Exclusive Interview With

Sr Teo Chee HaiPresident of FIG(International Federation of Surveyors)

Property ManagementThe Origin of Property

Management

Peer ReviewCompetitive Strategy In Quantity Surveying Firms - Weigh Your Options

Vol.47 No.2 2012

Inte

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Geo in fo rmat ion

Organised by :

Jointly Organised by :

11th International Symposium&

Exhibition on Geoinformation (ISG2012)

25 - 26 September 2012Hotel Istana Kuala Lumpur City Centre,

Malaysia

www.isg.org.my/2012

Inte

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Geo in fo rmat ion

CALL

FOR A

BSTRACTS AND FULL PAPERS

“Ubiquitous Geospatial Solution”

International participant : USD450International participant (Student) : USD300Local participant : RM950Local participant (Presenter) : RM750Local participant (Student) : RM450

REGISTRATION FEES

Abstract Submission : 29 April 2012Full Paper Submission(Peer Reviewed) : 15 May 2012(Non Reviewed) : 15 June 2012

IMPORTANT DATES

The Malaysian Surveyor is a quarterlypublication which touches upon thedevelopment of the surveying profession,innovations in the surveying technology andsurveyors’ contribution towards market andbuilding industry.

The Institute as a body does not hold itselfresponsible for statements made or opinionsexpressed in the articles and advertisementsprinted in this publication, or for the strictaccuracy of references to law cases, whichare intended only as a gloss on authorisedreports. Rights of translation andreproduction reserved.

PresidentSr Ahmad Fauzi b Nordin, FRISM

Hon. Secretary GeneralSr Dr. Mohd Yunus b Mohd Yusoff, MRISM

Editorial Board

EditorAssoc. Prof. Sr Dr. Ting Kien Hwa, FRISM

Sub EditorSr Mohd Shazali b Sulaiman, MRISM

MembersSr Firdaus b Musa, FRISM Prof. Sr. Dr. Wan Muhd Aminuddin Wan Hussin, FRISMSr Mazlan b Mohd Tahir, MRISM Sr Dr. Hj Md Said @ Mohd Zaid b Abdullah, FRISM Sr Dr. Helmi Zulhaidi b Mohd Shafri, MRISM Prof. Sr Dr. Hj Wan Muhd Aminuddin b Wan Hussin, FRISM Sr Mokhtar Azizi b Mohd Din, MRISM Sr Dr. Adi Irfan b Che Ani, MRISM Assoc. Prof. Sr Dr. Azman b Mohd Suldi, MRISM Sr A. Mahadevan, FRISM

Secretary to the BoardZarinah bt. Danial

Royal Institution of Surveyors Malaysia3rd Floor, Bangunan JuruukurNo. 64-66, Jalan 52/446200 Petaling JayaSelangor Darul Ehsant: +603 7954 8358 (hunting line) / 7956 9728 / 7955 1773f: +603 7955 0253e: editor@rism.org.myw: www.rism.org.my

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Editorial

RISM ActivitiesYoung Achievers’ Award Report for Session2011 - 2012RISM Treasure Hunt 2012RISM Sports Carnival 2012

InterviewAn Interview With Sr Teo Chee Hai President ofthe International Federation of Surveyors (FIG)

Peer Review ArticleCompetitive Strategy In Quantity SurveyingFirms - Weigh Your OptionsNur Azila Adros, Nazirah Zainul Abidin, Lim Yoke Mui

How To Avoid Costly Claims And DisputesJohn Wong Weng Long

The Significance of Strategic Planning andManagement in Facilities ManagementMaszuwita Abdul Wahab, Syahrul-Nizam Kamaruzzaman,

Mohd-Khairolden Ghani

Property WatchThe Origin of Property ManagementAssociate Professor Sr Dr. Ting Kien Hwa FRISM

Managing StressDoes Procrastination Reduce Stress?W. M. A. Wan Hussin FRISM

ManagementIs Your Personal Brand Surviving Or ThrivingOnline?Maria Duron

Student’s CornerReducing and Managing Carbon Footprint: Bea Responsible Tenant of the EarthLee Chin Sheng

RegularsBook ReviewSr Lim Chong Fong

Member UpdatesAdvertisements

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CONTENTS

EDITORIAL

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This issue features another exclusive interview with asenior member of RISM who has taken up leadershiprole in an international surveying organisation. Sr TeoChee Hai, Past President of RISM (1999-2000), iscurrently the President of International Federation ofSurveyors (FIG) for the 2011-2014 term. RISM is proudthat Past Presidents of the Royal Institution havemoved on to provide surveying leadership fromnational to the international and global level.

Under the Property Watch section, a write up on theorigin of property management has been offered. Ittraces the origin of property management to thefeudal system in UK and how modern propertymanagement has evolved over time after theindustrial revolution. The article provides anunderstanding on how the property managementindustry is linked to the evolution of the surveyingprofession. It also demonstrates the linkages betweenreal estate qualifications offered by the localinstitutions of higher learning and the development ofthe property management profession in Malaysia.

Another article that relates to property management ison the role of strategic aspects of facilitiesmanagement from the planning and managementperspectives.

There are three articles in this quarterly issue thatrelates to quantity surveying. The first discussed thecompetitive strategy that can be adopted by quantitysurveying firms; the second article is on how to avoidcostly claims and disputes in the construction industry.The third is a book review on a construction lawtextbook.

The regular columns on managing stress andmanagement discuss the effects of procrastination onstress and how to use social media to enhancepersonal branding. Last but not least an article oncarbon footprint in the student column.

Assoc. Prof. Sr Dr Ting Kien Hwa

EditorEditorial Board

Please adhere to all guidelineson how to prepare a manuscriptfor submission to The MalaysianSurveyor. Exceptions to theseinstructions are noted below. Thepeer-review process is applied toall submissions.

ORIGINAL RESEARCH Original articles are scientificreports of the results of originalresearch. The text is limited to3000 words, with an abstract, amaximum of 5 tables and figures(total), and up to 15 references.

Special articles are scientificreports of original research inother areas such as economicpolicy, ethics, law, and healththat are related to surveyors ingeneral. The text is limited to3000 words, with an abstract, amaximum of 5 tables and figures(total), and up to 15 references.

REVIEW ARTICLES All Review articles undergo thesame peer-review and editorialprocess as original researchreports. They should be writtenfor the surveyors and not tooacademically inclined.

Consequently, they may includematerial that might beconsidered too introductory forthe academia in the field beingcovered. The text is limited to2000 words, with an abstract, amaximum of 5 tables and figures(total), and up to 5 references.

SHORT COMMUNICATIONSShort Communication articlesare intended for brief reports ofcurrent interest in GLS, PVCS, BSand QS. The text is limited to lessthan 1000 words and deal withsignificant findings worthy ofurgent publication.

ESSAYSEssays are usually invited by theEditor. This type of articles areusually a short, literary, nonfictioncomposition (usually prose) inwhich the writer develops atheme or expresses an idea.Those who submit unsolicitedreviews and essays shouldconsult with the Editor inadvance.

LETTERSLetters to the Editor provide aforum for readers to comment

about articles recently publishedin the Journal. The text is limitedto 300 words (subject to editingand abridgment).

BOOK REVIEWSBook Reviews are generallysolicited. We are willing toconsider proposals for bookreviews, but please contact theEditor before submitting areview. The text is limited to1000 words.

GENERAL INSTRUCTIONSAll text, references, figurelegends, and tables should bein one double-spaced electronicdocument (Word Doc or PDF).Abstract should not be morethan 200 words. The abstractmust briefly describe,respectively, the problem beingaddressed in the study, how thestudy was performed, thesalient results, and what theauthors conclude from theresults. The Harvard system isused for citing references.Examples:

Rahim, S. and Hassan, K. (2007).Issues and Challenges Faced by

Surveyors, The MalaysianSurveyor, Issue 42.2, pp 85-88.

Google Earth and itsConsequences to Land Surveyors.(Accessed September 14, 2007,at http:// www.utm.my/centepis/google.htm)

COPYRIGHTThe Royal Institution ofSurveyors, Malaysia (RISM) is theowner of all copyright to anywork published in The MalaysianSurveyor. The ISM have the rightto use, reproduce, transmit,derive works from, publish, anddistribute the contribution, in theJournal or otherwise, in any formor medium. Authors may not useor authorise the use of thecontribution without the RISM’swritten consent.

SUBMISSIONSubmit your articles toeditor@rism.org.my

GUIDELINES FOR CONTRIBUTORS

Participants at The Young Achievers’ Award (YAA)

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Young Achievers’ AwardReport for Session 2011 - 2012

The Young Achievers’ Award (YAA) National Final was successfully hostedat Hotel Singgahsana, Petaling Jaya on the 21 April 2012 and it was officiated by the RISMPresident, Sr Ahmad Fauzi Nordin.

