mean for
preventing malpractice.
• Conflicts of interest – avoidance of situations
where contracts are managed by personnel who
were once part of the in-house team.
• Dispute resolution – procedure and notices.
• Risks and opportunities – identification,
assessment and treatment.
• Contract management – service provider and
supplier relationships.
• ICT – use of systems.
• Performance measurement – the basis for
payment, incentives and penalties.
• Intellectual property – background and
foreground rights.
• Public procurement regulations – legislation,
where applicable.
• Freedom of information – legislation and access
arrangements, where applicable
Roles, Responsibilities and Accountabilities
• It is important to identify all roles connected with
the function of procuring services and to
determine their nature and the relationship
between them. Roles will need to be defined so
that responsibilities and accountabilities are clear.
A responsibility assignment matrix (RASCI
chart) should be considered for this purpose. If
necessary, the organization should designate
additional personnel where the tasks to be
performed fall outside existing roles.

Prequalification of Service Providers
• The prequalification of service providers is a
strategic process used by organizations to
evaluate and select the most suitable service
providers for specific projects or tasks. It involves
assessing and collecting essential information and
data from potential service providers to determine
their qualifications, capabilities, and suitability to
undertake the required work.
Local vs. National Service Providers
Understanding Market Dynamics
• Organization's need to investigate service
markets.
• Determine market capacity locally,
regionally, or nationally.
Factors Influencing Service Provider Selection
• Timely information is crucial due to
rapidly changing workloads.
• Considerations: specialization, number,
and size of service providers.
• Caution advised when assessing capacity
based on verbal assurances
Ongoing Awareness of Market Conditions
• Knowledge is ongoing due to the
dynamic nature of markets.
• Awareness of supply and demand
balance aids in anticipating responses
from service providers.
Choosing Between Local and National Providers
• Explore regional or national options
when local capacity is insufficient.
• Consider the competitiveness of
individual firms.
• Caution against potential downsides of
encouraging national providers in local
markets.
Request for Information (RFI)
• Two-Part RFI Process
o Preliminary Assessment
o Weed out unsuitable providers
o Confirm suitability of potential service providers
o Detailed Evaluation
o Objectively assess the service provider's
suitability
• Purpose of Preliminary Assessment
o Quickly establish suitability
o Focus on providers best qualified for service
delivery
• Number of Invited Providers
o Aim for 6 to 9 service providers
• Consideration in Services Procurement
o Not a commodity purchase
o Performance capability and long-term quality of
service are key considerations
• Post-RFI Assessment
o Evaluate returned RFIs
o Confirm the information required is obtained
• Checklists for Information Verification
o Use checklists based on organizational
requirements
o Ensure all necessary data is gathered
• Considerations in Services Procurement:
o Emphasize quality of service delivery over the
long term
• Moving Ahead
o Proceed with providers meeting criteria
o Ensure readiness for the next procurement stage
Information that should be requested includes the:
• Legal form and ownership of the service
provider.
• Areas of specialization, competences and
technical skills.
• Intended approach to service delivery (i.e.
method statement).
• Extent of sub-letting (i.e. subcontracting).
• Track record in successfully performing similar
work.
• Financial capacity and dependency.
• HSSE policy and procedures.
• Awareness of legislation and practices in regard
to access, inclusion and
• equality.
• Evidence of cultural fit.
• Corporate social responsibility policy and
initiatives.
• Alignment with the organization’s business
process and systems, where these
• have been disclosed.
• Criteria for assessing suitability
Financial Appraisal
• Determine financial capacity and dependency of
prospective service providers.
