REAL ESTATE & FACILITY LIFE CYCLE

MANAGEMENT

Real Estate & Facility Life Cycle Management
INTENT:
The course intents to give an insight into Real
Estate and facilities life cycle Management;
which are significant in the global structural
change from an industrial society towards a
service-orientated society. Real estate and facility
management are part of an all over development:
to “service society”, these backgrounds and
concepts (lifecycle and three columns concept)
have to be understood under topics as client and
service orientation.
CONTENT:
UNIT I: Development of society, economy and sectors
• From industrial to service society (the management
philosophy of P. Drucker): From service and knowledge
society, Market orientation: clients, users, goals,
Coordinates of construction and real estate business, from
product to process orientation
• Theoretical models, systems theory and cybernetics:
Fundamentals and elements of the life cycle concept, Main
phases, core and secondary processes
• From project to object management: Project development
and programming, FM during the design and construction
phase, Substantial completion and handover
The three columns of facility management
UNIT II: Technical FM
• Inspection, maintenance, preservation
• Maintenance strategies and management
• Revitalisation, restoration, reconstruction
• Redesign, reuse, demolition and recycling
• Quality management (ISO)
UNIT III: Business administration of FM
• Central tasks and fields of activity
• Property administration
• Ownership and owners association
• Legislation, legal and contractual basis
• Renting and leasing management, tenants
• Marketing and services,
• Legislation, accounting and administration
• Real estate and object management
• Benchmarking and controlling
UNIT IV: Infrastructural FM
• House and concierge services
• Cleaning and maintenance services
• Safety and guard services
• Supply and discharge services
• Relocation and furnishing services
• Catering and special service
• In-sourcing and outsourcing
• Corporate real estate management
• Public Private Partnership
• BOT (build, operate and transfer)
 TYPES OF SOCIETIES
- Inhabits and remains within definite and common topography
Tribal - Possess a consciousness of mutual unity
- Religious

Agrarian society - Cultivation of land

- Distinct social classes
- Basis for the establishment of economic institutions

- Associated with the emergence of industrialization

Industrial Society -  Replaced essentially agriculture based societies with the use of
machines and non-animal sources of energy to produce finished
goods
- Stimulates population growth
- Continual state of rapid change due to technological innovations

Post Industrial Society - Theoretical knowledge forms the 'axial principle of society and is
the source of innovation and policy formulation
- The new axial principle fosters the supremacy of professional and
technical occupations

According to Ian Robertson the number of status multiplies, population size increases, cities appear, new
institutions emerge, social classes arise, political and economic inequality becomes inbuilt into the social
structure and culture becomes much more diversified and heterogeneous.
Source: http://www.sociologyguide.com/types-of-society/ as accessed on 28.08.2013
SHIFTS OF SOCIETIES

Economic Progress of Society

Efforts

Time
Agregarian
Tribal

Industrial

Post Industrial
SECTORS OF ECONOMY
This categorization is seen as a continuum of distance from the natural environment.
concerns itself with the utilization of raw materials from the earth such as agriculture and
Primary mining. agriculture (both subsistence and commercial), mining, forestry, farming,
grazing, hunting and gathering, fishing, and quarrying.

The secondary sector of the economy manufactures finished goods. Activities associated
Secondary with the secondary sector include metal working and smelting, automobile production,
textile production, chemical and engineering industries, aerospace manufacturing, energy
utilities, engineering, breweries and bottlers, construction, and shipbuilding.

Tertiary Service industry. Activities associated with this sector include retail and wholesale sales,
transportation and distribution, restaurants, clerical services, media, tourism, insurance,
banking, healthcare, and law.

Quaternary and The quaternary sector of the economy consists of intellectual activities. Activities
associated with this sector include government, culture, libraries, scientific research,
education, and information technology.

Quinary Includes the highest levels of decision making in a society or economy. This sector
would include the top executives or officials in such fields as government, science,
universities, non-profit, healthcare, culture, and the media.

An Australian source relates that the quinary sector refers to domestic activities such as those performed by
stay-at-home parents or homemakers. These activities are typically not measured by monetary amounts but it
is important to recognize these activities in contribution to the economy.
Source: http://geography.about.com/od/urbaneconomicgeography/a/sectorseconomy.htm as accessed on 28.08.2013
 From industrial to service society

FROM SERVICE AND KNOWLEDGE SOCIETY

Clark's Sector Model
 Code Sector Subcode Industry Groups
Global Industry Classification Standard 10
15
Energy
Materials
1010
1510
Energy
Materials
2010 Capital Goods
20 Industrials 2020 Commercial & Professional Services
2030 Transportation
2510 Automobiles & Components
2520 Consumer Durables & Apparel
25 Consumer Discretionary 2530 Hotels Restaurants & Leisure
2540 Media
2550 Retailing
3010 Food & Drug Retailing
30 Consumer Staples 3020 Food, Beverage & Tobacco
3030 Household & Personal Products
3510 Health Care Equipment & Services
35 Health Care
3520 Pharmaceuticals & Biotechnology
4010 Banks
4020 Diversified Financials
40 Financials
4030 Insurance
4040 Real Estate
4510 Software & Services
45 Information Technology 4520 Technology Hardware & Equipment
4530 Semiconductors & Semiconductor Equipment
50 Telecommunication Services 5010 Telecommunication Services
55 Utilities 5510 Utilities
 Infrastructural Facility Maintenance
It refers to the activities to remove the causes of failures,
suspension, and the decrease in performance due to facility
degradation, and to repair the facility. In facility maintenance,
the following three points should be considered:
* To improve credibility by considering the method including
"how the number of failure is reduced", or "how degradation is
prevented" 
* To improve maintainability by making inspection and repair
easier to make, and by thoroughly restoring damage. 
* To increase economic efficiency so that the maintenance cost
and other expenses to do maintenance on facility with
degradation or damage would be minimized.
Infrastructural Facility Maintenance
 HOUSE AND CONCIERGE SERVICES
The concierge

 keep the mail of absented dwellers,

 be entrusted with the apartment keys to deal with
emergencies when residents are absent,
 provide information to residents and guests,
 provide access control,
 enforce rules,
 and act as a go-between for residents and management
when management is not on-site.
The establishments engaged in:
 Acoustical tile cleaning service

BUILDING CLEANING & MAINTENANCE

 Building cleaning service, interior
 Chimney cleaning service
 Custodians of schools on a contract or fee basis
 Floor waxing service
 Housekeeping (cleaning service) on a contract or fee basis
 Janitorial services on a contract or fee basis

SERVICES
 Lighting maintenance service (bulb replacement and
cleaning)
 Maid service on a contract or fee basis
 Maintenance, building: except repairs
 Office cleaning service
 Service station cleaning and degreasing service
 Telephone booths, cleaning and maintenance of
 Venetian blind cleaning, including work done on
owners'premises
 Window cleaning service
 HOUSE AND CONCIERGE SERVICES
The concierge

 keep the mail of absented dwellers,

 be entrusted with the apartment keys to deal with
emergencies when residents are absent,
 provide information to residents and guests,
 provide access control,
 enforce rules,
 and act as a go-between for residents and management
when management is not on-site.