COMMITTEE MEMBERSChair Sr Fadilah Mohamad CamaludinTreasurer Sr Mohamad Shazali SulaimanCommittee Members Sr Chuan Tinng Tinng

Sr Dr Adi Irfan Che Ani/Assoc. Prof. Sr Dr Syahrul Nizam KamaruzzamanSr Mokhtar Azizi Mohd Din

OBJECTIVESThe Objective of the Young Achievers’ Award:

§ Create awareness of the surveying profession

§ Demonstrate how the four surveying divisions interact within the property development process

§ Promote interest in science and technology in general and the science of measurement inparticular

§ Help develop the student’s ability to reason given real economic scenario and to formulatestrategies within a time limit

§ During the course of this session, the committee held its meeting on 28 March 2012

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PARTICIPATING SCHOOLSSixteen (16) schools participated and they were:

(a) East Cost Branch

Sekolah Menengah Islam Aman Kelantan

Sekolah Menengah Kebangsaan Zainab (1)

Sekolah Menengah Kebangsaan Agama Lati

(b) Northern Branch

Sekolah Menengah Jenis Kebangsaan ChungLing, Pulau Pinang

Penang Chinese Girls High School

Penang Free School

(c) Johore Branch

Sekolah Menengah Kebangsaan PerempuanSultan Ibrahim

Sekolah Menengah Kebangsaan Sultan Ismail

Sekolah Menengah Tun Fatimahs

(d) Central Branch

Sekolah Menengah Jenis KebangsaanKatholik

Sekolah Menengah Kebangsaan ConventBukit Nanas

Sekolah Menengah Kebangsaan Meru

Sekolah Menengah Vokasional Sepang

Sekolah Menengah Kebangsaan Damansara

Sekolah Menengah Subang Utama

Sekolah Menengah Kebangsaan Tun Razak

Unfortunately, Sabah & Sarawak Branchwrote in apologising, they were unable toparticipate due to their tight schedule.

WELCOMING EVENTSThe students were welcomed by the YAACommittee and a briefing was given byrepresentatives from all the four divisions onFriday evening, 20 April 2012. On the same night,a BBQ dinner was hosted at the Taman Layu,Hotel SInggahsana which they thoroughlyenjoyed.

1st runner up, SMJK Chung Ling, Pulau Pinang

2nd runner up Sekolah Menengah Kebangsaan (P) Sultan Ibrahim, Johor

Champion, SMK Sultan Ismail, Johor

Briefing by Sr Fadilah Mohamad Camaludin, Chair of YAA Committee 2012

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PRIZES(1) Champion was SMK Sultan Ismail, Johor receiving

RM3,000.00 in cash, winning plaques, trophy and YAAChallenge Trophy

(2) 1st runner up was SMJK Chung Ling, Pulau Pinangreceiving RM2,000.00 in cash, winning plaques andtrophy

(3) 2nd runner up was Sekolah Menengah Kebangsaan (P)Sultan Ibrahim, Johor receiving RM1,000.00 in cash,winning plaques and trophy

ACKNOWLEDGEMENT The Chairperson and the Organising Committee wish toexpress their gratitude to the following for their continuoussupport:

Sponsors1. Association of Authorised Land Surveyors

Malaysia

2. Board Land Surveyors

3. Board of Quantity Surveyors, Malaysia

4. Board of Valuers, Appraisers & EstateAgents, Malaysia

5. Construction Industry DevelopmentBoard Malaysia

6. C.H. Williams Talhar & Wong Sdn Bhd

7. Hashim Dan Lim Sdn Bhd

8. Jurukur Bahan Antara

9. Jurukur Terra Consult

10. Metropolis Property Consultants Sdn Bhd

11. Syarikat Loh Kam Lak

12. Sr Previndran Singhe

JudgesAssoc. Prof. Sr Syahrul NizamKamaruzzamanSr Nik Afinde Nik YaakubSr Dr Tunku Fauzi Dato’ Tunku Abdul MalekSr Yusof Hassim

DivisionBuilding Surveying

Geomatic & Land SurveyingProperty Management, Valuation & Estate Agency SurveyingQuantity Surveying

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RISMTreasure Hunt 2012

The RISM Treasure Hunt 2012 was successfully heldon 28 - 29 April 2012. The event was flagged off by RISM’sPresident, Sr Ahmad Fauzi Nordin at the Institut PenilaianNegara (INSPEN - 1), Bangi, Selangor and ended at Pulai

Spring Resort, Kulai, Johor. A total of 22 cars participated in theevent which amongst others included member firms, the RISMsecretariat staff, the President and Council members.

The champion for RISM Treasure Hunt 2012 was Celcom 1 with atotal team score of 120 points followed by the first runner up,Celcom 2 (117 points) and second runner up, CPK Associates 1(111 points).

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The price giving ceremonywas graced by the Presidentwhich was held duringdinner at the same place.

The Chairman andOrganising Committee wishto take this opportunity tothank RISM JB BranchCommittee membersnamely, Sr Farid Naim, SrMahayuddin Makmin and SrYong See Lai for their effortin attending the dinner.

Lastly, syabas to all formaking it an enjoyable andsuccessful event! l

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RISMSports Carnival

2012T

he carnival was successfully held on 2 June2012 at Institut Penilaian Negara (INSPEN 2) SportCentre, Bangi. Three hundred and forty-eight RISM’smembers and families participated in this event.

The following games were contested:

1. Futsal

2. Badminton

3. Ping Pong

4. Volleyball

5. Sprints

6. Dart

7. Carom

8. Extradiction

9. Fellow Big Walk

10. Telematches

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The results are as follows:

Appreciation was rendered to RISM President,Sr Ahmad Fauzi Nordin, Sr Dr. Mohd Yunus,JUPEM’s and INSPEN’s respective staff forassistance in making this carnival a success.

Free T-Shirts were given to all who assistedand participated in the games.

Free flow of ice cream was also provided forthe duration of the carnival in addition to thebreakfast and lunch which was provided to allpresent.

EventFutsalBadminton (Male Single)Badminton (Male Double)

Badminton (Mix Double)

Ping pong (Male Single)Ping Pong (Male Double)

Volleyball (Male)Volleyball (Female)Sprints (Male 100m)Sprints (Female 100m)Sprints (Male 200m)Sprints (Female 200m)Sprints (Male 4 x 100m Relay )

Sprints (Female 4 x 100m Relay )

Dart (Male Single)Dart (Female Single)Dart (Mix Double)

Carrom (Open)Extradiction (Open)Fellow Bigwalk

ChampionINSPENMohd Hazim Jamaruddin (INSPEN)Adam Ngu Abdullah (JUPEM)Ahmed Zamani Maarof (JUPEM)Mohd Hazim Jamaruddin (INSPEN)Asmanee Zainal (INSPEN)Abd. AzizSr Ahmad Fauzi (JUPEM)Sr Azua Md. Zin (JUPEM)JUPEMARH ConsultantAhmad Munir (INSPEN)Tg. Affie Rania (RISM)Mohd Zabidi (JUPEM)Dewi Ardiela (UTM Jln Semarak)JUPEM 2 – Noraldi Mohd Zabidi M. Shaiful Khairul AzlanSiti Aishah Che RaniMastura AriffinJuwita MohdHaslinda ShafieZakir Husain HassanHarijah Yeop Mohd NasirHarijah Yeop Mohd NasirJamaludin IsaMuhammad Haikal Zahari (JUPEM)Saddamia Raudah HaronYM Sr Dr. Tunku Fauzi Dato’ Tunku A.

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An Interview With

Sr Teo Chee HaiPresident of the International Federation of Surveyors (FIG)

Brief Background of Sr TeoSr Teo was elected President of the International Federation of Surveyors at its Congress and GeneralAssembly in April 2010 as a nominee of Persatuan Juruukur Tanah Bertauliah Malaysia (PEJUTA), the FIG’ssole Member Association from Malaysia. He remains a Licensed/Chartered Surveyor in the privatepractice in Malaysia. Sr.Teo completed his undergraduate programme in surveying in Australia in 1980,and a Masters programme in Malaysia in 2004. He is a Past Secretary-General of the ASEAN Federation ofLand Surveying and Geomatics, a Past President of the Royal Institution of Surveyors Malaysia, Past Chairof Royal Institution of Chartered Surveyor - Malaysia as well has having held a number of positions in theAssociation of Authorised Land Surveyors Malaysia over the past 20 years. He has had a number ofministerial appointments in Malaysia including to the Land Surveyors Board (2003 – 2009) and theSecond National Economic Consultative Council (1999/2000).

Apart from being the President of the International Federation of Surveyors, he is also a member of theGlobal Land Tools Network (UN-Habitat) International Advisory Board.

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Q: Sr Teo Chee Hai, we fellowsurveyors in Malaysia are proud of youfor being the first Asian President ofFIG and as you are standing tallamongst all of us on the world stage.It is now almost 18 months since youformally took office. Can you pleasetell us your experience as President ofFIG so far compared to your pastexperience as President of RISM(formerly known as ISM)?

It is a privilege to be able to serve theprofession on the global stage and thedifference you are referring to, as President ofRISM back in 1999/2000, I was addressingprimarily national issues and engagingindividual members. In FIG, one needs toengage and address global challenges andconsider how the profession and FIG cancontribute. FIG is exciting in that it is aninternational federation representing theprofession where the membership comprisesorganisations and whose membership aredrawn from professionals who are practising,either privately or in public institutions andagencies, who are from the scientific, academicand research communities and who aretechnological innovators and providers.