Financial Appraisal Overview
Financial Appraisal of Service Providers
• Due Diligence
 • Capacity Estimation
Factors in Assessing Financial Capacity
• Turnover as an Indicator
• Considerations
• Cash Flow Assessment
Health, Safety, Security, and Environment (HSSE)
Health, Safety, Security, and Environment (HSSE)
Policy
• Organization's HSSE Policy
• Responsibility Extension
Information and Competence Requirements in HSSE
• Information and Competence
• Requirements in HSSE
Cultural fit
• Organizations are evaluated based on their
activities, basic principles, honesty, integrity, and
regard for people. Cultural fit is critical, and
service providers must notice and respond
appropriately. Organizations should tell new and
existing service providers about their business
principles and ethics. The Risk Factor Indicator
(RFI) should highlight end-user service features
and specify norms of conduct, behavior, and
HSSE.
Corporate Social Responsibility
• Corporate Social Responsibility (CSR) is a type
of corporate responsibility in which a corporation
accepts responsibility for the impact of its actions
on stakeholders and environmental sustainability.
It goes above and above legal standards to
improve the quality of life for personnel, families,
and society. Service providers should be handed
a CSR policy statement defining particular
activities and non-philanthropic commitments.
Assessment Criteria
• The company should analyze the acceptability of
potential service providers, including capability,
capacity, compliance with legislation, and policy
alignment. The assessment should be impartial
and transparent, ensuring that service suppliers
understand the business's procurement
seriousness without looking overbearing or
frightening, especially if the organization has
strong purchasing power.
Request for Proposal or Tender
• Organizations should not request a tender for a
fully specified scope of service when service
specifications are based on performance
requirements. Instead, they should invite
submissions for advice on meeting performance
goals and minimizing costs. This enables service
providers to put their knowledge and experience
to use, potentially providing unexpected benefits
or verifying the organization's understanding of
requirements.
REQUEST FOR PROPOSAL OR TENDER
When preparing a request for proposals/tenders, whether
for single or multiple services, it is necessary to consider:
• An output-based service specification containing
service-related requirements.
• Service levels stating acceptable levels of
performance.
• Arrangements for performance measurement and
reporting.
• The form of agreement and supporting terms and
conditions or, where applicable, a standard form
of contract including any amendments.
• Criteria to be used to assess proposals or tenders.
• The date and time by which proposals or tenders
should be submitted, as well as the place and
mode of submission.
RATIONALE FOR SERVICE SPECIFICATIONS
AND SLAs
Rationale for Service Specifications and SLAs
• Service specifications and SLAs are essential
tools in facility management, regardless of
whether services are outsourced or provided
internally.
Performance Monitoring and Accountability
• This performance-based approach ensures that
service providers are motivated to deliver high-
quality services that meet the needs of the
organization and its end-users.
Clarity, Certainty, and Adaptability
• Service specifications and SLAs provide clarity
and certainty to both the organization and the
service providers involved.
Binding Contracts and Contractual Approaches
• Service specifications and SLAs, whether crafted
within an organization or applied to outsourced
services, act as binding contracts that establish
clear obligations and expectations between the
parties involved.
Service Levels, OLA, and Collaborative Success
• SLAs serve to establish service levels between
the informed client function and the business unit
responsible for providing services.
SERVICE SPECIFICATIONS
These documents articulate precise outcomes expected
from each service, avoiding overly restrictive language to
allow service providers flexibility while ensuring
efficiency and effectiveness.
• Service specifications should be consistent with
other documents, such as SLAs.
• Service specifications should be drafted
systematically, following a standard approach.
• Performance-based specifications are preferred
over input specifications.
• Specifications should be clear and unambiguous
to avoid misinterpretation.
• Service specifications may need to be updated as
circumstances change.
• Spot inspections can be used to verify
compliance.
Defining quality in service specifications should focus
on end-user expectations rather than avoiding the
issue.
• Quality in service specifications should focus on
end-user expectations.
• Quality can be defined as the due performance of
a service.
• Tangible benchmarks can be used to measure
quality.
• Service specifications can be time-consuming to
draft.
• Guidance is available for writing service
specifications.
• The approach to writing specifications can vary
between prescriptive and performance-related.
