Invitations to Tender for Facility Management Services

Springer Tracts in Civil Engineering

Cinzia Talamo Nazly Atta

Invitations to Tender for Facility Management Services Process Mapping, Service Specifications and Innovative Scenarios

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Cinzia Talamo Nazly Atta •

Invitations to Tender for Facility Management Services Process Mapping, Service Specifications and Innovative Scenarios

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Cinzia Talamo Department of Architecture, Built Environment and Construction Engineering Politecnico di Milano Milan, Italy

Nazly Atta Department of Architecture, Built Environment and Construction Engineering Politecnico di Milano Milan, Italy

ISSN 2366-259X ISSN 2366-2603 (electronic) Springer Tracts in Civil Engineering ISBN 978-3-030-04008-6 ISBN 978-3-030-04009-3 (eBook) https://doi.org/10.1007/978-3-030-04009-3 Library of Congress Control Number: 2018961205 © Springer Nature Switzerland AG 2019 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

Contents

1 Tendering Process and Facility Management Agreements: The Role of Invitation to Tender . . . . . . . . . . . . 1.1 Facility Management: A Source of Competitive Advantage for Business Organizations . . . . . . . . . . . . . . . . . . . . . . . . 1.2 FM Service Delivery Strategy . . . . . . . . . . . . . . . . . . . . . . 1.3 FM Service Procurement and Tendering Process . . . . . . . . 1.4 FM Tendering Documents . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Tender Assessment, Awarding Phase and FM Agreement Preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.6 The Role of ITT within the Procurement Process . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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2 “Process Approach” to External FM Service Provision . . 2.1 Changing Scenarios in the Field of FM Services . . . . . 2.2 Requiring Services According to a “Process Approach” 2.3 Sourcing Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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3 FM Services and Organizational Structures 3.1 Required Services . . . . . . . . . . . . . . . . . 3.2 Command Centre . . . . . . . . . . . . . . . . . 3.3 Operative Structure . . . . . . . . . . . . . . . . 3.4 Help Desk . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . .

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4 Management of FM-related Information . . . . . . . . . . . . . . . . . 4.1 Management of Information and Quality of the FM Service 4.2 Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3 Registry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.4 Information System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.5 Management of the Information Flow . . . . . . . . . . . . . . . .

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4.6 Document Management . . . . . . . . . . . . . . . . 4.7 Responsibility and Ownership of Information . 4.8 Feedback Data and Information . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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5 FM Service Monitoring and Control . . . . . . . . . . . 5.1 Procedures for Service Monitoring and Control 5.2 SLA and KPI System . . . . . . . . . . . . . . . . . . . 5.3 Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4 Penalty and Incentive Systems . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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6 FM Service Quality and Requirements . 6.1 Requirements for Service Providers . 6.2 Quality Policies . . . . . . . . . . . . . . . 6.3 Risk Management . . . . . . . . . . . . . . 6.4 Information and Training . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . .

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7 Analytical Framework for ITTs . . . . . . . . . . . . . . . . . . . . . . . . . 7.1 “Ex Ante” and “Ex Post” Activities in the Preparation of ITTs 7.2 Reading Keys for ITTs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.3 Framework for Supporting Tendering Activities . . . . . . . . . . . Reference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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8 FM Services Procurement and Management: Scenarios of Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.1 Sustainable Procurement and ISO 20400 Standard . . . . . 8.2 Building Information Modeling (BIM) for FM . . . . . . . . 8.3 Big Data and Internet of Things (IoT) for Advanced FM Information Management . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243 Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247

Introduction

Facility management (FM) represents a sector that is growing fast and is expanding its areas of interest within the Real Estate and Construction industry; several international FM standards have been developed in the last decade and FM marketplaces are increasing in most of the industrialized countries all over the world. FM, as a new management discipline, requires studies and original experimentations in various areas: organizational models, relationships between key stakeholders, management of supply chains, shared references and procedures, new skills and multidisciplinary training. FM, dealing with services variously integrated and delivered for prolonged periods, touches on several questions, such as: How to define and manage models of effective medium and long term partnership between Clients and Providers? How to require performances? How to measure and assess the quality of the services over time? How to recognize the added value of FM according to different value perspectives? How to act proactively in order to prevent nonconformities and criticalities? How to pursue a continuous improvement? Besides, FM is typically based on information management: the management of people, spaces, and infrastructures implies huge amounts of data and documents— sometimes at the beginning redundant, partially lacking, not updated or not reliable —that must be selected, collected, classified, and organized in order to generate useful information. The management of information over time is the premise for the development of knowledge, which represents the actual added value of a service and the condition for continuous improvement. Within this very dynamic and complex scenario, FM is rapidly evolving: Basic fundamentals and references are not yet completely consolidated and shared among all the engaged stakeholders, and in the meanwhile innovative technologies, new regulations and increasing customers’ expectations are already reshaping its characteristics. Starting from these assumptions, this book focuses on two main questions related to FM-integrated services: How to support the Client in the preparation of the Invitation to Tender (ITT)? How to help it to recognize the fundamental role of information management? vii

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The book assumes the perspective of the Client in the moment in which it is preparing an ITT, because this very important document, and the specifications that it contains, should represent both the general vision of the Client about the management of the service over time and the systematic synthesis of its requirements, its expectations, its quality policies, its relationship with the Service Provider, its declared role in decision-making and control processes, its requests about information management and generation of knowledge. The sources of the book have been: literature references, international standards, and sample ITT documents. The analysis and the comparison of several ITT documents, regarding the many possible services that can be integrated, allow to notice different approaches in requiring FM services. Although the different approaches, it is possible to find some recurring and common problems which highlight how the FM Clients have not reached yet a full maturity in preparing documents for a tendering process and how some basic references are not yet fully shared among the operators: – some essential key topics are often not present or not adequately related to each other; – the several international standards dealing with FM services, that can provide very useful guidelines and shared references, often seem to be unknown or underestimated; – ITT documents, containing lacks and/or inconsistencies between linked topics or repetitions and redundancies, may confuse the tenderers in the preparation of the offers; – too general requests can make it difficult to obtain tenderers’ proposals comparable to each other and appropriate to the specificity of the context (organization and policies of the Client, characteristics of the Real Estate, users’ needs, etc.); – too much defined and prescriptive requests may inhibit proposals capable of activating innovation and the best skills of the Service Providers or limit the dialogue with the selected Service Provider/s in the development of the agreement and in the mobilization phase; – it may happen that over-ambitious requests are not compatible with the affordable costs for the services or with the available resources of the Client for future controls. All these possible problems for the ITT, variously combined, can have several consequences during the service delivery: They can make the relationship between Client and Service Provider difficult, they can affect the quality of the service and the satisfaction of the Client over time, and they can increase nonconformities and the application of penalties, as well as reduce the efficiency and effectiveness of the Service Provider. Anyway, a common and recurring problem, related to ITT contents, seems to be the underestimation by the Client of the role of information for the quality of the service. Information often seems to be considered as an implicit aspect, the requests

Introduction

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about information are absent or not fully defined, as well as the criteria for the classification and organization of data and for the adoption/implementation of the information system. On the contrary, the specifications contained within an ITT should represent the translation of information needs into requirements related to: the goals of the Client, the main categories of information to deal with, the expected organization of information, the ICT tools, the modalities of reporting and control, and the level of knowledge to be reached. Finally, nowadays, various innovations—such as BIM applications, Big Data, Internet of Things (IoT) approaches, sensing and responding technologies—represent a scenario of interesting opportunities and challenges for the FM services. Notwithstanding the interest that various stakeholders are expressing, at present many Clients seem to be not ready yet to translate this scenario into an actual innovative vision of the services and consequently into new specific requests for the ITT. Considering all these aspects, the purpose of the book is to propose some reflections useful for the phase of preparation of the ITT, in which the Client must develop in the best way the analytical activities aiming to investigate various basic aspects related to its organization, to its Real Estate and to its expectations in order to become as aware as possible of its goals and of the value of information. According to this purpose, the book—that is organized in eight chapters— follows a logical path that: – starts with the analysis of the general aspects related to the tendering process (Chap. 1, Chap. 2); – proposes and analyses in depth a set of reading keys, considered as some basic topics for an ITT (Chaps. 3–7); – introduces and describes the main features of some innovations that currently are interesting various fields of applications and could be transferred into the field of integrated services, providing an interpretation of their potentialities for the future improvement/change of FM (Chap. 8). In particular, in Chap. 1, Nazly Atta introduces the topic of Facility Management (FM), highlighting its potential for business organizations as a source of competitive advantage. Afterward, the chapter provides a theoretical framework concerning the topics of FM service procurement, sourcing strategy, tendering process and documents, and Invitations to Tender (ITTs). Subsequently, the phases of preparation, development, implementation, and execution of an FM contract are discussed, underlining for each phase the key actions to be performed. Lastly, the importance and positive implications of a well-written ITT within the procurement process are emphasized with reference to both the Client side and the Service Provider side. In Chap. 2, Cinzia Talamo, starting from an overview of current and changing scenarios in the field of FM services, analyzes the articulated sourcing process in order to highlight all the basic elements necessary for the preparation of Invitations to Tender and other procurement documents.

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In Chap. 3, Cinzia Talamo describes the FM services that can be requested by a Client and analyzes the organizational structures that can support the delivery of the service, here named “command center” and “operative structure.” The aim of the chapter is to provide to the Client elements and reading keys useful for translating its organizational goals into requests and requirements to be expressed in the ITT. In Chap. 4, Cinzia Talamo addresses the matter of information, analyzing the main issues that a Client should consider in order to express requests and requirements within the ITT. The chapter deals with a series of topics (inventory process, registry, information system, management of the information flow, document management, information responsibilities and ownership, feedback data) in which the theme of information can be expanded. In Chap. 5, Nazly Atta introduces the topic of monitoring and control of the performance and quality of services. The chapter povides an in-depth analysis of the main tools useful to measure, monitor, control, and report the real achieved performance and quality levels during the service delivery phase, focusing on: Service-Level Agreement (SLA) and Key Performance Indicator (KPI) system; reporting system; penalty and incentive systems. Hence, the chapter highlights the information that the Client should include within the ITT in relation to each of the investigated tools. In Chap. 6, Nazly Atta introduces significant key topics that the Client should discuss within the ITT, in particular: requirements for Service Providers, quality policies, risk management, information and training of the Service Provider staff. These topics are in-depth analyzed from the point of view of the Client, highlighting the main sets of information that should be included in the ITT. In Chap. 7, Cinzia Talamo proposes a framework based on the reading keys discussed in the previous chapters that can be useful for various activities: the preliminary self-analysis of the Client needs and goals, the investigation of references (sample ITTs and standards), the creation of ITT response templates, the assessment of the tenderers’ offers, the evaluation of the ITT during the service delivery phase. In Chap. 8, Nazly Atta analyzes some scenarios of innovation of FM practices, namely Sustainable Procurement, Building Information Modeling (BIM), Big Data, and Internet of Things (IoT), highlighting related core subjects, drivers, and benefits for FM. These innovations are described in detail and then discussed with respect to the elaboration of ITTs, analyzing the ITT contents that consequently will have to be reviewed and added by the Client. Finally, the authors propose a glossary, useful for a better understanding of the concepts expressed in this book.

Chapter 1

Tendering Process and Facility Management Agreements: The Role of Invitation to Tender

Abstract The present chapter introduces the topic of Facility Management (FM), highlighting its potential for business organizations as a source of competitive advantage. Afterward, the topic of FM Procurement Process is introduced, describing its main features and functions. Then, an analysis of the possible service delivery options for the provision of FM services (in-house, outsourced and hybrid) is carried out, stressing main strengths and weaknesses of each approach. Focusing on the outsourcing strategy, the chapter deals with the topic of Tendering Process, explaining its different typologies (e.g. competitive, selective, pre-registered) along with the related required Tendering Documents, among which the Invitation to Tender (ITT). Subsequently, the phases of preparation, development, implementation and execution of a FM contract are discussed, underlining for each phase the key actions to be performed. Lastly, the role and the importance of a well-written ITT, in the context of a Procurement Process, is emphasized both from the Client side—for a proper and accurate transfer of its strategy, policies and needs to potential Service Providers; for increasing its ability to adequately evaluate the received offers; for the comprehensiveness and clearness of the future FM contract—and from the Service Providers side, for a proper assessment of their suitability to respond to the ITT and for writing a comprehensive tender consistent with the Client requests expressed in the ITT.




Keywords Facility Management (FM) Service delivery strategy Procurement process Tendering process Invitation to Tender (ITT)




1.1




Facility Management: A Source of Competitive Advantage for Business Organizations

Facility Management (FM) is an emerging discipline of primary significance to organizations with respect to crucial issues concerning the increasing of the business value, the enhancing of quality and performance and the improvement of This chapter is authored by Nazly Atta. © Springer Nature Switzerland AG 2019 C. Talamo and N. Atta, Invitations to Tender for Facility Management Services, Springer Tracts in Civil Engineering, https://doi.org/10.1007/978-3-030-04009-3_1

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1 Tendering Process and Facility Management Agreements …

customer satisfaction within the management of supporting services. The standard ISO 41011:2017 defines FM as an “organizational function which integrates people, place and process within the built environment with the purpose of improving the quality of life of people and the productivity of the core business” (ISO 41011:2017). Moreover, FM can assists companies in aligning organizational objectives so that they can be successfully achieved. Therefore, the functions of the FM have a key role in the management of the resources and assets, of the various support services and of the working environment in order to support the core business of organizations both in the short and in the long term (Chotipanich 2004). Nowadays, services are increasingly taking part of any organization purchasing expenditures and the main part of the business service sector is represented by FM services (Lehtonen and Salonen 2005). Hence, the role of the procurement of FM services is crucial, especially if compared to the purchase of other business services, mainly – but not only– because the FM services are delivered on the premises of Clients (Bröchner 2001). Therefore, FM services can be considered an important component of the business service sector. Besides representing an important part of the costs of a company, comparable and second only to payroll (Amaratunga and Baldry 2002; Amaratunga et al. 2000; Bon et al. 1998), FM also plays a fundamental role in enhancing the productivity and the performance of organizations by supporting—among others—the definition of strategies, the control of resources, the service delivery and the supply chain management (Brackertz 2004). Hence, FM can be seen as a source of competitive advantage and a supportive influence on organizational and human performance within an organization. In addition, Tucker and Smith (2008) describe FM as a fundamental business function that affects not only revenues and costs but also production, quality of life of employees, health & safety and the whole work environment. Indeed, FM covers a wide range of services including—among others—building maintenance, cleaning, security and utilities supplies, as well as financial management, change management, human resources management, health & safety and contract management (Atkin and Brooks 2009). Thinking at its role, FM represents a key function in managing facility resources, services and workplace, supporting the core business of organizations in both the long and short term (Waheed and Fernie 2009; Chotipanich and Nutt 2008; Chotipanich 2004). According to Aishah Kamarazaly et al. (2013), FM offers an integrated approach to maintain and improve buildings and other infrastructures of an organization in order to create an environment that robustly supports the primary objectives of the organization. A well-organized FM service provision allows organizations to work at their most effective and efficient levels, supporting their core business and also generating potential added value improvements. Thus, FM meant as a strategy may actively and significantly contribute to the business success of organizations, leading them to reach a competitive advantage. Hence, the broad task of facility managers is to ensure an alignment between the key business drivers and the goals of facility management, aiming at value creation. In particular, FM seeks to achieve a strategic integration between the core business

1.1 Facility Management: A Source of Competitive Advantage …

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needs, the existing physical workplace, the activities carried out in it, and the provision of support services. Therefore, FM concerns not only the operative level, introducing a quality driven approach to the whole system of activities and maintenance interventions, but it also involves the strategic level by (Myeda 2014): • allowing an aware and appropriate resource allocation and a consequent resource optimization; • leading to high service performance and quality levels; • indirectly improving the productivity of the core business; • encouraging a reputable corporate image; • increasing asset and property values. According to Grimshaw (2003) the function of FM within an organization has six different articulations, namely (Table 1.1): • Technical function. This function concerns the maintenance of the physical infrastructure, equipments, furniture, items, etc. during their life cycle in order to retain them in (or restore them to) a state in which they can perform the required functions. This function is represented by the operational maintenance, thus, by the articulated set of all technical and administrative actions aimed at maintaining the required performance and utility of the physical assets. • Economic function. This means performing a financial control for ensuring the efficient use of physical resources by controlling cost. Planning and review of expenditures are fundamental activities to perform in order to control and monitor the available budget over time. This function is executed by preparing a business plan that enables to plan expenditures, trying to save over ad hoc expenditures. Facility managers in most of the cases are also responsible for the financial management of the services that they manage. Thus, it can be useful to include financial management training as part of the professional development of facility managers. Table 1.1 Functions of FM FM function Technical function

Description

Maintenance of physical assets during their lifecycle Economic function Planning of the efficient use of physical resources by controlling cost Strategic function Planning of physical resources to support organizational development and reduce risk Social function Satisfaction of users’ needs in relation with the physical infrastructure Service function Management of non-core support services Professional function Social responsibility for people in the workplace Source Grimshaw (2003)

Keywords Operational maintenance Financial control Change management Support service User interfacing Advocacy

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• Strategic function. This function is related with the definition of strategies mainly related to the change management, therefore with the forward planning of physical infrastructure resources to support organizational development and reduce risks (Grimshaw 2003; Myeda 2014). • Social function. This function concerns the user interfacing and it is aimed at ensuring that the physical infrastructure meets the different needs of the users (Grimshaw 2003; Myeda 2014). • Service function. It is concerned with the designing, planning, provision and monitoring of support service. In particular, this function is related to the integrated management of all non-core services (addressed to buildings, spaces and people) which support the core business and the organization functioning, by sustaining the effective and efficient execution of the core activities of the organization. • Professional function. This function is related with the advocacy, thus, with the social responsibility for people in the workplace (Grimshaw 2003; Myeda 2014). In light of these premises, it is possible to state that the concept of FM has evolved over the years, among business organizations, from being seen as just one of the less relevant services to being considered as a main business supporter. According to Myeda (2014), this role as a business supporter, or even a business enabler, is based on three main approaches of FM (Fig. 1.1), namely: • “integrating” places, people, processes and technologies for an effective and efficient lifecycle management of the buildings and their components; • “aligning” the FM service portfolio with the strategy and the mission of the Client and with the available resources; • “innovating” in order to be able to address over time changing requirements and to seize new opportunities. From a strategic point of view, FM—as a business enabler—should: • provide significant data and information and formulate medium and long term plans to support the top management1 to fulfill its business purposes and to define advantageous business strategies; • facilitate decision makers in decision-making processes by providing timely reliable information (e.g. aggregated data, indicators, results of scenarios analyses, benchmarking, etc.) useful to let them gaining the needed awareness on the topic/s of interest for making conscious and proper decisions;

The standard ISO 41011:2017 defines the Top Management as the “person or group of people who directs and controls an organization at the highest level. (…) Top management has the power to delegate authority and provide resources within the organization” (ISO 41011:2017).

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1.1 Facility Management: A Source of Competitive Advantage …

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Fig. 1.1 FM as a business enabler. Source Myeda (2014)

• define, integrate and coordinate all the required support (non-core) services in such a way that it will be possible to exploit synergies and economies of scale among the different services, helping to reduce costs and time losses and to improve the performance of the organization (BS EN 15221-1:2006); • plan, program and control all the organizational activities by defining and sharing with the top management the organizational plan for the delivery of the defined activities; • allocate resources (time, people, tools, materials, etc.) to the activities in an effective and efficient way with regard to the use of the “limited” resources made available by the organization; • improve quality and performance of the core business of the organization and support the increase of its business productivity by providing a supporting environment for the organization itself, from operative to top management levels; • safeguard overtime goods (tangible and intangible) and assets, as well as prevent the degradation phenomena of building assets and components by providing FM services as Operation & Maintenance, Cleaning, etc.; • improve the organization sustainability by implementing life cycle approaches and analyses (BS EN 15221-1:2006) for buildings, their assets and components aimed at preventing the wastage of resources, extending the useful life of building components by means of maintenance activities, etc.

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In order to successfully reach these goals, it is fundamental that the Client has a clear understanding of its Real Estate strategy in order to identify, distinguish and define primary (core) business and (non-core) support activities. In particular, in the first survey phase—at the strategic level—the Client has to: • outline its visions, policies, and strategies with respect to FM; • identify the needed FM services to be performed; • define the Service Level Agreements (SLAs) and Key Performance Indicators (KPIs), as well as the procedures and tools for an effective monitoring and control of FM services performance (BS EN 15221-1:2006); • define the available budget for FM services, estimate the costs, and define the budget allocation to the service activities; • define the service delivery strategies, identifying possible procurement routes and long term best-value solutions. On the basis of this premise, if on one hand FM supports organizations both on the operational and strategic levels—in continuity and in accordance with the short and long term business objectives—offering added value, as well as contributing to the success of the company and favoring the attainment of a competitive advantage; on the other hand, it requires an accurate analysis of the internal and external context of the organizations. Indeed, in order to identify the best FM service delivery strategy (that has to match the overall approach of the organization, including the business vision), several factors must be taken into account and carefully analyzed. The next paragraph explains the key factors that may influence a successful FM sourcing2 practice, thus a proper choice of service delivery strategy.

1.2

FM Service Delivery Strategy

In order to appropriately define an accurate service delivery strategy within the context of the organization business plan, it is fundamental to preliminarily collect a first minimum set of information (Table 1.2) necessary to (ISO 41012:2017): • clearly define and articulate the organizational needs along with the final objectives and goals of the Client; • acquire information about scope of services and service requirements, as well as technical information about services (that can be acquired, for example, through

The standard ISO 41011:2017 defines Sourcing as a “practice which identifies, evaluates and engages internal and external service providers to deliver a service or products to meet a specification” (ISO 41011:2017). Moreover, according to the standard ISO 20400:2017, Sourcing can be considered as “a part of the procurement process that includes planning, defining specifications and selecting suppliers” (ISO 20400:2017).

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Table 1.2 Data and information to be collected to support decision-making for identifying the most suitable sourcing strategy Categories of information

Examples of data and information

Information related to the organizational needs, aims and objectives of the demand organization (Client)

Core business, mission, vision and strategy Key objectives of core business and primary activities Strategic short/long term directions of the organization and influence on building portfolio, technical infrastructure, work force and competence, etc. Culture, structure, governance and principles of decision making of the organization considering the local, regional and global scales Current and future possible corporate trademark and intended image Range and nature of core business considering the local, regional, and global scales Strategic considerations related to sustainable environmental issues and social responsibilities Stakeholders with decisive influence on strategic choices of the organization Business objectives, main drivers and constraints Transitional arrangement/s (if any) Interested geographical locations and areas of operation, building portfolio and space Management of information for planning and controlling services Existing basis and arrangements for service provision and scope of services Interface between the primary activities and support services “As is” situation, including expectations and satisfaction of users in relation with the current range and quality of services provision Applicable statutory and legislative requirements Impressions of the op management about the current performance (service levels, quality, etc.) of the FM organization Strategic planning timeframe of the demand organization Split between core and non-core business Sustainability aspects Scope of FM services (continued)

Information related to scope of services, requirements, technical information about services, features of the workplace

8

1 Tendering Process and Facility Management Agreements …

Table 1.2 (continued) Categories of information

Examples of data and information Innovation requirements

Information related to possible weaknesses, opportunities and risks that the demand organization (Client) may have to face

Special service requirements and hazardous operations (if applicable) Current service delivery model Expectations of involved stakeholders Building portfolio, location and geographic representation of interested site/s Features of involved workspace/workplace Technical infrastructures and other infrastructure assets Human resources and corporate culture and identity Resilience strategy, security issues, and other risks with decisive influence on strategic choices Possible changes in core strategies which may significantly impact on: building portfolio/ tenancies; stakeholders’ expectations; workspace/workplace; social responsibilities; sustainability and environmental issues; etc. Possible challenges to be faced in the medium-long term and related impact that they may have on needs and demand of service

Adapted from ISO 41012:2017

interviews with the previous management staff or provider) and about the features of the workplace in which they will have to be delivered; • identify and understand what are the current weaknesses, the possible opportunities to be seized and the possible critical risks to be faced with respect to the current FM service provision; • identify the consequences, and their extent or criticality, that the strategic decisions taken may have on the FM services that support the structures and the activities of the core business and, therefore, indirectly on the productivity of the organization. As broadly recognized (ISO 41012:2017; Ahamed et al. 2013; Atkin and Brooks 2009), there are three approaches to the provision of FM services classified on the basis of the origin (internal or external to the Client) of the unit/s that will provide the FM services. In particular, the three FM service delivery options are (ISO 41011:2017): • in-house service provision or internal service provision. In this case, all the requested services are managed and delivered by an in-house FM organization, namely by the internal staff employed by the Client;

1.2 FM Service Delivery Strategy

9

• outsourcing. In this case all the requested services are outsourced by making an agreement(s) with one or more external Service Providers. • hybrid or mixed service provision. In this case, some of the requested services are provided by an in-house FM organization and some by one or more external Service Providers. This book focuses on the Outsourcing and Hybrid service provisions, as they require a procurement process (discussed in the next paragraph) thus the writing of a formal request for service provision—as the Invitation to Tender (ITT)—to potential external Service Providers. In order to reach a comprehensive understanding of the outsourcing solution, below the main advantages, strengths and weaknesses are identifies, also with respect to the in-house service provision (Table 1.3). According to Atkin and Brooks (2009), the choice of the service provision approach to undertake is mainly related to the priority set by the organization for the services to be provided. According to Booty (2009), outsourcing should not be seen just as a money-saving management tactic, but it should also be considered with regard to the potential value that it may bring to a business. It may cost more to outsource but the services may be better performed, the Client productivity may be improved and its image may be enhanced. According to Vetráková et al. (2013), outsourcing represents a tool of strategic business management. Carter and Yan (2007) state that there are several advantages deriving from outsourcing both at strategic and operational levels, in particular an organization may opt for outsourcing in order to: • increase the quality level and the performance of support services that are performed by high-skilled external Service Provider/s (the Client can select the best Service Provider/s with the needed experience, quality, know-how, performance efficiency, etc.); • achieve cost savings related to the avoidance of the employment and training of internal human resources for support activities; • focus its internal know-how and resources on the core business. Fill and Visser (2000) agree that the decision to outsource enables organizations to achieve cost reduction, expand services and expertise, improve employee productivity and motivation, as well as to improve and valorize the corporate image. Therefore, from the analysis in Table 1.3, it is possible to understand that the outsourcing solution, compared to the in-house solution, if on one hand allows the Client to focus on its core business and rely on external Service Providers that can supply high quality services, on the other hand it implies: • starting a Procurement Process. In order to do so, the Client should be able to request and describe in a clear, comprehensive and not misleading way the scope of services, as well as to properly express the needs, for example, in terms of expected performance;

Outsourcing • The demand organization (Client and the Service Provider/s sign an agreement (contract) that will rule the future provision of FM services • Services are performed by one or more external Service Providers • Outsourcing the non-core activities will give the organization more time to focus on its core business • Outsourcing can give to the organization the access to experts that could ensure high-quality services • Outsourcing can support the organization in enhancing the core business productivity • Outsourcing can contribute to streamline operations, saving time, human effort and costs • Outsourcing can stimulate innovation (Atkin 2003) • Outsourcing implies the beginning of the Procurement process through which the needed services are formally requested (e.g. Invitation to Tender—ITT), purchased (by signing an FM agreement), implemented and delivered • Outsourcing implies a higher attention (compared with the In-house service provision) to topics related to service supervision, as: – definition and specification of Service Level Agreements (SLAs) and related Key Performance Indicators (KPIs); – definition of procedures for monitoring and control the performance of the Service Provider/s; – definition of the provision of (a) reports (from Service Provider/s to Client) regarding relevant aspects of the service provision and management and (b) internal and external customer satisfaction; – definition of possible systems of penalties and/or incentives linked to the meeting of pre-established SLA (and related KPIs) by the Service Provider/s during the service provision • Outsourcing implies the management of one or more Service Providers. The relationship, the interaction and the communication with the staff of the external Service Provider could be more difficult than with internal staff • The Sharing of information between demand organization (Client) and Service Provider may cause issue related to the security and confidentiality of the organization’s confidential information, as well issues related to the allocation of responsibility and also ownership of the information generated or collected during the service/s provision

In-house service provision

• Services are performed by the internal human resources of the demand organization (Client)

• The organization has the opportunity to grow employees instead of hiring externally, providing career prospects and long-term objectives • The long-term cost of In-house service provision is presumably lower rather than outsourcing

• The internal staff has to have the required know-how or it has to be properly trained before the service delivery phase, otherwise the organization has to hire employees with the needed competences and know-how to perform the required services (which means extra costs for the organization) • Higher possibility to have a poorly defined scope that will likely cause issues in service management as (Atkin and Brooks 2014; Atkin 2003): – difficulties in the allocation of roles and responsibility to the internal staff; – difficulties in the measurement of the performance of the internal staff; – increase of the costs for monitoring and controlling the service and staff performance; – decrease in customer satisfaction results • Possible counterproductive influence on the core business due to the allocation of internal resources—that were previously useful for the core business—to the support services

Features

Potential strengths

Potential weaknesses

Table 1.3 In-house service provision and outsourcing: comparison table

10 1 Tendering Process and Facility Management Agreements …

1.2 FM Service Delivery Strategy

11

• in the subsequent phase of service provision, focusing on issues arising from the coexistence of Client and Service Provider/s (such as: responsibility and ownership of information; definition of roles and responsibilities at both strategic and operational levels; monitoring and control of the Service Provider/s, of the performance and quality of the whole FM service and of the individual services; etc.). Hence, it is easy to notice that, although the Client is outsourcing FM services, it must necessarily have internally to its staff the FM-related skills and know-how at least sufficient to ensure a correct understanding of the main critical issues, so to be able to satisfactorily undertake the entire Procurement Process in awareness of what may be the grey areas to be clarified before signing an FM contract. With the aim of supporting Clients in choosing the best service delivery option, the standard ISO 4012:2017 identifies a set of important questions and issues to be taken into serious consideration in order to understand what is the best solution for each organization, helping the Clients in identifying which services should be outsourced and which could be performed in a convenient and satisfactory way by the internal staff of the Client itself. In particular (ISO 41012:2017): • Does the Client has internally the resources and tools necessary to meet the requirements of the provision of internal services (in-house service provision), such as: know-how, skills, expertise, organizational structure, structure for staff supervision, tools for support, etc.? • Does the reference market offer (or partially offer) the total range of services needed by the Client with the required quality levels and specifications? • Are there qualified market offers for the required services in the precise region/ geographic area in which the Client will operate? • Would the Client, in the hypothesis of in-house service provision, be able to maintain at the same time an adequate—and sufficiently economical—level of internal expertise on support services and a satisfactory primary production capacity? • Are there strategic decisions of the Client or political, social or cultural considerations that are mandatory/prevalent, therefore able to guide the decision-making process? Another example of support tool for the decision of the best solution for the service delivery provision—among others—is the one proposed by Kremic et al. (2006). In particular, they propose a decision tree framework (Fig. 1.2) that takes into account: motivators for outsourcing (e.g. strategy, costs, etc.), benefits (e.g. cost savings, increased quality, increased flexibility, etc.) and risks (unrealized cost savings, dependence on provider/s, unsatisfied customers, etc.) arising from the outsourcing of a given service, as well as the factors (e.g. presence of complex functions, lack of internal know-how, resource flexibility, etc.) typically included in the decision-making process leading to the formulation of the choice (Kremic et al. 2006).

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Fig. 1.2 Outsourcing decision framework. Source Kremic et al. (2006)

1.3

FM Service Procurement and Tendering Process

Besides the different factors and advantages that can lead a Client to opt for the outsourcing solution, it has to be highlight that the outsourcing decision requires a Procurement Process which leads to the preparation and the development of the FM agreement (Fig. 1.3) followed by the signature of a formal legal contract between the Client and the Service Provider (ISO 41012:2017). In particular, the Procurement Process is the whole process to acquire services from the definition of Client needs to the purchase and delivery of services till the end of the service contract (ISO 20400:2017). In the context of the Procurement Process, the Tendering Process (or bidding process) is that process aimed at obtaining tenders with the intention of forming a contract with one or more of the tenderers (ISO 6707-2:2017). Thus, the Tendering Process can be meant as a part of the Procurement Process which involves a formal request of offers for providing services by a Client (e.g. Invitation to Tender), the assessment of the received offers (tenders) of Service Providers with the final awarding decision that leads to the selection of the awarding tenderer. After the tendering process, which ends with the identification of an awarding Service Provider, there is the contracting phase aimed at defining an agreement between the Client and the awarding Service Provider, formalized and written in the contract document (ISO 41011:2017).

1.3 FM Service Procurement and Tendering Process

13

Fig. 1.3 Process of preparation and development of agreements by ISO 41012:2017 standard. Source ISO 41012:2017

In order to reach a better understanding of the Procurement Process, it is important to underline its main functions, objectives and key tasks in relation to the purposes, interests and needs of the Client, but also with respect to the management of the relationship between Client and Service Provider/s. According to Rimkūnienė (2013), Management Sciences for Health (2012), Parniangtong (2016), the primary functions of a Procurement Process can be summarized as follows: • obtaining a cost-effective procurement, thus getting the lowest possible purchase price for the needed quality level of services; • ensuring reliability of Service Providers, in terms of performance and quality of the service provision; • building long term win-win relationships with key Service Provider/s to give Clients a competitive advantage (Smock et al. 2007); • maintaining transparency in the process, minimizing the opportunity for illicit influences on procurement decisions and avoiding the integrity risks occurring in every stage of the Procurement Process, from the needs assessment over the tendering phase to the contract execution and payment (Ferwerda et al. 2017; Organization for Economic Cooperation and Development—OECD 2016); • achieving the above-mentioned objectives with the least possible expenditure of (economic and human) resources within the shortest possible lead time.

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In order to ensure this functions and to guarantee the success of the whole Procurement Process, the effectiveness of the Tendering Process is a fundamental goal. As above mentioned, the Tendering Process is a process that involves the making of an offer (proposal or expression of interest) in respond to a request for tenders. In other words, the Tendering Process can be meant as a process in which the Client invites potential Service Providers to make a proposal for the supply of services and, on the other side, a tender is a proposal to provide goods or services in competition with other potential Service Providers. The features of a Tendering Process and the type of tendering documents (e.g. Invitation to Tenders, Request for Tenders, Request for Proposal, etc.,) to be drafted depend strictly by the chosen Sourcing Strategy and by other factors as, among others, the maturity level of the Client, the internal and external context of the Real Estate to be managed and the complexity and specificity or the requested services. The Sourcing Strategy, required in case of contracting of external service provision, defines the broad approach to the Tendering Process. The Sourcing Strategy should be identified by the Client, who has to focus on the definition of policies, procedures and constituting steps of the Tendering Process to obtain the required services (ISO 41012:2017). In particular, there are different typologies of Sourcing Strategy, varying from open to selected. Although Open Tendering3 and Selective Tendering4 are the two main recurring ones, there are also other tendering methodologies that have different features and functions and that can be applied according to different contexts or different levels of knowledge or experience of the Client. In particular, the possible Sourcing Strategies (Table 1.4) can be summarized as follows (ISO 6707-2:2017): • Sole source contract or Non-Competitive procurement; • Open Tendering or Competitive Tendering. Tendering is open for all the interested Service Providers; • Selective Tendering (Single Stage). The participation of Service Providers is limited to those who satisfied specific predetermined requirements (prequalified Service Providers) set by the Client; • Two-stage tendering or Pre-registered Tendering. Tendering starts with a first initial and preliminary process aimed at identifying suitable prospective Service Providers. In order to reach a better understanding of the different tendering approaches, a detailed description of the above mentioned sourcing strategies is below provided.

3

In the case of Open Tendering procedures, all potential tenderers are allowed to submit a tender, thus there are no limitations and restriction for the presentation of proposals. In this case, the procurement is advertised nationwide. 4 In the case of Selective Tendering, the Client defines, among the group of eligible tenderers, a restricted number of qualified tenderers who are invited to take part to the competition and, therefore, to present their proposals submitting their tenders.