Q: What are your main aspirations forthe FIG?

That we as a profession, armed with knowledgeand best practices and together with ourscience and technologies, extend theusefulness of surveying for the benefit ofsociety, environment and economy, becomingincreasing positioned in significance andrelevance, next door to everywhere.

Q: The FIG is a worldwide professionalorganisation. What do you see as themission of the FIG?

The Mission of the Federation, as is clearlystated in the preamble of our Statutes, is toensure that the disciplines of surveying and all

who practise them are relevant and meetingthe needs of the society, the environment andthe economy.

Q: What have been achieved in thepast one and half year since takingover office and what do you intend toachieve for the remaining term?

I think it is still early to talk aboutachievements. As a profession and Federation,we are continuing in our collective resolve, withour sciences and technologies, our knowledgeand practices, to engage and contribute toinitiatives that addresses challenges of ourtimes, such as adequate food and shelter,access to land and water, poverty, climatechange, disaster management as well asenvironmental degradation, rapid urbanisationand sustainable national and economicdevelopment. This professional contribution inturn enhances the standing, role andsignificance of the profession, wherever we are.

Q: Do you need more time to achievewhat needs to be accomplished for theSurveying profession worldwide?

A four-year term is a long tenure but thenagain, one can argue whether one ever hasenough time to deliver. However, I have a four-year fix term, a four-year work plan, withresolve, hard work and broad support fromassociates, colleagues friends and family, God-willing and with His grace, will complete mytenure as successfully as it can be.

Q: FIG has been in existence for thepast 134 years! It saddens me thatRISM is not a member of FIG. RISMhad just celebrated its Golden Jubileeand should be growing in prominence.Do you think we in RISM should havecloser co-operation with FIG to keeppace with what is happening to theSurveying profession worldwide ratherthan to reinvent the wheel which canbe time consuming and expensive?

RISM was a member of FIG since the sixties, ifmemory serves, until about ten years ago, and Iremain convinced that it was short sightednessthen that resulted in RISM’s withdrawal fromFIG. As RISM seeks to advance the interest ofits membership and increases its prominence,RISM must keep pace with professionaldevelopments elsewhere including globally butthere is always a price and a resource issueinvolve. I must also add that there are anumber of significant developments over thepast nine months within the international arenathat has a significant impact on our profession,the natural and built environment professionalsthat are involved in land (and the seas),construction and properties. As we are in an

As we are in an era wherewe no longer have theresources and luxury toreinvent the wheel, as youhave put it, we must belooking to collaborate,cooperate and contribute!

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era where we no longer have the resources and luxury toreinvent the wheel, as you have put it, we must belooking to collaborate, cooperate and contribute! Isuppose the present leadership of RISM would need towrestle with its international positioning and profile. I amready to contribute where appropriate!

Q: The world is rapidly changing in terms oftelecommunications and computer technology.What are the impacts of the advancement oftelecommunications and computer technologyon the geomatics professionals? In whatdirections do you think the geomaticsprofession should be heading?

Not just the geomatics professionals. As what I term thenatural and built environment professionals, the landsurveyors, the hydrographic surveyors, the spatialscientists, the building surveyors, the quantity surveyors,the construction economist and managers, the valuers,the property managers and consultants, we areexperiencing a newer generation of internet, mobileservices and apps, such as online maps and locationbased services and applications, that are stimulating agreater interest and use of location in society today. Theseadvances are being increasingly deployed, for example, tolocate a point of interest such as a restaurant, to ensureemergency services arrive at incidents in time, to ensurethat services are better targeted to citizens needs and toempower citizens and communities to manage theircommunities and administer their spaces and resourcesmore effectively. This location revolution as we areexperiencing in our personal lives is being mirrored in ourprofessional lives. It is clear that our profession mustprogress beyond mere data collectors, into the realm of

services and applications, in particular with location orspatial aspects, becoming knowledge managers,deploying solutions that address the challenges andneeds of the times.

Q: As you have had an illustrious career as aSurveyor in Malaysia and you have contributedimmensely both nationally and internationally,you are an excellent role model for youngSurveyors in Malaysia. What is your advice tothese young Surveyors?

At the recent RICS-RISM-PEJUTA Surveying UndergraduateConference, I urged the participants to be ready to bepart of the solution humanity expects from anyprofessionals and this will require the young Surveyors oftoday to go beyond their present comfort levels, to beinclusive and innovative where change is the norm, to beready to step out, step up and make difference where itmatters, to have an impact where it matters most for thefuture of humanity, to contribute base on, as Franklin DRoosevelt put it, “honesty, on honour, on the sacrednessof obligations, on faithful protection and on unselfishperformance.”

Thank you for your time and interest.

A four-year term is a longtenure but then again, one canargue whether one ever hasenough time to deliver.

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Text of the President of the International Federation of Surveyors Address at the

Opening Ceremony of the 2012Working Week and Conference

We are in a rapidly changing environmentand good governance of our land andthe seas, our natural and builtenvironment, its resources and assets

remain paramount. We are witnessing a newgeneration of web and mobile services, such as onlinemaps and location based services that are stimulatingan increasing interest and use of our sciences andtechnologies in society today.

Information, with both geographic and temporalcontext, is increasingly being used to find, say arestaurant, to ensure emergency services arrive atincidents in time, to support the formulation ofpolicies, for evidence based decisions, to ensure thatservices are better targeted to citizens needs as well asto empower citizens and communities to managetheir communities and administer their spaces moreeffectively.

With global initiatives on managing all informationspatially, on voluntary guidelines on the ResponsibleGovernance of Tenure of Land, Fisheries and Forest, onspatially enabling governments and societies, towardsgreater transparency and good governance, towardswhole-of-government effectiveness and efficiencies incitizen-centric delivery systems, the usefulness ofsurveying (its science, is technologies, its practices) inaddressing the developmental and economicalchallenges of the times is recognised. Our professionand our Federation are at a historic moment.

The profession is now firmly in the continuumparadigm. We embraced the Continuum of LandRights, we know we must adopt a continuum ofapproaches, a continuum of technologies and

technological sophistication, a continuum ofaccuracies. We understand that we have to progressbeyond securing tenure rights for all into landvaluation and taxation, land development andconstruction and the land market. We need to moveinto the next Paradigm where we are inclusive andinnovative, where we will be required to embraceOpen Standards; Interoperability (of systems,institutional and legislation); culture of collaborationand sharing; avoidance of duplication; incorporation ofvolunteered information; developing enablingplatforms and delivering knowledge from informationand data from different scales, purposes and origins.

There need to be structural changes in theinstitutional, legislative and professional domains.

The surveyor today and tomorrow, whether we areworking on land or in the seas, into construction orproperties and real estate, we must be in the businessof providing solutions with our data, information andknowledge. Our profession is a real world peoplecentric profession, ours is a creative and constructiveprofession. And we must continue to be so.

During these times, it is important that we areengaging in idea generation, conceptualisation andconstructive development, engaging in the creativeprocesses that inspire the young, that which isinnovative, that generates new approaches andopportunities, including that which has never beforeexisted. We must devise fit-for-purpose, affordable,appropriate and applicable approaches as we seek tobe part of the solution the world expects from ourProfession in addressing the challenges humanityfaces today. l

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Competitive Strategy InQuantity Surveying FirmsWeigh Your Options

Nur Azila Adros1, Nazirah Zainul Abidin2, Lim Yoke Mui31 azilaadros@gmail.com,2 nazie2609@gmail.com,3 limyokemui@gmail.comSchool of Housing, Building and Planning. Universiti Sains Malaysia

The competitive pressure in the constructionindustry requires its players, including quantitysurveyors, to be more resilient and “competitive-able” to withstand the stiff market challenges.Applying an effective strategy is vital tosafeguard the interest of the firms to remainrelevant in the industry. But, how do we choosethe most suitable strategy for the firms? Thefirm size could influence the choice ofcompetitive strategy adopted in a firm, however,it also depends on the priority of the firm.Whether they want to stay visible in the marketor to climb a higher hierarchy in the market, it isimperative for quantity surveyors’ firms toensure that the strategy they use to compete istailor-made for their own satisfaction.

Introduction

The pressure to cater for manyfacets in the industry has resulted inhigher expectation or demand for better anddiversifying services tied up with more

advanced or technologically-challenged products.Significantly, this demand forces the QuantitySurveying (QS) firms to continuously improve theirservices to remain active in the market. Nowadays,QS firms can no longer limit their services to basic ortraditional services but should expand their scope tomatch the clients’ and industry’s demand. Theincrement in the number of new companies enteringthe market on yearly basis also necessitates effectivecompetitive strategy. QS firms must adapt effectivestrategies, seek improvements in every area of thebusiness, building awareness and able to understandpotential strategies to win the competitive battle.Competitive strategy is defined as “strategic intent,”having a winning business model, and having “theplan” the “answer” that is uniquely “right” fororganisation (Chauduri, 2006). The firm size couldinfluence the choice of competitive strategy adoptedin a firm, however, it also depends on the priority of

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the firm. The selection of anappropriate strategy is alsoinfluenced by the strengths andweaknesses of each firm ascompared with its competitors. It isimperative for the firms tounderstand their businessapproach, the strategy theyadopted, the success of thatstrategy and the requirement tochange strategy when necessityensues, especially to stay relevantin the industry in the long run.

