Contract Maintenance Models
Trends and Options
Presented by:
Walter Rafin
DTZ
0
Presentation Roadmap
Facilities Management
versus
Facilities Maintenance
Summary
1
Facilities Management versus Facilities Maintenance
Facilities Management integrates all
organisational processes, people and
workplace. Includes property | space
management, infrastructure, support
services, administration and asset
management
Facilities Maintenance sustains
building and asset performance to
design intent, to increase reliability,
reduce equipment degradation, and
sustain energy efficiency, whilst
maintaining mandatory compliance
requirements.
2
Preventative Maintenance
Usually fixed PM fee
Normally includes some corrective elements
(e.g. coil cleaning)
Not usually inclusive of repair or
reactive works
Asset owner takes on almost all risk
Results in too little or too much
maintenance – unclear requirements
Budgeting & cost control difficult
3
Inspection (or Reactive) Based
‘Fly-by’ inspections
Usually fixed inspection fee
Excludes any corrective elements
(e.g. cleaning filters)
Not inclusive of repair or
reactive works
Reporting of issues only
Usually least expensive option
Least effective
4
End Results (or Reliability)
Not yet widely used
All or part risk transfer
Risk based on defined end
result requirement (e.g.
comfort)
Payment based on results
Usually tied to Guaranteed Maximum
Price (GMP)
Difficult to define parameters
5
Comprehensive
Fixed Fee all inclusive – budget certainty
Full risk transfer to contractor
Excludes capital replacement,
refurbishment and/or
rehabilitation
Usually subject to condition
assessment and latent conditions
Contractor manages risk via
rigorous PM or not enough PM
Significant administration savings
6
Semi-Comprehensive
Inclusive of all labour only
Fixed labour fee
Normally excludes parts and materials
2nd most expensive model
Works best for large sites or portfolios
Budgeting can be difficult
Less risk transferred to contractor
7
Repair Work Limit (RWL)
Research shows for M.E.F services:
• 66% <$1000
• 20% rehab | refurb | capex & chargeable
• 14% >$1000 & chargeable
Most reactive calls minor
Labour
Materials
Capped risk at predetermined/agreed
threshold or ‘RWL’
Parts
Usually subject to condition
assessment and latent conditions
Significant administration savings
8
Summary
Choose wisely and do your homework
Consider:
- Economic conditions
and what you can afford
- Technical advances
- Your portfolio condition
Keep
- Your risk profile
- Contract flexibility for change
- Performance management and reporting framework
9