1.3 FM Service Procurement and Tendering Process

15

• Sole source contract or Non-Competitive procurement Sole source is a non-competitive procurement process accomplished after soliciting and negotiating with only one source (sole source). This typology does not involve the tendering phase but only the contracting phase. The choice of the Service Provider is directly made by the Client without a competitive process and it is usually based on the fact that only that single Service Provider can fulfill the requirements. In other words, a sole source contract can imply that there is only one company on the market that can provide the needed services. • Open Tendering or Competitive Tendering Open Tendering, also known as Competitive Tendering, is a process that involves an invitation to tender by public advertisement and it allows any Service Provider to submit a tender for the supply of goods or services required by a Client, therefore, any suitable Service Provider can submit a tender with no restrictions. The invitation is publicly advertised and no restrictions are placed on the number of tenderers. Thus, all the potential Service Providers receive the same tender documentation (usually Invitation to Tender - ITT) in order to elaborate their offers. On large projects, open tendering can also be offered to a select group of pre-qualified tenderers, thus, there may be a pre-qualification process that produces a short-list of all the suitable Service Providers who will be invited to prepare tenders. • Selective Tendering (Single Stage) A Selective Tendering is only open to a selected number of Service Providers which are the only ones to be invited to submit a tender. A pre-selected list of possible providers is prepared. The Service Providers are selected according to different criteria as, for instance, because they are known (e.g. by their track-records) to be suitable for a contract of the required size, nature and complexity. Selective tendering may be particularly appropriate for complex contracts that need a high experienced Service Provider or for contracts where there are only few suitable Service Providers. Selective tendering will tend to be faster than open tendering, and can be seen as less wasteful as there is no pre-qualification process, instead only Service Providers that are known to be appropriate for the proposed contract are invited to prepare tenders. It can also give Clients a greater confidence that their requirements will be satisfied. However, it also has some disadvantages as, for instance, the reduction of the potential for innovation or the exclusion of those Service Providers that are trying to establish themselves in a new market. • Two-stage Tendering or Pre-registered Tendering Two-stage tendering is a method of procurement where the technical and financial proposals are not submitted simultaneously but they are submitted separately in two different stages. In Two-stage tendering, the Client set some criteria for the registration of Service Providers (e.g. financial capacity, resource availability, relevant experiences, etc.). In the first stage, the Client usually provides only a general outline of the scope of work and potential Service Providers have to refine the

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Table 1.4 Sourcing strategies. Definition, purposes and reasons for use Sourcing strategy

Description

When to use

Sole Source (or Non-Competitive Procurement)

The choice of the Service Provider is directly made by the Client without a competitive process

Open Tendering (or Competitive Tendering)

Tenders are publicly advertised through an Invitation to tender. Any suitable provider can submit a tender with no restrictions

Selective Tendering (or Single Stage Tendering)

Tendering is only open to a select number of providers pre-selected according to different criteria (for example: years of experience in the provision of the required services)

Two-Stage Tendering (or Pre-registered Tendering)

The submission of proposals (technical and financial) takes place in different stages

• There is only one person or company that can provide the required contractual services; • There is no sufficient time for a Tendering process • The Client does not know the market or it cannot identify suitably qualified providers; • The Client believe that increased competition will lead to a better price for high quality services; • Public Procurements • There is no sufficient time for a whole Open Tendering process (Selective Tendering is faster than Open Tendering); • The scope of work and related specifications are well defined; • In case of complex contracts that need a high experienced provider or for contracts where there are only a few suitable providers • The scope of work and related specifications are not clearly defined yet; • The Client is seeking market input to define the scope of work and to set the requirement in order to finalize its request (Invitation to Tender); • In case of complex contracts that need a high experienced provider

technical requirements and service specification. In this way the Client can assess the capacity of the tenderers to develop the proposal and undertake the requested service. Therefore, usually the Client sets up an appointment with Service Providers to share the information needed to allow them to complete the technical documentation, develop their proposals and consequently define a price offer. Then, in the second stage a price for the contract is negotiated. As above-mentioned, the first important decision to make is which Sourcing Strategy is the most suitable for each specific case and, therefore, it is fundamental to define if the invitation to tender will be restricted to prequalified Service Providers who have already demonstrated their reliability or if it will be open to any Service Provider who is interested.

1.4 FM Tendering Documents

1.4

17

FM Tendering Documents

Once the Sourcing Strategy has been defined, the Client has to produce the tendering documents—in which it specifies the required services—in order to formally invite potential Service Providers to propose their offers. The writing of an Invitation to Tender (ITT) is the preliminary step in a competitive tendering, through which Service Providers are invited to provide offers for service supplies. An ITT is a document that specifies all the needs and requests of the Client for the supply of FM services, including information concerning among others: service scope, requirements and specifications, SLA and KPI system, timelines, monitoring and control procedures, information responsibility and ownership, conditions of contract, etc. (Atkin 2003), as well as the evaluation process that will be followed. However, besides the ITT—on which this book focuses—there are also other different tendering documents that have different functions, features and contents. Indeed, according to the different circumstances (procurement methodology, sourcing strategy, level of knowledge of the market, level of knowledge of required services, etc.), the request for tenders can have different shades of meaning and complexity and, therefore, it is possible to have different tendering documents, such as (Table 1.5): • • • • •

Request for Information (RFI) Expression of Interest (EOI) or Registration of Interest (ROI) Request for Proposal (RFP) or Request for Offer (RFO) Invitation to Tender (ITT) or Request for Tender (RFT) Request for Quotation (RFQ)

In order to reach a better understanding of the different tendering documents, a detailed description of their aims and contents is below provided. • Request For Information (RFI) Request for Information (RFI) is a solicitation sent to a broad audience of potential service suppliers with the aim of gathering information about, for instance, the state of the supply market, supply market dynamics, trends and factors driving change and alternative pricing strategies. Therefore, the responses should be essentially made up by a market research, a standards review and a best practices survey, aimed at providing to the Client the needed information, methods and tools, firstly to create a database of potential Service Providers (that may include information about their finances, offered services, attitudes, and motivations) and, secondly, to identify the scope for a second, more formal, request such as Request for Proposal (RFP) or Invitation to Tender (ITT). Indeed, a RFI is usually used when the Client has not sufficient understanding, awareness and knowledge to write a detailed RFP or ITT and, in this way, it can assess the market and it may identify the Service Providers who are capable of delivering the needed services.

Description

Solicitation sent to a broad audience of potential service suppliers with the aim of gathering information about, for instance, the state of the supply market, supply market dynamics, trends, etc.

It is a process of screening and testing of the market carried out in the initial stages of the procurement in order to gain the information needed to elaborate a formal and more specific request. Indeed, a Client may release an EOI to estimate and assess the ability of a market to supply or gather additional information before progressing to an RPF or ITT

It is a document that solicits proposals; it is flexible indeed normally it does not provide clearly defined services and specifications (as the ITT) but it leaves space to providers suggestions for innovative solutions. Thus, potential suppliers are invited to submit proposals on how the request end result can be achieved

Tendering document

Request for Information (RFI)

Expression Of Interest (EOI) or Registration Of Interest (ROI)

Request for Proposal (RFP) or Request for Offer (RFO)

Table 1.5 Tendering documents. Objectives, functions and reasons for use When to use • The Client has not sufficient understanding, awareness and knowledge to write a detailed request (RPF or ITT); • The Client has not sufficient knowledge of the supply market and it wants to identify the available providers who are capable of delivering the needed services • The Client is not necessarily committed to buy services • The Client has not sufficient understanding, awareness and knowledge to write a detailed request (RPF or ITT); • The Client has not a solid idea on the type of services to be procured and related specifications; • The Client has not sufficient knowledge of the supply market and it wants to identify the available providers who are capable of delivering the needed services; • The supplier market or the required services are dynamic or not well known; • The Client is not necessarily committed to buy services • The Client seeks solution-based proposals to meet its needs • The Client clearly understands its business needs and it is aware that there are potential options available in the market place, but it is open to suggestions for innovative solutions to its requests; • Client requests require technical expertise and specialized capability; • There are no clear solutions or specifications available in the market place to meet the Client requests; • The proposal may require research and development to meet what has been requested (continued)

18 1 Tendering Process and Facility Management Agreements …

Description

It is a formal procurement document that solicits offers. It is used when the Client has already identified and specified the solution to a very specific problem. In this case, the Client cannot accept any deviations from its specifications

It is an invitation to potential suppliers to provide a price quote for a specific and already fully defined service. Thus, the Client will make an assessment based largely on price usually by doing comparison and price analysis

Tendering document

Invitation to Tender (ITT) or Request for Tender (RFT)

Request for Quotation (RFQ)

Table 1.5 (continued) When to use • The Client has already identified the configuration of the required services and related specifications; • The required services are very specific and requirements and criteria are fully and clearly defined; • There is a broad competitive and dynamic market and the value of the contract is high; • The Client is committed to buy services • The Client has very clearly defined specifications and criteria and it is not looking for alternative or innovative options • Lower to medium sized value contracts, for services that are well defined and available and/or subjected to standard terms and conditions; • The Client is committed to buy services

1.4 FM Tendering Documents 19

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1 Tendering Process and Facility Management Agreements …

• Expression Of Interest (EOI) and Registration Of Interest (ROI) An Expression Of Interest (EOI), also known as Registration Of Interest (ROI), has a similar function as the RFI. Indeed, it is a process of screening carried out in the initial stages of the procurement process in order to gain the information needed to elaborate a formal and more specific RFP or ITT. A Client may release an EOI to estimate and assess the ability of a market to supply or gather additional information before progressing to an ITT. The EOI can be useful in circumstances where the Client has not a solid idea of the type of services to be procured, it has not a clear idea of the configuration of those services or it cannot define a complete set of specifications for the services. Moreover, the EOI can be also particularly useful when the supply market is highly dynamic or not well known, in fact this method can provide to the Client an opportunity to test the market in order to determine if the required services are available and which Service Providers are able to provide them. • Request For Proposal (RFP) and Request For Offer (RFO) A Request For Proposal (RFP), also known as Request For Offer (RFO), is a flexible document that solicits proposals, used when the Client looks for solution-based responses to meet its needs. A RFP is usually used when the Client clearly understands its business needs and it is aware that there are potential options available in the market place, but it is open to suggestions for innovative solutions to its request and, therefore, potential Service Providers are invited to submit proposals on how the end result can be achieved. Moreover, an RFP may be also used in situations where the requests require technical expertise and specialized capability or when there are no clear solutions or specifications available in the market place and, consequently, the Client is looking for innovative options. Indeed, it may happen that the service being requested does not yet exist, and the proposal may require research and development to meet what has been requested. This is why a RFP is more flexible than the ITT, which normally provides clearly defined specifications and/or solutions. Indeed, typically, the RFP leaves all or part of the precise structure and format of the response to the discretion of the Service Providers and the level of creativity and innovation is often a criterion used to assess the received proposals. • Invitation to Tender (ITT) or Request For Tender (RFT) A Invitation to Tender (ITT), also known as Request For Tender (RFT), is a formal procurement document that solicits offers. It is used when the Client has already identified and specified the solution to a very specific problem. In this case, the Client cannot accept any deviations from its specifications. However, even if ITT has a very specific scope, sometimes the Client can encourage the Service Providers to propose innovative solutions. In response to an ITT, the Service Providers have to demonstrate in their tenders how they can meet and satisfy the specific requirements of the Client.

1.4 FM Tendering Documents

21

ITT is mainly used in the building sector where, on one hand, the service requested and its specifications and criteria are fully and clearly defined and, on the other hand, there is a broad competitive and dynamic market and the value of the contract is usually high. • Request For Quotation (RFQ) A Request For Quotation (RFQ) is an invitation to potential Service Providers to provide a price quote for a specific service. Therefore, it is used when the Client has already clearly defined the specifications and criteria and it is not looking for alternative or innovative options. The Client will make an assessment based largely on price, usually by doing comparisons and price analyses. An RFQ is typically used on low-medium sized value contracts for services that are well defined, easily available and subjected to standard terms and conditions.

1.5

Tender Assessment, Awarding Phase and FM Agreement Preparation

Once the ITT has been published, the Client has to wait a pre-established period of time—sufficient for tenderers to submit their proposals—set out in the regulations. At the end of this predefined timeframe, thus once the offers (tenders) of potential Service Providers have been received by the Client, the next phase of Tender Assessment can start. In this phase, the Client has to assess and compare all the received tenders in order to choose the one that best meets its needs. Assessment criteria, their prioritization and assessment calculations should be defined in advance and clearly stated in the ITT by the Client. These criteria, used to assess each received technical offer, usually concern factors as: cost; quality; innovation; risks; economic, environmental and social sustainability; etc. The Client should prioritize these criteria (e.g. by allocating weights) in compliance with what stated in the ITT. Once the Client has identified the awarding proposal (e.g. the proposal that offers the highest quality at the lowest price), a formal deliberation of the selection of the awarding tender has to be published in order to share the information with all the tenderers. From the closure of the awarding phase, a Negotiation phase starts. It is aimed at organizing cognitive meetings between the contractual parties, as well as defining, deepening and finalizing some of the issues of the ITT that are still open, thus not yet fully defined. At the end of the negotiation phase the ITT must be reviewed and its contents must be edited and revised by both parties in order to obtain a last mutual approval before continuing with the next phase of contract preparation. This

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1 Tendering Process and Facility Management Agreements …

phase consists in the preparation of the FM contract. Moreover, in this phase any on-going due diligence5 activity must be completed. The standard ISO 41012:2017 provides an example of a structure of a contract which includes (Table 1.6): • general clauses regarding the general agreement, focused on business aspects; • SLA clauses regarding each specific service, focused on service performance and quality and control process aspects. As the standard ISO 41012:2017 states, the applicability of the clauses in Table 1.6 may vary according to: different services, different demands, needs and requirements, different circumstances and different locations. Once the contract documentation has been prepared, both the Client and the Service Provider have to sign the contract (Signature phase). Following the signature phase, there is the Implementation phase. This phase concerns the activation of those processes and activities aimed at fully implementing the service and it can be articulated into four main sub-phases, as suggested by the standard ISO 41012:2017, namely: the Mobilization phase, the Validation phase, the Operational phase and the Termination phase. In particular: • The first sub-phase of mobilization involves the collection, organization and preparation of all the needed resources (human resources, data and information, authorizations and permits, etc.) along with the definition of common shared procedures for performing the various required service activities. In this way the continuity of the service will not be broken. • The second sub-phase of validation involves activities aimed at confirm the validity of: – all the information delivered by the Service Provider during the tendering process to the Client;

5

Due Diligence can be meant as an investigation process that aims to establish the compliance of buildings, fixed installations and carried-out activities with regulatory requirements, through— among others—administrative analyses, land registry analyses, urban planning and construction analyses, structural analyses, technical analyses, environmental analyses, work safety and hygiene analyses. The ISO offers different definitions of this term, each highlighting a different aspect, as: • definition of Due Diligence by ISO 41011:2017: “compilation, comprehensive appraisal and validation of information of an organization required for assessing accuracy, commercial integrity, financial stability and functional competence integrity at the appropriate stage of the agreement sourcing process” (ISO 41011:2017). • definition of Due Diligence by ISO 20400:2017: “process through which organizations proactively identify, assess, prevent, mitigate and account for how they address their actual and potential adverse impacts as an integral part of decision-making and risk management” (ISO 20400:2017). • definition of Due Diligence by ISO 26000:2010: “comprehensive, proactive process to identify the actual and potential negative social, environmental and economic impacts of an organization’s decisions and activities over the entire life cycle of a project or organizational activity, with the aim of avoiding and mitigating negative impacts” (ISO 26000:2010).

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Table 1.6 Example of structure of FM contract. General clauses and SLA clauses by ISO 41012:2017 standard General clauses of a FM contract

Brief content description

1. General description

• Definition of the contracting parties—Client and Service Provider—along with their general intention (and definition of other organizations involved, if any) • FM objectives and overall performance criteria • FM strategy both of the Client and of the Service Provider to achieve the objectives during the term of the contract • Nature/scope of FM services • Description of the Client primary activities, organization strategy and main processes • Glossary of terms, definitions and acronyms used in the contract • Clarification of obligatory references, applicable standards and laws • Identification of the language of the agreement and subsequent translation requirement, if any • Identification of confidentiality requirements and restriction along with the notification and indication of confidential information • Definition of permitted sub-contracting requirements (obligations, limits of sub-contracting, etc.) • Definition of ownership and rights of data and information • Definition of the management information systems, obligations and interactions (e.g. structure for executive reporting, issue resolution, etc.) • Clarification of the Service Provider obligations under the Client security, health and safety management system (e.g. laws and rules applicable to the specific work conditions) • Definition of social responsibility and ethical policies (code of conduct) • Definition of possible termination scenarios and rescission circumstances of the contract along with procedures, critical dates and financial consequences • For each scenarios, clarification of the demobilization and transfer activities • Specification on what the Client is obliged to provide (e.g. information, facility access, infrastructure, material, equipments, software, etc.) (continued)

2. Primary activities requirements 3. General conditions 4. General provisions

5. Termination conditions

6. General obligations of the demand organization

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Table 1.6 (continued) General clauses of a FM contract

Brief content description

7. General obligations of the service provider

• Specification of Service Provider obligations including: general responsibilities; quality assurance, validation system, continuous improvement process/obligations; reference benchmarking and reference best practice; principles of delivery, ownership and responsibility of equipment, material and media; principle related to the protection of the environment in accordance with the Client rules; scope, content, timing of reports to provide by the Service Provider; definition of requirement related to the personnel (staff) of the Service Provider, etc. • Clarification of both parties obligations related to the transfer of personnel employment agreements to the Service Provider • Definition of a list of relevant dates, including: agreement effective date, start of implementation and full operation stages dates (e.g. mobilization, start of the service delivery, start of full responsibility of the performance, training of personnel, exchange documents/information, etc.), stabilization and optimization stages dates, termination of the contract (e.g. minimum length of the contract, period of giving notice, date of expiration, length of extension of the contract, due dates of payments, etc.), etc. • Specification of the condition and processes for the extension of the contract • Definition of payment methodology and price • Clarification of ordinary services (included within the contract price) and supplementary (extraordinary) services and activities that are not included in the price of the contract • Definition of payment timing and invoices • Clarification of penalties for late payments • Clarification for final payment • Clarification of the criteria for the adjustment of the agreed contract price • Clarification for penalties/incentives (if any) related to the not-achievement/overachievement of agreed service performance by the Service Provider, according to the agreed SLA and KPI systems • Clarification of the circumstances and ways in which both parties can introduce changes with respect to what stated in the contract • Clarification of rights and obligations of both parties to vary services, methods, procedures of delivery, performance levels, etc. (continued)

8. Transfer of personnel

9. Timing and main dates

10. Agreement price, payment and accounting

11. Changes of the agreement

1.5 Tender Assessment, Awarding Phase and FM Agreement Preparation

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Table 1.6 (continued) General clauses of a FM contract

Brief content description

12. Default by a party

• Definition of cases and rules to be applied in case of failures by both parties (e.g. list of reasons, methods, financial consequences in case of abandonment or suspension of the contract) • Clarification of audit activities and evaluation activities that are relate to/consequence of the contract • Definition of the audits, related methods and procedure, as well as which party (Client or Service Provider) will bear the associated costs • Definition of the access to the output (results) of the audits by both parties • Clarification of guarantees and/or warranties by a contracting party to the other party (including sub-contractors), including limits (e.g. length and boundaries of validity, obligations and rights, responsibilities, etc.) • Identification of possible emergency situations and procedures and actions that have to be implemented by both parties in case of emergency situations to manage the emergency (including compensation for extraordinary actions), as well as authority and related responsibility allocation to the contracting parties • Identification of risks that need to be ensured by the contracting parties and third parties, as well as scope, responsibility and extent of the insurance coverage for direct and indirect losses, and the insurance conditions and proceedings • Definition of cases consequences of force majeure, as well as procedures, beyond governing law • Clarification of the way to settle possible conflicts (e.g. rules, procedures, timing for settlement, assignments, costs, etc.) • Definition of: ownership structure, methodology for additions and variations, methodology for managing and controlling project activity, and responsibility and risks related to the replacement of assets during the contract period Brief content description

13. Auditing

14. Risks and responsibilities

15. Insurances

16. Force majeure 17. Dispute resolution (settlement) process and methods 18. Asset replacement and project activity

SLA specific clauses of a FM contract 1. General description

• Description of the extent of FM services, including: activities to be performed; tools, means, techniques to be applied; training requirements; materials and consumable items; equipment standards; safety requirements; geographical and organizational positioning of involved end users; etc. (continued)

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Table 1.6 (continued) General clauses of a FM contract

Brief content description

2. Common organization processes

• Identification of the common organization processes and definition of the influence of the FM services on the core business • Definition of the terminology (e.g. special terms) related to specific services • Clarification of the relationship and interface between the contracting parties • Definition of an efficient communication and documentation process, specifying: information procedures, regular and extraordinary meetings, procedures for recording and updating data and information and for updating existing documents, reporting and ownership of data and information • Clarification of common routine procedures for service requests and service deliveries • Clarification of the methods for performance measurement, performance determination, data collection, data comparison and calculation • Definition of a measurement system (criteria, tools and procedures) to measure and evaluate the performance (KPI system in relation to the established SLAs) • Clarification of control process and methods and definition of procedures and tools for monitoring and control the performance of the delivered services • Clarification of the methods for performing continuous improvement activities • Identification of the provisions that the Client has to deliver to the Service Provider, as for instance: training, access, infrastructure, equipments, material, information, documentation, data, as well as supervision, testing, inspection and confirmation of performance • Clarification of possible variation that could justifies changes of an SLA • Definition of the ownership of properties and assets, related to the service, during the contract period • Specification of the service to be provided, including (among others): extent of each service, requested competencies, SLA of each service, quality of services, place/s of performance (location/s), applicable standards, specific techniques to apply, timing (durations, frequencies, schedules, etc.), quantities, specific timeframes for performing activities, minimum/ maximum time between the request and the starting of work, etc. • Definition of the agreed output (e.g. list of specific performance criteria for each service) • Clarification of the methodology for resolving possible issues related to the service delivery (non-compliance procedures) (continued)

3. General conditions 4. Structure and communication

5. Definition and clarification

1.5 Tender Assessment, Awarding Phase and FM Agreement Preparation

27

Table 1.6 (continued) General clauses of a FM contract

Brief content description

6. Obligations and requirements

• Specification of measures to satisfy the security, health, safety and environmental regulations as well as the standards for the protection of the employees • Clarification of the commencement of work and definition of the implementation process, including process requirements and critical dates related to: mobilization; exchange of data, information and/or documents; training of personnel, start of service delivery, start of full responsibility for the performance (start of SLA satisfaction control) • Clarification of the ending of the service and definition of related process requirements and critical dates concerning: demobilization; fading out of tasks and responsibility; handing over of data, information and documents • Clarification of: the adopted type of contract, the price related to the service, and the price structure and schedule • Specification of specific Client invoicing requirements • Definition of the performance payment system, including methodology, applicability criteria, limitations (e.g. maximum amount), etc. • Definition of possible systems of incentives and penalties related to the not achievement/overachievement of performance (according to the agreed SLA and KPI systems) • Clarification of the possible cases in which the Client is entitled to retain money (e.g. when the Service Provider does not deliver the services as agreed) • Identification of reference documents, necessary to deliver services, as: drawings, operation and maintenance manuals, lease agreements, permits, price lists, etc.

7. Price, payment and accounting

8. Appendices

Adapted from ISO 41012:2017

– all data, information and documentation delivered by the Client to the Service Provider concerning the contents of the agreement. Preliminary to this sub-phase, it is important to define accurate methods to solve issues in case of discrepancies between the expected outcome and the real outcome of the validation phase. • The third sub-phase, the operational sub-phase, according to the standard ISO 41012:2017 can be articulated into three steps: – implementation and stabilization step, in which the Service Provider takes the full operational control and it becomes responsible and accountable for

1 Tendering Process and Facility Management Agreements …

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the services and their performance with respect to the performance levels agreed in the contract; – optimization step, during which the services have to be delivered by the Service Provider—and monitored and controlled by the Client—as agreed in the contract. The agreed methodology for optimization and improvement (if any) has to be applied; – preparation for terminating the contract, in this step the methodology for executing the expiration of the contract has to be applied as agreed in the contract. All data, information and documentation required for the closure of the service contract—in accordance to what agreed in the contract (in terms of contents, formats, deadlines, etc.)—have to be compiled and handed over by the Service Provider to the Client. – The fourth and last sub-phase is the termination phase, which involves the performing and implementation by both the Client and the Service Provider of the activities for the conclusion of the contract.

1.6

The Role of ITT within the Procurement Process

The proper writing of an Invitation to Tender (ITT) is a crucial aspect with respect to the whole Procurement Process, both from the Client side and from the Service Provider side. In particular, the ITT has a high influence on the phase of tenders assessment for the identification of the awarding tender, as well as on the phase of contract preparation, with a consequent impact on the further phases of service implementation and delivery and service termination, with different features, intensities and purposes if analyzed from the Client or from the Service Provider point of view. In particular, from the Client side a well-written ITT may have a high impact on: • proper and accurate transfer of Client strategies, policies and needs to potential Service Providers. The writing of an ITT is an important activity with respect to: – the process of transferring the core business strategy, FM strategy, as well as business principles and policies of the Client; – the process of translation of needs and requests of the Client into precise service specifications, requirements, performance and quality levels. This importance remains—with different intensities—regardless of the Client approach to the definition of the FM service specifications and to the related request formulation. In particular two main approaches can be highlighted, namely (Jensen 2017; Tuomela and Puhto 2001): – input specifications, that state how the services have to be performed describing the precise way in which the works must be executed;

1.6 The Role of ITT within the Procurement Process

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– output specifications, that state what has to be provided in a performed-oriented way instead of how to execute operations. This second approach leaves a higher degree of freedom to potential Service Providers that can propose their own methods, procedures and tools to execute works. • Level of comparability of the received tenders. A well-written6 ITT can increase the ability of the Client to adequately evaluate the received offers. A key aspect in writing an ITT is to guide and help Service Providers in writing their tenders in order to have a high probability of receiving consistent and homogeneous offers in terms of format, structure, and contents – easy to compare and evaluate – improving in this way the decision making aimed at selecting the best offer applying the pre-established assessment criteria. Therefore, the Client should provide in the ITT useful information about, for instance, the structure of the tender, the contents concerning the technical offer, the method for specifying the economic offer, etc. • Comprehensiveness and clearness of the contract. The contract documentation must not leave grey areas that could receive erroneous interpretations (giving rise to possible future misunderstandings in the service delivery phase) or, even worse, that could be conveniently used by the other contractual party (exploiting them to their advantage and benefit at the expense of the Client). Indeed, the ITT – together with the awarding tender – represents the fundamental information base on which developing the agreement between Client and the awarding Service Provider. According to ISO 4012:2017, the objective of an agreement is to define the relationship between the Client and the Service Provider responsible for delivering the service/s. One of the key factors in the development of an agreement is to create a common understanding of the service to be delivered and the performance and quality of the service provision between the Service Provider and the Client (ISO 4012:2017). In order to guarantee this common understanding, it is important both for the Client expressing its needs and for the Service Providers offering services, that the ITT, so the requests, are clearly specified in all their significant aspects (covering for example: management of information, service monitoring and control, quality standards, SLA and KPI system, penalty/incentive system, information and training, risk management, etc.) to avoid litigations during the whole contract period. On the other side, a well-written ITT may support Service Providers in: • properly assessing their suitability to answer to the ITT. If the ITT is well-written, Service Providers—right from the first reading—will be able to understand what is the nature of the required service, as well as if there are any specific requirements for Service Providers (selection criteria such as the average annual turnover, the number of hired employees, the number of years of 6

A well-written ITT is comprehensive and clear, able to guide potential Service Providers in writing their offers, not only from the formal but also from the contents point of view.

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experience in the sector, or the number and value of references, etc.) that have to be meet. This information may influence the Service Providers choice of whether or not to respond to the ITT. This information can, therefore, be useful to prevent Service Providers from wasting time writing a proposal for which they may not be appropriate, in terms of business characteristics (for example they may not be able to provide the requested services because they do not have the needed required experience, or the number of employees to cover all the required activities, etc.), and on the other hand this information can be useful for the Client because it would not receive proposals from unsuitable companies, thus not losing time to evaluate upstream unsuitable and not-fitting proposals. • Writing a comprehensive tender consistent with the Client requests expressed in the ITT. A well-written ITT will be more likely to receive a correct understanding of the contents by potential Service Providers, who will have more chances to write a consistent offer in line with Client requests, in terms of work procedures, performance levels and reference quality standards, reference information management methods and tools, price offer assessment, etc. Although the fundamental importance of the ITT, the common practice is currently characterized by the absence of shared and consolidated guidelines and tools able to support companies in the process of ITT drafting. As a consequence, ITTs prove often to be incomplete and lacking, in terms of contents, in significant parts that sometimes can generate misunderstandings and possible future litigations among the involved parties, as well as economic and operating inefficiencies. In light of this premise, this book focuses on the drafting of ITTs as well as on their critical analysis, providing information tools to support and facilitate a clear and comprehensive writing of ITTs. In particular, the following chapters analyze the process of elaboration of this document from the point of view of information completeness, focusing on the key topics of an ITT, categorized into the following thematic areas: FM services and Organizational structure (Chap. 3); Management of FM-related information (Chap. 4); FM Service Monitoring and Control (Chap. 5); FM Service Quality and Requirements (Chap. 6).

References Ahamad MHS, Perera BAKS, Illankoon IMCS (2013) In house versus outsourcing facilities management: a framework for value added selection in Sri Lankan commercial buildings. In: Proceeding of the 2nd world construction symposium on planning, designing and building for tomorrow, Colombo, Sri Lanka, pp 298–306 Aishah Kamarazaly M, Mbachu J, Phipps R (2013) Challenges faced by facilities managers in the Australasian universities. J Facil Manag 11(2):136–151 Amaratunga D, Baldry D (2002) Performance measurement in facilities management organisations: transition from measurement to management. http://usir.salford.ac.uk/9903/1/ performance_measurement.pdf. Accessed Mar 2018

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Amaratunga D, Baldry D, Sarshar M (2000) Performance evaluation in facilities management: using the balanced scorecard approach. http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10. 1.1.107.7215. Accessed Mar 2018 Atkin B (2003) Contracting out or managing services in-house. Nord J Surv R Estate Res 1:18–33 Atkin B, Brooks A (2009) Total facilities management, 3rd edn. Wiley - Blackwell, Oxford Atkin B, Brooks A (2014) Total facility management. John Wiley & Sons Bon R, McMahan JF, Carder P (1998) Property performance measurement. Facil 16(7/8):209 Booty F (2009) Facilities management handbook. Routledge Brackertz N (2004) A framework for the strategic management of facilities, balancing physical and financial considerations with service, customer, utilisation and environmental requirements. In: Pacific rim real estate conference: international property investment, Windsor Suite Hotel, Bangkok Bröchner J (2001) Facilities management as a special case of business service management. In: Leväinen KI (ed) Facility management and service concepts. International research seminar on real estate management 29th to 30th March 2001, Helsinki University of Technology, pp 12–18 Carter JR, Yan T (2007) The procurement function’s role in strategic outsourcing from a process perspective. Int J Procure Manag 1(1–2):210–226 Chotipanich S (2004) Positioning facility management. Facil 22(13/14):364–372 Chotipanich S, Nutt B (2008) Positioning and repositioning FM. Facil 26(9/10):374–388 Ferwerda J, Deleanu I, Unger B (2017) Corruption in public procurement: finding the right indicators. Eur J Crim Policy Res 23(2):245–267 Fill C, Visser E (2000) The outsourcing dilemma: a composite approach to the make or buy decision. Manag Decis 38(1):43–50 Grimshaw RW (2003) FM: the professional interface. Facil 21(3/4):50–57 Jensen PA (2017) Strategic sourcing and procurement of facilities management services. J Glob Oper Strat Sourc 10(2):138–158 Kremic T, Icmeli Tukel O, Rom WO (2006) Outsourcing decision support: a survey of benefits, risks, and decision factors. Supply Chain Manag: Int J 11(6):467–482 Lehtonen TJ, Salonen AI (2005) Procurement and relationship management trends in FM services. In: 21st industrial marketing and purchasing conference, p 13 Management Sciences for Health (2012) MDS-3: managing access to medicines and health technologies. Arlington. http://apps.who.int/medicinedocs/documents/s19577en/s19577en.pdf. Accessed Apr 2018 Myeda NE (2014) Facilities management: the business enabler. J Facil Manag 12(4). https://www. emeraldinsight.com/doi/full/10.1108/JFM-07-2014-0022. Accessed Apr 2018 Organization for Economic Cooperation and Development—OECD (2016) Preventing corruption in public procurement. http://www.oecd.org/gov/ethics/Corruption-in-Public-ProcurementBrochure.pdf. Accessed Apr 2018 Parniangtong S (2016) Strategic sourcing: concepts, principles and methodology. In: Supply management. Springer, Singapore, p 5–14 Rimkūnienė D (2013) Modern procurement: strategic role and competitive advantage. Innov Infotechnologies Sci, Bus Educ 2(15):14 Smock DA, Rudzki RA, Rogers SC (2007) Sourcing strategy—the brains behind the game. Supply Chain Manag Rev 11(4) Tucker M, Smith A (2008) User perceptions in workplace productivity and strategic FM delivery. Facil 26(5/6):196–212 Tuomela A, Puhto J (2001) Service provision trends of facility management in Northern Europe. Teknillinen korkeakoulu. http://www.cem.tkk.fi/fsr/Julkaisut/Raportti%20199.pdf. Accessed Mar 2018

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Vetráková M, Potkány M, Hitka M (2013) Outsourcing of facility management. E + M Ekon Manag 16(1):80–2 Waheed Z, Fernie S (2009) Knowledge based facilities management. Facil 27(7/8):258–266

Standard and Laws BS EN 15221-1:2006 Facility management. Terms and definitions ISO 20400:2017 Sustainable procurement. Guidance ISO 26000:2010 Guidance on social responsibility ISO 41011:2017 Facility management. Vocabulary ISO 41012:2017 Facility management. Guidance on strategic sourcing and the development of agreements ISO 6707-2:2017 Buildings and civil engineering works. Vocabulary. Part 2: Contract and communication terms

Chapter 2

“Process Approach” to External FM Service Provision

Abstract The chapter introduces some keys for interpreting the FM scenario, considering both the main features of the current approaches and the most innovative and advanced experimentations and applications—deepened in Chap. 8— that may be opportunities for the evolution of integrated services. Whatever the approaches are—traditional applications or innovative experimentations—the chapter intends to underline how the quality and the success of a FM service depend meaningfully on the capabilities of the Client in orienting, monitoring and controlling the service delivery and in developing and managing a positive relationship with the Service Provider. For these purposes the ITT is a fundamental document. In order to prepare an ITT, the Client should develop several preliminary analyses focused, according to a process approach, on the needs and requirements of the demand organization considering the perspective of the whole life cycle of the FM service, as well as on the need to manage and enrich the knowledge base of the organization. Starting from these premises, the chapter assumes and analyzes several international standard references in order to propose a scheme of Sourcing Process, that starts from the preliminary analysis of the organization up to reach the tendering process, the development of a FM agreement and, lastly, the service delivery phase. The Sourcing Process is represented according a flow chart and each step of the chart is described highlighting its main goals and contents. Keywords Process approach ITT preparation

2.1


Sourcing process
Preliminary analyses

Changing Scenarios in the Field of FM Services

In the last decade in many countries of the world (Booty 2009; Hodge et al. 2014; PWC 2014) the market and the culture of Facility Management (FM) have been steadily growing. Experiences developed in the field of private and public Real

This chapter is authored by Cinzia Talamo. © Springer Nature Switzerland AG 2019 C. Talamo and N. Atta, Invitations to Tender for Facility Management Services, Springer Tracts in Civil Engineering, https://doi.org/10.1007/978-3-030-04009-3_2

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Estate, mostly in the tertiary sector, have allowed to develop and experiment various organizational models, contractual schemes and support instruments. At present, although it is not possible to speak of a fully consolidated culture yet (Goyal and Pitt 2007), the experiences—and the awareness—gained in the last decade make it possible to identify some sufficiently shared references: on one hand the field of voluntary standards1 provides a contribution, made of common concepts and guidelines, useful for standardizing the vocabulary and the behaviors of the operators; on the other hand, the multiplicity of the developed experiments begins to represent an important patrimony of good practices, useful for the analysis and comparison of cases. Most of the experiences converge on outlining an evolution that has seen a generalized strategy of outsourcing2 (Kurdia et al. 2011; Taylor and Booty 2009; Mangano and De Marco 2014) and, as a consequence, the progressive development of services, both in number and variety of types and in modalities of integration. Integration is one of the most characterizing subject of the FM services scenario and it highlights some issues, such as, among others:

1

As a basic reference set, see: ISO 41012:2017 Facility management. Guidance on strategic sourcing and the development of agreements, and the series BS EN 15221 “Facility Management” which consists of the following parts: Part Part Part Part Part Part Part

1: 2: 3: 4: 5: 6: 7:

Terms and definitions Guidance on how to prepare Facility Management agreements Guidance on quality in Facility Management Taxonomy, Classification and Structures in Facility Management Guidance on Facility Management processes Area and Space Measurement in Facility Management Performance Benchmarking

“Outsourcing as opposed to out-tasking, involves turning over the complete management and decision-making authority of an operation (e.g. maintenance) to somebody outside organization. (…). Out-tasking, on the other hand, involves keeping the overall technical competency and decision making authority in-house and using outside specialty services on a temporary basis to supplement in-house capabilities (e.g. manpower, technical expertise). Outsourcing is contracting out to obtain the services or products from an outside provider instead of having them provided by in-house resources. (…) There are two options exist in the decision to outsource or not to outsource:

2

1. The organization decides to retain or outsource the services on the whole basis, 2. The organization out-sources part of the services and retain certain services in house (particularly) if the FM function is part of the organizational strategic management process) (…) Some organizations operate might be described as a mixed economy which retaining some services in-house whilst contracting out others. (…) some organizations favour a totally in-house option, while others literally contract out every service possible and other to use a combination of both. The decision should be made having regard to the path that leads to long term best value for the organization” (Kurdia et al. 2011).