The Need to CompeteQS is the one who ensures that theresources of the constructionindustry are utilised to the bestadvantage by providing, inter alia,the financial management forprojects and cost consultancyservices to the client and designerduring the whole constructionprocess. In past years, whencompetition is not an issue, QS cansurvive in the industry without theneed for the ‘right-strategy’. As thenumber of firms continue to grow,this way of thinking is no longerfeasible. In this dynamic industry,QS firms need to look for projectopportunity instead of waiting forproject to come to them. There aresome well-established QS firms thatlead the construction industry byhaving good reputation, stability andis favourable among the clients,while others prefer to stay in thecomfort zone with the same type ofprojects. There are perpetually somenew entries that are struggling tofind their comfort zone and mayface pitfalls while some are alreadyin their comfort zone but dare toimprove their position in theindustry. With the increasingdemanding clients, QS firms mustoutperform the other to be the“chosen one.” In an intensecompetition, they must realise thattheir services, regardless of howgood they are, simply do not sellautomatically as they can no longerwait for clients to come by (Phengand Ming, 1997). To establish theirfirm in sustainable position, aproper understanding is needed toevaluate their style of competing,recognise their strengths andweaknesses and identify theircompetitor’s strength to moveforward. QS should enhance theirprofessionalism and status in orderto maintain their competitiveadvantage (Davies et al., 2005). QSshould adapt to changes in workpatterns, develop new markets and

cultivate superior advantages overtheir competitors in order tomaintain his competitive positionand ultimately his profit making.Armed with the right strategy is thekey ingredient for a long-termsuccess of QS firm. Strategies arelong-range plans, methods, andapproaches that a company adoptsin order to reach its goals in acompetitive environment(Warszawski, 1996). A clear strategywill direct the QS firms to identifytheir potential competitor’s capacityand competitive stance.

Ways to Compete There are many ways of competingand most can be rationalised intoone of the three generic strategiesas suggested by Porter (1985).Porter’s competitive strategies havebeen found suitable for use inconstruction industry and later in QSfirms (Jennings and Betts, 1996).These competitive strategies consistof Cost Leadership, Differentiationand Focus strategy. The adoption ofthese competitive strategies is a wayfor them to compete effectively tostrive for success in formidablechallenges and stood out from theirrivals in the highly competitiveenvironment. A cost leadershipstrategy is most effective inpredictable and stableenvironments, since environmentsthat are unpredictable or subject tomuch change will create severe

diseconomies for organisationstrying to pursue a cost leadershipstrategy. The company that seeksleadership in cost has to focus theentire organisation to achieve thisobjective, creating a culture of lowcosts, working constantly to reducewaste and remaining constantlyattentive to the cost positions of itscompetitors (Shimizu et al., 2006).Differentiation on the basis of thesekey buying criteria (quality,innovation, schedule, and cost)enables a construction firm to offerproducts/services that are valuableto clients and allows the firm tocreate an island of non-competitionaround itself. Differentiation to a QSfirm on the other hand is how theyportray and differentiate themselvesto client by diversifying serviceoffered to client such as with theexistence of marketing, innovationand others more. Focus strategy ismore towards the brand loyaltyconcept between the clients and QSfirm and this strategy is mostlygained by long-term relations withthe client (Dikmen and Birgonul,2003). Besides the three genericstrategies, there is other genericstrategy, which is Growth strategythat has not been consideredexplicitly. Definition for growthstrategies on QS firm is the firm’scapabilities to expand their firm notonly locally but also internationally.There are several reasons for firmsto expand their business into new

Types of strategies Interpretation in QS firmsCost leadership Lower fees than other QS firms; Sustain capital investment and access

to capital; Training of personnel; Geographical area; Specialise in work; Optimise staff/salary levels; Technological Advance

Differentiation Identify client’s requirement and maintain good relationship; Branding; Innovations; Marketing

Focus Develop specialist information system; Employ specialist staff; Develop expertise in area; Market to specific client type; Standardise specialist procedures; Focusing on certain types of projects

Growthstrategies Entry into new locations or regions (internalisation); Entry into new types of construction projects; Engaging in new businesses

Table 1: Interpretation of Competitive Strategies in QS Firms

QS firms can no longer limit their services tobasic or traditional services but should expandtheir scope to match the clients’ andindustry’s demand.

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markets, such as stagnant existing markets, booming ofnew markets, and competitive use of resources (Langfordand Male, 2001). Under each strategy, the relevantstrategic behaviours of QS firms are presented in Table 1.

Weigh Your ChoiceThe major concern for every QS firm to strive for successis on how to compete by choosing the best strategy. Thestrategy chosen will underpin every other strategicdecision that will be made, so it is worth spending timeto get it right. Does selection of your strategy depends onyour firm size? There were some conflicting opinionsamong the scholars about the relationship between firmsize and the suitability of certain strategy. However, recentstudies (Bishop and Megicks, 2002; Siskina et al., 2009)generally agreed that firm size actually can influence theircompetitive options because of some basic differences inthe behaviours and characteristics between small,medium and large firms. The small size firms consist ofless than six quantity surveyors. Medium size firms wouldhave between 6 to 20 quantity surveyors, while largefirms should consists of more than 20 quantity surveyors(Jennings and Betts, 1996). The co-existence of small,medium and large firms in an industry may beattributable, in part, to their different strategic positions inthe market. The appropriate strategies for small firms arelikely to be influenced by the existing strategic orientationof larger competitors and the market environment. Athorough understanding of the strategic positions of largecompetitors is of considerable value to the formulation ofeffective strategies for the small firm. Whilst strategiesbased on differentiation and the development of marketniches are often appropriate for small firms, in marketswhere large firms are adopting high quality strategies alow price option may be viable. Firm size should beregarded as one important factor influencing strategy butthere are many industry-specific factors that may alsohave an important influence.

Each type of the generic competitive strategies appeals tobe different and may have different impact to QS firms.Cost Leadership strategy requires a detailed internal focuson processes. Small firms may adopt Cost Leadershipstrategy to concentrate their efforts on a small, faithfulgroup of clients which this size of practice typically hasand whom they retain by providing a good service andencouraging personal relation. Small or medium size QSfirms can choose Cost Leadership strategy when theenvironment is particularly competitive and the projectsare fairly uniform. QS firms may also choose this strategy

when they need to develop a competitive edge in someresources such as training of personnel, technologicaladvance etc. if they want to offer more efficient and lessexpensive performance. QS firms who have superiortraining of personnel who works towards maximumadopt this strategy will conceivably result in reducedcosts. Utilisation of advanced technologies leads tosavings for labour. Firms who wanted to reduce their feeswill discard unnecessary overheads.

A small size or a boutique QS firm should opt for focusstrategy. It concentrates on specific market, if they preferto focus upon particular market niches rather thancompete across a broad market. Focus strategy may bemore realistic for small firms as they require limitedcommitment of resources, and entry barriers to smallmarket segments may be relatively low. Such strategiesmay also conform to the objectives of many small firmmanagers, which are typically more concerned with short-term survival and maintenance of independence thangrowth. Small size firms basically have better knowledgeof their client’s particular needs and preferences and thisis one of the reasons why they only cater their faithfulclients. This attracts the clients’ interests to maintain long-term business relationships with the QS and retainexclusive services from them. Small firms usually havefew numbers of staff who is potentially well trained andhave skilled staff. They undertake simple projects of afixed type to which they became adept, and this specificproject type competence plus ‘optimised staff/salarylevels’ and discarding unnecessary overheads’ achieveslower costs (Jennings and Betts, 1996). Small firms mayhave a competitive advantage in operating in specificmarket segments as a consequence of their streamlineddecision-making processes, which enable them torespond more flexibly and rapidly to the needs ofindividual consumers and market conditions.

Differentiation strategy demands an outward-facing,highly creative approach towards the services that beingoffered. Large firms have more resources andcompetencies to differentiate themselves from theircompetitors. They can adopt Differentiation strategyinstead of Cost Leadership to secure their revenue andprofit growth. Larger firms usually have longer history andrecognisable name. They compete by using their image,reputation and experience to strengthen their position inindustry. Other than that, stronger financial resourcesindicate the firm’s credibility and capability to get involvedwith more challenging situations with higher potential ofgreat return. They can become creative in business tooffer new types of services and market them to attract

QS firms must adapteffective strategies, seekimprovements in every areaof the business, buildingawareness and able tounderstand potentialstrategies to win thecompetitive battle.

Differentiation on the basis ofthese key buying criteria (quality,

innovation, schedule, and cost)enables a construction firm to

offer products/services that arevaluable to clients and allows the

firm to create an island of non-competition around itself.

