Inside the Facility Manager’s OfficeA review of the roles and functions of a Facility Manager to assist the Building Services industry to better understand and serve the Property Management sector.

David MottaBuilding Engineer, Central ParkOctober 2012

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The Facility Managers role

• Manage the Maintenance

• Manage fitout Alterations

• Manage Projects

In these tasks ensure that

Risks are minimized

Keep the tenant happy

Asset values are preserved or enhanced

Sustainability goals are achieved

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Maintenance Management

• Document & tender the works

• Prepare contracts and have them executed

• Ongoing monitoring of the maintenance progress and cost

• Rectification works

• Identify replacement or upgrade work needed

• Respond to tenants needs & building issues

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Budgets, Budgets and more Budgets

• Prepare separate Capex and Opex budgets

• Prepare 6 year Capex budget

• Prepare 2 Opex cash budgets a year, one for Australian and one for Singapore financial year

• Prepare an Opex accrual budget based on the US financial year (finance department only)

• Prepare monthly forecasts based on Australianfinancial year budget (finance department only)

• Review expenditure periodically, morefrequently close to year end.

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Monitoring of the Maintenance

• Keep track of what is completed and outstanding

• Review monthly reports for items requiring further action

• Issues with software systems

• Don't skimp on maintenance,paid for by tenant.

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FPO

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Maintenance of IT Equipment

Building Automation SystemCCTV SystemLighting Control SystemManagement Office ServerAccess Control SystemDirectory BoardsConference Centre Booking SystemVisitor Management SystemCMMS systemBMU PLC SystemGenerator PLCConference Centre AV systems

Software Systems Incorporating PCs

BAS server

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Maintenance of IT Equipment

Fire Alarm SystemEWIS SystemCar Park management systemParking fee collection systemPABXGoods Lift IntercomBuilding IntercomTraffic CameraBuilding WebsiteCustomer Service SystemElevator Management SystemFitness Centre Booking System

Other Software Systems

CCTV Server

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Maintenance of IT Equipment

PowerPax chillersPower Factor Correction unitsSolar SystemWater Treatment ControllersInLink Lobby ScreensVSDs (computer loop) …. and more?

FM staff are generally from a mechanical background, don't have IT expertise!

Systems having Software Setup files

Conference Centre Systems

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Tenant Issues

• Access cards

• Lights blown or flickering

• Air Conditioning - too hot or cold

• Conference Centre issues re useof equipment

• Toilets blocked

• Water leaks, taps dripping

• Cleaning issues, out of soap, bins full

Customer Service gets about 10,000 requests a year

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Tenant Issues

• Rescue Perigee Falcon who had flown into the glass wall

• Call to investigate burning small which turned out to be cyclists shoes

• Request to open windows so staff could hear the fireworks on Australia Day

• Respond to numerous emails traffic problems caused by road changes

• Native title claim for land under Hay Street

And we get the odd ones!

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Fitout Management

• Obtain suitable documents

• Review proposed work, decide what consultant approvals required

• Code compliance imperative in major buildings

• Code issues are headache, e.g. Disability Access,

• Ensure Building License issues and insurance certificates provide

• Ensure work practices are safe, review JSAs

• Obtain completion certificates

• Obtain as-constructed documentation.

To minimize risk and preserve integrity of systems

Projects

• Replace Chiller 1

• Replace Chiller 4

• Fit VSDs to all pumps

• Overhaul low rise cooling towers

• Replace high rise cooling towers

• Replace BAS

• Upgrade computer loop

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Projects

• Power factor Correction

• Solar System

• Cyclist End of Trip facility

• Green Room

• Grease trap

• Conference Centre Refurbishment

• New Lobby & Park Lighting

• Stairwell lighting

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Project Management

• Identify Suitable project

• Prepare report to owners

• Arrange design documentation and call tenders

• Report to owners on tenders and other works, provide total project budget

• Manage project to time, cost & quality criteria.

