Facilities Management Services: a holistic approach enables cost containment and better management

Thumbnail image for FM.jpgThe commodity group, generically termed “Facilities Management Services” (FMS) represents a high total cost of ownership (TCO) for most organisations.  This commodity group has even been defined as ‘a mainstream tool for improving performance and increasing productivity over the entire period of an alliance‘.

It plays a cardinal role in optimising processes, expanding
capabilities and building its partner’s competitive strengths.  FMS as
a whole represents a diverse basket of specialised services..

FMS can be divided into ‘hard services’ and ‘soft services’.  Hard services are, for example, air conditioning that is efficient, reliable and safely operated, whilst soft services pertain to, for example, keeping a building clean and neat. As a result, FMS has, not surprisingly, spawned a whole tier of specialised service providers in the national economy that assist organisations in professionally managing this commodity group, often on an outsourced basis.

Thumbnail image for Thumbnail image for Anthea Saunders.jpgLeading players in the FM market should offer the following services, Anthea Saunders, CPO of (Total Facility Management Company) TFMC told SmartProcurement:


  • Technical Solutions
    • Delivering a full range of customised planned and reactive maintenance services.  This solution is also responsible for Maintenance Engineering, covering the full hard FM spectrum, including mechanical and electrical installations, minor building works, UPS, solar, wind and mobile power.   It furthermore provides centralised 24-hour 365-day surveillance, monitoring and control of key aspects of the functioning of critical sites, and fast-reaction emergency response services.
  • Project Management
    • Responsible for all capital infrastructure projects ranging from plant replacement, through refurbishment, to major new build. It also offers services related to the delivery of planned and reactive maintenance services, covering a broad spectrum of support plant, including Emergency Power Systems, HVAC systems, Electrical installations, Fire Prevention Installations, Technical Security Systems and Infrastructure.
  • Property Management
    • Provides all services related to property asset management, such as disposals, acquisitions, leasing and letting, rental (income and expense) administration, co-location, utilities management and portfolio optimisation.
  • Integrated Facilities Management
    • At the core of operation, it drives optimum maintenance strategies in an integrated and total FM context.  It is also responsible for compliance management, as well as providing a Contact Centre facility. The procurement team resides within Integrated Facilities Management (see next section), as does workplace management.   IFM’s mandate also includes the provision of support services, comprising  maintenance, cleaning, catering, security, furniture management, waste management, pest control, etc., as well as the operation of our world-class 24-hour, 7-days-a-week Contact Centre.    In addition, it handles the management and constant monitoring of quality, delivery and the cost of all services, including Occupational Health and Safety, and Environmental Compliance.
Integrated Facilities Management – The way forward

“The contemporary trend among facility managers is to provide integrated solutions for FM, hence encompassing a new paradigm aptly termed ‘Integrated Facilities Management‘ (IFM).  On the whole, this paradigm has the responsibility of co-ordinating the activities of professional services and maintenance solutions across the spectrum of IFM activities.  In addition, IFM provides winning solutions by developing an integrated FM strategy that minimises total life-cycle costs and creates a working environment that ensures maximum productivity of an organisation’s people and equipment.  By specifying the FM strategy in an appropriate contractual framework of performance-focused Service Level Agreements you will optimise the management of all relevant services and suppliers.

A corollary to IFM’s responsibility includes the management of delivery and the consistent monitoring of overall quality and costing of all related services.  Finally, the adoption of an integrated information approach will ensure that all the appropriate and relevant information (as needed for decision-making) is timeously conveyed to the principal stakeholders, namely the Project Team and the organisation itself.”

A recent IFM case study: TFMC
A consortium was appointed to provide facilities management relative to the telecommunication infrastructure of one of South Africa’s mobile telephone communication suppliers. The infrastructure consisted of nearly 2 000 towers and/or masts, spread over a wide-ranging area, countrywide.

The selection of the Consortium was based on a number of significant strengths:

  • Standing and capability of the Consortium.
  • Resources and experience of the Group.
  • Competence and operational ability.
  • Depth and spread of services that could be provided in-house. This included Professional Services, Design Services, Asset Management Services, Property Management Services, Project & Construction Management, Maintenance Projects and Facility Operations.

The contract included:

  • Site Acquisition
  • Infrastructure Design and Construction
  • Electrical Power Supply
  • Switching Centres and Equipment Buildings
  • Project Management Services
  • Specialist Design and Engineering Services
  • Infrastructure Maintenance Management
  • Contracting and Consulting Services

Value-Added Achievements:

  • Leveraged the Consortium’s standing and capability to address demanding roll-out requirements and meet expectations.
  • Ensured full facilities management through proven competence and operational ability.
  • Demonstrated proficiency to the extent that the contract was promptly renewed.

***Smart Procurement has been hosting a series of one-day TCO sessions which have proven extremely useful to delegates.  If you are at all interested in this commodity group, then don’t miss the 3rd FMS Workshop in the series, scheduled for 11 June 2008 in Johannesburg.

For more information e-mail admin@smartprocurement.co.za

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