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more clients and outperform their rivals. The firms thatapply Differentiation strategy must have staff that are bothtechnically and socially competent and are able to usedetailed information systems if they are to maximise thesuccess of their chosen strategy. Differentiation strategy isworkable to QS practitioners that dare to make changesin industry by using ideas that are unique and ‘out of thebox’ to establish their firm in foreseeable future.

Growth strategy will enable firms to expand their firmlocally or internationally. Thus, it is suitable for any size offirms who consider expanding their current market intonew location or region. As service provider, QS firms canoffer their services outside their home country to exportand internationalise their services. There are two types ofventuring into different market; offering services to othercountries (go international) or offering services intodifferent field (other than building construction). In firstcase, the QS firms expand their market into other country,who are most likely already have their own local QS firmswho can offer the same services at a much cheaper rate.The competition exists in the form of existing local firmswho are well verse in their culture and ways of business.

How do you compete with them? QS Firms entering newterritory must find ways to offer services that are uniqueto the client, show that we are aware and respect of theirpolicy, limitations and culture and most importantly,showcase out capability, experience and resources toattract their attention on the services that we can offer. Inanother word, the QS firms must stand out from othercompetitors. In second case, QS can also extend theirservices into different market, i.e. other than constructionindustry. Previously, QS firms have involved in industrysuch as oil and gas industry and banking sector.

In order for QS firm to stay on track, it is crucial for themto assess their strengths and weaknesses and their firm’sresources to achieve their targeted goals. QS practitionersneed to weigh what type of competitive strategy suitsthem best as a ‘passport’ for them to success and avoidtrouble juggling in maintaining their position year in andyear out from the fierce competition.

ConclusionGlobal competition and technological change, combinedwith multi-disciplinary supply chain, dynamic nature ofmarket, limited resources and demanding customers haveput more pressure to the construction industry and itsplayers to be more competitive-able to withstand the stiffmarket challenge. As one of the industry player, QS arenot excluded in this market game and must continuouslyoutperform others, if they not at par, to stay relevant inthe industry. There are four competitive strategies that canbe applied in QS firms but to decide on the best option,one must understand their working environment, awareof their strengths and weaknesses and utilise theavailable resources to the best of their ability. Choosingstrategy that can provide maximum advantage whichbest-suited the firms interest and agenda is crucial as itallows the firm to maintain its existence and prosper at itsown pace and comfortably.

Differentiation strategy isworkable to QS practitioners

that dare to make changes inindustry by using ideas that

are unique and ‘out of the box’to establish their firm in

foreseeable future.

ReferencesBishop, P. and Megicks, P. (2002). Competitive strategy and firm size in the estate agency industry. Journal of SmallBusiness and Enterprise Development. Vol. 9 (2), pp.150 -161.

Chaudhuri, S. K. (2006). Case Studies On Competitive Strategies. Vol I, ICFAI Books.

Davies, T., Gilbert, B. and Swartz, J. (2005). Competitive response: a new lens for evaluating company performance.The Practical Real-Time Enterprise. Springer.

Dikmen, I. and Birgonul, M.T. (2003). Strategic Perspective of Turkish Construction Companies. ASCE Journal ofManagement in Engineering. Vol.19 (1), pp.33-40.

Jennings, J. M. and Betts, M. (1996). Competitive Strategy for Quantity Surveying Practices: The Importance ofInformation Technology. Engineering, Construction and Architectural Management. Vol. 3 (3), pp.163 – 186.

Langford, D. & Male, S. (2001). Strategic Management in Construction. 2nd ed. Oxford: Blackwell Science.

Pheng, L. S. and Ming, K. H. (1997). Formulating a Strategic Marketing Mix for Quantity Surveyors. MarketingIntelligence & Planning. Vol. 15 (6), pp.273 – 280.

Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press, New York.

Shimizu, T., Carvalho, M., M. Laurindo, F. J. B. (2006). Strategic Alignment Process and Decision Support Systems:Theory and Case Studies. Hershey: Idea Group.

Šiškina, A., Juodis, A., Apanaviciene, R. (2009). Evaluation of The Competitiveness Valuation of The Competitivenessof Construction Company Overhead Costs. Journal of Civil Engineering and Management, 2009, 15(2): 215–224.

Warszawski, A. (1996). Strategic Planning in Construction Companies. Journal of Construction Engineering andManagement. Volume 122 (2), pp. 133-140

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How To Avoid CostlyClaims And Disputes

John Wong Weng LongBSc (Hons) Quantity Surveying, LLB (Hons), ACIArb,MISM, Registered Quantity SurveyorAssociate Director – Charlton Martin Consultants Sdn Bhd

Claims by contractors are often seen as a contributing factor to project budgets beingexceeded. The majority of such claims centre on claims arising from delays suffered bycontractors. It may be a common perception that claims arise from claim-consciouscontractors. However, it would not be a surprise that the majority of such claimsoriginate from root causes which are within the control of the Employer and itsconsultants and thus can be avoided. Where claims cannot be avoided and thatdisputes are imminent, arbitration is often employed to resolve such disputes but notwithout a heavy price tag.

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In these circumstances, costly arbitrationscan be avoided if both parties to the disputes arewilling to seek and be guided by the opinion/decisionof an independent claims expert as an alternative to

arbitration. Such opinion/decision may shed light on theparties’ true liability or entitlement in respect of theclaims so as to resolve the disputes in an efficient andeconomical manner without resorting to arbitration.

Claims and avoidance thereofConstruction projects are often plagued by cost overrunsone of the contributing factors of which is contractors’variation and delay claims. Though this may be true, onemight go further to ask ‘what cause has given rise to suchclaims in the first place?’ In the sight of employers whoare at the receiving end, they might say it is thecontractors who are claim conscious. From theperspective of contractors who submit the claims, theymight say the claim arose through no fault of theirs. Bethat as it may, if one were to scrutinise the claims, themajority of them arose from variations to the works anddelays caused to the works albeit some of the claimsmight have arisen from the contractors’ own default.Common causes of contractors’ claims are as follows:

i) Variations

ii) Delays arising from obstruction by employers’ otherdirect contractors

It would not be a surprise that the causes of claimscomprising variations and delays are within the control ofthe employers and their consultants and thus measurescan be implemented to prevent and/or minimise theclaims. These causes and measures are elaborated below.

i) Variations

Variation claims arises when changes to the scope ofworks are instructed and that fall within the ambit of thedefinition of variation. These variation claims are usually

straightforward matters and are not disputed. However,what is often overlooked is that the definition of variationmay also include instructions to alter a contractor’smethod and sequence of working as found in Clause 11of PAM 98 and PAM 2006 contract. The contractor’sobligations in respect of the schedule for completionunder the contract are usually confined to commencingon and completing by certain dates specified in thecontract. How the contractor plans to complete the worksis not usually specified in the contract. Therefore, it isoften the contractor’s prerogative to adopt its ownmethod and sequence of construction so long as they arereasonable for the purpose of achieving completion bythe specified date. An instruction to alter the method orsequence of the works may cause the contractor a loss ofproductivity and subsequent delay and costs thus givingrise to claims for additional time and costs.

In this respect, it is advisable that an employer’sconsultants advise the employer on the cost and timeimplications of instructing a change to the contractor’smethod and sequence of works before any decision ismade to issue the instruction. Embarking in a preliminarystudy of the cost and time implications goes a long waytowards avoiding any unnecessary variation claims fromthe contractor.

ii) Delay arising from obstruction by employers’other direct contractors

Delay claims arise when there are delay events whichhave caused the contractor to suffer delay to the progressof the works and incur additional loss and expense. Evenif the completion date under the contract has not lapsedyet, if a delay occurs at the outset of the project that hascritically delayed the progress of the works and that thecause of the delay falls within the grounds for extensionof time and loss and expense under the contract, then thecontractor may be entitled to an extension of time andloss and expense.

A common delay event arises from obstruction byemployers’ other direct contractors. Such obstruction isusually caused by lack of coordination between the maincontractor and the employer’s other direct contractors,particularly, in projects where both the substructurecontractor and superstructure contractor are sharing the

… it is advisable that anemployer’s consultants

advise the employer on thecost and time implicationsof instructing a change to

the contractor’s method andsequence of works before

any decision is made toissue the instruction.

Embarking in a preliminarystudy of the cost and timeimplications goes a long waytowards avoiding anyunnecessary variationclaims from the contractor.

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same site. In this circumstance, it is advisable that theemployer engages a project management consultant oran in-house project manager to coordinate the works ofthe various contractors. With the involvement of a fulltime project manager on the site, coordination of workscan be streamlined.

Disputes and avoidance thereofWhere claims cannot be avoided and have to besubmitted to the employer’s consultants for assessment,these claims might trigger a defensive mode on the partof the employer and its consultants. In the large majorityof projects, the employer might dispute the contractor’sentitlement to such claims. As a result, the employermight be entrenched in its position on the belief that thecontractor is not entitled to such claims. The employer’sposition might have been based on the advice of itsconsultants who might view the claims from their ownperspective. Conversely, the contractor might also beentrenched in its own position believing that it is rightfullyentitled to the claims. Where each party would not budgefrom its respective position, the dispute might escalateinto an arbitration which is provided for in mostconstruction contracts.

