Managing Director & Partner
BIFM Scottish Regional Chairman
Member of NI PPP Working Strategy Group

Cost Management
• Cost Estimates
• Procurement Advice
• Tender Documentation
• Change Management
• Engineering Services
Dispute Management
• Arbitration / Litigation
• Claims Preparations and Defence
• Dispute Resolution
• Document Services
• Programming Analysis na ti a n l
Re gions
G lo b llia t er
In n ce
Project Management
• Project Management
• Development Management
• Tenant Fit-Out Advisor
• PFI / PPP Advice
• Planning Supervision
• Information Management
Construction Management
• Construction Advice
• Design Management
• Programming
• Procurement of Trade Packages
• Management of Construction Site
• Quality Management
Consultancy
• Banking Support Services
• Construction and Property Tax
• Business Advantage
• Best Value
• Investigation and Analysis
• Research
FM Consultancy
• Life Cycle Costing
• FM Procurement
• Performance Measurement
• Utilities
• PFI/PPP Advice

The Project – Acute Hospital PFI
 First operational PFI procured Acute Hospital in Scotland
 circa £ 650m over 30 year concession period
 circa £ 65m capital value of construction project
 circa 350 Acute in-patient beds with circa 50 day care beds
 Full diagnostic and clinical support facilities
 Completed three months ahead of schedule
 250 staff transfer under the provisions of TUPE
 Full FM services from Estates, Cleaning, Catering & Security
 Integrated Helpdesk and CAFM system controls FM

LIFE CYCLE MANAGEMENT
Design Build
Fees Capex
1 Year 2 Years
Operate
Financing Costs
Running Costs Utilities
Operating Costs
Planned Preventative
Maintenance PPM
Reactive
Periodic
Replacement / Refurbish
Life Cycle
35 Years
Hand
Back
Total
End of
Term
Total
Cost of
Project
Year
35
Total

The Problem to be solved
 Project team moved on three years previous – no handover
 Interface between FM and Contractor during construction absent

Operational ‘go live’ accelerated by three months

TUPE staff transfer a year ahead of ‘go live’ without penalty
 Training on new systems not commenced
 Operational precedents not in existence
 Commissioning being undertaken without FM input

Construction handover documentation not complete at ‘go live’

Full payment mechanism penalties applied at ‘go live’

The objectives
 Delivery of service to appropriate levels prime objective
 Fully functioning and operational helpdesk
 Production of report to support payment mechanism requirements
 Completion of commissioning
 Programme of staff training on new systems
 Completion of construction handover documentation
 Production of management method statements
 Gap analysis of built environment to original priced FM
 Gap analysis of built environment to original lifecycle

The reasons for setting the objectives
 Delivery of service to appropriate levels
 PFI / PPP is ALL about long term transfer of risks
 Service delivery is largest single aspect of the project
 Non-performance WILL escalate into high unavailability deductions
 Health & Safety in a clinical environment is critical
 Some services such as porters and cleaning are essential to clinical support - i.e. blood delivery, patient movement, hygiene
 Clinicians are already under pressure to deliver care
 Lifecycle strategy requires service delivery support

The reasons for setting the objectives
 Fully functioning and operational helpdesk
 The helpdesk is the fulcrum of the service delivery
 Short response times require accurate and efficient responses
 The asset is of a significant size and diversity
 The operation is 24/7 and service levels do not drop at night
 PPM needs to link to reactive requests to prevent failures
 Essential in preparation of reports and invoices

Information is ‘live’ and the Trust have access to it

The reasons for setting the objectives
 Production of report to support payment mechanism requirements
 The Trust placed the emphasis on reporting to support invoices
 The Trust have a team of managers who scrutinise the report
 Un-reported failures reduces trust between the parties
 The objective from the Trust was to encourage improvements to service delivery through trend analysis
 The FM company requires to spot trends before triggers are hit
 From FM point of view it is a risk management tool
 From SPV and Funder perspective it is a risk management tool

The reasons for setting the objectives
 Completion of commissioning
 Required in order to prove systems were functioning to FM
 FM cannot safely operate and maintain un-commissioned equipment
 Commissioning figures are used as baseline for settings to systems
 Commissioning documentation required to complete construction handover documentation
 Written requirement of the Project Agreement and carried defaults for failure to complete
 Essential to contractor to obtain final payments

The reasons for the objectives
 Programme of staff training on new systems
 New systems did not compare with old facility systems
 Health & Safety issues at top of the Agenda
 Commissioning required to be carried out in presence of trained operatives
 Service delivery could not be adequately carried out without training
 Response times and ultimately mitigation of deductions through failures require training
 TUPE breach if training not executed to allow staff to perform their duties

The reasons for the objectives
 Completion of construction handover documentation
 Essential for the preparation of ALL method statements

Requirement to reconcile ‘as built’ facility with priced project 1998
 Requirement to reconcile location of all plant and equipment
 O&M manuals and Safety File required to write PPM

HTM’s required to be reconciled with Safety File

‘As built’ facility reconciliation with lifecycle costings
 Required to complete commissioning
 Required to populate the CAFM system

The reasons for the objectives
 Production of management method statements

NOT to be mistaken for ‘operational’ method statements
 The objective was to introduce the PFI principles of performance, availability and payment mechanism to the ‘management’ team
 Introduce the HTM requirements to the delivery of the service

Cross reference O&M, Safety File and ‘as built’ documentation to original project documentation
 Develop overarching management reference tool for on-site team who were not familiar with PFI
 Required to satisfy elements of the Project Agreement

The reasons for the objectives
 Gap analysis of built environment to original priced FM
 Project had gone through usual construction period development
 No FM input during construction, consequently no continued reconciliation had taken place
 Some elements of D&B type construction approach had ignored original FM calculations