• Prescriptive specifications dictate tasks.
• Performance-related specifications focus on
outcomes.
SERVICE LEVEL AGREEMENTS (SLAS)
• Formal agreements between an organization and
service providers, representing commitments to
end-users.
FORMAL CONTRACT
• Formal Contracts should be awarded on a multi-
year basis unless the service is of less than 12
months' duration. For most services, a contract
term of three years is appropriate, with the
organization retaining the option to extend for a
further one or two years.
PERFORMANCE MEASUREMENT AND
REPORTING
• Assign performance measurement and reporting
to service providers.
• Verify performance data and require supporting
evidence.
• Establish clear guidelines for addressing
substandard performance.
• Implement incentives for exceptional
performance and cost savings.
• Exercise caution when designing HSSE-related
incentives.
TENDERING - MARKET TESTING
• Market testing should be conducted strategically
to avoid disrupting the in-house team.
• Regular performance reviews are crucial for
successful outsourcing relationships.
• Longer-term contracts with break clauses can
provide stability and flexibility.
• Annual reviews and break clauses can mitigate
the impact of mandatory re-tendering
TENDER COMPETITION
• Limit tender invitations to three to five service
providers to maintain competitiveness and avoid
overwhelming potential bidders.
• E-tendering offers several benefits, including:
o A reduced timescale for the tendering
process.
o An improved workflow with inbuilt
decision gates.
o A more consistent prequalification and
evaluation.
o The automatic rejection of non-
compliant tenders.
o A reduction in human resources for
gathering and analyzing information and
tenders.
o An improved audit trail and management
information.
• Public procurement regulations may restrict
certain e-tendering practices.
TENDER EVALUATION
• The organization should define the criteria by
which each tender, as represented by a completed
request for proposals, is evaluated. These criteria
should be consistent with the criteria used at the
RFI (Request for information) stage.
FINANCIAL CLOSE
• Financial close in procurement marks the
successful culmination of a project's financing
arrangements. It signifies that all necessary
agreements have been signed, conditions
precedent have been met, and funding is in place
to commence project execution.
Once proposals/tenders have been evaluated, the
preferred service provider should be requested to
submit details of the following as a prerequisite to
reaching financial close and the formalization of the
contract:
• Plan of work or schedule for mobilization and
start-up of service delivery.
• Managerial and supervisory personnel
• Operational personnel.
• Arrangements covering transfer of undertakings.
• Subcontractors to be engaged.
• Contract prices and rates.
• Insurance and banking details.
• Information required from the organization to
support mobilization and start-up.
OPERATIONAL CONSIDERATIONS
• This stage can be one of the most worrying for the
organization, Because it has come a long way
and, yet, is not in the position where the new
service provider can commence or take over from
the incumbent service provider
PRE-CONTRACT MEETING
A pre-contract meeting is a crucial step in the process of
establishing a working relationship between the facilities
management provider and the client. This meeting is
typically held before the formal contract is signed and the
actual facilities management services commence.
• The service provider’s plan for mobilization and
delivery of the service
• Insurance cover with respect to statutory
obligations and specific eventualities.
• Contract administration (e.g., payments,
meetings, and other key events).
CONTRACT AWARD
• A contract award refers to the process by which a
company or organization selects a service
provider to manage its facilities, such as
maintenance, cleaning, security, and other related
tasks.
Chapter 9: Service Delivery
End-user Perspective and Satisfaction
• From the end-user standpoint, there should be no
noticeable distinction between services provided
by an in-house team and external service
providers. The focus is on maintaining consistent
service quality and user satisfaction, with the
primary decision factor being the demonstration
of best value.
Cost Considerations and Market Dynamics
• The performance expectations for service
delivery remain the same, but the cost is
influenced by market conditions, productivity,
incentives, and the quality of management and
supervision. The decision to continue with an
existing service arrangement is subject to
periodic review due to changing costs over time.
