Effective facilities management estimation for business continuity

Abstract

The migration from conventional maintenance to facility management is an on-going process for all high-rise buildings in Malaysia, especially for government-owned buildings. For a government-linked company (GLC), the situation is different as the budget for the maintenance is allocated internally and the internal maintenance staff overheads will be borne by the GLC. Nowadays, organisations will focus on their core business to maximise their profits and will leave the building maintenance to their maintenance contractor to provide such services for their buildings. The decision to carry out the maintenance internally or to outsource to a Facilities Management (FM) service provider will depend on the amount of budget allocated. The qualitative technique is used in this research to source the information by interviewing experienced managers who are experienced in FM. Internal data from companies applying for direct negotiation works is also a source of information. Findings show that there is a direct correlation between FM cost and the scope of work (as defined in JKR FM2008) required for the building. Selecting such services is critical as the cost per square foot will vary from RM0.12 to RM1.20; such cost will run into millions as the FM contract duration is around 3 years. This study will give an indicator and guidelines to organizations to estimate the need for FM service provider for their business continuity. The guidelines will also help owners of the buildings on how to derive a budget, tender, evaluation procedures and the award process. Without these guidelines, the organizations embarking on FM will have to employ an experienced FM manager to limit the mistakes that an inexperienced FM manager will make. The FM Pilot Project presented is a good example on what not to do if you are embarking on FM.