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• coexistence of strategic, tactical and operational aspects within integrated services and the search for the most appropriate organizational models in relation to different context conditions (peculiarity of Real Estate assets, Client core business, available resources, maturity of operators, available knowledge, etc.); • role of the Client of the services and the modalities of its interaction with Service Providers, especially in the activities of selection, orientation and control; • supply Chain management, both horizontally and vertically, in relation to the goals of increasing efficiency and quality, also in consideration of the multiplicity of parameters to be met and controlled (Molinari et al. 2005); • multiplicity of disciplines, of practical knowledge, of coexistent tools within the possible aggregations of services and the need for both managerial and specialist skills, capable of activating organizational synergies. The subject of integration of services, which has seen a continuous evolution over time, is inseparable from the issue of information and knowledge management and it has—at least—two connotations. One connotation deals with the horizontal integration. This kind of integration started in the eighties from the first experiences of aggregation (Hodge et al. 2014) of individual outsourced simple services both soft, as for instance cleaning, and hard, as for instance mechanical systems management. At present, integration of FM services is seeing more and more complex structures of interconnected services. Some of these interconnections are cross-sectorial, with high potentialities of innovation—such as ICT (Information and Communication Technology) (Scupola 2014), Risk Management, Waste Management, Energy and Environmental Management—up to the most advanced forms of Workplace Management. In parallel, the management of the information has followed an evolution that has seen the experiences mainly concentrated on the construction of Real Estate registries (Talamo and Bonanomi 2015). Registries (Chap. 4) are fundamental for the knowledge of the Real Estate assets and for the gradual construction of cognitive frameworks able to read the status and the behavior of technical and spatial entities over time. At the same time, registries are the starting point for the implementation of information systems, namely the computerized platforms aimed at collecting and processing data supporting the processes characterizing the various FM services. The other connotation of integration of FM services concerns the vertical integration. This kind of connection—that has not yet reached the full maturity in current applications—deals with the creation and development of links among the phases of building design, construction and management. The definition of pre-established information frameworks, unique for the entire life cycle of a building and valid for multiple processes, can avoid onerous activities of documents research, data collection and cognitive survey during the development of the service management. At present, the most advanced level of vertical integration resides in BIM applications (Chap. 8) and in the development of three-dimensional models of buildings (Wetzel and Thabet 2015; Cavka et al. 2017; Pärn et al. 2017; Nicał and

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2 “Process Approach” to External FM Service Provision

Wodyński 2016; Pishdad-Bozorgi et al. 2018; Becerik-Gerber et al. 2011; Hu et al. 2018; Carbonari et al. 2018; Talamo and Bonanomi 2015; Parsanezhad and Dimyadi 2013). In particular, the most interesting approach regards the development of models able to cross the entire building process and connect a multiplicity of interoperable supports tools including the information systems supporting the management of FM services (GSA 2011). At present, surely, information systems and BIM applications (Talamo and Bonanomi 2015) represent an area of advanced experimentations aiming to pursue the optimization of processes within integrated services. For the immediate future new developments are emerging, outlining various scenarios of innovations for the FM sector (Pärn et al. 2017), capable of modifying—in a perspective that could be defined as “SMART”—many of the concepts currently referable to knowledge management. Considering the most advanced perspectives, information management according to Big Data (Mawed and Al-Hajj 2017) and IoT approaches (Internet of Things) can introduce transformative innovations in the ways of conceiving, requesting and providing services. These innovations can lead to overcome traditional concepts of data base and network and to introduce new paradigms in the cognitive and decisional dynamics through new simulation and forecasting systems (Ahmed et al. 2017). The plurality of devices, now easily available (Fortino et al. 2012), widens the sources of data acquirable today from: sensors (Table 2.1) inserted into the environment and/or applied onobjects, smartphones (through their equipments such as accelerometers, microphones, Wi-fi and GPS connections), RFID (Radio-Frequency Identification) systems, tags, wireless sensor networks, etc. This large amount of data—fast, numerous, various and continuously acquirable—opens to the subject of multiple connections, linking objects and people. This vision opens to the concept of Internet of Things (IoT), which sees: on one side objects with integrated sensors, hubs or ICT systems collecting, using and distributing data; on the other side communication networks connecting and making all the involved elements able to interact (Sundmaeker et al. 2010). Considering this scenario of innovations, many aspects of current FM services may be affected by profound mutations both on the demand side and on the offer side. For example, consolidated practices—and related support tools—for information acquisition such as Real Estate inventory (Chap. 4), document analysis, collection of feed-back information, monitoring (of occupancy conditions, structural entities, energy performance, etc.) can be significantly reviewed in relation to new methods of analysis, selection, interpretation, organization, processing, visualization and archiving of data according to the IoT perspective. Other changes may concern the ways of responding to information, traditionally coming from users and/or maintainers: for example, the traditional methods of inspection, monitoring and practicing condition-based maintenance can be now reviewed in terms of “sensing and responding” with the support of smart systems. These kinds of systems may be able of receiving and processing data coming from connected systems of sensors, electrical equipment, portable users’ devices, energy

Pressure

Temperature

Sensors

Solids

Fluids

Pressure sensor Microphone

Gauge pressure

Acoustic pressure

M.U.

Idrophone

Acoustic pressure

Pressure transducer Microphone

Traction (exercited on the solid)

Acoustic pressure

Acoustic pressure sensor

Pressure transducer

Compression (exercited on the solid)

Acustic pressure sensor

Pa/bar

Pressure sensor

Gauge pressure

Pa

Pa

Pa

Pa

Pa/bar

Pa/bar Pressure sensor

Absolute pressure

Pa

Pa, atm, mmHg, bar

Pa, atm, mmHg, bar

Pa, atm, mmHg, bar

°C, °F, K

°C, °F, K

°C, °F, K

°C, K

°C, K

°C, K

Idrostatic pressure

Acustic pressure sensor

Barometric pressure sensor Pressure sensor

Atmospheric pressure

Mean radiant temperature

Absolute pressure

Radiation (infrared) temperature (NC)

Air

Infrared sensor Globethermometer

Contact temperature

Immersion temperature sensor Contact temperature sensor

Contact temperature (immersion)

Surfaces

Wet bulb temperature sensor

Psychrometer

Thermocouple

Thermistor

Thermostat

Pyrometer

Temperature sensor

Fluids

Wet bulb temperature

Derived physical quantity

Dry bulb temperature

Object of survey

Air

Main physical quantity

Table 2.1 List of sensors—and related parameters—able to acquire data useful for FM services Traditional instruments

Microphone

(continued)

Extensometer

Load cell

Extensometer

Load cell

Idrophone

Manometer

Manometer

Microphone

Manometer

Manometer

Barometer

Globethermometer

Infrared thermometer

Contact thermometer

Immersion thermometer

Psychrometer

Thermometer

2.1 Changing Scenarios in the Field of FM Services 37

Speed

Solids

Fluids

Air

Solids

Surface

Fluids

Psychrometer

Tachimeter Gyroscope Accelerometer Gyroscope

Linear Acceleration

Angular acceleration

Kinematic fluency

Linear Speed

Fluximeter Fluximeter

Absolute fluency

Angular speed

Fluximeter Fluximeter

Kinematic viscosity

Fluximeter

Dynamic viscosity

Fluximeter

Linear Speed

Linear Acceleration

Anemometer

Relative humidity sensor

Tied relative humidity (on the surface) Anemometer

Relative humidity sensor

Free relative humidity (in the pores)

Linear Acceleration

Absolute humidity sensor

Tied absolute humidity

Linear Speed

Absolute humidity sensor

Relative humidity sensor

Relative humidity

Free absolute humidity (in the pores)

Absolute humidity sensor

Relative humidity sensor

Relative humidity

Absolute humidity

Absolute humidity sensor

Absolute humidity

Capacitive atmospheric humidity sensor

Relative humidity sensor

Hygrometer

Humidistat

Relative humidity

Humidity

Sensors Absolute humidity sensor

Derived physical quantity

Absolute humidity

Object of survey

Air

Main physical quantity

Table 2.1 (continued)

g/m3

Fluency meter

Gyroscope

rad/s2

(continued)

Gyroscope Accelerometer

m/s2

Velocity meter

Fluency meter rad/s

m/s

m2/s

m*s/kg

Viscosity meter Viscosity meter

Pa*s, PI

m/s2 m2/s, Stokes

Venturimeter Venturimeter

m/s

Anemometer Anemometer

m/s2

Relative humidity meter m/s

%

Relative humidity meter

Absolute humidity meter

g/m3 %

Relative humidity meter Absolute humidity meter

%

Relative humidity meter Absolute humidity meter

g/m3

Absolute humidity meter

Relative humidity meter

Hygrometer

%

g/m3

%

Traditional instruments Absolute humidity meter

M.U. g/m3

38 2 “Process Approach” to External FM Service Provision

Concentration

Motion

Main physical quantity

Fluximeter Fluximeter

Absolute fluency

Kinematic fluency

Air

Air quality meter Air quality meter Air quality meter Air quality meter Air quality meter Air quality meter Air quality meter

lg/m3 lg/m3 lg/m3 lg/m3 lg/m3 lg/m3

Air quality sensor Air quality sensor Air quality sensor Air quality sensor Air quality sensor Air quality sensor

Sulphur oxide

Sulphur dioxide

Nitrogen oxide

Nitrogen dioxide

Ozone

Polycyclic aromatic hydrocarbons

(continued)

Air quality meter mg/m3

Air quality sensor

Air quality meter

Heavy metals

Air quality meter µg/m3 mg/m3

Air quality meter

Dioxin

Air quality meter lg/m3

Air quality sensor

Air quality meter

PM0.1

Air quality meter lg/m3

Encoder Video camera

Dp

Formaldheyde

Air quality meter

PM2.5

Video camera

Dh, Drad

Air quality meter

Inclinometer

Dp

lg/m3

Inclinometer

h, rad

f/l

Air quality meter

PM10–2.5

Accelerometer

m/s2 h, rad

lg/m3

Fluency meter

m2/s

Fluency meter

Viscosity meter

m*s/kg

m2/s, Stokes

Traditional instruments Viscosity meter

M.U. Pa*s, PI

Asbesto

Air quality sensor

PM10

Photolcell

Counter people

Movement sensor

Movement sensor

Angular movement

Linear movement

Movement sensor

Linear movement

Living beings

Inclinometer

Inclination

Solids

Inclinometer

Inclination

Accelerometer

Fluximeter

Kinematic viscosity

Linear Acceleration

Sensors Fluximeter

Derived physical quantity

Dynamic viscosity

Fluids

Living beings

Object of survey

Table 2.1 (continued)

2.1 Changing Scenarios in the Field of FM Services 39

Main physical quantity

Fluids

Object of survey

Table 2.1 (continued)

Liquid quality meter Liquid quality meter

lg/l lg/l

Liquid quality sensor Liquid quality sensor

Organic pollutant

Pesticide

(continued)

Liquid quality meter Liquid quality meter

mg/l

Liquid quality sensor

CO2

Liquid quality meter mg/l

Liquid quality sensor

CO

Liquid quality meter lg/l

Liquid quality sensor

Benzene

Liquid quality meter lg/l

Liquid quality sensor

Polycyclic aromatic hydrocarbons

Liquid quality meter lg/l

Liquid quality sensor

Ozone

Liquid quality meter lg/l

Liquid quality sensor

Nitrogen dioxide

Liquid quality meter

Nitrogen oxide

lg/l

Liquid quality sensor

Sulphur dioxide

Liquid quality meter

Liquid quality sensor

Sulphur oxide

lg/l

Liquid quality sensor Liquid quality sensor

Heavy metals

Liquid quality meter

Liquid quality meter

lg/l

Liquid quality meter

lg/l lg/l

Liquid quality meter

lg/l f/l

Liquid quality sensor

PM0.1

Liquid quality meter

lg/l

Teslometer

Gaussmeter

lg/l

Bq/l

Asbesto

Liquid quality sensor

PM2.5

Radiation sensor

Non-ionizing Radiations

Liquid quality sensor

Radiation sensor

Ionizing Radiations

PM10–2.5

Air quality meter

lg/m3

Air quality sensor

Volatile organic compounds

Liquid quality sensor

Air quality meter

lg/m3

Air quality sensor

Pesticide

PM10

Air quality meter

lg/m3

Air quality sensor

Organic pollutant

Radiation meter

Air quality meter

mg/m3

Air quality sensor

CO2

Bq/l

Air quality meter

mg/m3

Air quality sensor

CO

Traditional instruments Air quality meter

M.U. lg/m3

Sensors Air quality sensor

Derived physical quantity

Benzene

40 2 “Process Approach” to External FM Service Provision

Main physical quantity

Surface

Object of survey

Table 2.1 (continued)

Bq/l

Radiation meter

Soil quality meter

Soil quality sensor Soil quality sensor Soil quality sensor Soil quality sensor Radiation sensor

CO2

Organic pollutant

Pesticide

Volatile organic compounds

Ionizing Radiations

Bq/l

(continued)

Radiation meter

Soil quality meter

Soil quality meter mg/m3

Soil quality sensor

CO

Soil quality meter

Soil quality meter lg/m3

Soil quality sensor

Benzene

lg/m3

Soil quality meter lg/m3

Soil quality sensor

Polycyclic aromatic hydrocarbons

lg/m3

Soil quality meter lg/m3

Soil quality sensor

Ozone

Soil quality meter

Soil quality meter lg/m3

Soil quality sensor

Nitrogen dioxide

Soil quality meter

Soil quality meter lg/m3

Soil quality sensor

Nitrogen oxide

lg/m3

Soil quality meter lg/m3

Soil quality sensor

Sulphur dioxide

mg/l

Soil quality meter lg/m3

Soil quality sensor

Sulphur oxide

Soil quality meter

mg/m3

Soil quality meter

lg/m3

Soil quality sensor

Soil quality meter

lg/m3 lg/m3

Heavy metals

Liquid quality meter Soil quality meter

lg/m3

Liquid quality meter

µg/l µg/l

Liquid quality meter Liquid quality meter

g/l

Gaussmeter

µg/l

Bq/l

Traditional instruments Liquid quality meter

f/l

Soil quality sensor

PM0.1

M.U. mg/l

Asbesto

Soil quality sensor

Solid wastes Soil quality sensor

Liquid quality sensor

Nitrates

PM2.5

Liquid quality sensor

Phosphates

PM10–2.5

Liquid quality sensor

Oils and emulsifiers

Soil quality sensor

Liquid quality sensor

Non-ionizing Radiations

PM10

Radiation sensor Radiation sensor

Ionizing Radiations

Sensors Liquid quality sensor

Derived physical quantity

Volatile organic compounds

2.1 Changing Scenarios in the Field of FM Services 41

W/m°K, W/m°C °K/W, °C/W J, cal, Wh, kgp
m, BTU

Transmittance

Conductivity

Thermal resistance

Heat

Electric energy

Solids

W/m2°K, W/m2°C

Absorbed dose

Fluids

Weather sensor

Hailstorm intensity

W/m°K, W/m°C °K/W, °C/W J, cal, Wh, kgp
m, BTU

Conductivity

Thermal contact resistance

Heat

var Wh = 3,6 kJ

Reactive electrical power

Hourly electrical energy

Henry

W

Continuous electrical power

Inductance

V

Electrical potential

Hz

A

Electrical frequency

Ohmeter

Xm2

Electrical resistivity

Electrical intensity

Multimeter

(continued)

Frequency meter

Counter

Varmeter

Wattmeter

Voltmeter

Amperometer

Capacimeter Ohmeter

Farad X

Electric consumption sensor

Ohmeter Conducimeter

Electrical resistance (impedenza)

Siemens/m

Electrical conductivity

Calorimeter

Calorimeter

Dosimeter

Dosimeter

Pluviometer

Pluviometer

Pluviometer

Electrical capacity

Siemens

Electrical conductance

Heat sensor

W/m2°K, W/m2°C

Gray

Transmittance

Heat sensor

Dosimeter

C kg-1

mm

mm

mm

Capacitive meter

Solids

Heat

Weather sensor

Snow intensity Dosimeter

Weather sensor

Rain intensity

Capacitive meter

ml/m3

Exposure

Capacitive sensor

Liquids

g/m3

Traditional instruments Gaussmeter

Air

Capacitive sensor

Solid wastes

M.U. Bq/l

Radioactivity

Sensors Radiation sensor

Derived physical quantity

Non-ionizing Radiations

Object of survey

Main physical quantity

Table 2.1 (continued)

42 2 “Process Approach” to External FM Service Provision

Lighting

Solar radiation

Magnetism

Main physical quantity

Terminals

Surface

Air

Surface

Air

Object of survey

Table 2.1 (continued)

Albedometer

Net solar radiation

A

Magnetometer

Solarimeter Pyranometer Pyranometer Albedometer

Wh/m2 W/m2 W/m2 W/m2

Lighting intensity

Radiant flow

Lighting sensor

W = J/s

lm/sr = cd

lm Wattmeter

Photometer

(continued)

Goniophonometer

lm

Reflected lighting flow

Absorbed lighting flow

Wattmeter

W/m2

Irradiance Lighting sensor

Wattmeter

W/(sr m2)

Radiance

Luxometer

Luxometer UGR

lm/m2 = lux

Reflected glare

Lighting sensor

lm/m2 = lux

Lighting emittence

Flickmeter Photometer

Hz Lighting sensor

Illuminance

Flicker

cd/m2

Luminance meter

Pyranometer

W/m2

W/m2

Magnetic resistance meter Pyranometer

H-1

Gaussmeter

W/m2

Tesla or Gauss

Traditional instruments Magnetometer

UGR

Lighting sensor

M.U. Tesla

Direct Glare

Luminance

Absorbed radiation

Pyranometer

Incident solar radiation Net solar radiation sensor

Pyranometer

Solarimeter

Radiation (irraggiamento)

Reflected solar radiation

Pyranometer

Diffused solar radiation

Contact magnetic sensor

Magnetic resistance Pyranometer

Magnetic flow density

Direct solar radiation

Contact magnetic sensor Contact magnetic sensor

Magnetic potential difference

Sensors Contact magnetic sensor

Derived physical quantity

Magnetic field intensity

2.1 Changing Scenarios in the Field of FM Services 43

Solids

Fluids

Acoustic power level

Acoustic intensity level

Acoustic pressure level

Acoustic power level

Acoustic intensity level

Acoustic pressure level

Acoustic power level

Acoustic intensity level

Acustic trasducer

Decibelmeter

Acustic trasducer

Decibelmeter

Acustic trasducer

Decibelmeter

Acustic trasducer

Decibelmeter

Acustic trasducer

Decibelmeter

Acustic trasducer

Decibelmeter

Acustic trasducer

Decibelmeter

Acustic trasducer

Decibelmeter

Acustic transducer

dB

dB

dB

dB

dB

dB

dB

dB

dB

K

Acoustic pressure level

Decibelmeter

Air

lm/W

Acoustic

M.U. lm

Lighting efficiency

Lighting

Color temperature

Sensors Lighting sensor

Derived physical quantity

Lighting flow

Object of survey

Terminals

Main physical quantity

Table 2.1 (continued) Traditional instruments

Decibelmeter

Decibelmeter

Decibelmeter

Decibelmeter

Decibelmeter

Decibelmeter

Decibelmeter

Decibelmeter

Decibelmeter

Goniophonometer

44 2 “Process Approach” to External FM Service Provision

2.1 Changing Scenarios in the Field of FM Services

45

meters: the response of the systems can be, for instance, the automatic activation of a maintenance intervention when threshold values recorded by sensors, for defined parameters (such as predetermined pressure drops for cleaning filters, temperatures for lubrication, etc.), are reached. The criteria for the construction and monitoring of KPIs (Key Performance Indicators) could be as well reconsidered, introducing methods for processing dynamic indicators, defined in relation to the continuous recording of parameters, representative of users’ needs and behaviors. For example, it is possible to combine values of parameters regarding the energetic behavior of the internal environment (through the regulation nodes and the control network of air conditioning systems) with data related to users’ behaviours and preferences, automatically detectable through portable devices. These behaviours can be related to the comfort perception, the time of use of the spaces, the movements, the levels of overcrowding, etc. (Martani et al. 2012). Furthermore, the current approaches to preventive maintenance may be reviewed through FDD (Fault Detection and Diagnosis), thus through predictive diagnostic systems based on the analysis, interpretation and comparison of large amounts of continuously recorded data, at the scale of a single building or of a widespread Real Estate. Through these data, it can be possible to analyse the behaviors of the systems and the detectable faults in various operating conditions (ways of use, operating durations, climatic data, etc.). Also in this case the scenarios of change may be multiple and it may concern, for example, the ways of: developing databases concerning durations and frequencies of systems failures; creating and updating sets of benchmarks, building smart networks aiming at the involvement and the information sharing between customers, users and service providers, etc. Beyond the multiple examples of potential changes, it is possible to highlight some issues that describe the possible trajectories (Meng 2015) of the achievable organizational innovations in the FM services (Talamo et al. 2016), made viable by technological innovations: • new ways of managing physical assets (buildings and infrastructures), based on new management models and processes defined in relation to the flows of information, people, energy; • an evolution, in the organizational structures of integrated services, moving from linear processes and isolated decision-making centers to scenarios characterized by shared information, networks and management platforms; • provision of services aiming to the proactive and immediate response to needs, emerging from the context of use, through a knowledge management based on analysis, aggregation, research, cross-correlation and processing of large quantities of heterogeneous data, coming from various sources and constantly updated (Lee et al. 2014); • the interpretation of buildings and their technical and spatial components as nodes of a network within a bi-directional flow of information (in-out) with respect to various scales of context (the compound, the network of stakeholders, the city, the territory, etc.);

46

2 “Process Approach” to External FM Service Provision

• new methods of diagnosis, simulation, prediction of systems behaviors and the consequent search for new forms of reactivity and new approaches to risk assessment and risk management (Tien 2013). • the possibility of seeing in the immediate future the actual maturation of these— and many others—potential advances, strongly depends on the ability of Clients and Service Providers of identifying these trajectories of innovation and operating, each one according to its own roles and responsibilities, on several levels (Chap. 8), such as: • in the definition of new criteria for the demand and the delivery of services; • in the construction of new service quality indicators; • in the recognition of the value of new services; • in the definition of new schemes for FM contracts in line with innovative scenarios; • in the ability of creating new supply chains and of involving new stakeholders (e.g. suppliers of ICTs, sensor suppliers, etc.); • in the ability of identifying new profiles of competences and skilss and of accordingly activating the training of new professionals; • in the ability of involving users in a participatory approach to the management of FM services.

2.2

Requiring Services According to a “Process Approach”

The success of a FM service depends meaningfully on the capabilities of the Client in orienting, monitoring and controlling the service delivery and in developing and managing a positive relationship with the Service Provider through a shared agreement (EN 15221-2). Considering the multiplicity of approaches to FM—from traditional applications to more and more innovative experimentations—the characteristics of this relationship may vary a lot. There may be diverse combined situations engaging both public and private Clients: various ranges of FM services, internal or external FM Service Providers (Chap. 3), many types of working environments (e.g. industrial, commercial, administration, residential, health, etc.). Notwithstanding this variability of situations, for FM services addressing medium and large Real Estate, it should be recommended to prefer a competitive tendering process (Chap. 1) (Godfrey and Groen 2016). Obviously, for innovative experimentations of integrated FM services (for instance the ones applying sensors and IoT approaches) the Client should be very careful in the analysis of strategies, in the definition of the agreements and in the application of new modalities for controlling the quality of services (Chap. 8). Moreover, for these new experimental services, a particular attention should be paid towards the ways of stating the requests and the clauses and of writing the Invitation to Tender (ITT), also because of the lack of consolidated experiences and

2.2 Requiring Services According to a “Process Approach”

47

references. However, also in the case of traditional and consolidated approaches to the FM services, by analyzing and comparing various Invitations to Tender, it is possible to understand that several Clients have not reached a generalized level of awareness yet. In order to manage the tendering process in the best way, the Client should be able to perform various preliminary activities concerning: the clarification of its own business policies, the analysis of its organization, the understanding of the interdependencies within processes, the identification of its main medium- and long-term goals. These analytical activities are useful both for taking strategic decisions—regarding the type of contract (Chap. 5), the services to be outsourced3 and the forms of their integration, the organization model for the FM service—and for writing the Invitation to Tender. The standard ISO 41001:2018 underlines the benefits of the adoption of a “process approach” in developing and implementing a FM management system. A “process approach” means to analyze the system of processes, characterizing an organization, in order to achieve a general overview of the linkages between the various activities, highlighting their combinations and interactions. The process approach methodology refers to the general cycle “Plan-Do-Check-Act” (PDCA)4 (ISO 9001:2015) that can be applied to the FM processes implementing the following basic interconnected phases (Fig. 2.1): • planning of the FM service. This first phase consists in several preliminary activities useful to define the requests and the intended outcomes, such as: the analysis of the context of the organization; the definition of the strategic objectives and the ways for measuring their achievement; the definition of organizational roles, responsibilities, competences, policies and authorities; the identification of the available resources (financial, human and technological); According to the standard ISO/TR 41013:2017 “there is no a single system for delivering FM services. Solutions are dependent on a range of factors, including, but not limited to, the following:

3

• geographical location; • organizational risks involved; • mission criticality; • availability of support services; • skills, expertise and capacity of internal specialists; • host organizational core business culture and management structures; • core business strategy and market position; • needs and requirements of the demand organization”. 4 According to the standard ISO 9001:2015, “the process approach involves the systematic definition and management of processes, and their interactions, so as to achieve the intended results in accordance with the quality policy and strategic direction of the organization. Management of the processes and the system as a whole can be achieved using the PDCA cycle with an overall focus on risk-based thinking aimed at taking advantage of opportunities and preventing undesirable results. The application of the process approach in a quality management system enables: (a) (b) (c) (d)

understanding and consistency in meeting requirements; the consideration of processes in terms of added value; the achievement of effective process performance; improvement of processes based on evaluation of data and information”.

48

2 “Process Approach” to External FM Service Provision

Fig. 2.1 PDCA methodology for FM services. Adapted from ISO 41001:2018

the identification of the knowledge needs and of the available information and documents; etc.; • service implementation. This phase concerns the implementation and the control of processes in order to: meet requirements and implement the planned actions; coordinate the activities; integrate services; collect information; • service measurement. This phase implies the supervision, analysis and evaluation of the delivered services by developing activities such as: planning and implementating an audit; reviewing the FM management system; collecting documented information as evidence of the results of the management reviews; • service improvement. This phase consists in: the detection of nonconformities and the development of corrective actions; the continuous identification, evaluation and management of internal and external factors impacting on services; the proposal of proactive preventative actions.

2.2 Requiring Services According to a “Process Approach”

49

The process approach allows to focus on the needs and requirements of the demand organization considering the perspective of the whole life cycle of the FM service, as well as on the need to manage and enrich the knowledge base of the organization.5 These aspects can have a significant impact on the quality of the Invitation to Tender for an integrated FM service, increasing the capabilities of the Client in activities such as identifying its current and future needs, expressing its requests with respect to the FM service and properly translating them into specifications (Table 2.2). These preliminary and analytical activities start in the planning phase (Fig. 2.2) and they converge on the writing of the ITT, however they need to be periodically reiterated during the service delivery phase.In this regard, the standard ISO 41012:2017 provides a comprehensive overview of the Sourcing Process, along with useful guidelines for the development of Invitations to Tender and FM agreements, highlighting step by step the activities that should to be performed by the Client.

2.3

Sourcing Process

An overview of the articulated Sourcing Process can enable the Client to highlight all the basic elements necessary for the writing of an Invitation to Tender and other procurement documents (Chap. 1). The standard ISO 41012:2017 usefully outlines and describe the Sourcing Process starting from the preliminary analysis of the organization up to reach the tendering process, the development of an FM agreement and, lastly, the service delivery phase. Following the flow chart in Fig. 2.2, it must be emphasized the importance of an initial deep analysis, that should be developed considering various aspects. As a first step of the flow chart, a set of analytical activities is fundamental to investigate various basic aspects, useful to clarify the general goals and policies of the Client. These aspects may concern: The standard ISO 9001:2015 “addresses the need to determine and manage the knowledge maintained by the organization, to ensure the operation of its processes and that it can achieve conformity of products and services. Requirements regarding organizational knowledge were introduced for the purpose of:

5

(a) safeguarding the organization from loss of knowledge, e.g. • through staff turnover; • failure to capture and share information; (b) encouraging the organization to acquire knowledge, e.g. • learning from experience; • mentoring; • benchmarking”.

Portfolio consolidation

Increase manufacturing capacity for service or product by X %

Increase security

Strategic example— Strategic planning

Tactical example— Project management

Tactical example— Security project

To maintain an optimally sized fleet of vehicles to accommodate organization requirements and CSR objectives Source ISO 41012:2017

Operational example— Vehicle fleet operations

Need

Type of service

Provide appropriate type and quantity of vehicles based on demand metrics

Extend existing manufacturing facility to accommodate increased production Implement access control systems

Reduce office space by X %

Requirement

Adjust size of cars fleet by purchasing X pick-ups and X vans

Extend existing manufacturing hall “A” construction and infrastructure to increase floor area by 200 m2 including an additional loading dock. Incorporate appropriate supply chain implications Add CCTV and electronic identity/ badge readers at building perimeter access points

Implement a comprehensive, space utilization study, including analysis of workplace density, occupancy levels and workplace design solutions

Specification

Alternative options for security systems installation or integration should be considered and compared. Specification will be dependent on evaluation, selection and contract criteria Investigate outsourcing of transport services

A utilization study will provide base data which can be developed into options which integrate functional requirements, optimized occupancy levels/sharing ratios and workstation design Detailed design requirements will be incorporated within a stand-alone project management or comprehensive FM agreement

Remark

Table 2.2 Examples of translations of needs into requirements for different types of service by ISO 41012:2017 standard

50 2 “Process Approach” to External FM Service Provision

2.3 Sourcing Process

51

Fig. 2.2 Sourcing process overview. Adapted from ISO 41012:2017

• the characteristics of the demand organization, its core business and its chief activities, mission, vision, current and future policies and strategies; • the characteristics of current services, such as the organizational structure for services, the service delivery models, the existing service contracts, the performance measuring modalities; • the characteristics of the Real Estate to be managed, such as sites and locations, functions of the buildings, quantities, features, technical infrastructures and other infrastructure assets, age and conditions of the technical elements; • the goals, strategies (maintain, enhancement, sale), economical expectations (assets value, profitability) and expected investments for the Real Estate; • the expectations of users, customers, demand organizations and other stakeholders with decisive influence on strategic choices; • the applicable statutory and local and national legislative requirements; • the risk issues concerning health and safety, security and operations, sustainability and environment; • the available documents and reliable data about the Real Estate; • the buildings registry and, if present, the information system. At the end of these analytical activities, as a second step, the client is able to formalize its goals, identify its needs and, in particular, the services to be provided over time, considering, in the subsequent stages, if to adopt an approach based on in-house FM organization or on external service providers. About this activity, the Italian standard UNI 11136:2004 suggests to develop a “preliminary orienting document” containing a systematic summary of all the outcomes6 of the analysis and investigations that have been carried out in order to

6

The Italian standard UNI 11136:2004, considering global service contracts for maintenance of buildings, suggests to report the following topics: • the analysis of the essential characteristics and the quantities of the assets; • the analysis of the results obtained from previous maintenance contracts and related costs; • the analysis of the existing internal organizational structure and the relative organizational positions; • the analysis of management needs; • the list of the necessary resources (economic, financial, personnel, etc.); • the estimate of indirect costs of the client’s structure for the supervision and control of the activities; • the estimate of organizational costs;

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support the subsequent phase of writing of the ITT. Besides, this kind of document can represent a useful shared document in the mobilization phase7 (ISO 41011:2017), in which the Client and the awarded Service Provider can define in depth the contents of each service and both parts can rely on a mutual understanding of the each other’s internal processes. The third step concerns the translation of the needs to specific requirements (Table 2.2), the identification of the related satisfaction criteria and of the involved services. The activities carried out in this step must be oriented to identify: • service levels, quality and performance requirements for both new services provision (set) and current services (check); • services integration needs and interdependencies between FM activities related to the various services; • priorities in services implementation; • graduation criteria in the collection of information over time. On the basis of the identified requirements, the fourth step aims at defining: • specific performance indicators (KPIs), that allow to express the performance requirements in measurable terms, thus in indicators useful to compare agreed requirements with measured results; • information (already available o to be collected) necessary for the calculation of the indicators. A well-structured system of indicators, that can be organized as scorecards, represents a very useful support for defining the target level of quality and the acceptability range for the delivery of the services. Indicators can be evaluated as a ratio between factors (numerator and denominator) measuring activities, resources or events, according to a given formula. The standard EN 15221-3 defines two basic types of indicators (Fig. 2.3) as: • objective (hard) characteristics, dealing with physical, temporal, functional, financial aspects. The measurement of objective (hard) characteristics can be made objectively with metering/measurement instruments thatare not subject to

• the analysis of human resources not used or used differently due to outsourcing and the evaluation of the impacts in terms of management costs of possible internal conflicts; • the evaluation of the economic and financial advantages deriving from the contract; • the evaluation of the advantages that can be capitalized (for example, acquiring new knowledge, new skills, new instruments and technical-management methods). 7 Mobilization is important because it provides the opportunity for the project delivery team to make sure that the information management solution to be implemented is suitable before any design work is started. This includes making sure that: the necessary documents have been prepared and agreed, the information management processes are in place, the team has the appropriate skills and competences, and that the technology supports and enables the management of information (PAS 1192-2:2013).

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Fig. 2.3 Type of indicators dealing with the quality of a FM service. Source BSEN 15221-3

interpretation within given measurement conditions (method, timing, area, etc.) and they do not depend on individuals interpretation; • subjective (soft) characteristics, dealing with sensory, behavioral, ergonomic aspects. The measurement of subjective (soft) characteristics (e.g. client, customer and end user’s satisfaction, experience and perception) usually consists in the results of surveys. They are measures of customer opinions, perceptions and feelings and these indicators may be used to predict customer’s behavior, satisfaction and perceived values. An example of well-structured system of indicators is given by the standard BS EN 15341:2010, dealing with Maintenance Key Performance Indicators. The standard underlines the many benefits of a KPIs system for the whole life cycle of a service and recognizes as influencing for maintenance services factors such as economical, technical and organizational aspects. On this basis, the standard proposes a list of indicators useful for: measuring the status; evaluating the performances; comparing performances; identifying strengths and weaknesses; controlling progress and changes over time. Once the requirements have been defined and related to indicators, the fifth step deals with establishing the level of service (SL) and the performances expected to meet each requirement (Chap. 5). The translation of requirements into specifications will allow to define the kinds of the necessary works and the related resources to be activated by both the staff of the Client and the Service Provider, according to the outsourcing strategy. Performance measures—expressed in qualitative or quantitative terms and indicators and related to each requirement, will allow to check if

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the provided services meet the starting needs and expectations and, if not, to define corrective actions aiming to improve performances. The standard BS EN 15221-3 suggests that, in order to define a SL, each requirement, as much as possible, has to be mapped to a (classified) facility product and that a way to do this mapping systematically is to utilize the facility product map proposed by BS EN 15221-4. According to the standard BS EN 15221-3, the elements8 of a SL could be: specification (e.g. extension specifying included and not included items, volume and quantities, applicable standards and specific needed techniques, timing, time frame or dates; duration, intervals, milestones, due time, frequencies); requested personal/requested competencies; reporting requirements; procedures that have to been followed. As the standard ISO 41012:2017 recommends, SLs should be carefully expressed and formalized, possibly annexed within the above mentioned, “preliminary orienting document”, whatever the selected delivery model is, that is in-house or outsourced (Chap. 1). The chosen approaches for expressing SLs may be alternatively: • a prescriptive approach, according to which method, tasks, frequency and quality are fully described. According to standard BS EN 15221, a SL is considered input orientated when the characteristics or aspects (set of characteristics) that compound its definition are somehow based on theoretical or imposed means, not necessarily the best, but based on client’s own reasoning, i.e. past experience, knowledge, standards, procedures, internal politics, etc.; • a performance-based approach, where the expected outcomes are specified, integrated by a method statement and related to KPIs. According to standard BS EN 15221, the output oriented SL is mainly requirement driven (what to achieve—not how to achieve). During the service delivery, the activities of the service provider should be driven by the goal to reduce the deviation between the actual observed situation and the specified requirements. Specific tasks or specifications are not given (“the how” is not defined).9 Once the services have been identified, and the SLs have been described, the sixth step concerns the exploration of a range of potential delivery options (Chap. 1),namely:

8

The standard EN 15221-3 highlights the importance of referring elements of the service level on strategic, tactical and operational level. An example of application of these elements in service level agreements with indicators may be: key performance indicators as “flexibility of the facility organization” or the “added value to the primary process” or the cost of FM per square meter, etc. (strategic level); indicators as “square meters per workplace per office building”, “opening hours per service”, etc. (tactical level); indicators as “time that service is out of order”, “response time”, “end-user satisfaction”, etc. (operational level). 9 The standard EN 15221-3 underlines that usually a service level will be somewhere between input and output orientation and that it is rare to find a Service Level with all its characteristics 100% within either input or output orientation.

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• a fully in-house approach, according to which all services will be provided and managed by an internal FM organization; • a fully outsourcing approach, according to which all services will be provided and managed by one or more external Service Providers; • a partially outsourcing approach, according to which some services will be provided by internal resources and some others by external Service Providers. In order to identify the most appropriate option, first the Client should consider and concurrently analyze various issues concerning—at least—two levels: • its internal organization, that is, for instance, staff levels, capabilities, skills, knowledge, organizational and supervisory structures, available data, supporting tools such as procedures and information systems, etc.; • the market offer, that is, for instance, possible qualified providers that can be compared to each others, the quality and dimension of their organizations, skills, past experiences, the range of services that may be offered, the available competences in various local contexts, etc. In addition to this analysis, before choosing the delivery option, the Client should consider its global asset/equipment investment strategy and take into account some important financial issues concerning at least: • the quantity of assets to be managed, the dimension of the demand of services in relation to the possibility of creating competitive interest in the market; • the evaluation of internal direct and indirect costs, connected with services delivery; • historic costs, if available, concerning internal and/or external services delivery; • cost indexes or benchmarks for comparisons with similar organizations using the same services; • the assumption of a price and rate mechanism (lump sum, unit rate, cost plus, actual cost), with the possibility of applying an open-book clause10; • forms of payment, if a performance based payment or an open contract or other forms. Whatever is the selected form, the modalities and procedures of measurement should be taken into consideration in the writing of the Invitation to Tender (ITT). The standard ISO 41012:2017 suggests that each service level should be calculated separately to ensure the link between the estimated cost, the service level and the value. “Open Book Contract Management (OBCM) is the scrutiny of a supplier’s costs and margins through the reporting of, or accessing, accounting data. Its use is often associated with managing and controlling delivery of large, high value, high risk and complex contracts. This transparency allows both parties to be clear on the supplier’s charges, costs, and planned return. It also provides a basis to be able to review performance, agree the impact of change and to bring forward ideas for efficiency improvements. If implemented well, this technique should help both to improve value for money outcomes and to build mutual understanding and trust between government and its suppliers” (Crown Commercial Service 2016). 10

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Once the Real Estate individual characteristics, risks11 and needs have been taken into account, the Client finally should be able to identify the most appropriate delivery strategy. It could be useful to develop a document12 collecting the outcomes of the process of analysis of the investigated delivery options in order to identify the most appropriate model and procurement method. This document can be useful in the future for the processes of development of new Invitation to Tender or for adding over time new services to be integrated to the ones already delivered. At this point, all the main elements useful for orienting the Client choice have been analyzed, so at the seventh step of the sourcing process it is possible to reach a decision about in-house or outsourcing approach (Chap. 1). Focusing on the outsourcing approach, the main actions that should be performed concern: • the statement of the most appropriate model for the management of the service; • the final specification of the SLs, related to the specific services to be outsourced;

11

The standard ISO 41012:2017 suggests a long list of risk elements that could be taken into consideration: • • • • • • • • • • • • • • •

data on the property portfolio and/or assets; information on initial and long term cost implications; competences in the demand organization; competences by the service provider; resources; health, safety and environment; fire safety; security; funding; IT system, hardware and communication technology/integration; due diligence; coordinated design, construction and transfer to usage; coordinated disaster recovery planning (natural and business related); business continuity planning and management; corporate governance. 12 The guidelines reported in appendix A of the National public private partnership policy and guidelines can be taken into account as a reference for the development of such a document. It contains an example of structure that owners may decide to use when compiling the content of their procurement strategies. The formal template may contain the following elements: • • • • •

“a statement of objectives; a summary and analysis of project objectives, requirements, characteristics and risks; a review of agency and market capabilities; an analysis of delivery model options and identification of a recommended delivery model; an analysis of applicable procurement methods and identification of a recommended method”.