Transition Management and Business Continuity
• Business continuity is emphasized, as any
disruption in service delivery could impact
operations. The importance of effectively
managing service providers, regardless of
whether services are insourced or outsourced,
underscores the role of contracts and agreements
in regulating service delivery, payments, and
addressing performance issues. Relevant
guidance is available in standards such as BS
8572.
THE INTERNALCUSTOMER ASEND-USER
Recognition of End-Users as Customers:
o Internal departments or external clients should be
acknowledged as customers.
o Professional management of the relationship with
in-house teams or external providers is essential
Applicability of Performance Management:
o Performance management is Relevant to both
insourced and outsourced services.
o Continuous improvement is key for sustained
productivity and high-quality performance.
Clear Definition of Services and Interfaces:
o Outsourced success relies on precise service
definitions and interface clarity.
o Insourcing requires clear definitions for effective
resource management and performance
measurement
Importance of Service Clarity for Best Value:
o Clear service understanding is crucial for
demonstrating best value.
o Unclear service definitions can lead to conflicts,
especially during tendering processes.
Identification of Stakeholders:
o Directly affected stakeholders must be identified.
o Understanding stakeholder influence is crucial
for serving multiple end-users effectively.
Avoidance of Divisiveness and Conflict:
o Actions causing conflicts with business
objectives should be avoided.
o Cooperation and alignment with business goals
are vital to prevent disruptions to business
continuity.
Responsive Approach Towards Internal Customers:
o Internal departments are treated as customers
with equal attention to external clients.
o A professional and business-like approach is
maintained towards all customers.
Utilization of Organizational Experience:
o The in-house team benefits from organizational
experience.
o Responsiveness to customer needs preserves
institutional knowledge.
Consistent Approach to Internal and External
Customers:
o No distinction in attitude towards internal and
external customers.
o Consistent adoption of a professional and
business-like approach to all customers.
INSOURCING
• While perceived as less demanding, insourcing
within organizations holds substantial economic
worth globally. Competent in-house teams
consistently deliver end-user satisfaction and best
value, emphasizing the need for rigorous
management standards and the adoption of
specific policies and procedures.
IN-HOUSE TEAMS
Delivering Value Through Agility, Collaboration, and
Continuous Improvement
o Adaptability and Skills
o External Service Provider Mindset
o Teamwork and Shared Goals
o Proactive Value Addition
o End-User Focus and Best Value
EXTERNAL SERVICE PROVIDERS
• refers to a third-party entity or company that
offers services to organizations or individuals.
o Collaborative Projects
o Managed Services
o Outsourcing Functions
o Integration of Technologies
MOBILIZATION
Service Mobilization and Communication
• Control and oversight
• Critical services
• Information flow
1. Scope of service
2. Contact details
3. Emergency procedures
4. Health and safety compliance
5. Human resource and supply chain
requirements
6. Operational processes and reporting
7. Performance management
8. Valuations and payments
9. Dispute resolution procedure
• Communication channels
• Mobilization duration
• Parallel mobilizations
The Mobilization Plan
The mobilization plan should include the following
information:
• A list of tasks involved in starting up the service
• A timeline for completing each task.
• A list of key resource requirements, such as
personnel, equipment, and materials
• A plan for tracking and reporting on progress
The following are some additional points to consider
when developing a mobilization plan:
• Contingency planning
• Risk assessment
• Communication
Supply-side considerations
• Supply-side considerations include all of the
essential components and procedures that go into
effectively managing and maximizing resources
and services that are delivered by outside vendors
or service providers. This entails maintaining
openness, proactively resolving issues that
service providers encounter in acquiring required
resources and managing subcontracting through
formal authorization.
Importance Of Supply-Side Considerations
• Controlled Subcontracting
• Confirmed Intentions
• Resource Challenges
• Collaboration for Resource Rectification
·
Supply-side considerations, including written permission
for subcontracting, proactive reporting on resource
challenges, and collaborative problem-solving, are
essential for maintaining transparency, control, and
collaboration in service contracts.