• Identify defects and ensure they are rectified

• Ensure works are maintained during warranty

• Obtain as-constructed documentation

Central ParkCCTV Upgradeas at 27 March 2008

Item Budget Forecast Commit Expend Outstanding

Consultants Fees

Contract 39,690 37,800 37,800 37,800 -

Variations to Contract - Estimated -

Variations to Contract - Approved 1,890-

Consultants Fees -Total 39,690 37,800 37,800 37,800 -

Contract Costs

Contract 597,199 586,935 586,927 586,927 -

Variations to CCTV Contract - Estimated 18,174

Variations to CCTV Contract - Approved 10,264-

Contract Costs - Total 597,199 586,935 586,927 586,927 -

Security Room Costs

Security Room Refurbishment 48,565 27,133 27,133 27,133 -

Security Room Refurbishment: Variations - Estimated -

Security Room Refurbishment: Variations - Approved 21,432-

Security Room Costs - Total 48,565 27,133 27,133 27,133 -

TOTAL PROJECT COSTS 685,454 651,868 651,860 651,860 -

Less Contribution from AMP 87,344 87,899 87,899 73,395 14,504 Less Contribution from Phoenix Properties 14,036 14,257 14,257 12,111 2,145

TOTAL PROJECT COSTS 584,074 549,713 549,705 566,353 16,649-

Note: All costs exclude GST. Outstanding costs only include committed works and not estimated extras.

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Project Management

• Determine if project can be funded as an operating expense or capital works

• Operating expenses are recovered from tenants, do not effect owners profits

• Works that improve the building and increase its value are considered capital works

• Costs that can be charged to the operating costs are limited by• Legal requirements, more onerous for retail • Building leases

• Project costs can be split, part Capex and part Opex.

• Final say on what applies rests with the building auditors.

Capex / Opex Cost Allocation

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Plant Replacement

• No longer supported – cant get parts or service product (BAS)

• Item does not provide features that are now required (networked energy meters)

• Energy efficiency – mainly for NABERS reasons (chillers)

• Reliability of existing items is deteriorating

• Performance cannot meet current expectations of new item

• Code compliance (usually not retrospectivethough)

Need to justify to owners

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Sustainability & Energy Management

• In Premium Buildings, environmental ratings are important and are a factor in tenants decisions

• Minimum NABERS Energy ratings of 4 and 4 ½ stars being specified by some tenants

• Building stock is continually improving; 5 star was the holy grail but 5 ½ or 6 stars is now the benchmark.

• NABERS Water ratings are not as important … yet.

NABERS rating is far more important than $ saved

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Sustainability & Energy Management

Metering SystemsInaccurate wiring diagramsLack of metersValidation of meters

Lack of training in industryControls companies in NABERSControls companies in their products

Poor CommissioningIndustry accustomed to commissioning

components, not systems

Issues in achieving good NABERS ratings include

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Risk Management

• Contractor Inductions getting longer, duplicated by some tenants

• Job Safety Assessments (JSAs) required more often

• Contracts requirements are onerous – often clash with major contractors

• Insurance requirements are substantial

• Strict Code Compliance essential for major clients, - Lighting levels- Dead legs in CCW pipework

• Consultants sign off required more often

Major companies are highly risk averse

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The challenge!

• Building ownership & management has shifted to major multinational companies who require greater risk management.

• Building codes and standards (NABERS) are getting more demanding and complex and greater attention to commissioning and documentation is needed.

• Buildings services are increasingly software based and computer system are prolific and we as an industry need to develop the IT skills needed to effectively manage them.

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And Finally

• In 1992 at a Institute of Plant Engineers talk I suggested that the role of the Plant Engineer was changing and would evolve into a Building Services manager.

• I predict that the Building Engineer or Facility Manger of the future will need to have an IT background or employ in his/her team an IT expert.

Thank you

Copyright © Jones Lang LaSalle, 2009