Besides, some other elements, that should be included, concern the number of proposed contracts (e.g. single or multi-contract delivery), timing and sequencing, agency contract management requirements, opportunities for bundling or unbundling, and the use of collaborative methods including ICT-based project techniques (Casey and Bamford 2014).

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57

• the description of the related methods for assessing their fulfillment; • the definition of the contents of the contract. Regarding the model for the management of the service, the Client should decide its role, its responsibilities and its relationship with the provider regarding a set of the main functions ascribable to the Command Centre (Chap. 4) (Talamo and Bonanomi 2015). This means to establish who will perform the basic activities of: • management of the information flow; • planning and coordination; • monitoring and control in relation to the three levels of a service delivery (strategic, tactical, operational). The clarification of the model for the management of the service helps to further specify the performances, measurements and conditions expected for the delivery of the service. Finally, once established the service expectations and conditions—as defined in the SLs and combined with the detailed work specifications—the general contract clauses should be stated in order to create an agreement for contracting external services. This agreement will regulate the relationship between the parts. The standard ISO 41012:2017 suggests to clarify at least some basic topics: • duration of the agreement; • type of services that are allowed or not allowed to be sub-contracted; • distribution of activities between the demand organization and the Service Provider (Command Center); • transfer of assets and personnel; • level of autonomy of the Service Provider; • output requirements (e.g. key performance indicators, service levels); • constraints, information responsibilities, continuous improvement and innovation; • corporate standards; • applicable legal framework; • communication strategies; • methodology for resolving issues of non-compliance with the conditions of the agreement. Besides, the standard proposes in particular to include the following general clauses: primary activities requirements; general conditions; general provisions; termination conditions; general obligations of the demand organization; general obligations of the Service Provider; transfer of personnel; timing and main dates; agreement price, payment and accounting; changes of the agreement; default by a party; auditing; risks and responsibilities; insurances; force majeure; dispute and dispute resolution (settlement) process and methods; asset replacement and project activity. The eighth step of the process deals with the tendering phase.

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Sometimes it can be useful to restrict the number of the bids, thus, before requesting offers to potential Service Providers, it is possible to organize a pre-qualification process, that aims to identify (on the basis of competences, capabilities, previous experiences, etc.) a selected number of qualified Service Providers. The pre-qualification implies: • defining and publicizing the key selection criteria; • making available the information necessary to enable Service Providers to participate to the pre-selection; • evaluating the Service Providers responses; • composing a short-list; • communicating the result to all the potential Service Providers. The tendering phase implies: • the preparation of the tender documentation including technical specification (ISO 41011:2017); • the request to Service Providers (all the ones present in the market or the ones pre-selected and included in the short list in the case of pre-qualification) to present an offer for the services requested in the tender documentation; • the evaluation of the offers and the selection the awarding Service Provider/s (EN 15221-2:2006). After the awarding of the finally selected provider, the ninth step deals with the preparation of the FM contract, that is the detailed preparation of the contract documentation and completion of any due diligence activity. Both parties should agree to a methodology for resolving issues of non-compliance with the conditions of the agreement. Finally the service can be implemented (tenth step). The Client may establish a first period of mobilization (of variable duration, often a half year period), that includes the preparation, transition and mobilization of all resources, systems, data, authorizations and procedures prior to taking full responsibility for the services to be delivered according to thecontract. In some cases in this period, more detailed documents and information can be collected, exhaustive measurements can be carried out, both the contracting parts can attend at meetings and search together for the best forms of shared organization of the activities. The outcomes of this period can be used for refining the contents of the contract.

References Ahmed V, Tezel A, Aziz Z, Sibley M (2017) The future of big data in facilities management: opportunities and challenges. Facil 35(13/14):725–745 Becerik-Gerber B, Jazizadeh F, Li N, Calis G (2011) Application areas and data requirements for BIM-enabled facilities management. J Constr Eng Manag 138(3):431–442 Booty F (2009) Facilities management handbook. Routledge, New York

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Carbonari G, Stravoravdis S, Gausden C (2018) Improving FM task efficiency through BIM: a proposal for BIM implementation. J Corp R Estate 20(1):4–15 Casey E, Bamford P (2014). Building and construction procurement guide: principles and options (No. AP-G92/14) Cavka HB, Staub-French S, Poirier EA (2017) Developing owner information requirements for BIM-enabled project delivery and asset management. Autom Constr 83:169–183 Crown Commercial Service (2016) Open book contract management. Information Note 05/16, 24 May 2016. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/ attachment_data/file/525282/ppn_open_book_final.pdf. Accessed 18 June 2018 Fortino G, Pathan M, Di Fatta G (2012) BodyCloud: integration of cloud computing and body sensor networks. In: 4th International Conference on Cloud Computing Technology and Science (CloudCom), 2012 IEEE, pp. 851–856 Godfrey K, Groen M (2016) BAG BG 66/2016 Maintenance contracts: a guide to best practice for procurement. BSRIA Goyal S, Pitt M (2007) Determining the role of innovation management in facilities management. Facilities 25(1/2):48–60 Hodge G, Poglitsch R, Ankerstjerne P (2014) Perspectives on the FM market development. ISS White Paper. https://www.uk.issworld.com/-/media/issworld/uk/Files/Insights/Perspectives_ on_the_FM_market_developmentSept14.pdf?la=en-GB. Accessed 18 June 2018 Hu ZZ, Tian PL, Li SW, Zhang JP (2018) BIM-based integrated delivery technologies for intelligent MEP management in the operation and maintenance phase. Adv Eng Softw 115:1– 16 Kurdia MK, Abdul-Tharim AH, Jaffar N, Azli MS, Shuib MN, Ab-Wahid AM (2011) Outsourcing in facilities management-a literature review. Procedia Eng 20:445–457 Lee J, Kao HA, Yang S (2014) Service innovation and smart analytics for industry 4.0 and big data environment. Procedia CIRP 16:3–8 Mangano G, De Marco A (2014) The role of maintenance and facility management in logistics: a literature review. Facil 32(5/6):241–255 Martani C, Lee D, Robinson P, Britter R, Ratti C (2012) ENERNET: studying the dynamic relationship between building occupancy and energy consumption. Energy Build. 47:584–591 Mawed M, Al-Hajj A (2017) Using big data to improve the performance management: a case study from the UAE FM industry. Facil 35(13/14):746–765 Meng X (2015) Facilities management: tracing its development trajectory. Prop Manag 33(3):212– 223 Molinari C, Paganin G, Talamo C (2005) Innovation and transfer processes in buildings management services. Organizational models, methodologies, procedures, and tools. In: Proceedings of the 11th joint CIB international symposium, Helsinky, Finland, June 2005. Helsinki Google Scholar, pp 596–607 Nicał AK, Wodyński W (2016) Enhancing facility management through BIM 6D. Procedia Eng 164:299–306 Pärn EA, Edwards DJ, Sing MCP (2017) The building information modelling trajectory in facilities management: a review. Autom Constr 75:45–55 Parsanezhad P, Dimyadi J (2013) Effective facility management and operations via a BIM-based integrated information system. Paper presented at CIB Facilities Management Conference, Technical University of Denmark Copenhagen, Copenhagen, 21–23 May 2014 Pishdad-Bozorgi P, Gao X, Eastman C, Self AP (2018) Planning and developing facility management-enabled building information model (FM-enabled BIM). Autom Constr 87:22–38 PWC (PricewaterhouseCoopers) (2014) Facilities management: a quiet revolution. https://www. pwc.fr/fr/assets/files/pdf/2017/12/facilities-management-quiet-revolution.pdf. Accessed 18 June 2018 Scupola A (2014) The relation between innovation sources and ICT roles in facility management organizations. J Facil Manag 12(4):368–381

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Sundmaeker H, Guillemin P, Friess P, Woelfflé S (2010) Vision and challenges for realising the Internet of Things. Cluster of European Research Projects on the Internet of Things, European Commision 3(3):34–36 Taylor C, Booty F (2009) Outsourcing. In: Booty F (ed) Facilities management handbook. Butterworth-Heinemann, Oxford, pp 256–273 Talamo C, Bonanomi M (2015) Knowledge management and information tools for building maintenance and facility management. Springer International Publishing Talamo C, Atta N, Martani C, Paganin G (2016) The integration of physical and digital urban infrastructures: the role of “Big data”. TECHNE-J Technol Arch Environ 11:217–225 Tien JM (2013) Big data: unleashing information. J. Syst. Sci. Syst. Eng. 22(2):127–151 Wetzel EM, Thabet WY (2015) The use of a BIM-based framework to support safe facility management processes. Autom Constr 60:12–24

Standards and Laws BS EN 15221-2:2006 Facility management. Guidance on how to prepare facility management agreements BS EN 15341:2010 Maintenance. Maintenance key performance indicators ISO 41001:2018 Facility management. Management systems. Requirements with guidance for use ISO 41011:2017 Facility management. Vocabulary ISO 41012:2017 Facility management. Guidance on strategic sourcing and the development of agreements ISO 9001:2015 Quality management systems. Requirements ISO/TR 41013:2017 Facility management. Scope, key concepts and benefits PAS 1192-2:2013 Incorporating Corrigendum No. 1 Specification for information management for the capital/delivery phase of construction projects using building information modelling UNI 11136:2004 Global service per la manutenzione dei patrimoni immobiliari. Linee guida

Chapter 3

FM Services and Organizational Structures

Abstract The chapter starts the in-depth analysis—continued in the following chapters—of some basic topics that should be considered in the writing of an ITT. In particular, the chapter introduces some keys to interpreting the following topics: the requested services, the Command Centre, the operative structure, the Help Desk. Regarding the requested services, the chapter proposes a list of possible services, starting from the awareness that the precise identification and description of the required services must be unambiguous and presented in a systematic manner within the ITT, specifying: characteristics and quantities (related to spaces, infrastructures and people), dealing with the services; the KPIs and the SLAs assumed as references for monitoring and controlling the quality of the performed services; the modalities, roles and responsibilities for monitoring and controlling the delivery of the services. Regarding the Command Centre, the chapter underlines the importance of clarifying to the tenderers the kind of governance of the service the client intends to assume, since many of the contents of the services offers depend on the distribution of the roles and tasks between Client and Service Provider. For this reason the ITT should clarify strategic and tactical aspects such as: the functions, the roles and the responsibilities of the Client and the Service Provider; their relationships; the responsibilities for decisions; the responsibility and the use of the information system, etc. In the Chap. 4 possible models of command centre are proposed and discussed, specifying, for each one, roles and responsibilities of the Client and of the Service Provider. Regarding the operative structure, the chapter discusses about the activities, related to operational level, that are mainly developed by the Service Provider. Lastly, regarding the Help Desk the chapter discusses the functions of this important structure, to be considered as a sort of communication hub for all the issues concerning the FM services, among which: receiving and tracking users’ requests, activating the Service Provider and the operative teams, supporting in the interaction with the team of the Service Provider, managing information.

This chapter is authored by Cinzia Talamo. © Springer Nature Switzerland AG 2019 C. Talamo and N. Atta, Invitations to Tender for Facility Management Services, Springer Tracts in Civil Engineering, https://doi.org/10.1007/978-3-030-04009-3_3

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Keywords FM services Models of Command Centre ative structure Help Desk




3.1


Strategies for the oper-

Required Services

At the end of the sourcing process it is essential that the offers of tenderes are as appropriate as possible to the specificity both of the demand organization and the characteristics of the buildings to be managed. To pursue this goal, it is necessary that the required services are articulated and that the Client needs and main objectives are clearly described, documented and declared in the ITT. As Chotipanich (2004) affirms, it is “widely accepted that facility management (FM) covers a wide range of facility services and the management of which can contribute to the relative success or the partial failure of an organisation’s business. (…) However, the nature and characteristic of organisations are likely to vary too. Some organisations may focus very much on business strategic issues. While other organisations may only emphasise on their operational process and shortterm outputs. The organizational objectives normally vary by different business environment (…) Consequently, the function, role, scope and priority of FM function need to design to fit with these contingent matters”. Furthermore, after the awarding of the finally selected Service Provider and after the start of the service, in order to pursue the continuous improvement of the FM service, the Client and the Service Provider should share1 policies and goals as much as possible (Nardelli and Rajala 2018), whatever the organizational model is (Chap. 4). For all these reasons, for the best preparation of the ITT—with the purpose of orienting the tenderers and making them aware of the specificity of the demand organization (Chotipanich 2004; Roper and Payant 2014) and of its Real Estate— preliminarily to the sourcing process it is surely useful that the Client develops a general introductive overview in order to highlight its actual view related to organization, people, spaces and infrastructures. This overview should describe aspects such as: 1 Nardelli and Rajala (2018), investigating case studies of FM services in Denmark, outline how business models unfold over time within supplier–client relationships in facilities management (FM)service: “FM supplier–client relationships unfold and evolve along business model innovation. Such relationships appear to support the creation, distribution and appropriation of value by both parties in cooperation, rather than being driven by unidirectional support from one party to another. (…) each party cooperated with other entities at some point in the business model innovation. FM units and their interorganisational counterpart—the outsourced providers— choose to adapt and develop their business models over time as a response to each other’s developments. By closely interacting with stakeholders, in fact, internal FM units and outsourced providers could understand and monitor their needs and expectations better over time, thereby being able to develop their business model accordingly”.

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• core business and primary activities of the Client; • current organization (organizational chart) of the Client, specifying roles and responsibilities, main processes and possible future organizational change in relation to the new required FM services; • current model the service delivery, relationship with Service Provider/s, number and characteristics of suppliers; • possible future strategies for the FM service mode l with respect to the new required FM services; • available data about the Real Estate and the current modalities of information management (roles, responsibilities, restrictions) and tools (registries, information systems); • presence of procedures within the ISO 9001:2015 compliant Quality Management Systems and of a Management Information System (MIS); • the amount of users dealing, both directly and indirectly, with the requested services, their main roles and activities, their usual collocation; • main characteristics of the Real Estate (collocation, destinations, dimensions, users, period of construction/renovation, etc.). The general overview might be integrated with documents such as organizational charts, process diagrams, drawings, maps, results of surveys, reports, photographs, etc. In order to describe in the best way the requested services, the expected quality level, the modalities of control and in general the model of governance of the services (Chap. 4), it is also important to clarify if, with the new ITT, the Client intends to continue procuring FM services from Service Providers in a way that does not differ from the existing arrangement or if it is going to start a transition (Fig. 3.1). According to BS 8892:2014: “transition can mean the transfer of an existing service from the organization to an external Service Provider (i.e. outsourcing) or from an incumbent Service Provider to another Service Provider if the service is already outsourced. It can also mean bringing services in-house (i.e. insourcing) Fig. 3.1 Types of transition. Source BS 8892:2014

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either partially or in their entirety. The organization should categorize the nature of a proposed transition in terms of one of the following types: (a) (b) (c) (d)

moving to outsourcing; changing the outsourcing model; reverting to insourcing; or insourcing for the first time” (BS 8892:2014).

In this case, the Client should define the scope of services subject to transition. Transition strategies should be taken into account when determining priorities involving outsourcing and contents of the requested services. All these initial activities of analysis and description of the context of the service might appear as an excessive and time-consuming effort for the Client, but actually an overview, summarizing all the basic aspects relevant for the FM service, represents some advantages: firstly it allows the Client to be more aware of its goals and to take these into account more effectively in the writing of the ITT; secondly it helps the tenderers to meet the need of the Client more effectively; finally it makes the tenderers’ offers more easily comparable2 to each other. Once the introductive overview has specified all the general basic aspects relevant for the services, it is fundamental that the ITT contains a precisely articulated list and description of all the requested services. This list has to be considered as the basis of a framework in relation to which all the requests, expressed within the ITT, will be referred and specified. For this reason, the identification and description of all the required services shall be unambiguous and, as far as practicable, presented in a systematic manner. The standard BS EN 15221-1:2006 represents a useful reference point for identifying the possible FM services according to categories (Table 3.1). About service classification, it can be also interesting the organization according to clusters proposed by Chotipanich (2004) (Fig. 3.2). In order to identify the services to be requested, it can be useful also to consult the extended list of possible functions of FM (Table 3.2), proposed by Roper and Payant (2014). The ITT should have a first chapter containing a precise list of the requested services and each service should be described specifying:

2

In the phase of tender assessment, it is very important for the client to deal with tenderers’ proposals easy to be directly compared. For this purpose, the London Procurement Partnership (LPP) Consultancy Framework L0038—Construction Consultancy Services may be a very useful support, as it proposes a template for the tenderers, based on a framework regarding a set of key questions to be responded to.

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Table 3.1 Open list of FM services Main headings

Categories

Open list of services

Space and infrastructure

Accommodation Client demand for space (accommodation) is satisfied by services such as programming, design and acquisition of space, but also the administration and management of space and its disposal

• strategic space planning and management; • programming and briefing; • design and construction; • lease and occupancy management; • building operations and maintenance; • renovation and/or refurbishment; • workplace design and ergonomics; • selection of furniture, machinery and equipment; • move management; • equip internal and external environment; • signage, decorations, partitions and furniture replacement; • energy/utilities management; • environmental sustainability management; • technical infrastructure operations and maintenance; • building management systems operations and maintenance; • lighting maintenance; • management of waste (hazardous) disposal; • hygiene services; • workplace cleaning, machinery cleaning; • building fabric and glass cleaning; • cleaning equipment provision and maintenance; • outdoor space cleaning and winter services; • hiring of special measuring equipment; • fitting out with machinery and equipment; • retail unit space management; (continued)

Workplace Client demand for a working environment (workplace) is satisfied by services related to internal and external environments, fitting out with furniture, equipment and tenants

Technical infrastructure Client demand for utilities (technical infrastructure) is satisfied by services resulting in a comfortable climate, lighting/shading, electrical power, water and gas

Cleaning Client demand for hygiene and cleanliness (cleaning) is satisfied by services that maintain a proper working environment and help maintain the assets in good condition

Other space and infrastructure Specific or individual demands of Clients related to space and infrastructure

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Table 3.1 (continued) Main headings

Categories

Open list of services

People and organization

Health, safety and security Client demand for a safe environment (health, safety and security) is satisfied by services that protect from external dangers or internal risks as well as the health and well-being of the people

• occupational health services; • security management; • access control, I.D./smart cards, locks and key holding; • disaster planning and recovery; • fire safety and protection; • secretarial and reception services; • Help Desk services; • catering and vending; • organization of conferences, meetings and special events; • personal services; • provision of work wear • Data and telephone network operations • Data centre, server hosting and operations • Personal computer support • IT security and protection • Computer and telephone connections and moves • internal mail and courier services; • document management and archiving; • reprographic systems, copying and printing; • office supplies; • freight forwarding, storage systems; • people transport and travel services; • car park and vehicle fleet management; • accounting, auditing and financial reporting; • human resource management; • marketing and advertising, photographic services; • procurement, contract management and legal advice services; • project management; • quality management;

Hospitality Client demand for hospitality is satisfied by services providing a hospitable working environment makes people feel welcome and comfortable

ICT Client demand for information and communication (ICT) is satisfied by services providing information and telecommunication technologies

Logistics Client demand for logistics is satisfied by services concerned with the transport and storage of goods and information and improving the relevant processes

Other support services Client demand for other support services may be satisfied by a range of additional services. These services can be very individual depending on the definition of the primary activities

Source BS EN 15221-1:2006

3.1 Required Services

Fig. 3.2 FM services classified according to clusters. Source Chotipanich (2004)

67

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FM Services and Organizational Structures

Table 3.2 Main FM functions Key FM functions

Sub-functions

Management of the organization

Planning Organizing • By function, organization, or location • Centralized versus user driven Staffing • Personnel management • Evaluation of mix of staff, consultant, and contractors • Training Directing • Work scheduling • Work coordination • Policy and procedure development Controlling • Work reception • Standards establishment (dollar range, quality, quantity, time to deliver) • Scheduling • Use of management information systems and information technologies; • Contract administration • Policy and procedure execution Evaluating • Design • Program analysis • Contractor evaluation Business unit knowledge gathering Strategic facility planning (three to ten-years plans) Facility operational planning (twelve months to three years) Space forecasting (macro-level, organization-wide) Macro-level programming (organization-wide) Financial forecasting and macro-level estimating (organization-wide) Capital program development Out leasing (as owner) Lease administration/audit (as owner or lessee) Property management (as owner) Space allocation Space inventory Space forecasting (micro-level, one location) Space management (continued)

Facility planning and forecasting

Lease administration

Space planning, allocation and management

3.1 Required Services

69

Table 3.2 (continued) Key FM functions

Sub-functions

Architectural/engineering planning and design

Macro-level programming (one location) Building planning Architectural design Engineering design of major systems Macro-level estimating (one location) “As built” maintenance Disaster recovery planning Design document preparation and updating Code compliance Traffic engineering Zoning compliance Workplace planning Workplace design Furniture specification Furnishing specification Estimating “As built” maintenance Code compliance Move, ass, change (MAC) management and record keeping • Alteration management • Renovation management • Furniture management • ICT installation • Provision of furnishings • Equipping • Relocations • Procurement (to move, alter, change) • Preparation of “as built” and updates • Project management Programming Work Plan preparation Budget preparation • Administrative • Capital • Operations and maintenance • Chargeback Economic justification Financial forecasting Budget formulation Budget execution (continued)

Workplace planning, allocation and management

Budgeting, account and economic justification (done concurrently with planning and design)

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Table 3.2 (continued) Key FM functions

Sub-functions

Real estate acquisition and disposal

Site selection and acquisition • Environmental due diligence • Legal due diligence Building purchase Building leasing Real Estate disposal Site selection decisions to minimize environmental impacts Environmental policies to minimize waste and reduce resource usage • Recycling program management • Transportation management • Energy audits and retrofits • Building commissioning and recommissioning • Building systems audits and retrofit • Purchasing policies for reduced environmental impacts • Vendor relationship management for sustainability • Indoor air quality management Project management in compliance with environmental regulation • Federal, State and local requirements • Sustainability guidelines adoption Workplace improvements for productivity • Daylighting • Indoor air quality • Thermal comfort Aligning design with business functions • Sustainable maintenance and operations practices • Social responsibilities reporting Project management Construction management Procurement management Preparation of “as built” Post occupancy evaluation Project evaluation (continued)

Sustainability

Construction project management

3.1 Required Services

71

Table 3.2 (continued) Key FM functions

Sub-functions

Operations, maintenance and repair

Exterior maintenance Preventive maintenance Breakdown maintenance Cyclic maintenance Grounds maintenance Road maintenance Custodial maintenance Pest control Trash removal Hazardous waste management Energy management Inventory of systems and equipment Maintenance projects Repair projects Correction of hazards Disaster recovery Procurement operations, maintenance and repair Operations Maintenance Voice and data system operations and reconfiguration Network management “as built” maintenance Integrated workplace management system Emergency preparedness planning Threat assessment Command, control and communications Mitigation strategies Training, drill and exercise Disaster recovery planning Code compliance Operations Crime prevention through environmental design Access control Physical deterrents Electronic security Vulnerability assessment (continued)

Technology management

Facility emergency management

Security and life-safety management

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Table 3.2 (continued) Key FM functions

Sub-functions

General administrative services

Food services, refreshments and vending Reprographics Mail and messenger management Fleet management Property tracking and disposal Moving services Procurement (as a function) Health and fitness program management Day care center management Concierge service and on-site vendors Records management and storage Assembly management support and security

Source Roper and Payant (2014)

• characteristics related to spaces and infrastructures (for example destination, collocation), assets (for example type,3 collocation) and people (for example role, collocation). This kind of information could be present in the text of the ITT, or be organized in form of tables in the annexes or be contained in documents, declared to be available for consultation during the tendering phase; • quantities, related to spaces and infrastructures (for example square meters for net/gross areas), assets (number), people (number) dealing with the service. This kind of information could be present in the text of the ITT, or be organized in form of tables in the annexes or be contained in documents declared to be available for consultation during the tendering phase; • SLAs and KPIs assumed as references for monitoring and controlling the quality of the performed service. For this kind of information it can be useful to report the reference of the chapter/paragraph in the ITT, specifically dealing with performance indicators and service levels; • modalities, roles and responsibilities for monitoring and controlling the delivery of the service. For this kind of information, it can be useful to report the reference of the chapter/paragraph in the ITT specifically dealing with control activities.

3

Regarding the types of technical elements to be managed, in order to avoid ambiguity, it can be useful to list the items by referring to the classification proposed by a specific standard, preferably the one to be adopted for the creation of the registry (Chap. 4). For this purpose, some standards for classification can be assumed as reference: ISO 12006-2:2015 Building construction. Organization of information about construction works. Framework for classification; Uniclass 2015; UNIFORMAT II ASTM E1557, ASTM E1557 Classification of Building Elements and Related Sitework; OmniClass Construction Classification System; MasterFormat 2018.

3.2 Command Centre

3.2

73

Command Centre

Once the requested services have been clearly listed, specified and described, a further fundamental topic, that should be examined in depth and expressed within the ITT, deals with the model the Client intends to assume for the governance of the service, that is basically: • the functions, the roles and the responsibilities of the Client and the Service Provider; • the relationships between the two parties in relation with the various functions; • the responsibilities for decisions; • the responsibility and the use of the information system, if any. From the very early steps of the tendering process, it is very important that the Client is aware of its intents with regards to all the strategical decisions, that will be adopted during the service delivery. In order to support this awareness, a deeper level of analysis of the requested services could deal with the specification of each service in relation of the three levels, introduced by the standards BS EN 15221-1:2006 and BS EN 15221-5:2011, that is strategical,4 tactical,5 operational.6 Starting from the

4 According to the standard BS EN 15221-1:2006 the strategic level aims to achieve the objectives of the organisation in the long term through:

• • • • • •

defining the Facility Management strategy in compliance with the organisation’s strategy; policymaking, elaborating guidelines for space, assets, processes and services; active input and response; initiating risk analysis and providing the direction to adapt changes in the organisation; initiating service level agreements (SLAs) and monitoring key performance indicators (KPIs); managing the impact of facilities on the primary activities, external environment and community; • maintaining relations with authorities, lessees and tenants, strategic partners, associations etc.; • supervision of the Facility Management organisation. 5 According to the standard BS EN 15221-5:2011 the tactical level aims to create the required enthe tactical level aims to implement the strategic objectives in the organisation in the medium term through: • • • • • • • • • • 6

implementing and monitoring guidelines for strategies; developing business plans and budgets; translating Facility Management objectives into operational level requirements; defining SLAs and interpreting KPIs (performance, quality, risk and value); monitoring compliance to laws and regulations; managing projects, processes and agreements; managing the Facility Management team; optimising the use of resources; adapting to and reporting on changes; communicating with internal or external service providers on a tactical level.

According to BS EN 15221-5:2011 the operational level aims to create the required environment to the end users on a day-to-day basis through:

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guidelines, suggested by the two standards, a matrix of correlation (Table 3.3), linking main services with the main processes related to the three levels, could be a useful tool for the Client. This kind of matrix could be filled in by specifying what are the expected activities (and the related inputs and outputs) to be carried out according to the three levels and, for each of these, the responsibilities of the Client and of the Service Provider. This matrix is suitable to be applied in different steps of the outsourcing process: • in the preliminary self-analysis of the needs of the organization; • in the specification of the requested services within the ITT; • in the phase of contract preparation or in the mobilization phase, when the contents of the service are being deepened and specified. Therefore, in order to create an effective collaboration and sharing of interests and avoid conflicts of competences, it is very important that the roles for decisions, coordination and operations are clearly assigned according to a preliminary well defined model. As Booty (2009) underlines: “Ideally the relationship should start with each organisation appointing an informed and empowered point of contact, to act as contract administrator. These two individuals are responsible for making the relationship work, as opposed to the site managers who will oversee the day-to-day running of the function on site. This is an important first step in implementing a successful outsourcing relationship. Other factors which help to build and sustain the partnership include a strong management team; a dedicated account manager; a good working relationship between management on both sides; a consistent communication chain; a single point of contact, possibly the administrator (see above), to resolve queries and remove duplication; and a database of written communication between parties to track commitments” (Booty 2009). In order to define the most appropriate model for the FM service, the Client should perform a preliminary phase of auto-analysis, aiming at clarifying its approach for the governance of the services. The issues the Client can consider in order to define the possible organizational model for the FM service are various, for instance: • organizational chart of the Client, maturity and skills of its internal human resources (roles and number of the personnel) in managing FM services; • Client previous experiences of managing service suppliers (number and field); • Client current and future propensity to invest in internal resources;

• • • • • • •

delivering services in accordance with the SLA; monitoring and checking the service delivery processes; monitoring the service providers; receiving requests for service e.g. via a help desk or service line; collecting data for performance evaluations, feedback and demands from end users; reporting to tactical level; communicating with internal or external service providers on an operational level.

Alignment with organisation strategy and changes

Strategic

Relations to external contacts

Risk analysis

Communication and change management

Leading and controlling FM organisation

Consulting senior management

Identifying demand for facilities and facility services

Strategic planning

Reporting to senior management

Investments and strategic projects

Develop corporate FM standards

Main processes

Level

Accommodation

Main services Workplace

Technical infrastructure

Cleaning

Health, safety and security

Hospitality

ICT

Logistics

Others

(continued)

Maintenance

Table 3.3 Matrix of correlation of the main processes of the services and the three level of a FM service according to BS EN 15221-1:2006 and BS EN 15221-5:2011

3.2 Command Centre 75

Service coordination

Reporting on facilities and facility services

Data collection and administration

Monitoring and evaluation of performance of facility services

Communication and change management

Administration of facilities and resources

Lead fm team

Service provider management

Coordination of business units

Auditing HSSE

Contract management

Procurement of facilities and facility services

Space planning and evaluation

Evaluation of performance of FM organisation

Main services

Accommodation

Workplace

Technical infrastructure Cleaning

Health, safety and security

Hospitality

ICT

Logistics

Maintenance

Others

3

Operational

FM Planning, implementing and monitoring standards

Tactical

Evaluation of facilities

Main processes

Level

Table 3.3 (continued)

76 FM Services and Organizational Structures

3.2 Command Centre

77

• propensity of the Client to share7 decisions and information with the Service Provider (Coenen et al. 2013); • level of knowledge about the buildings to be managed and the organization of the available information and documents, considering the presence of an updated registry (Chap. 4) and/or of an information system; • if an information system is already present, what is the kind of IT product, who are the managers (internal or external resources) of the system, and if the Client’s strategy is to go on implementing it rather than to change the platform; • approach of the Client towards the integration of FM services, that is only one Service Provider, responsible for integrating and coordinating all the services, or a number of Service Providers integrated and coordinated by the internal resources of the Client; • organizational impact8 on the internal resources, that can be predicted in relation to one or more hypothesis of models of outsourcing and integration of FM services. Once the Client, in the preliminary phase of auto-analysis, has clarified its approach for the governance of the services, this approach should be translated into an organizational model for the FM service, to be communicate to the tenderers in the ITT. It is very important to clarify to the tenderers this model since many of the contents of the service offers depend on the distribution of the roles and tasks between Client and Service Provider. The lack of a reference or an ambiguous description of the organizational model for the FM service can create misunderstandings and make the offers of the tenderers barely comparable. Talamo and Bonanomi (2015) define as Command Centre (CC) the organizational structure, mainly dealing with the strategical and tactical levels, responsible for the planning and coordination of interventions, the monitoring of service delivery and the management of information flows. Basically, a CC deals with three main domains, directly related to strategies of governance: decisions, knowledge and control (Fig. 3.3). Defining a model of the CC means to establish what are the tasks, within the three domains, assigned respectively to the Client and to the Service Provider, considering that the activities of the CC may be carried out in

“Value in FM is created within a network of relationships. When considering value in FM, FM has to be acknowledged as a relationship management discipline. On a high level of abstraction, FM is the management of internal or external customer/client supplier relationships” (Coenen et al. 2013). 8 The client, especially in the case in which it is starting its first experience of outsourcing services activities, should evaluate in advance the consequences deriving in terms of internal organization. According to the model of governance of the service it intends to apply, it could consider various changes in its organization, for instance: reduce programming skills and direct management of activities, strengthen the expertise in supervision and control over the same activities (in this case, it is essential that the client designs and structures a qualified internal organizational unit specifically dedicated to the monitoring and control activities). 7

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Fig. 3.3 The three basic domains of a Command Centre

various ways by the different parties, involved in the service contract. An information system can represent the core tool for supporting the three domains by providing data useful for making decisions and activating processes, managing the flow of information, supervising performances through the application of KPIs. A Client can choose among various models of Command Centre; some possible models can be summarized as follows (Fig. 3.4): a. Command Centre internal to the Client. This model is based on the concentration of the Client internal resources on the performance of strategical, and partially tactical, activities dealing with the service delivery during the whole life of the contract.9 The internal resources of the Client keep the functions of general strategical planning, coordination and control with the support of an information system, if any. They act as a centralized core of strategical decisions, that orients, coordinates and supervises the activities of the Service Providers, manage the information system, receives and processes data, checks for noncompliance in service delivery and stimulates actions for the constant improvement (Table 3.4). According to this model, the FM Service Provider essentially deals with technical and operational tasks. According to the agreements and established procedures, the Service Provider: develops the ordinary activities necessary for the delivery of the services, constantly pursuing tactical and operational optimization; discusses with the Client if any problem, dealing with strategic decisions, occurs; asks the Client for permission for developing extraordinary activities; transmits to the CC the feed-back information, necessary for the execution of the controls and for the gradual collection of data over time (Table 3.4).

9

This model is usually adopted in the presence of an internal strengthened managerial know-how, that the client does not want to lose. It allows the client to keep the control, the know-how, the skills, the knowledge related to the service over time. However, it should be underlined that the client is burdened by several functions, that often require the strengthening of his management structures.

3.2 Command Centre

79

Fig. 3.4 Possible models of Command Centre

b. Command Centre internal to the Service Provider10; This model is based on the delegation of a large part of tasks (also many of the ones dealing with strategical planning, coordination, management of information flow) to 10

This model is generally practiced by the clients that have neither an adequate starting knowledge base nor tools for information management and mature skills. This model allows the client to concentrate its efforts mainly on its core business by outsourcing most of the management functions; however, the client should be careful in the requests reported in the ITT, in order to avoid to lose part of the knowledge gained during the service if the feedback information is not correctly stored and managed. For this reason the client must pay attention to the structure, form and contents of the data base (the registry)—containing the information related to spaces, people, buildings and infrastructures—that will be developed over time by the future service providers (Chap. 4). Besides, the client should also introduce in the ITT several conditions for supporting the monitoring actions, such as: the content of reports, set of indicators, KPIs, object and methods of inspections and audits.

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the FM Service Provider. The Client, for the purpose of monitoring and controlling, can obtain periodic reports (i.e. on the progress of the activities, the performances of the operational staff, the state of conservation of buildings, etc.) from the Service Provider (Table 3.4). The Client may eventually integrate these reports with monitoring activities, such as audits or the management of questionnaires. In this kind of model the information system, if any, is often provided and used by the Service Provider and the Client may have access to the functions mainly dealing with checking and monitoring; c. Command Centre managed by a third party; In some cases (i.e. large number of tenants for which to distribute operating costs, very complex buildings, initial low level of knowledge about the assets, particular functions and processes, etc.), where a high capability in information management is required and the Client has not enough internal resources and skills, a third party may be engaged with the specific commitment of managing information as a service for both the Client and the Service Provider. In this case the third party must be especially expert in services related to information management, providing and using the information system in order to support the many processes connected to the FM services delivery, such as: • • • • • • • •

inventory; implementation of the registry; managing the Help Desk; transmission and collection of work orders; storage and processing of the feedback information; information processing; delivery of reports; information distribution, etc.

According to the strategy of the Client and the distribution of functions between Client and Service Provider, the third party can support the Client just by managing information or also by performing activities of monitoring and control (Table 3.4). In this case the Client can manage two different ITT,11 one concerning just information services and the other concerning FM services, especially dealing with the tactical and operational level; d. Command Centre jointly managed by Client and Service Provider. This is probably the increasingly applied model, based on a variable framework of activities, carried out by the Client and the FM Service Provider, managing jointly a unique set of procedures and the information system, each one with its own roles and responsibilities (Table 3.4). The parts can share decisional and planning

11

In preparing the ITT the client must carefully identify and separate all the activities that are under the responsibility of the FM service provider and those that will be requested to information services provider, clearly specifying the relationships between the two parts.

