OUTCOME-BASED FACILITIES MANAGEMENT & MAINTENANCE

Course Background

Outcome-Based (aka Performance-Based) outsourcing is a buying strategy whereby procurement and award of a contract is focussed on the ability of the Service Provider (SP) to achieve outcomes/results of competitive value for the Service Buyer (SB), examples of which include cost savings and enhancing customer experience and service delivery. It is a move from the current norm of award based on SB’s prescribed resources / headcounts, processes and timelines to achieve defined outcomes.

Singapore’s public sector move towards outcome-based purchasing was first announced in Parliament in 2016. The new approach was introduced in three key sub-sectors of Facilities Management (FM) viz. Cleaning, Landscaping and Security. Training of SBs and SPs is ongoing, Outcome-Based (OB) procurement and contracts are starting to be rolled out.

The FM sector itself was identified in the Real Estate Industry Transformation Map (REITM) as requiring
transformation to enhance service delivery and uplift the industry. The Tripartite Facilities Management Implementation Committee (FMIC) set a goal is to advance the FM industry from a labour intensive industry to a
productive one leveraging on data analytics, predictive maintenance and smart solutions. Two industry level challenges identified by SPs to achieve these goals viz. Building owners rely on headcount-based procurement practices and offer short contracts that do not reward innovation and quality FM service’, and ‘Lack of authoritative standards to guide FM service delivery’.

OB FM Service Procurement will help resolve some of the challenges identified. Such contracts will require SB to specify standards of service delivery and as far as possible objective measurable service outcomes for evaluating service performance, leaving the SP to decide how to plan and resource the work to achieve the specified outcome. They are also of longer term duration with incentives for enhanced performance outcomes beyond the
specified outcomes. A small number of enlightened SBs have started the OB procurement journey, adoption on a wider scale is needed to realise the FM transformation journey.

To initiate OB outsourcing of Facilities Hard Services (Maintenance, Repairs & Replacements), SBs will first need to establish their needs. This has to be done holistically by linking property assets contribution to organisational
mission, and the support services required to realize this mission. Central to this is the need to identify property
attributes, the nature, type and level/standard of facilities maintenance services which yield value add outcomes contributing to productivity and competitiveness of the organisation, and metrics and key performance indicators
to measure and track outcomes of the maintenance processes delivered by Service Providers (SP). OB service outcomes requirements should equally apply to services delivered by in-house teams (in sourced teams).

Rather than wage a ‘price war’, SPs should ride the OB outsourcing wave by attempting to understand SB’s organisational and business needs and constraints, attributes of their property/properties and facilities maintenance requirements and strive to innovate to deliver cost effective value-add services for the rewards invariably incorporated with such contracts.

Course Objectives

The Master Class will adopt a ‘Back to Basics’ approach to allow SB and SP to fully comprehend the often conflicting multi-faceted organisational-user-technical-cost parameters involved in analysing and determining an optimised facilities maintenance plan.

A knowledge sharing, round table and hands-on training pedagogy will be adopted underpinned by the framework shown below to facilitate participant’s development of a bespoke facilities maintenance needs and outcome requirements to guide SB service procurement, work execution and SP performance monitoring.

Course Outline

• ORGANISATION MISSION & PROPERTY / BUILDING FACILITIES
  • Property: A Business Resource & Factor of Production
  • Property: Type, Age, Systems & Materials
  • Defining Property Performance Requirements
• FACILITIES MANAGEMENT FUNDAMENTALS
  • Facilities Management: Industry Overview
  • Facilities Management: A Support Service & Cost
  • State-of-the-Art
• FACILIITES MAINTENANCE FUNDAMENTALS
  • Facilities Maintenance Drivers: Safety & Health, Sustainability, Ageing, Obsolescence
  • Maintenance Work & Outcomes: Preventive, Corrective, Adhoc
  • Maintenance Systems: Cyclical, Responsive, Condition-Based
  • Maintenance Standards: Technical, Service, Cost-Based
  • State-of-the-Art
• FACILITIES MAINTENANCE NEEDS & GAP ANALYSIS
  • Performance Measures for Facilities Management
  • What Facilities Exists: Physical & Condition Inventory
  • Existing Facilities Maintenance Services: How & What Are You Doing
    • Policies in Place
    • Work Organisational Structure
    • Maintenance Standards & Systems
    • Maintenance Planning, Budgeting & Cost Control
    • Procurement, Specifications & Contractual Arrangements
    • Performance Monitoring & Measures
    • Issues & Challenges Faced
  • Facilities Maintenance Service Needs: What Do You Want
    • Organisational, User, Technical & Cost Needs
    • Gap Analysis & Closing the Gap
• DEVELOPING OUTCOME-BASED FACILITIES MAINTENANCE SERVICE REQUIREMENTS
  • Prescriptive vs Outcome-Based Services
  • Developing Outcome-Based Service Requirements & Outcomes
    • Pre-Requisite Work
    • Step 1: Job Analysis
    • Step2: Performance Work Statements & Outcomes
    • Quality Assessment Plan, Service Quality Audits, Incentives / Disincentives
  • Service Level Agreements
• CONDITION ASSESSMENT STANDARDISATION IN OUTCOME-BASED FACILITIES MAINTENANCE
  • State-of-the-Art in Condition Assessments
  • Condition Assessment Standardisation
  • Visual Condition Assessments: NEN 2767
  • SMART Aids
• OUTCOME-BASED FACILITIES MAINTENANCE SERVICE PROCUREMENT
  • Outsourcing Models
  • Procurement Methods & Contractual Arrangements
  • Tender Documentation
  • Tender Award
• MANAGING OUTCOME-BASED FACILITIES MAINTENANCE CONTRACTS
  • Managing & Measuring Service Quality Outcomes
  • Managing Incentives & Remedies for Non-Performance
  • Relationship Management & Dispute Resolution

Who should take this course?

The course will benefit Service Buyers and Providers involved in procurement/tendering and managing and administering Facilities Management Services contracts from organisations such as:

• Institutional and Commercial Building Owners
• Project Managers / Quantity Surveyors
• Management Corporations & Town Councils
• Contractors / Sub-Contractors
• Government Officials
• Property, Facilities & Maintenance Managers
• Managing Agents & Service Providers
• SMART Equipments Manufacturers & Suppliers