Contract Maintenance Models

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Nov 18, 2013 (3 years and 8 months ago)

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Contract Maintenance Models

Trends and Options

Presented by:

Walter Rafin

DTZ

1

Presentation Roadmap

Facilities Management

versus

Facilities Maintenance

Summary

2

Facilities
Management

versus Facilities
Maintenance

Facilities
Management

integrates all
organisational processes, people and
workplace
. Includes property | space
management, infrastructure, support
services, administration and asset
management


Facilities
Maintenance
sustains
building and asset performance to
design intent, to increase
reliability,
reduce equipment degradation, and
sustain energy efficiency, whilst
maintaining mandatory compliance
requirements.



3

Preventative Maintenance

Usually fixed PM fee

Normally includes some corrective elements
(e.g. coil cleaning)

Not usually inclusive of repair or

reactive works

Asset owner takes on almost all risk

Results in too little or too much

maintenance


unclear requirements

Budgeting & cost control difficult

4

Inspection (or Reactive) Based

‘Fly
-
by’ inspections

Usually fixed inspection fee

Excludes any corrective elements
(e.g. cleaning filters)

Reporting of issues only

Not inclusive of repair or

reactive works

Usually least expensive option

Least effective

5

End Results (or Reliability)

Not yet widely used

All or part risk transfer

Risk based on defined end
result requirement (e.g.
comfort)

Payment based on results

Usually tied to Guaranteed Maximum
Price (
GMP
)

Difficult to define parameters

6

Comprehensive

Fixed Fee all inclusive


budget certainty

Full risk transfer to contractor

Usually subject to condition
assessment and latent conditions

Excludes capital replacement,
refurbishment and/or
rehabilitation

Contractor manages risk via
rigorous PM or not enough PM

Significant administration savings

7

Semi
-
Comprehensive

Inclusive of all labour only

Normally excludes parts and materials

Fixed labour fee

2
nd

most expensive model

W
orks best for large sites or portfolios

Budgeting can be difficult

Less risk transferred to contractor

8

Repair Work Limit (
RWL
)

Research shows for
M.E.F

services:


66% <$1000


20% rehab |
refurb

|
capex

& chargeable


14% >$1000 & chargeable

Most reactive calls minor

Capped risk at predetermined/agreed
threshold or ‘
RWL


Usually subject to condition

assessment
and latent conditions

Significant administration savings

Labour

Parts

Materials

9

Summary

Choose wisely and do your homework

Consider:

-

Economic conditions
and what you can afford

-

Technical advances

-

Your portfolio condition

-

Your risk profile

-

Contract flexibility for change

-

Performance management and reporting framework

Keep