3.2 Command Centre

81

Table 3.4 Example of matrix for the attribution of activities in relation to the possible CC models Client

Service provider

Third party

CC models Strategic

Activities

1

2

3

4

Strategic planning of activities

•

Analysis of needs and definition of strategic space plan

•

•

Analysis of needs and definition of operations and maintenance strategies

•

Analysis of requests for extraordinary activities and approval

1

2

3

4

1

2

3

•

•

•

•

•

•

•

•

•

•

•

•

•

•

Analysis of needs and definition of HSSE (health, safety, security and environmental) strategies

•

•

•

•

•

Analysis of needs and definition of operations and maintenance strategies

•

•

•

•

•

Analysis of needs and definition of energy strategies

•

•

•

•

•

Risks analysis

•

•

•

•

•

Managing the impact of facilities on the primary activities, external environment and community

•

•

•

•

Management of the relations with authorities, lessees and tenants, strategic partners, associations etc.

•

•

•

•

Planning and supervision of monitoring and control activities

•

Analysis of reports

•

•

•

•

Application of penalties if necessary

•

•

•

•

Definition of information needs

•

•

•

•

•

•

•

Definition of the registry contents

•

•

•

•

•

•

•

Definition of the information system characteristics

•

•

•

•

•

•

Selection and acquisition of the information system

•

•

•

•

•

•

Analysis of noncompliance and corrective tasks

•

•

•

•

•

•

Communication plan

•

•

•

•

•

•

•

Training plan

•

•

•

•

•

•

Approval of extraordinary activities

•

•

•

•

Control of the costs

•

•

•

•

Developing business plans and budgets

•

•

•

•

4

•

•

•

• •

•

•

•

•

(continued)

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Table 3.4 (continued) Client Tactical

Operational

Service provider •

Collecting feed-back information

•

Managing Help Desk

•

Processing feed-back information

•

•

•

•

•

Distribution of information

•

•

•

•

•

Elaboration of indexes

•

•

•

•

•

Distribution of information

•

•

•

•

•

Planning and scheduling tasks

•

•

•

•

Issuing work orders

•

•

•

•

Coordination of the monitoring and control

•

•

•

•

•

Analysis of feed-back information

•

•

•

•

•

Coordination of the activities

•

•

•

•

Coordination of periodical auditing

•

•

•

•

Managing the Help Desk

•

•

•

•

Operation and management of the information system

•

•

•

•

•

Processing feed-back information

•

•

•

•

•

Coordination of the operational units

•

•

•

•

•

•

• •

Execution of the operations

1: 2: 3: 4:

CC CC CC CC

Third party •

•

• •

•

•

•

•

•

•

•

Monitoring and control activities

•

•

•

•

•

•

•

•

•

Audits

•

•

•

•

•

•

•

•

•

Filling and recording work orders

•

•

•

Collecting feedback information

•

•

•

•

•

•

Inspections and technical checks

•

•

•

Input data in the information system

•

•

•

•

•

Reporting

•

•

•

•

•

internal to the Client internal to the Service Provider managed by a third party jointly managed by Client and Service Provider

activities at the strategical and tactical level, while the Client concentrates the monitoring and control activities and the Service Provider is engaged in all the operational tasks. It is important that the Client clearly specifies some primary matters, at least: the respective responsibilities and the decision limits in planning, coordination and management of the information flow; the ownership of the information system and of the data collected over time during the period of service delivery. Whatever the organizational model is, it is essential that the ITT contains a proper description of the selected CC and that all the tender requirements—and the decisions and actions developed from the post-awarding phase until the closing of

3.2 Command Centre

83

the service—are coherent with it. A matrix, like the one shown in Table 3.5, can be a useful support for listing and comparing the main functions and activities of the Client and the Service Providers in relation to the possible CC models. In the ITT (or in its annexes), detailed organizational indications about the management of the relationships between the parts can be specified, such as: • roles and skills of the Clients and of the Service Provider, dedicated to the specific functions and to the sharing of decisions and responsibilities; • the modalities of communication, the procedures for approval and for discussing and solving criticalities; • frequencies, goals and location of the meetings, etc.,

3.3

Operative Structure

As stated in the previous paragraph, the Command Centre deals mainly with strategical and tactical functions and activities and its composition (roles and skills) may vary in relation to the selected organizational model. Regarding the activities, related to operational level, that are mainly developed by the Service Provider, the Client can decide to completely delegate the Service Provider for the organization of the teams or to give indications for aspects concerning for example: • the minimum requirements for the team, specifying in the ITT, for instance the skills, the number of years of previous relevant experiences, the requested licenses and certificates of participation to courses; • the permanent staff team, hours and location of requested availability; • the organization chart of the operative structure; • the ownership of the tools used by the operative team; • the relationship with other possible operative teams, directly managed by the Client. If the Client does not indicate any request to the Service Provider about the organization of the teams, in the ITT the Service Provider could be invited to propose and describe the operative structure in its offer. The Client, in the case of maintenance services, in specifying the essential entry requirements and experience of the technician specialists can adopt the guidelines provided by the standard BS EN 15628:2014 (Table 3.5). The standard proposes also lists of required minimum skills and essential knowledge for the various roles of the maintenance personnel, that can be useful for the Client both in the definition of the requirements for the Service Provider expertise and in the evaluation of its offer (Table 3.6). Especially in the case of CC jointly managed by Client and Service Provider, it can be useful to create two parallel structures (Fig. 3.5), organized into various

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Table 3.5 Overview of essential entry requirements and experience Professionals

Maintenance technician specialist

Maintenance supervisor and/ or maintenance engineer

Maintenance manager (responsible for maintenance function or service)

Degree

EQF Level 4  5 or equivalent At least two years of experience in maintenance

EQF Level 5  6 or equivalent

EQF Level 6  7 or equivalent

At least three Graduates with at least five years of years of experience in maintenance experience in (operation + management + maintenance maintenancea engineering) or personnel already qualified as technician and two additional years of experience in maintenance or at least bachelor graduates with two years of experience in maintenance During the professional development of a maintenance manager, it is necessary to include at least two years of team leadership or staff management experience, with direct responsibility, of maintenance function or service a Diplomas, degrees and master shall be science and technology specialization, in graduate classes that provide a sufficient number of credits dedicated to the development and enhancement of competence in the field of maintenance Source BS EN 15628:2014 Time needed for the theoretical and practical training (onthe-job) of maintenance personnel

specialized divisions, according to the types of the provided services. In this way the Client can more easily control the activities performed by the operative team and share decisions with the Service Provider. In general, it can be useful to consider two teams interacting with each other at the operational level. One team, dependent on the Client and mainly aimed to the monitoring and control functions, can have various tasks: • monitoring and controlling the achievement of the agreed quality levels of the services in relation to the KPIs; • approving the work programs; • supervising the execution of works; • checking the users’ satisfaction (questionnaires, interviews, etc.); • communicating with the responsible of the Service Provider;

3.3 Operative Structure

85

Table 3.6 Example of competences, skills and knowledge for a maintenance technician specialist A.1

Competences

Minimum skills

Essential knowledge

To perform or ensure the safe execution of the maintenance plans according to business strategies

a. To perform planned task according to the maintenance plans;

a. Maintenance plans, standards and operational methods of work; b. Technical documentation and maintenance manuals; c. Procedures;

b. To perform the inspection tasks in order to highlight and prevent the item degradation; c. To identify and propose actions or projects to improve reliability, availability and maintainability of assets; d. To take care, within the limits of his responsibility, organization and discipline of operating personnel; e. To use the machines, equipment and tools necessary for the execution of maintenance tasks; f. To comply with the required procedures, standards and operational methods of work; g. To apply the diagnostic techniques (failure analysis and troubleshooting techniques) and the on condition maintenance

d. Business job descriptions and roles;

e. Risk assessment tools/methodologies;

f. Principles and techniques distinctive of the individual profession; g. Principles, logic and parameters of operation and utilization of asset and item; h. Maintenance objectives

Source BS EN 15628:2014

• collecting feed-back information and reporting (this kind of activity can be developed by the Service Provider team or by both the teams); • communicating with the Command Centre (informing about the development of the activities, asking for directions in the case of any problem requesting strategical or tactical decisions, etc.).

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Fig. 3.5 Example of operative structure scheme

Depending on the complexity of the FM service and of the Real estate, the team can be composed by the operative responsible of the service nominated by the Client and by a variable number of control personnel, expert in each of the specific areas of the FM integrated services. The other team, dependent on the Service Provider, focuses mainly on the coordination functions and it can have various tasks, such as: • scheduling and coordinating all the programmed activities; • processing of unscheduled activities, identified by the Service Provider or generated by request of the Client, in order to obtain permission for the execution and to add them to the programme; • periodical review of the programme of activities;

3.3 Operative Structure

• • • • •

87

organization of requested and approved activities; performing activities; supervising activities; collecting feed-back information and reporting; communicating with the Command Centre (informing about the development of the activities, asking for directions in the case of any problem requesting strategical or tactical decisions, etc.).

Depending on the complexity of the FM service and of the Real Estate, the Service Provider team can be composed by: an operative responsible of all the FM integrated services, a responsible for each building (building manager), an operative team composed of a variable number of technical personnel (Tables 3.5 and 3.6) and a local permanent presiding workers. If subcontracting is envisaged, the Client should clearly indicate in the ITT for what parts of the services the Service Provider will be allowed to apply subcontracting, specifying the roles, activities, obligations, constraints and responsibilities of the Service Provider12 and of its subcontractors and the kind of relationship they will have with the Client. Besides, the Client should clarify its and/or the Service Provider’s commitments regarding the operative team such as: • making available, without delays and in safety and health conditions, spaces and equipment for the planned and/or required activities; • providing electricity for the operation of the machineries necessary for the operative tasks; • providing machineries and tools13 for the activities (especially moving, maintenance and cleaning); • ensuring coordination and monitoring of the safety, healthy, security conditions on the sites where the operative teams are working; • clearing away and removing from the site waste and rubbish before and after the interventions; • providing primary fluids; • providing fuel (diesel, methane, LPG).

12

If a subcontractor is employed by the provider to carry out any activity, in the ITT the Client should request the provider to ensure that each subcontractor complies with the client’s Quality and Health and Safety policies. 13 In the tender specification it is advisable to specify if the selected provider will furnish at his own cost, responsibility and diligence all the equipment, machineries, tools and materials necessary for providing the services—with the lawful permits and certifications of personnel which will be authorised to use it, if necessary—ensuring that all statutory safety tests or inspections will be carried out on its responsibility. It can be also be useful to specify if the provider, and its possible subcontractors, will be responsible for procurement, transport, unloading, safekeeping and maintenance of all the equipment, materials and other things required for the provision of the services.

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3.4

3

FM Services and Organizational Structures

Help Desk

The Help Desk is an important structure usually present in the FM integrated services. It acts as a sort of communication hub for all the issues concerning the FM services, receiving users’ requests and complaints in case of any problem or needs for interventions, activating the Service Provider and the operative teams, supporting the users in the interaction with the Service Provider’s team and in the best understanding of the delivered services, tracking the requests. But, it is important to underline that the Help Desk should be considered not only as a function supporting communication with the users, but also as: • a “collector” of information related to faults, reported by the users, and problems in the management of the service; • an “activator” of unplanned interventions, according to the application of a procedure or the approval by a qualified entity. For this reason, the Help Desk, being a sort of by-pass of information, should be linked to: • the registry (Chap. 4) in order to identify and localize the space/item interested by the call-requests asking for interventions; • a set of criteria and procedures in order to evaluate if the request is admissible as an ordinary intervention and its level of priority, if it is not admissible or if it can be considered an extraordinary intervention to be submitted to the decisions of the CC for permission; • the information system (Chap. 4), if present, in order to trace the requests, transmit the information, concerning the reported faults, and receive the information, related to the resolution of the problems.

Fig. 3.6 The Help Desk interactions

3.4 Help Desk

89

At the same time, the Help Desk team should be able to interact with (Figs. 3.6 and 3.7): • the enabled users, from which the Help Desk receives and records requests and to which communicates the state of the action that has been taken; • the operative structure, in order to communicate the requests for ordinary interventions, that have to be included between the programmed tasks, according to the evaluated level of priority, updating the scheduling; • the Command Centre, to communicate the request for extraordinary interventions. Considering all these tactical functions, in the ITT the Client should clearly specify some basic aspects, listed below, connected with the Help Desk. 1. The structure that shall be in charge of the management of the Help Desk. The Client should declare if the Help Desk is already present and managed by its internal personnel. In this case it should explain if it intends to maintain the current structure and how the Service Provider is requested to interact with the existing Help Desk for the aspects concerning the communication, the activation of works and the integration with the possible information system. In this case, it would be useful for the Client to provide a procedure regarding the Help Desk activities, to be made available or in the annexes of the ITT or in the mobilization phase. Otherwise,

Fig. 3.7 The Help Desk basic processes

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in case the Help Desk is a function requested to the tenderer, the Client can specify the expected composition of the structure (personnel, skills) or if the tenderer is requested to present its proposal. 2. The operating modalities. The Client should specify: • the expected operational hours of the service (for instance 24 h), days (for instance 6 days a week) and months (for instance 12 months a year); • the modalities of request (telephone call, e-mail, ticket opened through the information system); • the enabled users. 3. The activities of the Help Desk. The Client should list the required activities, such as: • requests for clarification on the procedures for sending and formalizing intervention orders; • reception, evaluation and sorting of requests for ordinary interventions to be managed by the operative structure; • reception, evaluation and sorting of requests for extraordinary interventions to be considered by the Command Centre; • activation of inspections after a call; • input of the requests in the information system; • requests relating to the status of the reports and any subsequent consequent action, in progress or scheduled; • requests for clarification on the services covered by the contract; • management of reminders; • management of complaints; • periodic compilation of reports to provide information about the interventions (number, type, claimant, etc.), requested and in progress, the timing of the actions undertaken, the results obtained, etc. 4. The levels of priority for evaluating interventions to be activated and the response time, for instance: • emergency, that is the interventions that have to be immediate, in order to face emergency situations, characterized by risks for the safety of people and that can determine interruption of activities that are primary concerns for the organization; • urgent, that is interventions to be carried out within a time of eight working hours from the request as they can compromise the optimal conditions for the development of normal activities (e.g. microclimatic conditions); • interventions that can be programmed at short, medium long period, as they do not deal with critical situations.

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91

5. The SLAs and KPIs assumed for orienting and controlling the service of Help Desk, for instance, time levels of priority for evaluating interventions to be activated and the response time, for instance: waiting time in minutes, response time in hours, etc. 6. The number and the skills of the Help Desk personnel, that is for instance: documented training, proven capacity in understanding the services provided, in evaluating the priorities of fault types and allocating the tasks to appropriate operative teams; spoken languages and certified level; proven capacity in using the information system, if present, etc.

References Booty F (2009) Facilities management handbook. Routledge Chotipanich S (2004) Positioning facility management. Facil 22(13/14):364–372 Coenen C, Alexander K, Kok H (2013) Facility management value dimensions from a demand perspective. J Facil Manag 11(4):339–353 Nardelli G, Rajala R (2018) The evolution of facility management business models in supplier-client relationships. J Facil Manag 16(1):38–53 Roper K, Payant R (2014) The facility management handbook. Amacom Talamo C, Bonanomi M (2015) Knowledge management and information tools for building maintenance and facility management. Springer International Publishing

Standards and Laws BS 8892:2014 Transition management of facility-related services. Code of Practice BS EN 15221-1:2006 Facility management. Terms and definitions BS EN 15221-5:2011. Facility management. Guidance on facility management processes BS EN 15628:2014 Maintenance. Qualification of maintenance personnel ISO 9001:2015 Quality management systems. Requirements ISO 12006-2:2015 Building construction. Organization of information about construction works. Part 2: Framework for classification

Chapter 4

Management of FM-related Information

Abstract The chapter deals with topics connected with information management. Starting from the assumption that information represents a key subject for the quality of a FM service, the chapter introduces a series of questions, that a Client should consider in preparing an ITT, related to the modalities of collection and organization of data and to roles, responsibilities, tools and procedures for the information management. In relation to these questions, some basic ITT topics, related to information, are analyzed in depth, namely: • inventory process, suggesting how to request, orient and control the continuous process of retrieval, selection, validation, acquisition, collection and updating of data related to the buildings; • registry, discussing about the framework of criteria useful for the classification and coding of the collected data related to spatial and technical elements; • information system is presented as a fundamental support for collecting, retrieving and processing large amount of information, constantly growing, in order to enhance the knowledge about the buildings characteristics, the capabilities of predicting behaviours and preventing failures, the abilities in monitoring and interpreting the performances; • management of the information flow, suggesting the actions to adopt in order to make the information constantly traceable and in charge of someone clearly identified during all the processes; • document management. Considering that the documents represent a very important source of information, the chapter suggests some criteria that should be taken into account in preparing an ITT in order to orient the designing and implementing of a suitable Document Management System (DMS); • information responsibilities and ownership. Staring from the assumption that in absence of predefined and shared rules, sensitive data could be used by unauthorized people and knowledge could be lost, the chapter discusses some criteria useful for defining and assigning roles responsibilities and ownership of information to appropriate;

This chapter is authored by Cinzia Talamo. © Springer Nature Switzerland AG 2019 C. Talamo and N. Atta, Invitations to Tender for Facility Management Services, Springer Tracts in Civil Engineering, https://doi.org/10.1007/978-3-030-04009-3_4

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feedback data. The chapter highlights the importance of feedback data for developing a historical and statistical basis for the control and the possible review of the results of the services, as well as for increasing knowledge over time. Keywords Data collection Information systems

4.1


Information management
Knowledge

Management of Information and Quality of the FM Service

Management of information represents a key subject for the quality of a FM service for many reasons: • in the very early steps of the tendering phase, information about at least the buildings (location, quantities and characteristics), the Client expectations and requirements, the users’ needs, the characteristics of the Service Providers of the previous services, the outcomes of the previous service, are fundamental for the development of the contents of the ITT; • in the mobilization phase, a clear awareness of the available and reliable information is central for the definition and planning of the inventory1 activities, for the creation/updating of the real estate registry,2 for the in-depth definition of the technical contents of the contract (Talamo and Bonanomi 2015); • in the delivery phase, the management of feedback information is fundamental for the activities of monitoring and control of the compliance and quality of the services through the application of KPIs and SLAs; • in the whole life cycle of the building, the continuous collection of feedback information, chronologically ordered, about features, location and frequency of anomalies, degradations, failures and pathologies is the necessary condition for a progressive growth and improvement of knowledge and for the statistical prediction of the behaviours of the technical elements (failure rate, reliability and durability of building systems and plants). Furthermore, the collection of feedback information regarding the interventions allows to improve the awareness of aspects related to the organization of the services (execution modes, means of work, materials, human resources, requested skills, time spent on the specific activities, duration of interventions, costs, etc.); • in the closing phase of the service, information is necessary for the final assessment and for highlighting criticalities and aspects to be considered and improved in the next ITT. Furthermore, data processing allows to obtain reliable information and indicators, useful for developing KPIs to be adopted in the future services. 1

See Talamo and Bonanomi 2015, Chap. 2. See Talamo and Bonanomi 2015, Chap. 3.

2

4.1 Management of Information and Quality of the FM Service

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Fig. 4.1 Process principles. Source BS EN 15221-5:2011

For all these reasons, information can be considered as an asset (ISO 55000:2014) for an organization.3 Similarly to many other assets, information undergoes various transformations within the many processes developed during the life cycle of a FM service (Fig. 4.1). So, when the Client launches a tendering process, some starting questions4 should be asked: • What is the basic information necessary for starting an integrated FM service? • What categories of information can be identified in relation to the various functions and processes? • What is the most appropriate level of deepening of the information in relation to the objectives, the context and the resources? Starting from these queries, the Client should be very careful in the development of the ITT, being aware about some basic aspects: • How to draw the framework for the collection of information at the starting of the service? • How to organize the collection of information during the delivery of the service? • How to manage information in relation to a variety of functions during the delivery of the service? • How to organize and use the information in the closing phase of the service? For each of these questions the Client should take into consideration some further questions, namely: “Knowing which information and data an organization needs to collect, maintain, update, communicate and control can prove challenging. Since facilities are the physical assets that an organization possesses there is the need to protect, even enhance, the value of that investment. Knowledge about facilities has real value; moreover, the cost of delivering the asset in the first instance includes the cost of producing and managing information and data. In the case of a new facility, an information asset is delivered alongside the physical asset. The relationship between the two has to be understood if the facility is to be delivered as promised and if it is to serve its intended purpose well into the future” (BS 8587:2012). 4 “The starting point for owners, as the primary organization with an interest in information about a facility, is to be able to understand the various types of information and data that are needed for the day-to-day management of their facility throughout its life” (BS 8587:2012). 3

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• Who is the responsible for the information in the various phases of the life cycle of the service? • Who is the role in charge for the management of the flow of information? • Who are the roles admitted to use information? • Who are the roles admitted to update information? • Who is the owner of information during the delivery of the service? • Who is the owner of information once the service contract is over? First of all, before considering all these questions, the Client should clarify its basic vision and goals in relation to the main categories of information it usually deals with, the modalities of data acquisition, the organization of information and the expected level of knowledge5 to be reached. Secondly, the Client should draw a specific pattern of all the sources of information.6 5

In this respect, the DIKW model for knowledge management and data value extraction can be mentioned. The DIKW model or DIKW pyramid is a method, dealing with knowledge management, often used to explain the ways we move (actions and decisions) from data (the D) to information (I), knowledge (K) and wisdom (W). In the DIKW model, the data, which are at the base of the pyramid, are symbols that represent the properties of objects and events. The information consists of processed data. Like data, information represents the properties of objects and events, but with respect to these ones, they are finalized. The difference between data and information is functional, not structural. Information is data that has acquired meaning through relational connections. The information is related to questions such as “who, how, when, where, how much”. Knowledge arises from organized and related information and answers the question “how”. Understanding, a higher level of the pyramid, is related to the explanation of phenomena and answers to the question “why?” Information, knowledge and understanding contribute to the efficiency of behaviors (Ackoff 1989). For a revision of the data–information–knowledge–wisdom (DIKW) hierarchy see: Rowley J (2007) The wisdom hierarchy: representations of the DIKW hierarchy. Journal of Information Science 33(2):163–180. 6 The standard ISO 30302:2015 provides the following examples of sources of information and requirements supporting the analysis of organizational context: 1. Sources of information about the organization’s external context: • information from and about stakeholders; • laws, regulations, standards, codes of practice, rules of industry regulators, corporate governance rules, and directives; • the litigation profile of the organization and regulatory action affecting the organization; • economic, financial or environmental analyses from government or industry analysts; • media reports. 2. Sources of information about the organization’s internal context: • • • • • • •

key corporate documents such as policies, strategies, business plans, annual reports; audit reports; organizational structure, definition of roles, responsibilities and delegations; internal standards, guidelines, codes; business process maps or descriptions; skills assessments; information systems inventories;

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Furthermore, the Client should be aware of how it intends to manage information in relation to the specific mission and vision of its organization and its objectives. This awareness should be referred to the levels in which the FM service acts. Following the guidelines of the standard BS EN 15221-1:2006, three levels can be considered (Chap. 3): strategic level, tactical and operational. Each level operates on a specific time scale according to specific objectives and roles, and consequently deals with different needs, connected to information management. Table 4.1 summarizes the main information and documents (Talamo and Bonanomi 2015) that may be managed in the above mentioned three different levels in relation to the quality cycle of Plan, Do, Check and Act (PDCA), as defined in the standard ISO 10014:2006. Notwithstanding the fundamental role of knowledge within FM services and the many questions, that might be assumed for orienting the request of services, the analyses, carried out on champions of ITTs, highlight that in most cases the importance of information seems to be underestimated. Often within ITTs the requests about information are absent or not carefully defined. Furthermore, many aspects connected with information management seem to be implied; guidance notes regarding the modalities for classifying and organizing data are not present; and criteria for the adoption/implementation of information systems are not reported. For the Client and for the quality of the FM service, the consequences of these lacks within the ITTs may be various, for instance: • in the tendering phase, if the ITT does not provide any guidance note for the management of information, such as for instance those regarding the development of the building registry or the implementation of the information systems, • information or data models; • • • • • • •

stakeholder analyses; risk analyses; information security framework; contextual analyses from implementation of other management systems standards; project management methodologies; procurement and contracting models; an understanding of organizational culture (which may not be documented).

Stakeholders can be the following: • internal employees and contractors working on behalf of the organization; • internal employees who have a leadership role in managing records, e.g. audit, risk, legal, compliance, information technology; • business partners, e.g. research collaborators, trading partners; • shareholders, owners, trustees, directors; • suppliers of products and services; • customers; • citizens, non-government organizations and other community groups with an interest in the organization and what it does; • oversight/regulatory bodies to which the organization could be subject; • government, including multiple governments for organizations operating across different • jurisdictions.

Strategic level

FMorganization

Quality management strategic level

Client interface

Inf. and doc.

• FM organisations plan • Strategic FM projects

Lead FM organization

Control FM organization

(continued)

Managing improvement process

• List of required demands (concerning space/ workplace, equipment, assets, supplies, etc.) • Performance agreements; • Strategic space plan

Inf. and doc.

FM agreement

• Identifying demand • Needs and demand specifications

Act.

Act.

• List of contact information including responsibilities and requirements of data/ information; • Communication guideline of the organization; • Standardised means/ documents for communication with the FM community; • Documents about agreed changes; • Documents about change management actions

• Strategic reports regarding: Operating costs; Space utilisation and costs; Benchmarks; Fulfilment of quality requirements; Project related cost and results; Customer satisfaction survey; Compliance survey; Change requests and related results

• Strategic topics list • Information and reports of projects

• FM strategy • Action plans • Investments project plans • Reports about customer feedback and complaints; • Due diligence

Information and documents

Fulfilment of requirements

Change management at strategic level

Act

Reporting to client

Check

Consulting

Do

Alignment with client

Actions

Plan

Table 4.1 Taxonomy of information and documents within the three levels of a FM service using PDCA cycles

98 4 Management of FM-related Information

Tactical level

Quality management tactical level

Customer interface

Strategy

Table 4.1 (continued)

• Change management at tactical level • Communication with customer • Information about FM teams • Procedures of change management

• Reporting to customer

• Information about FM teams • Procedures of change management

• Information about FM teams • Procedures of change management – –

• SL elaboration

• List of required demands (concerning space/

Act.

Inf. and doc.

Inf. and doc.

• Information about FM teams • Procedures of change management

• Compare results • Quality control

(continued)

• Information about FM teams

–

• List of contact information including responsibilities and requirements of data/ information • List of external contacts derived from contracts, providers, associations, etc.

• Coordination customer/ Client • Consulting of customer

Approved demands list FM standards Investment projects list Project descriptions Project plans

• Alignment with customer

Act.

• • • • •

• Approved demands list • FM standards • Investment projects list • Project descriptions • Project plans

• FM standards regarding (operations and maintenance, space, cleaning, security, etc.) • FM procedures for evaluation of facilities and buildings • Procedures for auditing of service qualities according to SLA and KPIs

Inf. and doc.

Communication external relations

Act

Strategic project (Strategy implementation)

Strategic controlling

Check

Strategic planning and strategy development

• FM reporting • Laws and regulations

Do

Act.

Plan

4.1 Management of Information and Quality of the FM Service 99

Tactics and central functions/ resources

FSorganization

Table 4.1 (continued)

• Continuous improvement process

• Project register • Contract evaluation report • competence development plan

• List of external contacts derived from contracts, Providers, associations, etc. • Contract register • Contract evaluation report

• Tactical planning • and central functions

• Actual Provider register • Provider evaluation report • Strategic space plan • Space utilisation report (occupancy and use of space) • Laws and regulations

Inf. and doc.

Act.

Inf. and doc.

• • • •

• Facility register • Facility services contract • Evaluation reports resources register • FM KPIs

(continued)

• Provider register • Provider evaluation report • Performance evaluation report

• Provider manag. • Communication with end users

• Monitoring • performance

• Service coordination. • Manage central functions

Health, safety, security and the environment reports; Laws, regulations, insurance List of requirements FM KPIs

–

• SLA and KPI • Facility performance report

• Evaluation performance • Cost control

• Manage FM team

• Service level • agreement (SLA)

Act

Act.

Check • Procedures of change management

Do

workplace, equipment, assets, supplies, etc.) • Performance agreements; • Strategic space plan

Plan

100 4 Management of FM-related Information

QM

Facility products and facility services

Act.

Act

• Organizing Measurement

• Building register

• Reports about security issues and moves

• Reports about complaints (cleaning, malfunctions, etc.)

• Fm reports about service requests of end users and change requests of end users

• Fm reports about operations and maintenance data and (fulfilled activities, status data, condition data, emergency and break downs, corrective actions, etc.)

• Reports about the measure of the service results according to sla and kpi

• Facilities evaluation report and customer satisfaction surveys reports

• Information about FM teams

• Work orders

Product planning

Check

• Reports about the evaluation of the planning of the facility services

Do

Inf. and doc.

Plan

Act.

Source Talamo and Bonanomi (2015)

Operational level

PLAN

Table 4.1 (continued)

4.1 Management of Information and Quality of the FM Service 101

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the Client may have some difficulties in evaluating the different proposals (contents and costs) of the tenderers. At the same time, the tenderers could have problems in developing their proposals without an outline of available information and a well formalized request regarding the organization of data; • in the mobilization phase, the Client could be influenced by the awarding tenderer in the definition of the agreement for the organization and management of information. Furthermore, without a clear vision of the Client requirements, the mobilization phase could cover a period lasting longer than the expected one, with both parts searching—with the risk of possible conflicts or dissatisfactions —for a shared solution; • in the delivery phase, problems concerning responsibilities and roles could occur. For instance, the Client could realize that the information management does not meet its expectations, or that the data that it is receiving are not enough for fulfilling the KPIs and for supporting in the best way the activities of control, etc. • in the closing phase of the service, if any agreements have not been established, the Client could realize that it is not the only owner of the information or that information has been organized and managed by the Service Provider without any shared procedure. In this case the Client could have difficulties in transferring the data base, implemented in the period of the service, to the next Service Providers, as well as in managing the information by itself. The standard BS 8587:2012 underlines that primarily: “The organization should determine the extent and nature of its process for managing facility-related information and, in particular, the relationship with existing processes including those for facilities management”. In this regard, the standard suggests that a plan for information management could be a very useful support tool for the subsequent tender procedures: “a plan for facility information management should be prepared and kept up-to-date. This plan should include a definition of the information management process, the functions or activities within it, the information flows between functions or activities and the controls that have to be applied. Consideration should be given to the use of an IT-based methodology and tools for designing, developing and implementing information management systems so that changes can be tested and their likely impact determined before they are applied. Account should be taken of formal policies and procedures, where they exist, in regard to the use of IT-based systems. The organization should identify those functions or activities that are subject to statutory or other regulatory oversight”. Besides, as the standard BS 8892:2014 suggests, it is also important to preliminary establish the criteria of transition regarding migrating upon knowledge, assets, liabilities, systems, processes and people from the Client to the Service Provider (and viceversa) in order to create a desired delivery capability. “Transition has to be planned and controlled over and above arrangements for the

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procurement of facility-related services, where this applies, if it is not to impact negatively on service delivery” (BS 8892:2014). In the light of the above, in the writing of the ITT the Client should consider various interconnected key topics addressed by the subject of information, namely: • • • • • • •

inventory; registry; information system; management of the information flows; document management; responsibilities and ownership of information; feedback information.

4.2

Inventory

The inventory may be defined as a process based on a plurality of activities and procedures, carried out in order to obtain information about the dimensional and physical characteristics of a Real Estate. The inventory may be interpreted as a continuous process of retrieval, selection, validation, acquisition, collection and updating of data. These data, organized according to specific goals, create a base of information necessary for planning, managing and checking the provision of facility management services (Talamo and Bonanomi 2015). An inventory can provide basic information limited to dimensions and locations of the buildings, or it can gradually make available more and more deepened information for instance, related to the technical characteristics of the building elements, the conditions of the assets, or to significant events that have marked the history of the buildings (e.g. initial situation, maintenance operations, adjustments, replacements of parts, transformations, etc.) (Talamo and Bonanomi 2015). Before writing the ITT, the Client should start from the recognition of its own situation in order to report some basic essential data (at least quantities, location, availability, destinations of the buildings to be managed) and to clarify its expectations about the inventory process. As the standard BS 8587:2012 suggests: “The organization should define its information and data in terms of the data elements that are to be managed. (…) Information and data should be differentiated according to type so that related data elements can be more easily updated. Consideration should be given to classifying data elements in terms of their required degree of accuracy, completeness and time-criticality”. The standard suggests some basic steps (Fig. 4.2) to be considered as part of the information management process: • identification, that is the definition of appropriate data;

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Fig. 4.2 Basic steps of the information management process. Adapted from BS 8587:2012

• classification, that is the categorization of data elements according to specific purposes; • validation, that is the authentication of data elements in terms of accuracy and reliability; • revision, that is the review of data elements to establish their relevance and validity and, if necessary, the consequent updating of data. Considering the key topic “inventory”, two main broad cases can occur. Case 1 The Client, with the support of its own organization or of previous Providers, has already developed the inventory and now a base of organized information is available. Starting from this situation, the ITT could contain indications about the modalities for allowing the Service Provider to view the available information during the tendering phase and the categories of information already collected. Anyway, the Client has various options, that must be clearly expressed within the ITT: • the inventory has been already completed. All the information the Client need is available; • the inventory has been started. The Client can require to the awarding Service Provider to continue the activities of inventory (surveys, collection of information, etc.) according to the planning and the procedures established by the Client itself; • the inventory has been started. The Client can require to the awarding Service Provider to continue the activities of inventory (surveys, collection of information, etc.) according to the planning and the procedures that will be established together by both the contracting parties during the mobilization phase;

4.2 Inventory

105

• the inventory has been started. The Client can require to the awarding Service Provider to coordinate/supervise the activities of inventory (surveys, collection of information, etc.) performed by a third party. Case 2 The inventory has not been performed jet. The information necessary for the organization and delivery of the FM services has to be selected, collected, checked and organized. The Client has various options, that must be clearly expressed within the ITT: • the Client can require to the Service Provider to develop the inventory according to rules and a program established by the Client itself. In this case a timetable and a summary of the rules could be reported in annexes; • the Client can require to the Service Provider to propose a set of rules and a program for the development of the inventory. The proposal could be expressed in the tender by the Service Provider or it can be subject of an agreement between Client and awarding Service Provider in the mobilisation phase; • the Client can require to the Service Provider to coordinate and/or supervise a third party in charge of developing the inventory. Anyway, in all the situations in which the development of the inventory is requested, the Client should clarify (within the ITT or during the mobilisation phase) its expectation in relation to: • the accuracy of data and information. “When managing information, it is important to differentiate between the required degree of accuracy, completeness and time-criticality. It is important that personnel are made aware of these requirements, especially when collecting information and data. Aside from the above points, there is the matter of resources. Time spent painstakingly gathering accurate data might be of no benefit to the ultimate users who could, in the process, lose valuable time. Alternatively, they might have made a satisfactory decision based on information and data that are considered to be good enough” (BS 8587:2012); • the gradualism in the acquisition of information. “Some data elements can be collected regularly, almost as a continual operation; whereas others can be collected at intervals. Cycles of information and data collection should be determined by the organization with regard to the purpose of the activity and requirements defined in its information management strategy, policy and/or procedures” (BS 8587:2012). This means to specify what kinds and what amount of information are expected to be obtained at least year by year and how the Client intends to check the results of the acquisition over time and at the end of the service provision (demobilisation phase). Moreover, within the ITT it is important to clarify what is the kind of expected relationship between the inventory and the implementation of the registry. Finally the Client should declare if an information system (see next paragraph) is present and what are its functionalities that the Provider is requested to use.

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In this regard, the standard BS 8587:2012 underlines the importance of a preliminary definition of the already available information base, of the methods, processes and procedures for its management and of the actual information need, stressing that “information management is not primarily an information technology issue. Technology can significantly improve the integrity of information and data and the speed at which it is communicated. Before that can happen there has to be a sufficiently developed understanding of the principles and practices embodied in information management and how information and data can be managed in the best interests of the organization managing the facility”.

4.3

Registry

The modalities of collection and organization of information, during the delivery of a FM service, depend on a structure, that can be defined “registry system” (Talamo and Bonanomi 2015). A registry system can be considered as a framework of criteria useful for the classification and coding7 of spatial and technical elements. Once the assets have been classified and codified—thus identified in an unambiguous way—it is possible to allocate the information. An apparatus of data sheets, integrated to the framework of criteria, allows to get a formalized scheme useful for collecting information over time following always the same format. A registry system is usually based on a breakdown structure, consisting in the representation of the building as a hierarchical open structure, thus a tree structure that, starting from a level of maximum aggregation (real estate, compound or building) can be organized in underlying layers, each one having a lower degree of complexity, up to the simplest elements, not further decomposable. This kind of structure allows the allocation, aggregation and summarization of information at different levels. Some references for this kind of structure can be found in the ASTM UNIFORMAT II Standard E1557 and in the OmniClass Construction Classification System (OCCS).8 Furthermore, interesting guidelines for adopting breakdown criteria, useful for the FM services, can be found in the ASTM Standard E3035 − 15,9 based on an expansion of the E1557 classification. The standard proposes a classification of building, site work elements and components, and their

7

Standard ISO 5963:1985 Documentation. Methods for examining documents, determining their subjects, and selecting indexing terms. 8 OmniClass follows the international framework set out in International Organization for Standardization (ISO) Technical Report 14177—Classification of Information in the Construction Industry, July 1994. This document was later established as a standard in ISO 12006-2:2015 Organization of Information about Construction Works—Part 2: Framework for Classification of Information. 9 ASTM Standard E3035 – 15, Standard Classification for Facility Asset Component Tracking System (FACTS).