Business continuity and transitions
• Business continuity involves managing the
recovery or continuation of primary processes
during disruptions, aiming to safeguard
stakeholder interests and reputation. Transition,
 in this context, refers to changes in service control involves a deliberate process to ensure
delivery arrangements, and effective that any modifications align with the facility's
management involves assessing risks, goals, standards, and operational requirements.
strengthening resilience, and ensuring a smooth
phasing in of new arrangements to maintain
operational continuity. • Changes should be approved before
Business Continuity and Transition (Key implementation.
Components) • For significant changes, conduct a risk
• Business Continuity Management assessment to determine impact on safety,
• Identification of Risks and Opportunities quality, end-user acceptance, cost, and time.
• Strengthening Organizational Resilience • If approved, request the service provider to
• Phasing In of New Arrangements implement the change.
• Categorization of Critical Processes • Sign off the change only after it has been
• Transition Management implemented and performed satisfactorily.

Operational processes and procedures Contract administration

• Service providers should be required to produce
plans of their operations, including the category,
level, and number of operatives. These plans
should be accompanied by details of the
managerial and supervisory personnel necessary
to achieve safe, efficient, and cost-effective
service delivery.
Management Information and reporting
• The successful management of service contracts
depends to a large extent on the quality of
information provided by the service provider in a
form such that the organization knows almost in
an instant how well or not service delivery is
going.
Contract Management
• Performance Standards and KPIs
• Renewal and Termination
Contract condition and terms
• Scope of Services
• Service Levels
• Hours of Operation
Payment
• Monthly fixed fee
• Time and Materials
Cost Control
• Performance Appraisal
• Performance Reviews
Change Control
• refers to the systematic process of managing and
regulating alterations or modifications in a
facility's operations, services, or infrastructure.
Proper management of a facility requires
effective control over changes in services. change
• refers to the systematic and organized process of
overseeing and managing contracts related to the
maintenance, operation, and provision of services
within a facility. This encompasses a range of
tasks and responsibilities aimed at ensuring that
contractual agreements are effectively executed,
and the facility operates smoothly in accordance
with the terms and conditions outlined in the
contracts.
Key aspects of contract administration in facility
management include:
• Roles and responsibilities that are clearly defined
and allocated, with responsibility for the
supervision of service delivery vested in the
informed client function.
• A contract manager, or contract administrator, for
every contract and there- fore for each service
provider.
• A helpdesk or central coordination point to
manage the interface between end-users and
service providers, regardless of whether service
providers are in-house or external.
• An open-book agreement, where the organization
has the right to inspect the service provider’s
accounts for the contract.
• In the early days of the contract, frequent
meetings with service providers to discuss
performance and to deal with teething problems;
as the contract progresses, the need for such
meetings should diminish.
Contract review
• Contract review is necessary to establish whether
the decision to outsource is still valid in terms of
the facility management strategy, the prevailing
market conditions and the performance of the
service provider. The necessity for reviews will
have been built into the SLA and formalized in
the contract, although here the concern is
 primarily with an internal review. The frequency
of contract reviews will depend on the size and
complexity of the contract – as reflected by the
nature and scope of service delivery – with more
frequent reviews likely during the initial period of
delivery.

Operational review
• In facilities management (FM), an operational
review is a methodical analysis of an
organization's FM procedures to evaluate their
efficacy and efficiency.

4 Key Goals of an Operational Review in Facilities

Management
1. Identify areas for improvement in cost, quality,
sustainability, and service delivery.
2. Benchmark performance against industry
standards and best practices.
3. Ensure alignment with organizational goals and
objectives.
4. Proactively mitigate risks and prevent problems.

Benefits of Operational Review

• Reduced costs
• Improved service quality
• Increased efficiency and productivity
• Enhanced compliance
• Better decision-making