AM’s Pre Bid Homework

People> Processes> Technology

Clauses 41, in the Association Constitution states that the Association Manager shall be responsible for:

negotiating, supervising and recommending the entry into contracts, including Supply Agreements ……………on behalf of the Owners Association, and presenting recommendations to the Owners Association;

supervising the performance of contractors and suppliers to the Owners Association;

for every and all technical and management matter and financial report related to common area services.

Clause 42 states “The Association Manager shall be responsible any errors or negligence by him, and for the damages resulting there from. “

Responsibility!!!

Can we quote on a per unit basis??

Shall we quote on a square foot basis?

% of FM cost?

Or is there a better way?

Homework

Asset Registers◦Chillers◦AHUs◦FCUs◦MDBs◦SMDBs◦Pumps◦Sanitary ware◦Generators◦Light fittings

The Al Shirawi FM Way

Numbers?

Square Foot basis?

Quality and spec?

Service Level Agreements?

Soft Services

Is this clean?

Or is this clean?

Is this clean?

Or is this clean?

Resident Manager

Customer Services Executive

FM engineer

Management Time??

Management

What did we not look at?

Customer’s expectations

Community Harmony

Association Board Involvement

Previous vendor’s experience

Senior Management Involvement

Finance Department interaction◦ Collections◦ Bank accounts set up◦ Bank accounts monitoring◦ Bank Reconciliation

Legal Department◦ Authorities (Police, RERA, DM)◦ Familiar with the law

Quality, Health and Safety

Association’s expectations

AM’s most valuable asset

Our answer

R÷ (1- ((TOH÷ TER) + BGM% + TF%))

Our answer

R÷ (1- ((TOH÷ TER) + BGM% + TF%))

(Resources) + (1 –((Total Overhead ÷ Total

Expected Revenue) +budgeted gross margin % + Time Factor %))

200 apartment building

Market Price = Dhs. 1000 per apartment per annum

Price to customer = Dhs. 1000 x 200 = Dhs. 200,000 per annum

overhead, rev + margin

Resources = Resident Manager◦Dhs. 144,000 per annum

Overhead? – Dhs. 1,200,000 per annum

Expected Revenue? – Dhs. 5,000,000 per annum

Budgeted Gross Margin? – 15%

The Al Shirawi FM method

• (Resources) ÷ (1- ((Total Overhead ÷ Total

Expected Revenue) + budgeted margin % + Time Factor %))

Resources = Dhs. 144,000

Total Overhead÷Total Exp. Rev = 1.2m÷5.0m = 24%

Budgeted Margin % = 15%

Time Factor % = ???

Senior Management Involvement ( upto 2%)

Finance Department interaction (upto 1%)◦ Collections◦ Bank accounts set up◦ Bank accounts monitoring◦ Bank Reconciliation

Legal Department (upto 1%)◦ Authorities (Police, RERA, DM)◦ Familiar with the law

Quality, Health and Safety (upto 1%)

Time Factor

The Al Shirawi FM method

• (Resources) ÷ (1- ((Total Overhead ÷ Total

Expected Revenue) + budgeted margin % + Time Factor %))

144,000 ÷ (1- (0.24+0.15+0.05)) = Dhs. 257,143

Dhs. 257,143 vs. Dhs. 200,000 – an increase of almost 30%

Conclusion

“You are the embodiment of the information you

choose to accept and act upon. To change your circumstances you need to change your thinking and subsequent actions”

– Adlin Sinclair, British Businessman