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associated functions, attributes, and products (Fig. 4.3). The ASTM E3035 classification provides a support for the analysis, evaluation, monitoring and reporting during the life cycle of an asset, from planning through design, construction, operations, maintenance, rehabilitation and disposal, proposing a unique framework for organizing data, shared by multiple stakeholders/users (Table 4.2). Once a registry system has been adopted, it is possible to implement a building registry by collecting information from various sources (e.g. design documents, surveys, technical reports, etc.). A registry can be considered as a data base containing the information necessary to describe the buildings by recording data related to characteristics such as quantities (e.g. net and gross areas), location, functions, technical configurations, etc. Usually a registry gradually grows over time, starting from a minimum information set, essential for the initiation of a management service. This growth should be possible both vertically, i.e. by inserting additional levels of detail, and horizontally, that means, having the possibility to add new categories and/or types of items. An ITT should clearly and precisely specify the expectations related to the registry. In this regard, two main broad cases can occur.

Fig. 4.3 The integrated relational structure of elements, work results, products, materials, and properties. Source ASTM E3035 − 15

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Table 4.2 Framework for organizing data Function

Touch-points to asset data

Asset manager

Element, product, material type, age, life, cycle, initial cost, operating cost, disposal cost, quantities, locations, size, make, model, serial number Age, life cycle, operating cost, quantities, locations and size Element, product, material type, quantities, locations and size Element, product, material type, age, life cycle, initial cost, operating cost, disposal cost, quantities, locations, size, make, model, serial number Element, product, material type, initial cost, operating cost, disposal cost, quantities, locations and size Element, product, material type, age, life cycle, initial cost Element, product, material type, initial cost, make, model, serial number, size, location Element, product, material type, age, operating cost, disposal cost, quantities, locations and size

Building manager Project manager Data miner/database administrator Estimator Designer Constructor O&M Source ASTM E3035 − 15

Case 1 A registry already exists. In this situation the Client could alternatively: • request the Provider to compile the registry according to rules established by the Client itself. In this case a summary of the registry system could be reported in annexes; • request the Provider to compile the registry according to rules established by an information system, already used by the Client itself. In this case a summary of the main functions of the information system could be reported in annexes; • request the Provider to analyse the existing registry in order to propose the acquisition of an information system. In this case a summary of the registry could be reported in an annexe of the ITT. The proposal could be expressed in the tender by the Provider or it can be subject of an agreement between the contracting parties in the mobilisation phase; • request the Provider to coordinate and/or supervise a third party in charge of compiling the registry. Case 2 A registry doesn’t exist. In this situation the Client could alternatively: • request the Provider to develop the registry according to rules established by the Client itself. In this case, a list of the rules could be reported in annexes; • request the Provider to develop and implement the registry according to rules established by the Client itself. In this case, a summary of the rules could be reported in annexes;

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• request the Provider to propose the rules (the registry system) and the tools (e.g. a possible information system) for the development of the registry. The proposal could be expressed by the Provider or it can be subject of an agreement between the contracting parties in the mobilisation phase; • request the Provider to propose the rules (the registry system) and the tools (e.g. possible information system) for the development of the registry and to implement it. The proposal could be expressed by the Provider or it can be subject of an agreement between Client and Provider in the mobilisation phase; • request the Provider to analyse the Client needs for a registry in order to guide the choice of the Client for the acquisition of an information system; • request the Provider to analyse the Client needs for a registry in order to provide an information system. The proposal could be expressed by the Provider or it can be subject of an agreement between the contracting parties in the mobilisation phase; • request the Provider to coordinate and/or supervise a third party in charge of developing and/or compiling the registry. Anyway, in all the situations in which the implementation of the registry is requested, the Client should clarify (within the ITT or in annexes or during the mobilisation phase) its expectation in relation to the gradualism in the growth of information. This means that the Client should specify kinds and amount of information to be entered at least year by year and how it intends to check the results of implementation over time and at the end of the service (demobilisation phase). Moreover, within the ITT it is important to clarify three further aspects: • the relationship between the inventory and the implementation of the registry (the roles and responsibilities, the timeline that regulates the activities regarding the inventory and the registry implementation); • the goals of implementation, that is if the Provider is simply requested to collect and insert feedback information coming from the execution of the FM services or if it is expected to insert information acquired also through the activities of inventory; • the relationship between the registry and the possible information system.

4.4

Information System

Considering the quantity of information—necessary for planning, managing and controlling the various processes—and the multiplicity of different operators creating and using data over time, an information system (IS) must be considered as a fundamental support for the delivery of a FM service. The information system is in fact an essential support for collecting, retrieving and processing such a large amount of information, constantly growing, in order to enhance the knowledge

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about the buildings characteristics, the capabilities of predicting behaviours and preventing failures, the abilities in monitoring and interpreting the performances. Information systems may assume various configurations, all sharing some basic features that must be considered by the Client while writing an ITT: • first of all, assuming the indications of the Italian standard UNI 10951:2001, in general an information system for the management of a Real Estate can be considered as a decisional and operational support tool, consisting of databases, procedures and functions aiming to collect, store, process, use and update the information necessary for the setting, the implementation and management of the services (Tables 4.3 and 4.4); • the data base can be considered as the core of the information system. It is usually organized according to rules for the classification and coding of items, hierarchically connected, starting from the highest level of aggregation (real estate, compound, etc.) to simpler and simpler levels, as buildings, floors and rooms. The items, identified and hierarchically organized and linked, represent the framework of the registry; • an information system aims to collect and manage the information, allocated to specific levels of the hierarchy, necessary for the description of the buildings in relation to various aspects, that is identification, localization, functions and users, technical elements (number, types and characteristics), costs, etc.; • considering the multiplicity of areas10 covered by an integrated FM service, most of the current information systems are organized in various modules, each characterized by specific goals and fields, for instance: asset management, space management, move management, energy management, cleaning management, etc. Each module processes information extracted from the data base according to specific procedures; the modular structure of information systems implies that the modules can be acquired and activated over time according to the specific needs related to the FM services; • another characteristic of many information systems for Real Estate management, available on the market, is the coexistence of alphanumeric and graphical data. This feature allows to retrieve and process information, both in alphanumeric and graphics forms, even at the same time linking records (contained in the tables of the database) to drawings (e.g. a floor plan, a specific space, a single component, etc.); • information systems may be developed “in-house” by an organization (both of the Client or of the Provider) in order to realize a platform fully consistent with the enterprise management procedures. Otherwise, and more frequently, information systems are platforms available in the market and customizable. In both cases a deep preliminary analysis of the organizational and operational needs and of the available resources must be developed in order to define the most appropriate strategy.

10

See standard EN 15221.

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Table 4.3 Functions of the information system according to the standard UNI 10951:2001 Functions

Areas of activities

Archives and registry management

Collection, storage, connection, extraction and control of basic data and feedback data Scheduling and calendars Analysis of time series related to the performances and failure events of the technical elements, to the logistics of interventions, to costs Forecasts of the behaviors of elements and systems over time through indexes related to reliability, maintainability, durability, availability, cost, logistics efficiency, risk, etc. Constant verification of the performances of technical elements and systems and of the progress of activities in relation to planning, costs and requests for intervention Planning, management and economic and financial control through: budget management, suppliers management, analysis of the budget Contractual management of products, works and services; issuing of work orders Finding, linking, checking data processed by other systems (for example: rental management, general accounting, remote databases), provision of information for processes to be performed by other systems Acquisition, recording, archiving, management and control of reports and requests for interventions; production and management of information from different sources Production, on different supports (paper, magnetic, etc.) and in different forms (data sheets, tables, graphs, etc.), of documents Generation, updating and distribution of users manuals, “technical” and maintenance operating manuals

Programming of resources Statistical elaborations

Probabilistic estimates based on statistical data

Management of inspections/monitoring procedures, control of jobs progress, quality control Economic management of the Contract, reports about expenditures Management of work orders, contracts, warehouse Interaction with other systems

Communications management

Documentation production

Generating and updating manuals

Adapted from UNI 10951:2001

When adopting and implementing an IS, it is important to jointly develop an organizational structure. Obviously, this organizational structure—and the related roles, responsibilities and procedures—must be aligned with the policies, requirements, recommendations and permissions established by the quality management

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Table 4.4 Requirements of the information system according to the standard UNI 10951:2001 Requirements for information systems General requirements Manageability Procedures and operating instructions for use, verification of correct operation and maintenance of the system Availability of Access and use of data in every phase of the system management data Updatability Possibility of expansion and modification of the system in terms of structure, tools and type of data for adaptation to new needs and/or new management situations Integrability Possibility of interaction with information and processes managed by information systems dedicated to other areas of operation and ability to manage and related data stored in different formats (textual, graphic, photographic, etc.) Consistency Maintaining the consistency of information as a result of updating activities Security Procedures for protecting data integrity and for managing controlled access to information IT requirements Functionality The ability to interact with other administrative and management systems present in the institution or outside the institution (interoperability), The protection from unauthorized operators according to the defined procedures (security), The adherence to the available technical standards (concordance) Reliability The ability to recover from faults, to guarantee the necessity of continuity of service supply (for example, in the case of management of maintenance, emergences that may involve the safety of persons) Usability Ease of learning, using and controlling, in relation to the heterogeneity of skills and culture of operators (availability of guided procedures, documentation and online help, etc.) Robustness Capacity to support access and simultaneous uses by a number of operators and/or users adapted to the system management needs Efficiency System response time, especially during the process of statistical processing and process control (monitoring) Maintainability The possibility of modifying the system in terms of structure as a result of changed management situations Portability Ease of adaptation to new environments and/or situations Adapted from UNI 10951:2001

system,11 if it has been developed and implemented within the demand organization. The organizational structure for the IS is based on some conditions, fundamental for the most effective use of the platform by the various users, for the correct development of the processes concerning data (collection, entry, exchange,

11

See ISO 9001:2015.

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Fig. 4.4 Coexistent conditions for the management of an information system

handling) and for the most widespread awareness12 and sharing of the general objectives and strategies regarding information. These conditions may be summarized in four aspects (Fig. 4.4): • Responsibility, that is the presence of an IS manager (ISM). He is the responsible for the management of the IS, with the role of orientation, supervision and control of the various activities regarding the use, implementation, updating and modification. In Table 4.5 a summary of his main tasks. • Procedures. Together with the presence of the ISM, procedures are fundamental for the management of the IS and for orienting and aligning the behaviours of the various operators, engaged in the different activities concerning the IS. The procedures regard mainly the activities of data entry, processing and updating. For each main process, a specific procedure should list all the interconnected activities and, for each of those, they should be specified the engaged operators, their relationships, their tasks and their responsibilities. Annexed to these procedures, protocols may provide operative instructions guiding the implementation of the activities. Every time a modification of the IS is made, the ISM should update the procedures, communicate the new contents to all those involved and possibly plan the training actions, if it is necessary. The ISM may inherit the set of procedures from the previous service (and possibly update and/ improve them, if it is necessary) or be requested to develop them afresh. Procedures may be variously structured: in Table 4.6 an example.

ISO 9001:2015 highlights the importance of a widespread awareness: “the organization shall ensure that persons doing work under the organization’s control are aware of: (a) the quality policy; (b) relevant quality objectives; (c) their contribution to the effectiveness of the quality management system, including the benefits of improved performance; (d) the implications of not conforming with the quality management system requirements”.

12

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Table 4.5 Example of the tasks of the manager of an information system Tasks Day-to-day operational management

Extraordinary management

• Define the rules and the authorizations for the activities allowed to the various users of the information system; • Define and communicate to all the engaged operators, according to their roles, the rules for collecting the information; • Define and communicate to all the engaged operators, according to their roles, the rules for archiving the documents; • Define and communicate to all the engaged operators, according to their roles, the rules for the updating of the documents (drawings, technical reports, etc.); • Monitor the use of the information system and promote corrective actions, if necessary • Coordinate and preside over training activities; • Collect, from all the operators, involved and authorised, and analyse the indications about the needs for information managing and updating of the information system; • Define, in agreement with the Client responsible, the possible strategies for meeting the needs for information system updating; • Prepare the guidelines and criteria for the development/ modification/implementation of the information system; • Give the mandate for the development/implementation/updating/ change of the information system; • Write and share the procedures and protocols for the use of the information system; • Preside over the development/implementation/updating/change of the information system; • Test any developments/implementation/updating/change made

• Communication. The ISM should constantly communicate13 to the many operators, engaged in the various processes, the information and the instructions they need to know for the most effective use of the IS. The communication may regard both the general objectives and strategies, adopted for the information management, and all the corrective/updating actions developed by the ISM.

13

Strategies and procedures for communication can be defined following the requirements laid down by the standard ISO 9001:2015: “The organization shall determine the internal and external communications relevant to the quality management system, including: (a) on what it will communicate; (b) when to communicate; (c) with whom to communicate; (d) how to communicate; (e) who communicates”.

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Table 4.6 Example of procedures and protocols scheme Procedures and protocol General Procedures The most general level of the procedures aims to provide an overview of the logical structure of the information system and of the overall rules for information management

Procedure operative A detailed operational guide that describes, for each main activity concerning the information system, the actions that the various operators involved must perform

Protocols Provide the operating rules for the execution of the activities envisaged for the use and updating of the information system; they can also report examples and references

Goals • The structure of the information system • Organization of the information • State of development of the information system • the organizational structure set up for the management of the information system; • Roles, competences and responsibilities of the organizational structure • The progress of the information system; • The system management, that is the levels of use of the system for the different categories of users; • The potential for using the system in the network • Provide operational indications for the execution of all operations necessary for the use, operation and updating of the information system; • Specify, for each involved operator, activities, responsibilities, levels of authority, interfaces, methods of execution and formalization of communications, expected execution times; • Indicate the corrective actions to be taken in case of problems; • Indicate, for each activity envisaged, specific protocols that describe the form of information and how certain activities are performed; • Define actions for changing the structure of the information system; • Define actions for the development of new areas of application of the information system • Realization of drawings and graphic conventions; • Updating of drawings executed; • Recording of drawings; • Archiving the drawings; • Arrangement of drawings; (continued)

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Table 4.6 (continued) Procedures and protocol

Goals • Insertion of the drawings in the information system; • Implementation of drawings; • Coding criteria; • Criteria for cataloguing photography; • Reference scheme for functional survey; • Reference scheme for the spaces survey; • Reference scheme for environmental survey; • Communication scheme for the change of the spaces; • Communication scheme for changing the intended use of spaces; • Reference scheme for technical survey; • Reference scheme for diagnostic survey

The forms of communication should be established by specific procedures14 in alignment with general communication procedures, if already existing. • Training. The ISM should: • define the strategies for the training activities,15 specific for the various categories of users of the IS;

14

The standard ISO 30302 suggests that the procedures for communication should include:

(a) (b) (c) (d)

scope of communication and summary of content; methods of communication; responsibilities for communication; methods for assessing the effectiveness of communication. Besides, the standard highlights that the contents of communication should include:

(1) (2) (3) (4) (5) (6)

the aims; the benefits of implementation; roles and responsibilities; the location of, and access to documentation, including operational elements; the content of operational procedures relating to records processes, controls and systems; sources of assistance in complying with the records policy, objectives and operational elements (e.g. records system support services). The standard provides some examples of methods of internal communication:

• • • •

promotional activities such as intranet notices, posters, competitions and prizes; floorwalkers, i.e. business champions; briefings at regular business unit meetings; newsletters and bulletin boards. 15 See ISO 10015, Quality management—Guidelines for training.

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• identify the target operators between the levels of the organization, deciding if to include also contractors and/or other external stakeholders16; • coordinate and preside over the training activities both for the starting phase in the adoption of a IS and for regular updating. The organizational structure, that presides to the management of the informative system, can assume different configurations, according to the model of command centre (Chap. 3): • it can be an inside structure, totally dependent from the technical structure of management of the Client both as regards responsibilities and personnel. In this case the Client should clarify the Service Provider role and responsibilities in the use of the information system and in the interfacing with the ISM of the Client (Fig. 4.3); • it can be an external structure belonging to the Provider of the FM service or to a third part delivering only a service regarding information management. In this case the Client should clarify its needs, its role in interfacing with the ISM, the modalities for the monitoring and control of the FM service delivery (Fig. 4.3); • it can be a shared structure based on a “mixed” formula, where both the Client and the Provider operate on the information system. In this case it is necessary to distinguish the areas of competence and responsibilities of both parts, the modalities of interaction and the affiliation of the ISM (Fig. 4.3). Starting from the awareness of these basic aspects, dealing with the information system, the writer of an ITT should specify clearly and precisely the functions (Table 4.3) and the requirements (Table 4.4) also in relation to the Client expectations for the inventory and the registry (Chap. 3). Furthermore the Client should consider various aspects, such as the ones related to: • ownership of the information system; • ownership of the information generated in the period of the FM service delivery; • identification of the role, the tasks (Table 4.5) and the belonging (to the Client, to the Provider, to a third part) of the information system manager; • roles and responsibilities for the management of the information flow. Finally, the requests for the management of the information system could be better met if the Client specifies the model of command centre it intends to adopt (Chap. 3). Regarding the management of the information system there may occur several different cases; some of these can be briefly summarized as follows.

16

Dealing with the most general scope of management systems for records (MSR), the ISO 30301, Information and documentation—Management systems for records—Requirements, suggests to establish programmes for training in records creation and control, to be provided to all levels of staff in an organization, including contractors and staff of other organizations, where relevant. The analysis of the different roles, with respect to managing records, allows to identified, and built into the training programmes, competencies and skills.

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Case 1 An information system has been acquired by the Client and used during the previous service contract; now the Client intends to maintain and implement it in the subsequent service contract. In this situation, the Client could alternatively: • request the Provider just to use the existing information system, specifying what are the functions and the roles for both the parties. In this case an overview of the information system, of its compiled registry and of the available modules could be reported in annexes of the ITT; • request the Provider to use and expand over time the existing information system, specifying what are the functions and the roles for the Provider and for the Client. In this case an overview of the information system, of its compiled registry and of the available modules could be reported in annexes. The Client should specify its requests for the expansion (i.e. increasing the current registry, entering data regarding new categories of items, acquiring and implementing new modules, implementing the existing functionalities, etc.). This request could be completed pointing out the gradualism of development in relation to the duration of the contract (i.e. the compilation of the registry for the HVAC equipment by the end of the first year of the service, the implementation of the energy management module by the end of the second year, etc.). In absence of such last clarification, the proposal could be expressed in the tender by the tenderer or be the subject of an agreement between Client and Provider in the mobilisation phase; • request the Provider just to implement over time the functionalities of the information system. In this case an overview of the information system, of its compiled registry and of the available modules could be reported in annexes. The Client should specify its requests and needs and the expected gradualism of development over time in relation to the duration of the contract. In the absence of specifications about these aspects in the ITT, the Client could ask the tenderer to express a proposal in the tender or specify that they will be subject of an agreement in the mobilisation phase. Case 2 An information system has been provided and used during the former service contract by the previous Provider. Now the Client is the owner of the data base, constituting the registry, and intends to maintain and implement it. In this situation, the Client could alternatively: • request the Provider to acquire and use the same information system in order to continue the compilation of the registry over time and the collection of information. In this case the Client should specify its expectations for the possible expansion of the information system (see case 1) and, anyway, allow an overview of the compiled existing registry; • request the Provider to propose a new information system, different from the previous one, appropriate to incorporate the existing registry. In this case, besides allowing an overview of the compiled registry, the Client should specify who will be the buyer of the information system, express its expectations and

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needs regarding the characteristics and the functions of the new information system or specify that the choice of the information system will be made in the mobilisation phase. Case 3 The information system is already present and managed by a IT department/division of the Client or by another Provider and the intention is to continue this model. In this case the Client should specify the roles, the responsibilities, the expected and permitted tasks and restrictions and, if necessary, the requirements of the tenderer (for instance skills and capabilities of its operators) regarding the use of the information system and its relationship with the manager of the information system. In this case, the Client should provide an overview of the main aspects related to the IT organization (Client’s department or IT Provider) and the structure of the information system. Case 4 An information system, considered as a unique platform, has never been adopted, but a number of various applications are present within the demand organization. In this situation, the Client could alternatively: • request the Provider to analyse the various applications in order to propose an unique information system, able to satisfy all the needs, connected with the FM services, and to incorporate all the functions carried out by the existing software, that will be substituted. The Client should provide (possible in the annexes) an overview of the existent set of software and of the functional areas, covered by them. Besides, the Client should express its expectations and needs regarding the characteristics and the functions of the new information system and specify who will be the buyer of the information system and if the information system will be selected in the tendering phase or in the mobilisation phase, according to an activity of analysis shared with the Provider; • request the Provider to analyse the various applications in order to propose an interface interconnecting the existing software and maintaining their functions. The Client should provide (possible in the annexes) an overview of the existent set of software and of the functional areas covered by them. Besides, the Client should specify what will be the role of the Provider in the use of the various software and the whole system; • request the Provider to analyse the various applications in order to propose an information system able to interconnect the existing software and maintaining their functions. The Client should provide (possible in the annexes) an overview of the existent set of software and of the functional areas covered by them. Besides, the Client should express its expectations and needs regarding the characteristics and the functions of the new information system and specify who will be the buyer of the information system and if the information system will selected in the tendering phase or in the mobilisation phase, according to an activity of analysis shared with the Provider. Finally the Client should specify

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what will be the role of the Provider in the use of the various software and the whole system; Case 5 An information system has never been adopted. In this situation, the Client could alternatively: • request the Provider just to analyse in depth its needs, in relation to the characteristics of the Real Estate and the FM services, in order to define the requirements of the information system and the modalities of its development. The acquisition and management of the information system could be object of another ITT; • request the Provider to propose an information system. In this case the Client should specify who will be the buyer of the information system, the reference needs and requirements for the information system (possibly it could make reference to specific standards17) and the modalities of its development and use; • request the Provider to adopt and use a specific information system for the delivery of the FM services. In this case the Client should specify the expected configuration of the information system (categories of information to be adopted for the registry, modules, etc.), the role and the responsibilities for its management, the return of the software and of collected data at the end of the service in the demobilisation period. In the absence of specifications about these last aspects in the ITT, the Client could specify that they will be subject of an agreement in the mobilisation phase; • request the Provider to adopt an information system for the delivery of the FM services without any kind of direct use by the demand organization. In this case the Client could specify its possible indirect uses, for example the consultation of periodical reports or the results of application of KPIs. Anyway, the Client should mention its expectations in relation to the registry, specifying aspects such as the breakdown structure, the quantity and the types of technical elements to be registered according to a timetable, the modalities of return of data at the end of the period of the FM service.

4.5

Management of the Information Flow

During the phase of FM service delivery, a large amount of information is generated, collected, shared and exchanged between the many operators and the different roles. It is important that the information can be constantly traceable and in charge of someone clearly identified during all the processes. The aim is to avoid to lose

17

For instance, in the Italian context often within the FM tenders the reference in the standard UNI standard 10951:2001.

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information useful for increasing knowledge18 over time and for monitoring the performances of the assets (i.e. the conditions of the buildings, the use of spaces, the energy consumption, etc.) and of the Providers (respect of the Kpis and Sls). For pursuing this aim, it may be useful to draw the main processes and activities (Table 4.7), connected to each service,19 articulated considering the strategic, tactical and operational levels (Table 4.1). Once the processes have been outlined, it is possible to highlight the main information (considering input and output) and identify the responsible persons for its management (Table 4.3), both on the Client side, on the Service Provider side and, if any, on the involved third party side. A set of procedures can support the flow of information. This set can be developed and stated by the Client or it can be requested to the Service Provider within the ITT. In order to draw the processes, a useful tool could be represented by the Design Structure Matrix20 (DSM), proposed by Bulloch and Sullivan (2010). It can be considered as a support for understanding and modelling the iterative processes (Fig. 4.5): highlighting the relationships between tasks, it makes easier to identify information generation and flows. This kind of tool could be adopted and applied by the Client in the pre-tendering phase in order to clarify its needs and to present a clear and orienting framework to the tenderers. Alternatively, the Client could apply and share this kind of tool with the Provider in the mobilisation phase or ask the tenderers to adopt it in the offer in order to explain their strategies for managing the main processes integrated in the FM service. Furthermore, for a clearer definition of the roles and responsibilities in the management of information it could be useful to define and list the tasks and the “Organizations rely on the knowledge and experience of their personnel to execute their operational plans. It is therefore necessary for a robust management system capable of delivering consistent conforming outputs that such knowledge is captured and is retrievable. Such knowledge may be used during planned or unplanned change or for innovation and service development. Systems should be in place to prevent loss of such knowledge due to personnel leaving the organization’s employment, becoming demotivated, or becoming ill. Knowledge may be retrieved to allow the organization to:

18

• learn from such experience and apply it to service improvements; • compare processes and outcomes” (ISO 41001:2018). 19 “Management of the organization's activities and programmes as processes in which records creation and business activities are integrated generates efficiency for both records and business activities (…). The integration of records management into business activities within the wider context of a management system includes analysing requirements and plans, as well as implementing, reviewing and improving policies and procedures across the organization on a regular basis” (ISO 30300:2011). 20 According to Bullock and Sullivan (2010), the “Design Structure Matrix” (DSM) is a commonly used product development tool that graphically depicts the relationships between tasks in a product development process. A DSM lists all tasks in the process in sequential order along both the left and top axes of a matrix. The matrix (Fig. 4.5) helps to highlight the dependency for information of the interacting tasks. Compiling a blank matrix, it is possible to mark from where each task gets its information for proper completion. Once completed, the matrix shows how tasks in the development process are related to each other.

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Fig. 4.5 Example of application of the Design Structure Matrix. Source Bulloch and Sullivan (2010)

affiliation (Client, Provider or third part) of the manager of the information system (Table 4.5). This list could be annexed to the ITT or the Client could specify that it will be developed and agreed in the post-tendering phase. Finally, the requests for the management of information could be more easily met if the Client specified the model of command centre it intends to adopt (Chap. 3). The standard ISO 41001:2018 proposes an interesting list of actions (Table 4.7), that should considered in the management of information flows. Some of these actions can be undertaken by the Client in the pre-tendering phase to support the writing of the ITT, others during the delivery of the service by one or both the parts. Considering the management of information flows, in addition to the list in Table 4.7, the standard BS 8587:2012 recalls the attention on the action of interfacing between the organization and external bodies in terms of the information exchange between the respective parties.

4.6

Document Management

Documents (Fig. 4.6) are fundamental for the quality and the success of the processes (duration, keeping of the timetable, assessments of compliance, transmission of data, etc.) and, at the same time, they represent a very important source of information, useful both in the pre-tendering phase and during the phase of FM service delivery.

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Table 4.7 Actions to support the management of information flows Actions

Activities

Planning the management of information including the exchange of information with interested parties

• Assessing from which interested parties information is essential, required or useful • Understanding their ability to produce information which is accurate, correctly formatted, timely and (where necessary) validated • Undertaking actions to improve information exchange, where necessary • Scheduling of information exchange • Implementing systems to acquire information as and when required • Communicating the planning horizons for decisions well in advance, so that other parties understand their obligations and the impact of information sharing; • Agreeing and setting limits to the dissemination of shared information, especially where this has commercial value to the other party; • Respecting the confidentiality of interested parties and their rights not to have their data shared beyond agreed upon terms and conditions • Understanding any sector specific standards or protocols for data and reporting; • Assessing the level of detail of data needed, both routinely and from time to time; • Assessing information requirements to ensure it is suitable for the risks of the facility, service or management system • The establishment of data collection processes from all relevant interested parties (including Service Providers); • Mapping the data flow; • Integration of data sources to planning, operational and reporting technology systems appropriate for the size, complexity and capability of the organization; • Evaluating the organization’s ability to maintain the appropriate quality and timeliness of the data • Understanding the value of the data and information for effective decision making; • Understanding the impact of data and information quality (accuracy, timeliness, (continued)

Understanding the impact of information exchange on decision making

Determining attributes

Determining when data are collected, analysed and evaluated

Specifying, implementing and maintaining processes for data and information management

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Table 4.7 (continued) Actions

Aligning terminology

Ensuring consistency and traceability of data

Adapted from ISO 41001:2018

Activities level of detail) relative to the cost and complexity of collecting, processing, managing and sustaining the information; • The determination, assignment and periodic review of accountabilities for the stewardship of specific data and information; • The establishment of competencies required to collect, interpret, utilize data and report information • The alignment of information requirements for different levels and functions within the organization; • Understanding the information terminology expectations of the demand organization and other relevant interested parties which receive information; • Mapping various terms used to ensure a common usage is adopted where possible, or that terms can be interchanged where necessary • Vertical alignment of the information from the organization’s top management down into the operational areas; • Horizontal alignment between organizational functions including FM, asset management, financial management, and risk management functions by using a common terminology • The establishment and continual improvement of controls, specifications, and level of accuracy for data; • The need for all information regarding facilities and facility services to be appropriate, consistent and traceable, and to reflect the technical and operational reality (e.g. completeness, accuracy)

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Fig. 4.6 Elements of the Document Management System. Source Hernad and Gaya (2013)

Hernad and Gaya (2013) underline the importance of designing and implementing a suitable Document Management System (DMS), very useful for supporting the Quality Management Systems, and propose a methodology for its implementation.21 In absence of a DMS, it often happens that onerous and time-consuming activities of survey are undertaken in order to search for data without knowing that they are already present within the documents; besides, during the provision of the service, new documents may be generated or the existing ones may be updated without any unified criteria and shared rules. For all these reasons, in the perspective of implementing a DMS, it is very important to take into consideration the issue of documents:

21

The proposed methodology (Hernad and Gaya 2013) consists of six steps, which customize the steps outlined in ISO 30300: Information and Documentation for the documentation associated with the Quality management System (QMS): Step Step Step Step Step Step

1 2 3 4 5 6

Definition of document requirements; Evaluation of existing systems; Identification of document management strategies in the organization; Design the Document Management System; Implementation of the Document Management System; Maintenance and continuous improvement of the Document Management System.

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• in the phase of ITT writing, for a better awareness of the already available22 information, that can be extracted from documents; • in the phase of the tender writing, for a better awareness of the missing information, that the Client requests to search for to the Service Provider in the inventory process and in the activities of data entry regarding the information system; • in the phase of ITT writing or of contract preparation, for establishing the different levels of documentation, conventions for naming and coding of the documentation and the roles and responsibilities for drafting, reviewing and approving documentation23; • in the phase of ITT writing or contract preparation, for determining what documented information needs to be retained, the period of time for which it is to be retained and the media to be used for its retention24; • in the phase of service delivery for tracing the documents within all the ongoing processes; • in the phase of service delivery for managing in the best way the generation and updating of documents; • in the phase of service delivery for mapping all the available information contained in the documents; • in the phase of service termination for the return of all the updated documents. In consideration of these issues, the Client should specify in the tender (if necessary in depth in the annexes): • categories, forms and hierarchy of the documents (Fig. 4.6) that are someway engaged with the FM service provision; • kind and contents of the document management service, if required; • rules, roles, responsibilities and restrictions for the management of documents, connected with the delivery of the required FM services (possibly the Client can indicate if these aspects will specified in accordance with the Provider in the mobilization phase); • modalities of monitoring and control of the document management, if it is the responsibility of the Provider; • modalities of transition of documents for the opening and closing of the FM service. In this regard the standard BS 8892:2014 can be assumed. Moreover, assuming the suggestions offered by BS 8587:2012, the Client should request/impose procedures for the integrity of information and data. “Documents and records should be held in a location that has controlled access and under

22

Availability: property of being accessible and usable on demand by an authorized entity (ISO/ IEC 27000:2018, Information technology—Security techniques—Information security management systems—Overview and vocabulary). 23 According to standard ISO 30302:2015, forms or templates can be established for any kind of documentation. 24 ISO 9001:2015.

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conditions which preserve the condition and integrity of information and data (such as with the use of fire prevention and management systems). Duplicate copies of all records should be maintained and these should be kept in a location other than the facility to which they relate. The organization should consider undertaking a risk assessment before determining the arrangements for secure storage of information and data” (BS 8587:2012).

4.7

Responsibility and Ownership of Information

In the period of service delivery a large amount of information is created, managed and shared between many categories of operators. In absence of predefined and shared rules, sensitive data could be used by unauthorized people, important feedback information could be lost, low quality information could be spread without the due controls. To avoid these kinds of problems, in the ITT, or in the insights developed and shared in the mobilization phase, it is very important to establish criteria in order to define information responsibilities and ownership. In many ITT, it is common to find confidentiality clauses, aiming at protecting the Client, specifying that information is to be used only during the period of the contract and solely for the purpose of the agreed services and that access shall not be granted to third parties except upon prior and documented consent of the Client. The standard ISO 30302:2015 suggests that responsibilities and authorities should be defined and assigned to appropriate roles.25 They should be

25

The standard ISO 30302:2015 proposes the following statements as guidelines for the assignment of responsibilities: (1) Top management is responsible for authorizing and supporting the application of the records policy throughout the organization; (2) Leadership responsibility and accountability for the MSR (Management System for Records) is assigned to (a specific role) within top management; (3) Business unit managers are responsible for ensuring that employees in their units create and manage records in accordance with the records policy; (4) Records professionals are responsible for the design of records processes and controls, the implementation and maintenance of records systems, and for training of persons in records processes and controls and in the use of records systems, as they affect individual practices; (5) Systems administrators are responsible for ensuring that records systems are reliable, secure, compliant, comprehensive and manage records in a systematic manner, including during migration and changes; (6) Information technology employees are responsible for implementing and maintaining the technological aspects required for managing records on a continuous and reliable basis including the migration of systems when needed; (7) All employees are responsible and accounTable for creating and managing records of their activities according to the records policy, through use of the organization’s records systems, processes and controls.

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Table 4.8 An example of a RASCI chart with typical tasks and allocated roles Task

CEO

COO

CFO

CIO

Prepare Consult Accountable Support Responsible Information Management Strategy Manage Accountable Consult Consult Support Facility-related Contract Information Prepare Inform Accountable Inform Consult Operating Procedures Undertake Consult Accountable Inform Inform Post-occupancy Evaluations Manage asset Inform Accountable Consult Consult Register Source BS 8587:2012 Note CEO = Chief Executive Officer; COO = Chief Operating Officer; CFO = Officer; CIO = Chief Information Officer; FM = Facility Manager

FM Support

Responsible

Responsible

Responsible

Responsible

Chief Finance

communicated at all levels of the organization in order to clarify who is responsible for the specific functions and which are the restrictions.26 The standard BS 8587: 2012 suggests the RASCI chart (Responsible Accountable Support Consulted Informed) (Table 4.8) as a method for assigning and highlighting responsibilities of individuals or jobs in a task in the organization, including also external bodies involved in managing information. The RASCI chart can facilitate the clarification of roles and responsibilities in the perspective outlined by the BS 8587:2012: “The roles, responsibilities and accountabilities of personnel involved in managing the facility and information relating to it should be defined and incorporated within the facility information management policy and/or procedure or held as a separate document or record.

26

Within the ITT, in its annexes, or in the documents of agreement, some basic aspects should be clarified, such as: • • • •

indication of confidential information; restrictions regarding use, access, permits; restrictions to transmit; obligations of recipient and/or obligations to be transferred to the recipient’s employees or associates; • penalties, damages or other compensations for non-compliance with the clauses; • modalities of return of data beyond termination of the agreement.

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In either case, the functions or activities defined in the facility information management process should be listed with their assigned responsibilities and accountabilities. Where practicable, other roles (such as personnel required to be consulted or informed and those who are required to act in support) should be identified”. According to the standard ISO: 41001:2018, some key functions can be identified and attributed to specific responsible persons, basically in charge of: • creating and updating documented information. This implies the presence of a responsible able to: ensure that appropriate controls are in place to ensure that the information is appropriate to the organization’s needs; confirm that controls effectively ensure that the FM personnel are using approved, accurate and current information; monitor and ensure that information is easily searchable, clearly identifiable, in a format and on media which enables it to be used, suitable and adequate for the purpose intended; • controlling documented information. This involves determining: who needs access to view information; who has authority to update, change or delete information; when, and at what frequency, information is required to be available for use; • protecting information. This involves: establishing governance protocols; training of all information users in control procedures; implementing information access controls, appropriate to the value of the information (permission to view but not edit or copy, permission to copy but not edit, authority to edit data, authority to amend processes, permission and authority to delete information); implementation and enforcement of change control procedures; implementation of information back-up and retrieval/recovery processes; • retention, disposal and destruction decisions, that implies: understanding the policies on information retention of the involved parties; establishing policies to limit accumulation of out-of-date or superseded information; setting time limits for retention of highly detailed information; assuming methods to check periodically for duplicated information and to permit removal of unnecessary copies.

4.8

Feedback Data and Information

The standard BS EN 15331:2011 highlights how it is difficult to predict with any degree of precision the service life of building components, the future costs, the performance of the assets over time without the availability and the analysis of feedback data, obtained from the activities developed during the service period. At the same time, feedback data are fundamental for developing a historical and

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Fig. 4.7 Feedback data. Source BS EN 15331:2011

statistical basis for the control and the possible review of the results of the services, as well as for the development of benchmarks. Dealing with the maintenance management services—but the same considerations can be applied to most FM services—the standard BS EN 15331:2011 well describes the role of feedback data: “Feedback data is essential for all maintenance plans. The technical and financial information acquired through experience (details on failures, type and frequency, costs and methods of intervention) leads to increasingly reliable forecasts. Maintenance reports shall contain feedback data in a form appropriate to subsequent processing. (…) This processing is intended to obtain a continuous improvement of maintenance plans by means of the analyses of: • defects and abnormalities, • useful life, reliability and availability of critical systems and MTBF/MRT27 of components, through an analysis of the mode and frequency of item failures, • the effectiveness of corrections made” (Fig. 4.7). Feedback data allow to generate and update information and increase knowledge related to the buildings and to the service delivery: collecting and processing feedback data are fundamental to improve the capabilities both of monitoring and controlling ongoing activities and of predicting future performances and risks. For these reasons it is important that the Client specifies in the ITT, thus in the FM contract, its requests and expectations about the modalities and the responsibilities for collecting, processing, storing and returning feedback data.

27

MTBF (Mean Time Between Failures): mathematical expectation of the time between failures. MRT (Mean Repair Time): mathematical expectation of the repair time (BS EN 13306:2010).