Nuances of ‘as built’ accessibility to plant and equipment needed to be discovered and recorded
 Areas had to be recalculated and costs for servicing applied without increase to FM original costs (excluded indexation)

The reasons for the objectives
 Gap analysis of built environment to original lifecycle
 Project had gone through usual construction period development
 No lifecycle input during construction, consequently no continued reconciliation had taken place
 Some elements of D&B type construction approach had ignored original lifecycle calculations

Nuances of ‘as built’ accessibility to plant and equipment needed to be discovered and recorded for replacement costings
 Areas had to be recalculated and costs for replacement applied without increase to lifecycle original costs (excluded indexation)

How the objectives were met
 Delivery of service to appropriate levels
 A matrix of the risks to be covered was generated
 The risks were associated with individual service delivery types
 Performance was analysed and associated to MMS
 Health & Safety, specifically HTM requirements were incorporated
 Response times were examined in the context of available staff and their ability and target areas generated
 Service was put in context of clinician requirements
 Lifecycle strategy was related to MMS and service delivery

How the objectives were met
 Delivery of service to appropriate levels
 Staff training was elevated and accelerated including management
 PFI structure was detailed and explained in context of facility
 CAFM and Helpdesk systems were populated with all project specific data
 FM staff were introduced to construction and commissioning team
 Existing service delivery techniques were integrated into project from non-pfi healthcare service delivery projects
 Clear delineation of clinical and FM areas of responsibility were agreed with the Trust

How the objectives were met
 Fully functioning and operational helpdesk
 The helpdesk was made project and site specific by FSI
 Response times and priority levels were input

CAFM system populated with accurate ‘as built’ asset data
 Competent and responsible helpdesk operatives recruited
 PPM linked to reactive requests to prevent failures and spot trends
 Crystal reports used to generate accurate reports for invoice support
 Constant monitoring of the system introduced with the implementation of a dedicated 24/7 helpdesk manager

How the objectives were met
 Production of report to support payment mechanism requirements
 Physical monitoring and reporting requirements detailed and proforma created for direct input to CAFM
 Reporting format and detail agreed with the Trust
 No instance of failure to report deficiencies set at KPI 100%
 Report was integrated into MMS which defined how to spot trends, understand default triggers and manage risks
 Trends were acted upon and additional rectification reports generated
 SPV and Funder together with Trust agreed actions on reports

How the objectives were met
 Completion of commissioning
 Commission management plan generated and accelerated
 Commissioning data incorporated into MMS and operational systems
 Commissioning figures published as baseline for system operation
 Commissioning team and Construction handover team integrated to produce parallel documentation not sequential
 Commissioning management plan agreed with Trust and areas of non-compliance agreed for mitigation
 Final payments withheld from Contractor and Commissioning team until documentation completed

How the objectives were met
 Programme of staff training on new systems
 Manufacturer and installers of systems compelled to train FM staff on correct operation of all systems
 Health and Safety related issues given highest priority
 Commissioning required to be carried out in presence of FM operatives
 Instances of non-performance on PPM issues were charged back to contractor
 TUPE requirements were published and put in context of training to avoid instances of breach of conditions

How the objectives were met
 Completion of construction handover documentation
 Document control room (library) created
 Register of all documents both complete and incomplete created
 Construction documentation management plan implemented
 O&M manuals and Safety File given the highest priority

HTM’s reconciled with Safety File

‘As built’ drawing programme accelerated to completion
 Commissioning data cross referenced to construction data
 All information provided electronically for input to CAFM system

How the objectives were met
 Production of management method statements

NOT to be mistaken for ‘operational’ method statements
 MMS extracted information Project Agreement, Output Specification,
Financial Model, O&M’s, Safety File and HTM’s
 Written as a quick reference guide for management, placed in the data room (library)
 Written in plain english removing legalise
 Provided to the Trust as the required method statements and agreed as an accurate reflection of the spirit of the agreements

Intended to be ‘live’ documentation for continual use

How the objectives were met
 Gap analysis of built environment to original priced FM

Physical checks made on the ‘as built’ environment – survey

Complete reconciliation of asset’s with original asset schedule
 FM re-priced as if starting from scratch – gap analysis undertaken

FM Strategy developed with original costs on ‘as built’ environment with the original output specification standards
 Areas had to be recalculated and costs for FM applied without increase to original costs (excluded indexation)
 NO erosion of standards was acceptable
 New strategy agreed with the Trust

How the objectives were met
 Gap analysis of built environment to original lifecycle

Physical checks made on the ‘as built’ environment – survey

Complete reconciliation of asset’s with original asset schedule
 Lifecycle re-priced as if from scratch – gap analysis undertaken
 Lifecycle re-modelled and strategy put in place with original costs on
‘as built’ environment
 Areas had to be recalculated and costs for replacement applied without increase to lifecycle original costs (excluded indexation)
 No erosion of standards was acceptable
 New strategy agreed with the Trust

Some of the more bizarre revelations
 Remeasurement of the checks required on ‘as built’ environment increased possible failure points by 20% to 251,641
 Service failures in first month were re-measured using call completion times instead of call start times yielding an increase from
55% completion to 88% completion
 The helpdesk received 16,411 calls in the first month of operation

The lessons learned
 Create a vehicle for the bid team to articulate the spirit of the agreements to the operational team
 Place operational FM management representative within the construction team during the construction period
 Continually examine any changes in design or construction with original FM and LCM costs and specifications
 Educate construction team on the requirement for complete, accurate
O&M, Safety File and ‘as built’ drawings prior to handover
 Make operational FM team part of the commissioning process
 Create MMS for non-pfi literate staff and train them