In arbitration, not only do the parties have to pay for thefees of their solicitors or representatives to representthem in arbitration, but also pay for the fees of thearbitrator(s) as well as other miscellaneous arbitrationcosts. Accordingly, arbitration can be a costly disputeresolution method.

Be that as it may, costly arbitration can be avoided whereboth parties agree to refer the dispute to an independentexpert who posses expertise in claims. The parties willshare the fees of the expert which is relatively low ascompared to the cost of a full blown arbitration.

The expert can take up a role in the following manner:

i) Giving an independent opinion

ii) Giving a binding decision in Expert Determination

Giving an independent opinion The expert in claims can be engaged by the parties tostudy the dispute and give an independent opinion onthe parties’ contractual position in respect of thecontractor’s entitlement to claims and the employer’sliability to those claims. In other words, the expert’s

opinion may reflect the likely decision of an arbitraltribunal had the dispute been referred to the tribunal.Although the expert’s opinion is not binding on theparties, such opinion serves to assist the parties to makean informed decision when negotiating for a settlement.If negotiation breaks down, then the parties might referthe dispute to arbitration. Nevertheless, the expert’sopinion offers the parties an opportunity to reach asettlement that might avoid costly arbitration.

Giving a binding decision in Expert Determination

The expert in claims can also be engaged by the partiesto study the dispute and give a decision on the parties’contractual position in respect of the contractor’sentitlement to claims and the employer’s liability to thoseclaims. In other words, the parties agree that the expert’sdecision will be binding upon them. This process isknown as Expert Determination and will be agreed by theparties to replace arbitration as an alternative disputeresolution. It should be pointed out that ExpertDetermination is only suitable where the dispute matterconsists of contractor’s claims of which the expert possesthe expertise.

ConclusionContractor’s variations claims and delay claims can beavoided through pro-active measures where root causesof the claims are within the control of the Employer andits consultants. Where claims cannot be avoided anddisputes are imminent, such disputes can be resolvedthrough other means of dispute resolution the costs ofwhich are lower than those of arbitrations. Those meansinclude expert’s opinion that facilitates commercialnegotiation or expert’s decision in Expert Determinationthat replaces arbitration.

… it is advisable that theemployer engages a project

management consultant or an in-house project manager to

coordinate the works of thevarious contractors.

With the involvement of a fulltime project manager on thesite, coordination of works canbe streamlined.

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The Significance ofStrategic Planning andManagement in FacilitiesManagement

Maszuwita Abdul Wahab1, Syahrul-Nizam Kamaruzzaman2, Mohd-Khairolden Ghani31 Universiti Teknologi MARA, maszuwitawahab@yahoo.co.uk2 University of Malaya, syahrulnizam@um.edu.my3 Construction Research Institute of Malaysia (CREAM), khairolden@cidb.gov.my

This paper presents the significance of strategies for facilities management (FM) tostrengthen and improve the effectiveness and efficiencies of FM organisations to comeup with good business decisions and to be innovative towards achieving theorganisations’ business goals. Our review is based on previous research studies thatcontribute towards the improvements of FM strategies. FM is a multidisciplinary fieldthat had been broadly applied and increasingly popular in United Kingdom, UnitedStates and other developed countries. It aims to achieve an organisation’s corebusiness, improve quality of products and services as well as increasing the FMperformance. Good FM performance contributes to customer satisfaction, workproductivity, stability of business environment, increasing profit margin and to meet thestrategy needs. In this paper, we are focusing on the importance of strategies in FMand the techniques that were previously used in developing FM strategies. Innovationand business environment will be discussed as part of the contribution towardsdeveloping strategies for FM.

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1. INTRODUCTION

Facilities management(FM) has broad functionsand lately haveencompassed many other

industries such as real estate,human resource, health and safetymanagement, building andengineering (Atkin and Brooks,2005). FM is able to manage thefacility resources, support services,working environment, providesquality services and value for moneyfor short- and long-term basis(Chotipanich, 2004). On the otherhand, Alexander (2003) hadmentioned that FM contributes tothe organisational effectiveness thatleads to a good business decisionstowards continuous improvement. Itis also collaborated within the usersatisfaction and services such asspace, environment, informationtechnology, support services andinfrastructure in order to upgradeand improve the organisation’s corebusiness to gain success (Alexander,1996). Nutt (2000) had defined thatFM is “to provide appropriate andlogistic support to business and thisis to sustain the organisation’s corebusiness, operations, group,individual, project team, suppliersand customers.” Prior to this, FM isknown as a multidisciplinary fieldthat contributes to every level of anorganisation. Table 1 shows variousdefinitions of FM that emphasisethe decision making process,continuous improvement andmanagement actions that lead toincreased profit margins of anorganisation and also to achieve theobjectives of its core business.

Definitions in Table 1 show theintegration of scope of FM thatsupports the core business toachieve competitive advantages byimproving the paradigm of FMorganisations. FM not only coverstechnical aspects such as operationsand maintenance but also othernon-technical aspects thatcontribute to the success of the builtenvironment (Ong, 2009).Moreover, the main componentssuch as people, place, process andtechnology that have been derivedby IFMA need to be emphasised inupgrading the FM productivity that

contributes to continuousimprovement. Prior to this, FMorganisations need to look intocosts, quality and innovation thatcan give impact to FM industryglobally (Moore and Finch, 2004).

2. FACILITIESMANAGEMENT INMALAYSIA: AN OVERVIEWA survey by Moore and Finch (2004)mentioned that FM is establishingwell in South East Asia (SEA)countries such as Hong Kong andSingapore followed by Malaysia,where there is evidence of progressin the FM industry. The study wasbased on restricted sample rangeand it has been emphasised thatfurther research and investigationtowards the findings need to bedone in order to enlighten the FMindustry (Moore and Finch 2004). Toidentify the FM growth in SEA,Moore and Finch (2004), had

focused on important factors suchas general factors and regionalfactors. General factors consist ofglobalisation, informationtechnology, high cost of space,employee expectations and cost ofmistakes. Meanwhile, regionalfactors consist of regional economy,property market, market maturity,procurement system and generalbusiness environment. The majorityof the respondents are from HongKong, Singapore and Malaysia. Priorto this, it is shown that, FM inMalaysia is in the infancy level.

Pillay (2002) had briefly discussedthe history of FM in Malaysia. FM inMalaysia started in the 1990’s withthe support from the governmentsector. Earlier, it is known that FMhas less collaboration with the realestate, architecture, andconstruction profession but now FMhas a new level of thinking andcollaborates with all these fields inorder to strengthen the efficiencies

Author / Organisation FM definitionsChotipanich (2004) The support function coordinating physical

resources and workplace, and support services to user and process of work to support the core business of the organisation.

Pitt and Tucker (2008) The integration and alignment of the non-core services, including those relating to premises required to operate and maintain a business to fully support the core objectives.

Noor and Pitt (2009) Creating an environment that is cohesive to carry out an organisation’s primary operations, taking and integrated view of the infrastructure services and use it to give customer satisfaction and value for money through support for an enhancement of the core business.

RICS (2009) A discipline that improves and support the productivity of an organisation by delivering all needed appropriate services, infrastructures, etc. that are needed to achieve business objectives.

Kamaruzaman and Zawawi (2010) A balance between technical, managerial and business acumen that may be related to operational, tactical and strategic decision making process.

IFMA (2010) Facility management is a profession that encompasses multiple disciplines to ensure functionality of the built environment by integrating people, place, process and technology.

BIFM (2010) Facilities management is the integration of process within an organisation to maintain and develop the agreed services which support and improve the effectiveness of its primary activities.

Table 1: FM definitions

Source: Noor and Pitt, 2009

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of organisation that focuses onpeople and processes(Kamaruzaman and Marinie 2010).In addition, in the 1990’s, FM wasrecognised as outsourcingorganisation till today and it isimplemented in governmentbuildings whereby FM is the “one-stop centre” that will focus onservice level and customerrequirement respectively (CIDB,2010).

The Prime Minister of Malaysia(2001) adapted from(Kamaruzaman and Marinie 2010)had emphasised that, “unlessMalaysian change their mentality tobecome more aware of the need toprovide good services and improveupkeep of buildings, we will foreverbe a Third World country with FirstWorld Infrastructure.” This statementmainly focused on the asset and tocreate awareness on FM towardsproviding quality facilities, services,and best practices. The currentsituation of FM in Malaysia can besaid to be at an infancy stage withless knowledge in practicing itbroadly and lacking recognition onthe industry (Noor and Pitt, 2009).Thus, FM in Malaysia needs to beupgraded and to focus on the skillsand knowledge to maintain theidentity and image of FM industry.Therefore, the importance ofstrategies for FM to be practised inevery FM organisations.