References

131

References Ackoff RL (1989) From data to wisdom. J Appl Syst Anal 16(1):3–9 Bulloch B, Sullivan J (2010) Information-the key to the real estate development process. Cornell R Estate Rev 8(1):12 Hernad JMC, Gaya CG (2013) Methodology for implementing document management systems to support ISO 9001: 2008 quality management systems. Procedia Eng 63:29–35 Rowley J (2007) The wisdom hierarchy: representations of the DIKW hierarchy. J Inf Sci 33 (2):163–180 Talamo C, Bonanomi M (2015) Knowledge management and information tools for building maintenance and facility management. Springer International Publishing

Standards and Laws ASTM E3035-15 Standard Classification for Facility Asset Component Tracking System (FACTS) BS 8587:2012 Guide to facility information management BS 8892:2014 Transition management of facility-related services. Code of Practice BS EN 13306:2010 Maintenance. Maintenance terminology BS EN 15221-1:2006 Facility management. Terms and definitions BS EN 15221-5:2011 Facility management. Guidance on facility management processes BS EN 15331:2011 Criteria for design, management and control of maintenance services for buildings ISO 10014:2006 Quality management. Guidelines for realizing financial and economic benefits ISO 30300:2011 Information and documentation. Management systems for records. Fundamentals and vocabulary ISO 30302:2015 Information and documentation. Management systems for records. Guidelines for implementation ISO 41001:2018 Facility management. Management systems. Requirements with guidance for use ISO 55000:2014 Asset management. Overview, principles and terminology ISO 5963:1985 Documentation. Methods for examining documents, determining their subjects, and selecting indexing terms ISO 9001:2015 Quality management systems. Requirements ISO 12006-2:2015 Building construction. Organization of information about construction works. Part 2: Framework for classification ISO/IEC 27000:2018 Information technology. Security techniques. Information security management systems. Overview and vocabulary UNI 10951:2001 Sistemi informativi per la gestione della manutenzione dei patrimoni immobiliari. Linee guida

Chapter 5

FM Service Monitoring and Control

Abstract The chapter introduces the topic of monitoring and control of the performance and quality of services highlighting the main activities to be performed for implementing the measurement, the monitoring and the assessment of the service performance delivered by the Service Provider. In particular, an in-depth description of the main tools useful to measure, monitor, control and report the real achieved performance and quality levels during the service delivery phase is provided, focusing on: • Service Level Agreement (SLA) and Key Performance Indicator (KPI) system, used to objectively measure the real achieved performance and to assess possible deviations from the expected performance levels stated in the ITT; • Reporting system, used to create a documentation base about the service performance, as well as to assess performance levels, initiate the remuneration process, identify weaknesses and strength, and accordingly improve the current FM strategy; • Penalty and Incentive Systems, used to encourage the Service Provider to achieve the agreed levels of service performance during the whole period of service provision. The chapter deepens these tools, highlighting—for each of them—the related information that the Client should include within the ITT.




Keywords Service monitoring and control SLA and KPI system, penalty system Incentive system Performance assessment




This chapter is authored by Nazly Atta. © Springer Nature Switzerland AG 2019 C. Talamo and N. Atta, Invitations to Tender for Facility Management Services, Springer Tracts in Civil Engineering, https://doi.org/10.1007/978-3-030-04009-3_5

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5.1

5 FM Service Monitoring and Control

Procedures for Service Monitoring and Control

The monitoring and the control of the performance and quality of services represent a fundamental module within the management of FM services in order to measure the effectiveness of the service provision as well as the related efficiency-adding value, contributing to the organizational success of the Client (Pitt and Tucker 2008). In particular, the measurement of the performance and quality of a service has different purposes, mainly related to the following broad goals: • assessing and controlling the achievement of agreed goals and objectives related to the performance of the service provision (e.g. performance and quality of each single service, performance of the Service Provider/s, etc.) by means of the agreed measurement methods (e.g. quality, timeliness and cost measurements); • assessing and controlling the conformity to regulations and standards as agreed in the FM contract; • monitoring and control the organizational management (i.e. monitoring that the contracting parties follow strategies that lead to the achievement of the agreed overall goals and objectives) (Tucker and Pitt 2009); • evaluating, controlling and improving FM methodologies, processes and procedures at the operational, tactical and strategic levels; • comparing and assessing the actual measured performance provided by Service Provider/s with the agreed reference performance values (internal benchmarking and evaluation) in order to understand if the agreed Client requirements have been met, identify potential areas of concern, and accordingly improve the organization performance (Fig. 5.1);

Fig. 5.1 Benchmarking process according to Frost and Sullivan. Source Aanchal (2014)

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• comparing and assessing the measured performance with the performance of other organizations operating in the same sector (external benchmarking). This periodic comparative analysis of processes and performance may lead to a continuous quality improvement, thus, to the formulation of strategies seeking to innovate current processes, methods and procedures (Fig. 5.1); • assessing the effectiveness and the efficiency of the current resource allocation plan and—if needed—define improvement actions aimed at establishing an efficient and effective distribution of resources, favoring areas of greatest need or interest according to the Client strategy and goals; • exploiting the results of the performance and quality measurement, and of the subsequent benchmarking activities, in order to continuously measure and monitor changes over time, gain useful insights from the detected information, consequently support and guide the FM decision-making, and formulate innovative strategies aimed at improving performance (Fig. 5.1). According to Amaratunga et al. (2001), the performance measurement is “a process of assessing progress towards achieving pre‐determined goals, including information on the efficiency by which resources are transformed into goods and services, the quality of those outputs and outcomes, and the effectiveness of organisational operations in terms of their specific contributions to organisational objectives” (Amaratunga et al. 2001). Hence, the process of service monitoring and control is a process to assess the progress of the service provision, with respect to pre-determined goals—namely the service levels stated in the ITT and agreed in the FM contract (SLAs)—in relation to: • efficiency by which resources are transformed into goods and services, thus the assessment of the effectiveness and of the efficiency of the resources prioritization as well as of the allocation of (human, time, economic) resources to the different activities constituting the whole service provision; • quality of outputs and outcomes, thus the assessment of the service performance and quality in order to understand if the expected and agreed outcomes have been achieved and delivered by the Service Provider/s; • effectiveness of organizational operations with respect to the achievement of organizational objectives, thus the monitoring and the assessment of the effectiveness of the organizational strategy and plan of the Client with respect to the attainment of the overall strategic goals and objectives in a logic of continuous improvement (Pitt and Tucker 2008) where the performance measurement can be also considered a driver for improving and innovating the current FM processes of the Client (Buckler 1998). The importance of specifying the strategy, performance and quality measurement methodology, procedures and support systems and tools for executing a proper performance assessment process in the ITT, thus in the contract documentation, is therefore crucial for a successful accurate and continuous control by the Client of the provided services and of the Service Provider (Amaratunga and Baldry 2003).

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In particular, the measurement, the monitoring and the evaluation of the service performance are executed through a performance assessment process—that has to be comprehensively described and specified in the ITT by the Client—which is commonly characterized by the following recurrent activities (Talamo and Bonanomi 2015): • definition of the service levels concerning service performance and quality (SLAs). The service levels must be specified in the ITT by the Client and, then, agreed in the FM contract; • Selection of methods and metrics (e.g. Key Performance Indicators - KPIs) to measure the service performance and quality. The selected methods and metrics must be stated in the ITT and agreed in the FM contract. This step is aimed at measuring the real performance of the services provided by the Service Provider. As suggested by the standard ISO 41012:2017, these measures of services can be taken at the strategic, tactical, and operational levels of the contracting organizations or at just one level, according to what agreed in the FM contract; • Validation by the Client of the measured values by performing comparison with the service levels agreed in the FM contract (internal evaluation); • Internal benchmarking (e.g. comparing two services or the same service over two periods of time, etc.) and external benchmarking (comparison with performance of external organizations) depending on the goals of the organization in order to gain a comprehensive overview of the service provision progress; • Reporting of the achieved service performance and quality by the Service Provider. The Service Provider has to elaborate reports (e.g. benchmarking reports) that should be delivered periodically to the Client. The reports must be drafted according to the contents, frequency, format, and delivery procedures agreed in the FM contract; • If the FM contract includes a system of penalties and incentives related to the not-achievement/overachievement of agreed service performance by the Service Provider, an assessment in this regard must be performed to verify—before making payments—whether they should be applied or not; • Analysis of possible detected gaps between agreed and performed services or possible detected non-conformities, along with the elaboration of corrective actions to adjust the future service provision in accordance with the agreed terms of the FM contract, and the elaboration of proper suggestions useful for improving and making more efficient the current service provision. Hence, the Client should define a monitoring strategy, aimed at measuring the key parameters useful to assess the service performance, and a control strategy, aimed at assessing the compliance—detecting the presence of any deviations between real and expected (agreed) values—of the monitored parameters compared with what stated in the ITT and agreed in the FM contract, through gap analyses and benchmarking activities. The expected service levels—that have to be clearly stated in the ITT and then in the contract documentation—can consider both quantitative and qualitative

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standards, and they should be related to specific Client requirements and needs. In parallel with the definition of the service levels, performance and quality measurement methods have to be identified for each service level and they have to be clearly stated in the ITT, thus in the contract. As the service levels, also the performance and quality measurement methods can be quantitative (objective) or qualitative (subjective). Indeed, there are two main categories of methods and metrics to measure and assess the effectiveness of a service with respect to the Client requests: • objective methods—as SLA and KPI systems, benchmarking, etc.—which are mainly quantitative methods based on statistical and mathematical sampling methodologies; • subjective methods, which evaluate the service quality through customer satisfaction surveys and questionnaires, aimed at assessing the users’ individual perception of the service or of the Service Provider. Despite the different approaches, these performance and quality measurement methods should be sufficient to: evaluate if the Client requirements have been met or not, identify possible real/agreed gaps, manage the identified gaps by suggesting solutions to increase the performance. In the following paragraphs, the main tools for monitoring and controlling the service provision—namely: SLA & KPI system, reporting, system of penalties and system of incentives—will be deepen described and analyzed highlighting the related information that has to be included in the ITT and, then, clearly stated in the FM contract.

5.2

SLA and KPI System

The definition of the levels of expected performance and quality of each requested service—along with the definition of a set of indicators useful to measure the real achieved performance and quality levels during the delivery phase—represents a fundamental activity that should be carried out by the Client before or during the drafting of an ITT. The setting of the SLAs1 is crucial not only for the Client who can gain the needed awareness to establish related metrics (KPIs2) to monitor and control the

Service Level (SL): “complete description of requirements of a product, process, or system with their characteristics” (ISO 41011:2017). Service level agreement (SLA): “document which has been agreed between the demand organization and a service provider on performance, measurement and conditions of service delivery” (ISO 41011:2017). 2 Indicator: “measured characteristic (or a set of characteristics) of a phenomenon, according to a given formula, which assess the evolution. (…) Indicators are related to predefined objectives to be achieved” (BS EN 15341:2017). 1

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Service Provider and the service performance during the delivery phase, but it is also a fundamental information tool for the potential Service Providers who want to respond to the ITT because they will be able to clearly understand service requirements and, thus, to accordingly align its methods for service planning and delivery with the Client strategy and objectives. In particular, according to the standard ISO 41012:2017 the benefits—that affect both the Client and the Service Provider—arising from the establishment of SLAs, among others, are: • • • • • • • • • • • •

clearly stating the service level expectations; clearly identifying customer expectations; enhancing control over costs related to the delivered services; improving understanding of customer needs; establishing a mechanism to assess and improve customer satisfaction; providing a context for measuring performance; establishing accountability by clearly identifying roles and responsibilities; reducing the time to adequately resolve conflicts; improving moral long-term relationships; improving effectiveness and efficiency of FM operations; improving consistency in service delivery and in evaluating value; establishing a baseline for continuous improvement.

A proper set of service levels is able to detail the nature, quality, and scope of the service to be provided. To formulate a proper SLA, the Client should start by clearly defining the service specifications, which quantify the acceptable standards of service (Trienekens et al. 2004; Atkin 2003) that will be taken as a reference during the whole service provision. In particular, the Client, in order to properly define the SLAs, should always keep in mind the key features that an accurately formulated set of SLAs has. Referring to a single service level, it has to be: • Measurable. A service level must be quantifiable and it should be easy to monitor. In order to reach this goal, the Client must avoid service levels that are incapable of being measured and quantified, subjective, intangible or indefinite. For instance, statements as “the Service Provider should guarantee a high level of service” are not properly formulated because the “highness” of the service level cannot be quantified. Statement like this—leaving a high degree of freedom with respect to the interpretation of the service level by the Service Provider—can be easily misunderstood, causing possible future litigations between the contracting parties during the service delivery phase. • Specific and unambiguous. The Client must be sure that each service level concerns a single specific segment of the service, in order to avoid the possibility of having not reasonable service levels that try to cover a too wide

Key Performance Indicator (KPI): “measure that provides essential information about the performance” (ISO 41011:2017).

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segment of the service with the risk of not being measurable or not being easily understandable by both the Client itself and the Service provider/s. • Achievable. The Client should formulate realistic service levels, stating results (in terms of performance, quality, promptness, etc.) that can realistically be achieved, with respect to the available resources (economic, human, etc.). Moreover, the SLA documentation—which includes the whole set of service levels and should be drafted contextually to the ITT preparation as a part of it - must be able to clearly (Shaw and Haynes 2004; Trienekens et al. 2004; Sarshar 2006; Nazali Mohd Noor and Pitt 2009; ISO 41012:2017): • define the extent of the scope of the FM services to be provided; • identify and define the relevant boundary conditions and the key parameters of each service to be provided; • define the level of service in terms of performance to be reached by the Service Provider (e.g. minimum performance levels to guarantee during the service provision, cost thresholds, delivery times, response times, times to complete operations, etc.) and describe the quality of the outputs; • define measurement methods, criteria and targets (e.g. KPIs) for measuring the future real performance of the Service Provider/s during the service delivery phase; • define and describe specific processes to implement for solving possible performance non-compliance (between real/agreed outcomes), or non-compliance of the Service Provider with agreed procedures, or other kinds of possible conflicts. These features must be guaranteed regardless to the approach that the Client intend to have with respect to the definition of the service levels. Indeed, the Client can choose, according to its strategy, goals, competences, know-how and expertise, to follow a prescriptive approach or a performance-based approach (ISO 41012:2017; Jensen 2017; Tuomela and Puhto 2001). In particular: • if the Client decides to choose the prescriptive approach to SLAs, it has to formulate input specifications regarding the way in which the services have to be provided, stating the frequency and describing the precise way in which the activities and operations has to be executed; • if the Client decides to choose the performance-based approach to SLAs, it has to formulate output specifications, stating what has to be provided in a performed-oriented way instead of how to execute operations. This approach leaves a higher degree of freedom to potential Service Providers that can propose their own methods, procedures and tools to execute works. Therefore, in this case, a high attention must be paid to the performance control indicators (e.g. KPIs) in order to monitor and control the delivered outcomes. Figure 5.2 shows some examples of service level formulation (ISO 41012:2017) —concerning the building supervision, the electrical lightning and the elevator maintenance—according to both the prescriptive approach (input based description) and the performance-based approach (output based description).

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Fig. 5.2 Prescriptive approach (input based description) and performance-based approach (output based description) to the definition of service levels. Source ISO 41012:2017

In parallel with the SLAs, a set of Key Performance Indicators (KPIs) must be defined by the Client in order to measure the actual performance of the provided services during the service delivery phase, allowing to perform periodic benchmarking activities to assess if the agreed SLAs have been met or not. Therefore, to each SLA must correspond a specific KPI. According to the standard BS EN 15341:2017, the KPIs—that can be grouped into economic, technical and organizational indicators—are aimed at measuring any quantitative aspect or characteristic related to activities, events or resources, according to a given formula (e.g. ratio between values, homogeneous comparison, etc.). The Client, during the process of KPIs definition, must consider that in order to use the set of KPIs as an informative tool to support the FM decision-making process, each KPI must be thought as a mean for measuring and evaluating key performance parameters that are—directly or indirectly—related to the SLAs agreed in the FM contract. In other words, a KPI is relevant if it is related to the agreed objectives of the FM service. The standard BS EN 15341:2017 also states that KPIs should be used to (BS EN 15341:2017): • • • • • •

measure the current status of services; compare by means of internal and external benchmarks; diagnose through analyses of possible detected strengths and weaknesses; update objectives and define further targets to be reached; identify and plan possible improvement actions; share the results of the assessment process in order to inform and motivate stakeholders; • monitor progress and measure possible changes over time.

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The KPIs can be measured with different frequencies (e.g. periodically or on a spot basis). The Client, in order to reach a proper service performance assessment and a progress evaluation, should specify in the ITT that KPIs must be measured and assessed on a periodic basis (specifying frequencies for each KPI, e.g. daily, weekly, monthly, etc.) defined according to its FM strategy. Moreover, the standard BS EN 15341:2017 also proposes an improvement process (Fig. 5.3) based on the implementation of a KPI system. This process is aimed at reaching a continuous improvement based on quantified observations (periodic KPIs measurements) and, accordingly, at identifying, planning and implementing improvement actions. In this regard, the Client should specify the request of this improvement process based on KPIs within the ITT, along with the specification of the main features of the process, remembering to stress that this process itself should be iterative to be highly effective and that the relevance of the KPIs should be periodically evaluated and validated. According to the standard ISO 41012:2017, there are several categories of KPIs articulated according both to the scale of analysis (e.g. one specific service; whole FM service; etc.) and to the typologies of performance to measure, namely (Table 5.1): KPIs on financial performance; KPIs on process and operational performance; KPIs

Fig. 5.3 Steps of the improvement process based on KPIs according to the standard BS EN 15341:2017. Source BS EN 15341:2017

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Table 5.1 Categories of KPIs according to the standard ISO 41012:2017 Category of KPIs

Examples

Financial performance

• • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Process and operational performance

Facility service

Customer/user/tenant satisfaction/experience Employee wellbeing, Satisfaction, experience

Supplier performance

Budget performance; Cost control; Economic value added; Activity based costing; Cost of quality (e.g. cost of rework/repair/correcting problems) Cycle time/processing time for key processes; Productivity indexes; Accuracy of process variables; Rework time/costs Competence; Communication; Temporal (e.g. punctuality, reliability, availability); Tolerance/precision Customer satisfaction index; Complaints; Index lost customers/tenants Absenteeism; Stress related illness; Turnover/churn; Requests for transfer Understanding (knowing the client/customer); Responsiveness; Flexibility; Quality control; Reliability; Communication; Competence; Security; Overall product quality

Source ISO 41012:2017

on facility service; KPIs on customer/user/tenant satisfaction/experience; KPIs on employee wellbeing, satisfaction, experience; KPIs on supplier performance. These categories can be further articulated and detailed up to identify both quantitative and qualitative KPIs. Furthermore, according to Lavy et al. (2010) KPIs can be classified into four broad categories: financial indicators, physical indicators, functional indicators, survey-based indicators (Table 5.2). In particular (Lavy et al. 2010): • Financial indicators. These indicators are related to the costs and the expenditures that are associated with operation and maintenance (O&M), energy management, plant management, building functions conduction, etc. Financial indicators are aimed at providing an assessment of the financial performance useful for short-, medium- and long-term analyses and decision making, with different complexities and purposes at the three different levels of management

Operating cost

Financial indicators

Maintenance efficiency indicators (MEI)

Capital renewal

Deferred maintenance and deferred maintenance backlog Facility condition index (FCI)

Current replacement value (CRV)

Custodial and janitorial cost

Grounds-keeping cost

Building maintenance cost

Capital cost

Utilities cost

Occupancy cost

Example of indicators

Category of indicators

Table 5.2 Categories of KPIs by Lavy et al.

(continued)

Total cost (expressed in € or equivalent per unit area, per person or per product) related to facility operation, including repair and maintenance, cleaning and garbage, lifts and escalators, air conditioning, fire protection, etc. Total cost (expressed in € or equivalent per unit area, per person or per product) associated with building occupancy—from building occupation to disposal—including, for instance, real estate and personal property taxes, insurance for the buildings and its contents, etc. Annual or monthly cost (expressed in € or equivalent per unit area) of utilities, including electricity, gas, water, etc. Total cost (expressed in € or equivalent per employee) required to: purchase and expand building property, to procure plants and equipments, to operate the business Sum of the costs (expressed in € or equivalent per unit area) for labor (in-house or outsourced), tools and materials required for building monitoring, inspection, repairs, maintenance, and responses to service requests Sum of the costs (expressed in € or equivalent per unit area) for labor (in-house or outsourced), tools and materials required for landscaping, storm water management, parking lots, etc. Sum of all the costs (expressed in € or equivalent per unit area) for labor, personnel, supplies, materials, equipments, etc. used for providing custodial and janitorial services Estimated cost (expressed in € or equivalent) needed to restore the building to its original condition and function, including costs for materials, labor, equipment, architectural and engineering fees, construction management, etc. Cost (expressed in € or equivalent) of maintenance of a property, plant and equipment that is postponed from a facility operation budget cycle due to financial constraints Ratio between the total cost of faults, deficiencies and anomalies, to the CRV or ratio between the costs of deferred maintenance to the CRV. It is expressed as a percentage of the CRV Budget (expressed in € or equivalent) for performing major renovations in the building, its systems, subsystem, and components Efficiency with which maintenance activities are implemented calculated qualitatively per comparison between the actual investment in maintenance and the actual performance of the building and its components

Description

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Building performance index (BPI)

Physical indicators

Total facility energy use

Accessibility for disabled

Cost of waste disposal Amount of recycled waste Amount of reused waste Indoor environmental quality (IEQ)

Owned/leased property and real estate ratio Total waste generated for disposal

Qualitative index on building physical condition

Example of indicators

Category of indicators

Table 5.2 (continued)

(continued)

It indicates the physical-functional condition or state of a facility (e.g. building component, system, etc.). It varies on a scale of values from 0 to 100, in particular: 100 > BPI > 80 (optimal or good conditions) 80 > BPI > 70 (marginal condition, which require preventive maintenance measures) 70 > BPI > 60 (deterioration of building components or systems, which requires maintenance interventions) BPI < 60 (poor conditions of the building, its components and systems) It is measured on a scale of good, fair, poor and unsatisfactory based on condition assessment performed to evaluate the general building maintenance in: building physical condition; sanitary, plumbing and storm water; mechanical services; lightning and electrical It involves the whole real estate area and it is used to provide an estimate of owned versus leased area. The area is expressed in sq.m. and the fraction of leased or owned area is expressed in % of the total real estate Total waste generated for disposal, expressed in: volume per year or month; ton per month; or € (or equivalent) per year or month The disposal cost is expressed in € (or equivalent) per volume Recycled waste expressed as a percentage of the total waste generated Reused waste expressed as a percentage of the total waste generated Measured in terms of: indoor air quality (fresh air distribution, restriction of mass pollution as gases, vapors, smoke, dusts, micro-organism, etc.), thermal comfort (air temperature, humidity, air speed, etc.), noise, natural day lightning, artificial lightning, and ventilation. Each parameter is measured in its proper unit of measurement Preparedness of facility to accommodate special needs of handicapped people, expressed as level of accessibility of the facility for disabled individuals Total energy consumed by the entire facility, including energy consumed in the process of heating, ventilation, air conditioning, lightning, domestic hot water, plug loads, stored fuels or gases, and other building energy use. It is expressed in kWh or Joules

Description

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Functional indicators

Category of indicators

Adequacy of space

Parking availability Space utilization

Turnover rate of employees or occupants Productivity

Site and location indicator

Security indicator

Net material consumption

Material consumption

Electrical demand intensity Water consumption Net water consumption

(continued)

Total consumption of energy per year, expressed in kWh, kWh per unit area per hour, or kWh per person per hour Maximum amount of electricity that a building consumes at a given time, expressed in kWh, kW per sq.m. or kW Maximum electricity consumption per unit area at a given time, expressed in kWh, kW per sq.m. or kW Total building water use, expressed in volume per month Total water consumption minus reused, recycled and treated water. It is expressed in volume per month or volume per product Quantity of total material used in the process of operation or/and production (express in unit of weight, e.g. tons, cubic meters, etc.) Total material consumption minus waste, reused and recycled materials (express in unit of weight, e.g. tons, cubic meters, etc.) Calculated as the number of security incidents per year. It describes the effectiveness of security measures in the facility or organization Characteristic of facility site in terms of size, location, safety, sound and quality, accessibility, utilities, preservation and development, etc. Ratio of number of employees turned over in a period of time to the total average number of employees in that period (also expressed in number of turnover per year) Productivity measured in terms of: occupant turnover rate (expressed in turnover per year); absenteeism (expressed in absentees per year); or satisfaction of occupants and self-rated productivity (estimated through survey-based data) Availability of parking spaces, expressed as the number of parking spaces per person Estimation of: over-used and under-used spaces, adequacy of space, appropriateness of space management. The estimation is elaborated by the analysis of survey-based data Suitability of space for the proper functioning of the facility. For instance, sufficiency of space for performing building operations, maintenance activities, etc. The estimate is elaborated on the basis of the analysis of survey-based data

Annual energy consumption

Building electrical demand

Description

Example of indicators

Table 5.2 (continued)

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It indicates the preparedness of a facility to fulfill its mission. It is expressed as the priority of mission in projects and funding, using a scale of values from 0 (not critical) to 100 (most critical) Estimation of the ability to deliver high quality services to users and occupants, by measuring the effectiveness of the service delivery, the timeliness and the overall satisfaction of users and occupants with the building, its services and systems. The estimate is elaborated through the analysis of survey-based data Estimation of the appropriateness of a facility to perform its functions in terms of functional, spatial and psychological aspects. The estimate is elaborated through the analysis of survey-based data Estimation of exterior and interior visula qualities, harmony with surroundings, scales and proportion of spaces, visual stimulation of the facility, etc. The estimate is elaborated through the analysis of survey-based data

Mission dependency index (MDI)

Appearance

Facility appropriateness

Users’ satisfaction with services

Description

Example of indicators

Adapted from Lavy et al. (2010)

Survey-based indicators

Category of indicators

Table 5.2 (continued)

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(operational, tactical and strategic). Financial KPIs represent performance in terms of currency expended per unit area, person, or output/product. By providing a holistic financial review and evaluation of services performance, these indicators (e.g. utilities cost, occupancy cost, building maintenance cost, deferred maintenance, capital renewal, etc.) estimate the current and the deferred expenses of the FM service provision. • Physical Indicators. These indicators are related to the physical conditions of the building and its components, systems and plants. In particular, this category of indicators represents the physical state of a building in terms of: – appropriateness, namely how adequately the building provides or supports the required functions; – quality of space, namely the perceived quality and/or comfort within spaces in relation to spatial, environmental and emotional aspects; – accessibility, thus the features of the site with respect for instance to the accessibility for people with disabilities, the absence of architectural barriers, etc.; – resource consumption as, for instance, energy, material and water consumptions. This category involves both quantitative indicators (e.g. Building Performance Index—BPI, volume of waste generated for disposal per year, etc.) and qualitative indicators (e.g. level of accessibility of the facility for disabled individuals, etc.). • Functional Indicators. These indicators concern the functions that technological and environmental units of the building must perform and guarantee and, consequently, the properties and characteristics of these units in relation to their functions. Hence, these indicators measure the performance of the building components by measuring, among others, aspects related to the adequacy of the spaces (for example in relation to the activities and the number of users that the spaces must host) or/and to the adequacy of the supporting structures in order to guarantee the pre-established functions, thus determining the level of user satisfaction. • Survey-based Indicators. These indicators are estimated analyzing survey-based data. This category involves qualitative indicators based on users’ opinions collected through surveys. The surveys usually consist in questionnaires whose questions are directly or indirectly related to the issue of investigation, articulated on different levels of detail depending on the purpose of the survey. Respondents can include building occupants, such as employees, visitors, transient occupants, etc., depending on the objective of the study. The results of these survey-based studies depend mainly on the number and characteristics (e.g. age, gender, etc.). of the sample of interviewed users. Recognized the importance of the insertion within the ITT, by the Client, of a specific chapter concerning the SLA and KPI system, there can be different situational possibilities about the contents of this chapter, which depend on several factors, mainly related to: the business strategy of the Client, its goals, principles

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and policies, its economic availability, its internal structure, the know-how and skills of its staff, the type of contract to be undertaken (e.g. single service, integrated multiservice, global service, etc.),3 the ownership of an Information System (Chap. 4), the model of Command Centre (Chap. 3) to be implemented, etc. In particular, there are some cases that can occur in the context of the ITT writing, articulated with respect to the Client awareness, know-how and expertise: to the Client awareness, kn • Case 1: SLAs and KPIs defined by the Client and stated in the ITT; • Case 2: SLAs defined by the Client and stated in the ITT plus Client request in the ITT concerning KPIs jointly defined with the Service Provider during the Negotiation Phase; • Case 3: SLAs defined by the Client and stated in the ITT and absence of KPIs specification or request in the ITT; • Case 4: Absence of any reference to SLAs and KPIs in the ITT. The identified cases are described below, with reference to possible implications and negative repercussions on the negotiation phase, on the contract preparation phase and on the service delivery phase. Case 1. SLAs and KPIs defined by the Client and stated in the ITT In this first case the Client is aware of the importance of defining both SLAs and KPIs in the ITT in order to have a higher control overtime of the service performance and quality and of the Service Provider/s. In this case, the Client has the expertise required to translate its requirements and needs into measurable requirements (SLAs) and it can set the methods to measure the compliance of the delivered services (KPIs and procedures for service monitoring and control) during the whole service provision. By defining the SLAs for each service and the related KPIs, the Client is likely sure to have control of the system for monitoring and controlling the performance of services. This is the case in which the Client has a mature knowledge of service management and management of information flows, indeed in Single service contracts can be defined as “separate contracts for each service line, i.e. one provider for catering, another separate provider for cleaning and so on” (Wiggins 2010). In this kind of contract, the Provider has to perform the delivery of the requested single service, while the management, planning and monitoring activities are directed and managed by the Client. In this case, the payment consists of a fixed sum corresponding to the value of the service provided. In the case of integrated multiservice: “one contractor will provide a group of services, i.e. one provider will be supplying cleaning, catering and security as one contract” (Wiggins 2010). Thus, the Service Provider has to design, plan and manage in a coordinated way the requested package of services. The payment arrangement consists of a fixed fee periodically paid (some activities, such as extraordinary maintenance, can be remunerated “extra-fee”). The Global Service can be defined as “an outsourcing contract based on the outcomes, wherein it is entrusted an integrated system of maintenance activities to an external provider, which has the full responsibility for the outcomes in terms of achieving and/or maintaining the performance levels established by the client” (UNI 11136:2004). Therefore, in case of global service, it is fundamental to develop a structured SLA and KPI system in order to monitor the performance, also because the remuneration depends on the achievement of the pre-established performance levels/outcomes.

3

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this case often the Client already owns an information system and the know-how required to manage and update it. When the Client is so characterized, it usually employs a model of Command Center “managed by the Client” (Chap. 3), it therefore manages—during the whole service delivery phase—the functions of: planning and coordination of interventions and activities; management of information flows, including feedback information; and monitoring and control of the services performance and, more in general, of the Service Provider/s. Case 2. SLAs defined by the Client and stated in the ITT plus Client request in the ITT concerning KPIs jointly defined with the Service Provider during the Negotiation Phase In this second case, the Client is aware of the importance of defining both SLAs and KPIs with respect to the function of monitoring and control of service performance and of the Service Provider along the whole service delivery phase. However, in this case, the Client lists and defines in the ITT only the SLAs but it does not specify the related set of KPIs useful to measure the actual service performance, thus to implement the procedure for service monitoring and control. This absence of KPIs specification can be due to different circumstances, as for instance: • the Client does not have the required know-how to properly formulate KPIs and it asks the awarding Service Provider to define them with its supervision during the Negotiation phase before signing the FM contract; • the Client decides to jointly define, during the negotiation phase, with the awarding Service Provider a list of KPIs—corresponding to the list of SLAs defined by the Client in the ITT—in such a way as to allow the Service Provider to define KPIs that it believes it can reasonably achieve during the service delivery phase and that, at the same time, are sufficiently satisfactory for the Client, thus ensuring for both parties a greater possibility of effectiveness and satisfaction in the service delivery phase, avoiding possible future litigation; • the service requested by the Client are technical and specialized services which require a specific know-how that the Client does not have, so the Client prefer to use—during the negotiation phase—the know-how of the awarding Service Provider for the definition of proper KPIs, suitable for the specific characteristics of the requested technical services; • the Client wants to ask for KPIs proposals to all the potential Service Providers in order to gain innovative inputs from qualified experts of the FM sector, thus the Client exploits to its advantage the knowledge, experience, creativity, as well as the drive towards innovation expressed in the tenders received by the various Service Providers in order to improve, optimize and innovate its set of KPIs together with the methods of service delivery. Regardless of the reasons that may lead the Client not to specify the KPIs in the ITT, it is fundamental to underline that the Client must necessarily specify in a clear and not misleading way within the ITT that the KPIs must be jointly defined or defined by the awarding Service Provider with its supervision in the subsequent

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Negotiation phase, specifying the modalities and timing of this KPIs definition process. If this information is not clearly stated and written in the ITT, the Client may create grey areas difficult to manage and counterproductive for both parties that could also lead to disputes and delays in the negotiation phase and in the phase of preparation of the contract. Therefore, in this case, the Client should specify in the ITT also the timing of the negotiation phase (e.g. indicative start and end dates, indicative number of meetings, etc.), the involved representatives of both parties, the methods of communication and exchange of information and documents between the parties, etc. In this case, usually, the Client does not own an information system or it has just recently implemented a new information system and it does not have the know-how necessary to manage and update it yet. This is also the case in which the Client prefers to opt for a model of Command Center managed by the Service Provider or jointly managed by the Client and the Service Provider (Chap. 3). By implementing the first model—Command Centre managed by the Service Provider—the Client decides to make use of the know-how of the Service Provider, partially losing control of certain functions, such as planning and coordination of interventions, management of information flows, thus management of the information system and its functions, but it holds the function of service performance monitoring and control in variable measure according to the specificity and peculiarity of cases and contexts. By recurring to the second model—Command Centre jointly managed by the Client and the Service Provider—the roles and responsibility are shared between the two contracting parties according to the know-how and skills of each party and according to the strategies, objectives and preferences of the Client. In this case, it is fundamental —for the success of the FM service provision—that the Client: • comprehensively defines the systemic framework of the Command Centre, articulating the different functions into activities to be assigned to the staffs belonging the two contractual parties; • defines and shares with the Service Provider the procedures for the information flow management during the whole service provision. Case 3. SLAs defined by the Client and stated in the ITT and absence of KPIs specification or request in the ITT In this case, the Client specifies the SLAs in the ITT but it does not specify the KPIs and it does not even introduce any reflection or request for definition of the performance indicators during the negotiation phase. In other words, there are no direct or indirect references to KPIs within the ITT. In this case, the Client is not aware of the importance of KPIs within the processes of monitoring and control of the performance of each provided service and of the Service Provider/s. This situation is clearly disadvantageous for the Client who unknowingly is giving to the Service Provider the opportunity to select, at its own convenience, the set of KPIs through which its work will be monitored and controlled throughout the entire service delivery phase. This means that the Service Provider can define by itself the metrics and methods through which it will be evaluated and on which the entire

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remuneration system is based. This lack is particularly critical especially in the case of a Global Service contract, as it is a type of contract based on the performance of the Service Provider. Indeed, this type of contract is a performance-based contract with full responsibility of the Service Provider for the results non/achievement. According to this contract typology, the Service Provider can freely plan and program the interventions and the service activities in order to guarantee the pre-established level of performance. Therefore, the definition of specific SLAs by the Client, which implies the definition of suitable measurable KPIs, is of fundamental importance for the successful implementation of this contract. Furthermore, incentives and penalties are generally associated with the satisfaction/ non-satisfaction of the SLAs, calculated through the measurement of KPIs. Therefore, the SLAs and the related KPIs must be very carefully defined and agreed before the contract signing phase. Moreover, for the effective and efficient management of KPIs and SLAs—also due to the criticality of the SLA&KPI system within this type of contract—it may be necessary to implement an information system in order to allow both the Client and the Service Provider to monitor and control over time the level of performance achieved, thus allowing a proper remuneration assessment and the possible attribution of penalties and incentives. Case 4. Absence of any reference to SLAs and KPIs in the ITT In this last—and worst—case, the Client does not introduce any reflection or request regarding SLAs and KPIs in the ITT. The Client is not at all aware of the importance of this system for defining and assessing the performance of services. Thus, in this case, the Client could partially or totally lose control over the definition of the performance levels and over the evaluation of the achieved performance during the service delivery phase. Therefore, not mentioning any concerning information, it leaves the Service Provider free to define and manage to its advantage the SLA&KPI system. This is absolutely the case to avoid because it leaves many grey areas that could cause chain delays in the negotiation phase and, if the issue remains undefined in the contract documentation, it may cause even worse criticalities during the service delivery phase. Therefore, this could undermine the effectiveness and the efficiency of the whole service, as well as it could open the door to long and counterproductive disputes.