3. WHAT IS STRATEGY?The significant of strategy is tocreate a systematic organisation thatlead to continuous improvementand as well as to achieve itsobjectives for a longer term. Pugh(2011) mentioned that strategy is away of thinking to monitor thestrength and weakness in order tohave the ongoing growth of

achievement of business. Pugh(2011) also highlighted that strategyis about learning, discovering andinventing that supports theorganisations best practice towardscompetitive advantage. Meanwhile,Johnson and Scholes (1999) definestrategy as the “direction and scopeof an organisation over the longterm which achieves advantage fororganisation through itsconfiguration of resources withinchallenging environment, to meetthe needs of mark and to fulfilexpectations.”

Strategy is needed to come up withgood decision making, upgrade thebest practices which will influencethe quality, time and cost. It is also away that helps managers to comeup with good business decisions forthe long term basis and as well asmanaging activities and bestpractices that contributes to theorganisations and businessperformances (Adcroft et al., 2008).Thus, strategy and operationaleffectiveness is towards superiorperformance that can contribute tothe achievement of primary goalswhereby it is based on customers’needs, accessibility and the varietyof products and services and

strategy can be said as about beingdifferent and choosing to performactivities which is the basic units ofcompetitive advantage (Porter,2008). Besides, strategy is themanagement’s core in order tounderstand the significance oforganisation’s positions to achievethe goals, mission and visionglobally (Porter, 2008).

4. TECHNIQUES USED INDEVELOPING STRATEGIESFOR FACILITIESMANAGEMENTFM is an important profession whichis not only focusing on theeconomic capabilities, but alsoshares its importance towards socialand environment benefits(Alexander et al., 2006). FocusingFM at strategic level is basically onthe excellence of leadership thatdrives towards strategic path and atthe same time effective learning andinnovation will help to add value tothe FM organisation (Alexander,2003). Furthermore, Alexander(2003) highlighted that FM need tobe seen in an extensive manner andrevise the strategies to develop newprocess that contributes tocommunity, purpose andenvironment. According to Atkin andBrooks (2005), developing strategiesfor FM plays an important role incontributing to organisationsbusiness objectives and needs.There are three stages that need tobe focused on in developing FMstrategies which comprise ofanalysis stage, solution stage andimplementation stage as shown inTable 2.

Stages ActionsAnalysis stage Relevant facts including the organisation’s objectives,

need and policies, a review of resources, process, system and the physical assets together with the attributes in terms of space, function and utilisation.

Solution stage The criteria for judging options, evaluating these against the objectives of the organisation, and develops the facilities management strategy.

Implementation stage Completes the strategy development process through the establishment of an implementation plan that incorporates the key elements of procurement, training and communication.

Table 2: The Stages in Developing FM Strategies

...FM contributes to theorganisational effectiveness that

leads to a good business decisionstowards continuous improvement.

Source: Atkin and Brooks, 2005

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Table 3 shows the stages involve indeveloping FM strategies that willbe very much relevant for theorganisations strategic andoperation plans that contribute toorganisations’ core business. Atkinand Brooks (2005) had introduceda framework (Table 3) on theprocess of developing FM strategiesin order to have a betterunderstanding on the currentsituation and the approach betweencore business and FM. Nutt (2000)highlighted that developingstrategies for FM comprise of fourcompeting trails comprisingbusiness, people, process andtechnology that act as a supportbusiness that contributes directly toproductivity and humaneffectiveness that lead tocontinuous improvement, successand opportunities.

Strategies play an important role inevery organisation whereby this willinfluence the profit margin,customer satisfaction as well as therecognition of FM organisation. Inaddition, this will provide gooddelivery on quality, cost and timethat meet the customers’requirements as well as to increasethe customers’ expectations towardsproducts and services (Alexander,2003). Alexander (2003),mentioned that “strategic plannersneed to predict future businessconditions in order to make theappropriate decisions about thebalance facilities needed, the way inwhich to organise their operationand management and the best wayof providing them.”

Prior to this, FM organisations needto improve the quality of FM byproducing good business strategiesand increase the professionalism inthis field towards innovation andbusiness environment that lead tothe success of its core business.According to Timm (2011), FMmanagers play an important role todevelop strategies that contribute tobusiness productivity byunderstanding the business,structuring the operations by newway of thinking and to support thecustomers’ needs in order to

Development stage Phase Technique or ToolStrategic Analysis Services audit/review

Assessment of expectations and objectives

Portfolio audit

Resource Audit

Market Audit

• Benchmarking • SWOT analysis

• Space analysis,Maintenance plan,risk audit

• People/skills audit• Service provider audit

Service providers(external)

• Supply of real estateetc.

Developing Solutions Generations of options

Evaluation of options

Selection of strategy

• Outsource modelling• BPR• Maintenance plan• Risk analysis• Cost benefit analysis• Optimising model

Strategic implementations

People and systems • Change management through the application of rigorous project management (plan, monitor and control)

• Training and development

• BPR

Table 3: Techniques and Tools to Support Development of FM Strategy

direction and scope ofan organisation over thelong term whichachieves advantage fororganisation through itsconfiguration ofresources withinchallengingenvironment, to meetthe needs of mark andto fulfil expectations.

Source: Atkin and Brooks, 2005

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achieve corporate objectives. Table4 shows several literatures andresearch that contribute indeveloping FM strategies.

5. THE SIGNIFICANCE OFINNOVATION INDEVELOPING FMSTRATEGIESInnovation is said to be a degree ofintervention which can be radical ora transformation (Mudrak et al.,2004). It is becoming increasinglypopular and it is impossible forinnovation to stand by itselfwhereby systematic managementtools, skills and most importantlycritical thinking is needed in theinnovation process (Hackett, 2009).Innovation process needs to befocused on the understanding howcustomers perceive theorganisation’s business and it isimportant to understand thecustomers’ requirement and needsin developing the innovation in anorganisation (Kumar, 2009). Goyaland Pitt (2007) highlighted thatinnovation is the changes towardsnew management thinking andmarketing strategies in anorganisation. Innovation is animportant element nowadays thatcontributes to create theorganisations’ strategies that willlead to competitive advantage andcontinuous improvement of anorganisation. Figure 3 is theframework introduced by Dyle andBrigewater (1988).

Goyal and Pitt (2007) emphasisedthat FM involvement need to beadapted in the innovationmanagement to produce goodbusiness decisions. It is shown thatthere are scopes for innovation inFM whereby FM is not only aboutreducing the cost or maintenancework whereas it is also focusedbeyond the operational level. Goyaland Pitt (2007) had also highlightedthat good FM need to have the flowin the changes involve inorganisation as well as focusing onpeople and process towardsstrategic level. Besides, innovationsneed to be given more awarenesson new skills and new ways ofcommunication with client,customers and staff (Price and

Akhlagi, 1999). This is very muchrelated to the manager’scharacteristic to attract the customersto perceive the product and servicesthat will increase the profit margin oforganisations. Prior to this, theperformance indicators areimportant to achieve the process ofinnovation towards developingstrategies which are related to

quality, time and cost respectivelythat need to be highlighted for shortand long term basis (Mudrak et al.,2004). From the statement anddefinition of innovation, it is clearthat innovation is part of creatingstrategies for FM organisations tostrengthening the core businesses oftheir organisations.

Author Year Topic/ Contributions Nutt, B. 1993 Topic: The Strategic Brief

Contributions: The Total Briefing Cycle, contributes to productivity, decision making, greater adaptability, manageable and support the management.

Barret, P. 2000 Topic: Achieving Strategic FM Through StrongRelationshipContributions: Generic FM Model, contributes to knowledge and skills for FM managers to think and act strategically.

Featherstone, P. andBaldry, D.

2000 Topic: Public Sector FM StrategyContributions: Strategic Characteristic of the UK public sector organisations. To control the formation of facilities management strategies within the market sector.

Alexander, K. 2003 Topic: A strategy for FMContributions: Collaborative strategy involves in developing business, systems and people.

King, B. 2006 Topic: Why do you need to strategise the FM roleContributions: leadership role that contributes to support organisational goals and corporate culture that maximise company’s overall performance.

IFMA 2009 Topic: Strategic facility planning, A white paperContributions: Strategic Facility Planning (SFP), Strategic Layout Planning (SLP) contributes to be more proactive delivery of services from FM organisation to stakeholders.

Timm, R. 2011 Topic: Facilities Management – Earning the right to drive strategyContributions: Re-positioning of brand, whereby the FM managers need to demonstrate their strategic importance to achieve the corporate recognition.

Chotipanich, S. 2011 Topic: A Study of FM Strategy – The Case of Commercial Banks in ThailandContributions: Four types of FM strategies wereidentified. Basically contributes to FM practices and core operations.

Table 4: Selected studies on FM strategies

Leadership Technology acquisitionInnovation

Strategy Culture

Market orientation

Resources

Systems and process

Figure 3: Set of Processes that Result In Innovation

Source: Doyle and Bridgewater, 1988

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6. THE SIGNIFICANCE OF BUSINESSENVIRONMENT IN DEVELOPING THEFACILITIES MANAGEMENT STRATEGIES From the management context, business environment isan economic sense of human activities such asproduction, extraction or purchase of goods andperformed earning profits. It is divided into two maincategories which is the internal environment and externalenvironment. Internal environment includes of 5Mswhich is man, material, money, machinery andmanagement within the control of business. Meanwhile,external environment focused on factors such asgovernment and legal, physical, political, socio culturaland demographics. This will expand to microenvironment and macro environment that focuses onsuppliers, customers, market intermediaries, competitors,public etc. Business environment is a big scope thatneeds to be taken care of in order to achieve theorganisations’ objectives that leads to competitiveadvantage. Prior to this, FM need to be seen from abusiness perspective rather than viewing it as a technicalbase whereby the scope may include business services,legal, financial, administrative as well as space,environment, information and other support activities(Keith, 1996). Keith (1996) emphasised that the businessenvironment provides the context to develop policy andhelp to shape strategic planning.

According to survey done by Goyal and Pitt (2007), FMcontributes to business success and achievesorganisation’s goals through continuous improvements.Therefore, proactive and adaptive strategies contribute tothe profit margin of FM organisations. In venturing forbusiness opportunities in FM, four main elements havebeen identified namely user needs, financial and marketsegment, outsourcing/insourcing and also supplier. Thesegments in FM that could be ventured into are (AbdHamid et al., 2011):

a. Food services

b. Space rental-space management

c. Parking

d. Build, Operate and Transfer (BOT)

e. Build, Operate and Manage (BOM)

f. Adopt Total Outsourcing

g. Joint operations-staff seconded to company in amerger term

h. Technology provider

i. FM supply chain management

j. Training and calibration centre

k. Vendor Development Program (VDP)

l. Public Finance Initiative (PFI)/ Public PrivatePartnership (PPP)

m. Green initiatives – Energy Saving Sharing

n. Space management, leasing activities e.g. car park

o. Training

7. THE WAY FORWARD From the review it is identified that strategies aresignificant in every organisation to improve effectivenessand efficiencies in providing quality services and amplifythe profit margin by satisfying the customers’requirements as well as contributing the right functionsand services. Besides, to create FM strategies,organisations need to have a strong leadership thatcovers the interpersonal, informational and decisionalcharacteristics that will sustain the FM industry. It is alsohope that the FM strategies can help to collaborate withthe strategic, tactical and operational level respectively toachieve an optimum organisational performance. Othernon-technical aspects need to be given priority toimprove the soft skill and hard skills of every FMorganisations that will benefit the FM industry inupgrading their level of performance in the future.

8. CONCLUSIONFM contributes to the success of an organisation bothtechnically and non-technically. FM can be applied atevery level of organisation and the strategies areimportant towards guiding the organisations to the rightpath and to achieve the objectives of core business aswell as to increase the profit margin by increasing thecustomer satisfaction index (CSI). Innovation andbusiness environment are part of creating the strategiesfor FM organisation to move towards competitiveadvantage and improved organisational performance.According to Chotipanich et al. (2011), there is a lack ofstudies on FM strategies whereby there are large gaps inidentifying the characteristics of FM strategies in practice.A typology of FM strategies and methods of studying thestrategies need to be identified and introduced withinthe theoretical ground. As a conclusion, FM strategies aresignificant in creating value and add value for businessesand to upgrade the performance of each level ofmanagement that will lead to innovation and businesssuccess.

Business environmentis a big scope thatneeds to be taken careof in order to achievethe organisations’objectives that leads tocompetitive advantage.

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REFERENCES Abd Hamid, Z., Kamaruzzaman, S. N., Ghani, M. K. &Abdul Razak, M. (2011) Report on the ResearchWorkshop on Facilities Management ImplementationPracticed by UKM Medical Centre (PPUKM) and UMMedical Centre (PPUM), 20th October 2011, publishedby Construction Research Institute of Malaysia(CREAM), Kuala Lumpur

Adcroft, A., Willis, R. & Hurst, J., (2008) A New Modelfor Managing Change: The Holistic View, Journal ofBusiness Strategy, Volume 29, No.1, pp.40-45

Alexander, K., (1996), Facilities management – Theoryand Practice, London, E&FN Spon

Alexander, K., (2003) A Strategy For FacilitiesManagement, Journal of Facilities, Volume 21, No11/12, pp. 269-274

Alexander, K. & Brown, M. (2006), Community-basedFacilities Management, Journal of Facilities, Volume 24,No7/8, pp.250-268

Atkin, B. & Brooks, A., (2005) Total FacilitiesManagement, London, E&FN Spon

Barret, P., (2000) Achieving Strategic FacilitiesManagement Through Strong Relationships, Journal ofFacilities, Volume 18, No 10/11/12, pp. 421-426

BIFM (2010) Homepage of the British Institute ofFacilities Managementhttp://www.bifm.org.uk/bifm/home

Chotipanich, S., (2004) Positioning FacilityManagement, Journal of Facilities, Volume 22, No13/14, pp. 364-372

Chotipanich, S. & Lertariyanun, V.,(2011), A Study ofFacility Management Strategy: The Case of CommercialBanks in Thailand, Journal of Facilities, Volume 9, No.4, pp. 282-299

CIDB (2010) Homepage of the Construction IndustryDevelopment Board,

http://www.cidb.gov.my/v6/

Doyle, P. & Bridgewater, S. (1988), Innovation inMarketing, Chartered Institute of Marketing. ElsevierButterworth Heinemann

Featherstone, P. & Baldry, D., (2000), The Value of TheFacilities Management Function in the UK NHSCommunity Health Care Sector, Journal of Facilities,Volume 18, No 7/8, pp.302-311

Goyal, S. & Pitt, M., (2007) Determining The Role ofInnovation Management In Facilities Management,Journal of Facilities, Volume 25, No1/2, pp. 48-60

Hackett, P.J., (2009) Innovation Is Good, Fitness isBetter, Journal of Business Strategy, Volume 30, No2/3, pp. 85-90

IFMA (2010) Homepage of the International Facilities

Management Association, http:// www.ifma.org

Johnson and Scholes (1999) Strategy-What is Strategy,Fourth Edition, E & FN Spon

Kamaruzzaman, S. N. & Marinie, E., (2010)Development of Facilities Management in Malaysia,Journal of Facilities Management, Volume 8 No 1, pp.75-81

King, B., (2006), Why Do You Need To Strategize yourFM Role?, Homepage of SIMEK Sdn Bhd,http://www.simek.com.my

Kumar, V., (2009) A Process For Practicing DesignInnovation, Journal of Business Strategy, Volume 30,No 2/3, pp. 91-100

Moore, M. & Finch, E., (2004) Facilities Management inSouth East Asia, Journal of Facilities, Volume 22,No.9/10, pp. 259-270

Mudrak, T.,Wagenberg, A.V & Wubben, E., (2004)Assessing The Innovative Ability of FM Teams: AReview, Journal of Facilities, Volume 22, No 11/12, pp.290-295

Noor, M. & Pitt, M., (2009) Critical Review onInnovation of FM Service Delivery, Journal of Facilities,Volume 27, No. 5/6. pp. 211-228

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Nutt, B., (2000) Four Competing Futures For FacilityManagement, Journal of Facilities

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Timm, R., (2011) Facilities Management – Earning TheRight To Drive Strategy, FM Property Watch (www.Property beyond.com.au)

The Origin ofProperty Management

The word ‘surveyor’ can be first foundin a English print entitled “Book ofSurveying” authored by John andAthony Fitzherbert in 1523. It ismentioned that “the name of aSurveiour is a French name and is asMoche to saye in Englysche as anOverseer”. The word “overseer” givesaway and hints the origin, roles andfunctions of a surveyor i.e. surveyorsoversee land, buildings, constructionand environment by measuring,managing, valuing, developing andprotecting property and land1.

The modern surveying profession hasevolved intrinsically with the way land is owned.Law on land in UK traditionally dates from 1066with King Norman I introducing a system of

landholding, known as the feudal system. Under thesystem, only the King was able to own land outright. Allothers were granted land by the King to hold for a certainperiod of time known as tenure and the period of time forwhich it is held is known as an estate. Overtime some ofthese lands were sold to aristocrats. These new ownersemploy surveyors of their own as land stewards who laterevolved into estate managers.

The steward had overall charge of the management of theestates with bailiffs physically directing and controlling themanagement of individual parcels of land which includemaintaining and renewing the leases of the estateproperties, collecting rents etc. Their roles were varied,diverse and would be involved in all these form of workswhich reflect the origin of the works of modern surveyorsparticularly property managers.

The property management profession as we recognisetoday began to emerge during the eighteen century largelyas a result of the industrial revolution and the resultingincreased urbanisation. Surveying skills were neededoutside the traditional rural areas and many surveyorsmoved to towns and cities to take advantage of theincreased work opportunities. It was at this time that theprofession started to specialise and many professionals

became involved in only a single area of surveying.Several well known real estate firms such as DriversJonas, founded in 1725, and Richard Ellis founded in1773 were established in the United Kingdom.

This specialisation led to the development of a numberof special interest groups and societies that helped toregulate and control their specific area of the professionin the U.K. Apart from an early and short-lived attempt

to form a Land Surveyors Club in 1834, the officialestablishment of a representative surveyors

Note1. In this article, the term surveyors is used

interchangeably with property managers as