5.3

Reporting

The reporting is a crucial function within a service provision, it is fundamental to: • assess the performance of services and of the Service Provider/s by summarizing and providing a synthetic graphic representation of the actual state of the service provision;

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• initiate the assessment regarding the remuneration process (e.g. assignment of possible penalties and incentives, delivery of the payments, etc.); • give to the Client a picture of the service provision, enabling it to identify strengths and weaknesses, as well as potential areas of improvement and accordingly reallocate resources; • assess and improve the current FM strategy; • assess and improve the current plans and programs of activities; • update the existing knowledge base; • create a data history useful for different purposes at the strategic, tactical and operational levels (e.g. for improving the estimation of the useful lives of technical elements and equipments, for assessing trends of relevant indexes over time, etc.). In order to properly deal with the reporting function in the ITT, the Client should clarify in the ITT the scope, the content and the timing of the reports to be provided by the Service Provider/s, stating in the ITT at least: the roles and responsibilities of the involved parties, requirements and criteria for the reporting of performance, frequencies and schedules of reporting, procedures for the drafting of reports, structure and contents of the reports and methods of delivery (e.g. formatting documents, integration with the information system, etc.). In particular, according to the standard ISO 41012:2017, the report drafted by the Service Provider should include at least the following information: • • • • •

status and condition of the involved building assets; summary of the service performance of the last period; survey of the achieved results; reference to the report of the previous period for comparisons; differences from the expected conditions and results (e.g. change in the conditions of assets, unsatisfactory and/or non-compliant service levels) and related implemented or proposed corrective actions; • evidence of events and circumstances affecting the performance of services; • future expected changes, their effects and impacts, and proposals of suggested measures (e.g. change in the current allocation of resources); • suggestions and proposals for developing improvements and innovations. It is possible to articulate these contents according to the level of observation and analysis, distinguishing between strategic and operational levels. In particular, at the strategic level, the reports to the Client may involve information related to: management and operational costs; profitability of Real Estate assets per unit area; effectiveness of benchmarks; fulfillment of quality requirements; space occupancy and utilization; results of customer satisfaction surveys; compliance survey; maintenance strategies; energy consumptions; etc. At the operational level, the reports to the Client mainly regard the assessment and evaluation of the planning of services activities, involving information related to: operating costs; measurement of the service results in relation to the SLA&KPI system; operations and maintenance data (e.g. closed work orders; FM teams; status

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153

and condition data about technical elements and equipments; occurred faults / anomalies and related corrective actions; etc.); service requests or complaints received by the users; etc. The Client, in addition, must specify if and how the reports have to be approved or checked and also where the reports will be stored (e.g. archives, information system storage, etc.) and related procedures of information and data management. Moreover, for the purpose of monitoring and control the performance, the Client may integrate these reports with, for instance, audits or questionnaires (Talamo and Bonanomi 2015) submitted to supervisors during the execution of the activities (hot questionnaires) and to building occupants immediately after the service delivery or after a longer period (cold questionnaires). In this case, the Client must include in the ITT all the information needed to allow Service Providers to fully and clearly understand the procedures for controlling and their related responsibilities for reporting. Furthermore, if the Client decides to use a specific reporting module of the information system for the creation of interactive dashboards (displaying of data in a digital visual-based presentation), this must be stated in the ITT because the Service Provider may need specific know-how to manage and update information within a specific software. In particular, dashboards usually include graphical elements, such as charts and tables, showing aggregated data4 and combined outcomes for a complete view of performance. The dashboards (Figs. 5.4, 5.5 and 5.6) summarize the result of the KPI measurement and they enable the Client to access to relevant information. For instance, dashboards can concern (ServiceChannel website): R&M Program Analysis (e.g. Work Order History by Spend or Volume; Work Order Insights; Invoice Spend Insights), Operational Reports (e.g. Work Order, Proposal, Invoice Status Analysis; Work Order Aging) or Priority Analysis (e.g. Invoice Analysis; Committed Spend; Work Order Volume). These kinds of tools support the monitoring and control of performance overtime, thus allowing the Client to make more informed, faster and strategically aligned decisions.

5.4

Penalty and Incentive Systems

The SLA&KPI system can be associated with a system of penalties and/or a system of incentives. The Client can, indeed, decide to structure the payment arrangement assigning (monetary) penalties or incentives to the Service Provider in relation to the achieved KPI targets, thus to the satisfaction of the agreed performance levels (SLAs). According to Talamo and Bonanomi (2015), aggregated data can be defined as “a plurality of data, selected on the basis of searching keys, and then processed. In the management process, different types of decision makers define strategies and action lines also by reading and interpreting summary data, which enable trend analyses, comparison between phenomena and situations, monitoring through indexes, etc.” (Talamo and Bonanomi 2015).

4

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Fig. 5.4 Example of repair & maintenance program analysis dashboard by service channel. Source https://servicechannel.info/service-automation/fm-reporting/. Accessed May 2018

Incentive and penalty clauses can be used to encourage the Service Provider to achieve the agreed levels of service performance during the whole period of service provision. After the measurement and assessment of the actual service performance provided by the Service Provider, a system of penalties and incentives related to the not-achievement/overachievement of agreed service performance (SLAs) by the

5.4 Penalty and Incentive Systems

Fig. 5.5 Example of operational reports dashboard by service channel. servicechannel.info/service-automation/fm-reporting/. Accessed May 2018

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Service Provider can be applied (if stated in the ITT and in the FM contract). Indeed, after receiving the reports by the Service Provider, the Client should verify, before making the payment, whether penalties or incentives—as agreed in the contract—should be applied or not. Each SLA, and related KPI, must be related to a specific penalty and/or to a specific incentive. The clauses of penalty and incentive must be explicitly stated in

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Fig. 5.6 Example of reporting dashboard of the priority analysis by service channel. Source https://servicechannel.info/service-automation/fm-reporting/. Accessed May 2018

the ITT. The Client, therefore, must list in the ITT penalties and incentives associating them to the related involved SLAs and KPIs. According to Maurer et al. (2003), incentives and penalties are usually financial and this is a useful lever for the Client because typically Service Providers are more motivated to meet SLAs that are subjected to performance penalties than to meet those that are not subjected to penalties. Moreover, according to Booty (2009), if needed, the Client could identify a subset of particularly critical SLAs for which the contracting parties should agree that more severe penalties will be applied. Furthermore, the Client could also specify in the ITT (if needed) the SLAs for

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which a not achievement of the agreed performance level by the Service Provider leads to the termination of the contract. If the Client shares in the ITT clear and not misleading information regarding penalties and incentives and if it is reasonable in its expectations and in the definition of the clauses, a shared-risk approach with the Service Provider can be established (that would likely lead to an effective service provision and to successful outcomes). Usually, in the context of a Global Service contract—since it involves a performance-based payment system—the Client sets a system of incentives (bonus) and penalties (non-performance/non-compliance) as a part of the agreed payment arrangement, aimed at stimulating the good conduct of the Service Provider. For what concerns the contents related to the penalty and incentive system to be included in the ITT by the Client, a minimum set of useful information should include at least: • definition, for each SLA (thus for each KPI), of the associated financial penalties (Figs. 5.7, 5.8, 5.9 and 5.10) and/or incentives; • identification and definition, for each service, of possible faults (and related causes) that can trigger penalties;

Fig. 5.7 Example of penalties for daily cleaning services. Source IDBI Bank (2017). https://idbi. com/notices-Adv/pdf/AMC-Sweeping-Cleaning-Chennai-2017.pdf. Accessed May 2018

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Fig. 5.8 Example of penalties for periodic cleaning services. Source IDBI Bank (2017). https:// idbi.com/notices-Adv/pdf/AMC-Sweeping-Cleaning-Chennai-2017.pdf. Accessed May 2018

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Fig. 5.9 Example of penalties for LAN systems maintenance. Source Odisha Mining Corporation Ltd. (2015). http://www.orissaminerals.gov.in/Download/NITforFacilityManagement contract.pdf. Accessed May 2018

Fig. 5.10 Example of penalties for computer systems maintenance. Source Odisha Mining Corporation Ltd. (2015). http://www.orissaminerals.gov.in/Download/NITforFacilityManagement contract.pdf. Accessed May 2018

• definition of criteria and methods to compute, communicate and pay penalties (to be paid by the Service Provider); • definition of criteria and methods to compute, communicate and pay bonuses (to be paid by the Client); • list of SLAs for which a not achievement of the agreed performance level may lead to the termination of the contract.

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References Aanchal S (2014) The importance of benchmarking in facilities management: adoption of best practices through comparison and innovation. Frost and Sullivan. https://fmlink.com/articles/ the-importance-of-benchmarking-in-facilities-management/. Accessed May 2018 Amaratunga D, Baldry D (2003) A conceptual framework to measure facilities management performance. Prop Manag 21(2):171–189 Amaratunga D, Baldry D, Sarshar M (2001) Process improvement through performance measurement: the balanced scorecard methodology. Work study 50(5):179–189 Atkin B (2003) Contracting out or managing services in-house. Nord J Surv R Estate Res 1:18–33 Booty F (2009) Facilities management handbook. Routledge Buckler B (1998) Practical steps towards a learning organisation: applying academic knowledge to improvement and innovation in business processes. Learn Organ 5(1):15–23 IDBI Bank (2017) Notice for inviting tender for annual maintenance contract for providing facility management services—housekeeping at IDBI bank zonal office Saidapet/Quarters in Chennai region. https://idbi.com/notices-Adv/pdf/AMC-Sweeping-Cleaning-Chennai-2017.pdf. Accessed May 2018 Jensen PA (2017) Strategic sourcing and procurement of facilities management services. J Glob Oper Strat Sourc 10(2):138–158 Lavy S, Garcia JA, Dixit MK (2010) Establishment of KPIs for facility performance measurement: review of literature. Facil 28(9/10):440–464 Maurer W, Matlus R, Parikh K (2003) Outsourcing incentive and penalty best practices. Gartner Research, 22 December Nazali Mohd Noor M, Pitt M (2009) A critical review on innovation in facilities management service delivery. Facil 27(5/6):211–228 Odisha Mining Corporation Ltd. (2015) Invitation of bids for Facility Management Services (FMS) of IT infrastructure for Directorate of Mines Govt. of Odisha IT infrastructure. http:// www.orissaminerals.gov.in/Download/NITforFacilityManagementcontract.pdf. Accessed May 2018 Pitt M, Tucker M (2008) Performance measurement in facilities management: driving innovation? Prop Manag 26(4):241–254 Sarshar M (2006) Improving service delivery in FM: case study of a UK hospital facilities directorate. J Facil Manag 4(4):271–285 Shaw D, Haynes B (2004) An evaluation of customer perception of FM service delivery. Facil 22 (7/8):170–177 Talamo C, Bonanomi M (2015) Knowledge management and information tools for building maintenance and facility management. Springer International Publishing Trienekens JJ, Bouman JJ, Van Der Zwan M (2004) Specification of service level agreements: problems, principles and practices. Softw Qual J 12(1):43–57 Tucker M, Pitt M (2009) Customer performance measurement in facilities management: a strategic approach. Int J Prod Perform Manag 58(5):407–422 Tuomela A, Puhto J (2001) Service provision trends of facility management in Northern Europe. Teknillinen korkeakoulu Wiggins JM (2010) Facilities manager’s desk reference. Wiley, Chichester

Standard and Laws BS EN 15341:2017 Maintenance. Maintenance Key Performance Indicators ISO 41011:2017 Facility management. Vocabulary ISO 41012:2017 Facility management. Guidance on strategic sourcing and the development of agreements

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ISO 6707-2:2017 Buildings and civil engineering works. Vocabulary. Part 2: Contract and communication terms UNI 11136:2004 Global service per la manutenzione dei patrimoni immobiliari. Linee guida

Website https://servicechannel.info/service-automation/fm-reporting/

Chapter 6

FM Service Quality and Requirements

Abstract The present chapter introduces significant key topics that the Client should discuss within an ITT for FM service provision, in particular: • Requirements for Service Providers, i.e. requirements that potential Service Providers must satisfy preliminarly to be allowed to participate to the tendering process, thus to respond to the ITT; • Quality policies, strategies and tools which may range from a simple framework of quality control procedures to a complete Quality Management Systems and quality improvement programs; • Risk Management, including the definition of principles, framework, processes, procedures useful for the Risk Management practice; • Information and Training of the Service Provider staff, considering both the strategic and the tactical level of the FM organization or department. These topics are in-depth analyzed from the point of view of the Client, highlighting the main sets of information that should be included in the ITT.




Keywords Requirements for service providers Quality policies Quality management system (QMS) Risk management Information and training Invitation to tender (ITT)




6.1







Requirements for Service Providers

The Client can set—and list in the ITT—some requirements for tenderers or selection criteria. These are requirements that potential Service Providers must satisfy preliminarly to be allowed to participate to the tendering process, thus to respond to the ITT. In particular, the definition in the ITT—by the Client—of requirements for the tenderers can be useful in order to:

This chapter is authored by Nazly Atta. © Springer Nature Switzerland AG 2019 C. Talamo and N. Atta, Invitations to Tender for Facility Management Services, Springer Tracts in Civil Engineering, https://doi.org/10.1007/978-3-030-04009-3_6

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• be sure to receive offers only from Service Providers able to meet the needs of the Client, providing appropriate services at the required quality and performance level; • avoid the review of a copious number of unsuitable offers; • allow potential Service Providers to self-evaluate their suitability to respond to the ITT and consequently decide whether to propose an offer or not; • update a list of potential Services Providers which will prove/have proven to own satisfying qualifications, financial capacity, skills, management and operational experience, etc. to deliver the needed FM services. In particular, the Client can specify in the ITT the requirements for Service Providers, articulating them into: • Legal and Regulatory capacity; • Economic and Financial capacity; • Technical and Professional capacity. As regard the Legal and Regulatory capacity, the Client should specify the requirements that Service Providers must satisfy in order to prove that they have the legal capacity and status to perform the FM contract. Some examples of requirements related to the Legal and Regulatory capacity concern: • compliance with any and all State and Local laws, rules, ordinances, policies and regulations, including any licensing and permitting requirements, applicable to the provision of the requested FM services; • registration with national chamber of commerce or proof of authorization to perform the FM contract under the national law (evidenced by the inclusion on a professional trade register or by a sworn declaration or certificate). As regard the Economic and Financial capacity, the Client should specify—in a clear and non misleading way—the requirements that Service Providers must satisfy in order to prove a stable financial position and the needed economic and financial resources to perform the FM contract. Some examples of requirements related to the Economic and Financial capacity concern: • the average annual turnover, expressed for instance as: – turnover of the last two financial years above XXX €; – average annual turnover of the tenderer for the last no. XX financial years concerning the type of services covered in the ITT should be at least XXX €; – total value of the contract may not represent more than XX% of the average annual turnover of the tenderer for the last no. XX years. • Statements from banks or evidence of professional risk indemnity insurance. As regard the Technical and Professional capacity, the Client should list clear formulated requirements that Service Providers must satisfy in order to prove their sufficient technical and professional capacity to perform the FM contract. Some examples of requirements related to the Technical and Professional capacity can concern:

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• possession of a document of enrolment in the relevant professional register, as prescribed by the laws of the Member State, where the tenderer is established; • the ownership of a trained and certified technical staff to perform the requested services; • demonstrable extensive and continuous work experience in the FM sector for at least no. XX years; • relevant qualifications (professional accreditations or references) in the fields of FM services of the tenderer and its proposed subcontractor/s; • performed at least no. XX contracts performed in the past no. XX years (to have been concluded by the deadline of submission of offers) similar to the scope, size and nature of the required services; • references for at least no. XX projects delivered in the FM field in the last no. XX years with a minimum value for each project of XXX €; • possession of a relevant valid certification of the quality management system of the tenderer (e.g. ISO 9001 or equivalent); • possession of a relevant valid certification of an environmental management system of the tenderer (e.g. ISO 14001, ISO 50001 or equivalent); • proposal of a suitable team of key experts (e.g. engineers, technicians, etc.) whose involvement will be instrumental for the successful implementation of the FM contract, and who have the appropriate profiles, knowledge and experience relevant to the subject of the contract. By way of example, possible requirements for managers or supervisors can be: – – – –

university degree in XXX; be enrolled in the relevant professional register; minimum no. XX years of professional experience in the FM field certificate issued by a competent authority certifying the competency in undertaking the requested services; – certificate of good communication skills (spoken and written) in English (Certification XX, level XX or equivalent).

Moreover, if the Client allows the potential Service Providers to create/involve consortia or to subcontract some services or activities in the context of the FM contract, it should specify also the related requirements—concerning both to the Economic and Financial capacity and to the Technical and Professional capacity— in the ITT. Examples of requirements in the case of consortium or subcontracting can be: • concerning the Economic and Financial capacity: in case of a consortium or subcontracting each member of the consortium and all sub-contractors must provide the statement for the economic and financial capacity, but the assessment of whether the minimum requirement is met will bear on the consortium as a whole or the tenderer together with his subcontractors. • concerning the Technical and Professional capacity: in case of consortium or subcontracting, the consortium or the tenderer with all subcontractors together has to provide evidence of technical and professional capacity as a whole.

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Quality Policies

The topic of Quality Policies with respect to the content of an ITT involves a reflection about quality strategies of the demand organization. According to the goals, objectives, available resources (e.g. know-how, people, capital, funds, etc.) of the Client, the quality strategies can range from a simple framework of quality control procedures to a complete Quality Management Systems (QMS) and quality improvement programs. According to the standard BS EN ISO 9001:2015,1 the implementation of a Quality Management System (QMS)2 represents “a strategic decision for an organization that can help to improve its overall performance and provide a sound basis for sustainable development initiatives” (BS EN ISO 9001:2015). In particular, a QMS can represent an effective method that supports an organization to (Rehacek 2017; Leong et al. 2014; Tuomi 2010): • meet regulatory requirements; • improve the effectiveness and efficiency of the organization, both at the strategic and operative levels, on a continuous basis; • increase the economic efficiency; • enhance the quality of FM service overtime.

1

The international standard ISO 9001:2015 aims to specify the requirements for quality management systems (QMSs) and its contents nowadays represent the most prominent approach to QMSs at the global scale. ISO 9001 was first published in 1987 by ISO, while the current version of the standard was released in 2015. In particular: the family ISO 9000—Quality management “addresses various aspects of quality management and contains some of ISO’s best known standards. The standards provide guidance and tools for companies and organizations who want to ensure that their products and services consistently meet customer’s requirements, and that quality is consistently improved” (ISO website. https://www.iso.org/iso-9001-quality-management.html. Accessed May 2018). Moreover, the standard ISO 9001:2015 Quality management systems. Requirements “sets out the criteria for a quality management system and is the only standard in the family that can be certified to (although this is not a requirement). It can be used by any organization, large or small, regardless of its field of activity. (…) This standard is based on a number of quality management principles including a strong customer focus, the motivation and implication of top management, the process approach and continual improvement. (…) Using ISO 9001:2015 helps ensure that customers get consistent, good quality products and services, which in turn brings many business benefits” (ISO website. https://www.iso.org/iso-9001-quality-management.html. Accessed May 2018). 2 According to the standard BS EN ISO 9001:2015, a Quality management system (QMS): “comprises activities by which the organization identifies its objectives and determines the processes and resources required to achieve desired results. The QMS manages the interacting processes and resources required to provide value and realize results for relevant interested parties. (…) The QMS enables top management to optimize the use of resources considering the long and short term consequences of their decision. (…) A QMS provides the means to identify actions to address intended and unintended consequences in providing products and services” (BS EN ISO 9001:2015). Therefore, a QMS can be meant as “a coordinated set of values and processes implemented by an organisation to ensure and demonstrate that it meets the standards demanded to satisfy its customers’ demands and expectations” (http://quality.eqms.co.uk/ implementing-a-quality-management-system-qms).

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A QMS represents a significant instrument for the realization of a quality strategy (Rehacek 2017). Indeed, it is a structured and systematic system that outlines and describes processes, procedures, and responsibilities for achieving pre-established quality policies. Thus, it is a fundamental support tool for reaching the overall objective of improving the quality of services. Moreover, according to the results of quality control and quality management activities, it is possible to build quality improvement strategies with a view to the continuous improvement of the organization. In light of this premise and with respect to the ITT contents concerning quality policies and strategies, there are two main broad cases that can occur, articulated according to the presence/lack of quality policies and strategies within the demand organization. In particular: Case 1. The Client has already implemented quality policies. Case 2. The Client requests a proposal of quality policies. In both cases, the Client should be clear in explaining and describing its requests leaving no possibility of misunderstanding. Both the cases are below described, specifying for each case what information the Client should state within the ITT in order to reach a common understanding with the Service Provider about the Quality topic and the related requirements that the Service Provider must meet and satisfy during the entire service provision. Case 1. The Client Has Already Implemented Quality Policies In this first case, the Client has already defined and implemented quality policies, therefore, it should clearly request to the Service Provider to adapt and align with them. In this case, the Client should specify and describe exactly the nature and extent of its quality approach, policy, strategy and reference standards, to which the Service Provider must align and respect during the entire service delivery phase. Hence, the Client should specify in the ITT (Kerekes and Csernátoni 2016; Victorian Civil Construction Industry 2008; Ludford 1999): • basic principles on which the quality policies are founded, as well as the overall objectives and primary goals to be reached through the implementation of the quality policies of the Client by both the Service Provider and the Client itself; • quality management strategies implemented/to be implemented. The description of the quality management strategies must include the definition of the quality control strategies and also the specification of those support activities—such as audits, document controls, inspections, record controls, etc.—aimed at supporting the quality control process;

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• quality standards (e.g. ISO/TS 9002:2016,3 ISO 9001:2015, ISO 14001:2015,4 etc.) that the Service Provider must respect during the whole service delivery phase. Standards and references may concern several topics that deal with the FM service provision, as for instance: management of heating, ventilation, and air conditioning; maintenance of electrical equipments; cleaning service management; etc.; • other policies and related requirements concerning the quality perceived by the end users (Lai 2010) of the different specific services (Fig. 6.1). By way of example: obligation for the concierge service staff to wear work uniforms during working hours (different uniforms according to the role of the operators); obligation to use environmentally sustainable and/or biological products for the cleaning of spaces; etc. Moreover, after having listed and described its quality policies (as above specified) in the ITT, the Client should also formulate in a clear way the quality policies-related requests to the Service Provider. In particular, by way of example, the Client could specify that the Service Provider must: • respect the quality policies and standard defined in the ITT during the whole service provision; • hold and maintain a valid accreditation or certification (e.g. ISO 9001, ISO 14001, etc.) by a qualified third party certification body during the whole service provision; 3

The standard ISO/TS 9002:2016 Quality management systems. Guidelines for the application of ISO 9001:2015 “provides guidance on the intent of the requirements in ISO 9001:2015, with examples of possible steps an organization can take to meet the requirements” (ISO website. https://www.iso.org/standard/66204.html. Accessed May 2018). 4 The standard ISO 14001:2015 Environmental management systems. Requirements with guidance for use “sets out the criteria for an environmental management system and can be certified to. It maps out a framework that a company or organization can follow to set up an effective environmental management system” (ISO website. https://www.iso.org/iso-14001-environmentalmanagement.html. Accessed May 2018). The standard ISO 14001:2015 “specifies the requirements for an environmental management system that an organization can use to enhance its environmental performance. The standard is intended for use by an organization seeking to manage its environmental responsibilities in a systematic manner that contributes to the environmental pillar of sustainability. ISO 14001:2015 helps an organization achieve the intended outcomes of its environmental management system, which provide value for the environment, the organization itself and interested parties. Consistent with the organization's environmental policy, the intended outcomes of an environmental management system include: enhancement of environmental performance; fulfillment of compliance obligations; achievement of environmental objectives. ISO 14001:2015 is applicable to any organization, regardless of size, type and nature, and applies to the environmental aspects of its activities, products and services that the organization determines it can either control or influence considering a life cycle perspective” (ISO website. https://www.iso.org/standard/60857.html. Accessed May 2018).

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Fig. 6.1 Example of quality perceived by end users for different FM services for residential buildings according to Lai (2010). Source Lai (2010)

• make clear in the tender how it will maintain a satisfactory level of Quality, as well as Health and Safety and Environmental Management, in compliance with the policies—and related requirements and specifications—stated in the ITT; • draft a Quality Assurance Plan, including a quality assurance manual (Lepkova and Uselis 2013; Mastor and Ibrahim 2012; Ree and Mclennan 2006) which identifies and describes all the activities to be performed in order to ensure quality assurance in accordance with the quality policies and service specifications stated in the ITT.

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In addition, the Client should also provide information about the methods and procedures for monitoring and controlling the activities of the Service Provider— during the service delivery phase—concerning the topic of quality policies. This specification is fundamental also because the processes and activities required for the monitoring and control of the Service Provider and its service provision can significantly vary depending on the nature and extent of the required services, processes and activities. Case 2. The Client Requests a Proposal of Quality Policies In this second case, the Client does not specify the quality policies within the ITT but it requests to potential Service Providers to develop proposals in this regard. Indeed, the Client describes—in the ITT—only the basic principles on which the quality policies must be founded, and it specifies the related overall quality objectives and goals to be achieved by the Service Provider. This case could happen when the Client is not expert on this topic and it looks for proposals to improve its knowledge, as well as for methods to achieve the objectives that are expected from the implementation of quality policies and of a QMS. Therefore, it relies on the know-how of the Service Providers to obtain useful suggestions as well as detailed and complete proposals in this regard to implement during the service delivery phase. Alternatively, this case could happen when the Client, despite having already implemented a quality policies system, is looking for innovative ideas to improve and optimize its quality strategies, thus achieving more satisfactory goals through more efficient methods. In both the situations, the Client should clearly request in the ITT that potential Service Providers must specify, in their tenders, possible approaches to the quality issue, identifying quality policies, strategies and reference standards, as well as processes, procedures and activities to be performed in order to guarantee the quality levels required by the Client in the ITT. In order to obtain proposals consistent with its requests and with the service specifications stated in the ITT, the Client should: • list the documentation that tenderers have to produce (e.g. quality strategy plan, quality assurance plan, list of reference standards, etc.), specifying the contents of each document and possibly providing templates or guidance documents; • clearly assign roles, functions and responsibilities to both the Service Provider and the Client itself related to the development and management of the QMS; • request the proposal, development and implementation of quality improvement strategies along the whole duration of the FM services delivery phase. Lastly, in this case (Case 2) the Client could request to the awarding Service Provider to jointly define the quality policies in the negotiation phase (that precedes the preparation of the contractual documentation). If the Client wants to jointly define the quality policies with the awarding Service Provider in the negotiation phase, this request must be appropriately formalized and stated in the ITT.

6.3 Risk Management

6.3

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Risk Management

The topic of Risk Management5 is crucial and critic for every organization, even more when even an external Service Provider begins to work within the organization workplace. The Service Provider may represent a new source of risks for both the ordinary users, employees and occupants of the building/s and for the staff of the external Service Provider itself. These risks are thus added to the usual possible risks that the organization should continuously manage over time. According to the standards ISO 31000:20186 and ISO Guide 73:2009,7 the management of risks is an iterative process made up by several coordinated activities aimed at identifying, assessing, preventing, mitigating and managing any potential risk, supporting organizations in making informed decisions and setting proper strategies to reach the desirable goals. According to Borodzicz (2005), Merkelbach and Daundin (2011) risk management, which includes the management of financial, legal, security and safety risks, is an important issue that must be managed by all the organizations in order to achieve their overall objectives. According to Amaratunga and Baldry (2004), an effective aware and informed risk management practice at all levels is a critical factor of success for any organization. With respect to this premises, the standard ISO 31000:2018 provides a framework of guidelines concerning the management of any type of risk that any organization may have to face and handle. Since it is not industry or sector specific, the common approach provided by the standard ISO 31000:2018 can be customized by organizations according to their specific features and working context. In particular, according to this standard, the risk management is based on principles, framework

The standard ISO 31000:2018 defines Risk as the “effect of uncertainty on objectives” and the standard also states that “an effect is a deviation from the expected. It can be positive, negative or both, and can address, create or result in opportunities and threats. (…) Objectives can have different aspects and categories, and can be applied at different levels. (…) Risk is usually expressed in terms of risk sources, potential events, their consequences and their likelihood” (ISO 31000:2018). Moreover, the standard defines Risk Management as “coordinated activities to direct and control an organization with regard to risk” (ISO 31000:2018). 6 The standard ISO 31000:2018 Risk management. Guidelines “provides guidelines on managing risk faced by organizations. The application of these guidelines can be customized to any organization and its context. (…) It also provides a common approach to managing any type of risk and is not industry or sector specific. (…) ISO 31000:2018 can be used throughout the life of the organization and can be applied to any activity, including decision-making at all levels” (ISO 31000:2018). 7 The standard ISO Guide 73:2009 Risk management. Vocabulary “provides the definitions of generic terms related to risk management. It aims to encourage a mutual and consistent understanding of, and a coherent approach to, the description of activities relating to the management of risk, and the use of uniform risk management terminology in processes and frameworks dealing with the management of risk” (ISO website. https://www.iso.org/standard/44651.html. Accessed May 2018). 5

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Fig. 6.2 Components of risk management according to the standard ISO 31000:2018: principles, framework and process. Source ISO 31000:2018

and process as illustrated in Fig. 6.2. These components, highlighted and explained in the standard, need to be adapted to the specific context of each organization. According to the standard ISO 31000:2018, the principles of risk management, shown in Fig. 6.3, represent a guidance to reach an effective and efficient risk management. The principles in Fig. 6.3 explain the main characteristics of the risk management process which aims to create and protect the value of an organization. In particular, these features of risk management characterize it as: • Integrated (risk management must be an integral part of the organizational activities); • Structured and comprehensive (the management of risks needs a structured and comprehensive approach); • Customized (the risk management framework and process must be customized according to the specific context of the organization); • Inclusive (an informed risk management requires the involvement of all the stakeholders and their knowledge and perceptions); • Dynamic (the risks change as the context of an organization changes, therefore the risk management must be dynamic since the internal and external context of organizations is dynamic too); • Best available information (historical and current data and information are the fundamental input of the risk management. Moreover, the process is based on the timely sharing of clear and reliable information with relevant stakeholders);

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Fig. 6.3 Principles of the risk management according to the standard ISO 31000:2018. Source ISO 31000:2018

• Human and cultural factors (risk management is considerably influenced by human behaviour and culture); • Continual improvement (experiences and the growing of the knowledge base continuously improve the risk management practice). The application of these principles should lead organizations to properly manage their possible risks, namely to properly manage the effects of uncertainty on their objectives (ISO 31000:2018). As regard the Risk Management Framework, shown in Fig. 6.4, its main goal is to support organizations in integrating the risk management into their functions, processes and activities (ISO 31000:2018). The framework is made up by several processes, namely: integration, design, implementation, evaluation and improvement (Fig. 6.4). These processes require leadership and commitment in order to be implemented. In particular (ISO 31000:2018): • Leadership and commitment At a strategic level, an organization should make sure that: risk management is integrated into all organizational activities, as well as aligned with its objectives and business strategies, and that the risk management framework remains always adequate to the specific context of the organization (by conducting a systematic risk monitoring). In order to reach these goals, the organization must demonstrate leadership and commitment through:

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Fig. 6.4 Risk management framework by the standard ISO 31000:2018. Source ISO 31000:2018

– the customization and implementation of the components of the Risk Management Framework; – the definition and sharing with all the involved stakeholders of the risk management policy, which establishes and describes the approach of the organization to risk management; – the allocation of the resources necessary for properly apply and implement the defined risk management policy; – the assignment of authorities and responsibilities to proper levels of the organization. • Integration The process of integration of risk management into an organization is dynamic and iterative and it must be tailored to the needs and culture of the organization. According to Bowers and Khorakian (2014) and Hillson (2006), one of the main obstacles to an effective and efficient implementation of the risk management process derives from focusing the attention only to the operational level. Instead, risk management must be integrated along all the levels—operational, tactical and strategic—so that the risk management can become an integral part of all the company functions. Hence, risk management must be joint and cooperative with the organizational purpose, governance, strategic aspects, objectives and operations. • Design The designing of the framework for managing risks involves different steps, namely:

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a. Analysis of the specific—internal and external—context of the organization. By way of example, as regard the internal context, the analysis can include (ISO 31000:2018): governance and organizational structure; business strategy, objectives and policies; adopted standards and guidelines; knowledge, know-how and resources (processes, systems and technologies); information flows management; relationships with internal stakeholders; contractual relationships and commitments; etc. As regard the external context the analysis can include, for instance: social, cultural, political, legal, regulatory, financial, technological, economic and environmental factors affecting the organization; external drivers and trends affecting the objectives of the organization; relationships with external stakeholders; etc. b. Articulation of the risk management commitment. The organization should express its commitment to risk management, by formulating a statement or a policy, which should include—at least—the following contents: – the organization purposes for managing risks and the links between risk management and the organization business objectives and other implemented policies; – guidance to promote the integration of risk management within the core business of the organization and its decision-making processes at the strategic, tactical and operational levels; – attribution of organizational roles, authorities, responsibilities and accountabilities to the involved persons; – allocation of available resources to risk management related-activities; – definition of procedures for monitoring, control, and reporting the activities performance; – definition of the processes for review and continuous improvement. The commitment, as above defined, should be communicated and shared with the internal staff of the organization itself and with all the involved external stakeholders. c. Definition and attribution of roles, authorities, responsibilities and accountabilities. The top management of the organization should: – ensure that the organizational roles (at strategic, tactical and operational levels) related to risk management have been assigned; – ensure that the authorities, responsibilities and accountabilities have been allocated, correctly understood and implemented by all the involved internal and external stakeholders. Moreover, in order to reach a greater effectiveness, the top management of the organization should constantly remind to all the involved internal and external staff that risk management is a core responsibility. d. Allocation of resources. The top management of the organization should properly allocate resources to risk management. Resources can, for instance, include: human resources, know-how and competence; methods, processes,

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procedures and tools of the organization used for risk management; information system for the management of data and information; etc. e. Definition of the approach to Communication and Consultation. In order to support the effective application of risk management—involving all the affected stakeholders—the organization should define, develop and implement an approach to Communication and Consultation, thus to the collection, organization, storage, analysis and sharing of data and information among stakeholders. In particular, the Communication involves the timely sharing of relevant information with involved stakeholders. The effectiveness of this process may depends on: reliability of information; appropriateness of the addressed audience according to the function or final aim of the information to be shared; reliability of communication and information systems; etc. The Consultation involves the collection of feedback (e.g. expectation, needs, etc.) from stakeholders that, in this way, contribute to support decision-making processes. • Implementation The risk management framework can be implemented by the organization through the development of a plan, including the allocation of available resources to activities and the timetable of the activities. The organization should ensure that the policies and statements regarding the management of risks have been properly understood by the involved stakeholders, as well as the allocation of authorities, roles and functions have been established and implemented. Moreover, the implementation of the risk management framework also implies an adjustment of the decision-making process overtime according both to the feedback of stakeholders and to changes of the internal and external contest of the organization. • Evaluation The evaluation of the appropriateness and the effectiveness of the risk management framework should be performed periodically through the predefined procedures for performance monitoring and control (e.g. system of indicators, etc.). Thus, the risk management performance, as well as its suitability with respect to the objectives of the organization, should be regularly measured. • Improvement The risk management framework should be regularly adjusted according to both the results of the evaluation process and the possible changes of the internal and external context. Moreover, the improvement opportunities that can be revealed by the results of the risk management framework evaluation should be exploited by defining, planning and implementing improvement actions. As regards the Risk Management Process (Fig. 6.5), according to the standard ISO 31000:2018 it is an iterative process that can be applied to the strategic, tactical and operational levels and it should be customized by the organization according to its strategies in order to achieve its objectives.

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Fig. 6.5 Risk management process by the standard ISO 31000:2018. Source ISO 31000:2018

The risk management process involves several sub-processes, namely (ISO 31000:2018): • Communication and Consultation Communication and Consultation represent a fundamental tool for: – associating and combining together different competences, experiences and knowledge related to multiple disciplines along the whole process of risk management; – enabling to take into account different views and opinions within the identification of risk sources, the definition of risk criteria, the assessment and treatment of risks. • Definition of the scope, context and criteria This step has three main purposes, namely the definition of the scope of the risk management process, the establishment of the internal and external context, and the definition of the risk criteria. In particular: – Definition of the scope. The risk management process can be applied at the strategic, tactical and operational levels and it can address processes, procedures, services, activities, etc. Therefore, in order to make the risk management process significant and relevant with respect to the objectives of the organization, it is fundamental to define a scope (e.g. processes, services and/or activities under examination specifying inclusions and exclusions; risk management objectives; available resources and related allocations; expected outcomes; etc.) consistent and aligned with the organization goals.

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– Establishment of the internal and external context. The organization should analyze the internal and external context in which it operates and particularly the specific environment of the services or activities interested by the risk management process. – Definition of the risk criteria. The organization has to define the criteria through which the risks will be assessed. The definition of criteria to evaluate the significance of risks is a fundamental activity that has to be performed taking into consideration the pre-established risk management framework. The definition of risk criteria involves (among others): the identification and definition of the nature of possible sources of risk that can affect the outcomes and objectives of the process, service and/or activity under examination; the methods and tools to measure the magnitude of possible consequences related to the identified risk sources; the methods and tools to measure the likelihood of the occurrence of the identified risks; the method to identify and take into account the possible combinations of multiple risks, as well as the possible consequential relationships (causes of “knock-on effects”) between risks; etc. • Risk assessment Below, the sequential steps of the process of risk assessment are described in detail. In particular: a. Risk identification. This step is aimed at finding, recognizing and describing risks that can affect the achievement of one or more objectives by the organization. This process should take into account, among others, tangible and intangible sources of risk, threats and opportunities, changes in the internal and/or external context, consequences of risks and their impacts on objectives, etc. b. Risk analysis. This step is aimed at understanding the nature, features and characteristics of risks, by applying qualitative, quantitative or a combination of qualitative and quantitative methods and techniques (depending on the specific situations and circumstances) that take into consideration several factor, as for instance: likelihood of events and consequences, nature and magnitude of consequences, risks and related consequences, dependencies, etc. The results of the risk analysis provide an input to the following phase of risk evaluation. c. Risk evaluation. The process of risk evaluation includes the comparison of the results of the risk analysis through the application of the pre-established risk criteria in order to understand if and what further actions are needed (e.g. doing nothing further, undertaking further analyses to better understand the risk, going on with the risk treatment, etc.). It is important to underline that the outcomes of the risk evaluation should be recorded, communicated and shared within the organization, as well as validated at proper levels of the organization.

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• Risk treatment The main aim of the risk treatment is to select and implement options for treating risks. This process encompasses two main steps: the formulation and selection of risk treatment options and the elaboration and implementation of risk treatment plans. In particular: a. Formulation and selection of risk treatment options. The options for the treatment of risks can be several, by way of example: eliminating the source of risk; changing the probability that the risk will occur; reducing the magnitude of the consequences; sharing the risk with another party (i.e. through the activation of insurance policies, etc.); etc. The selection of the options should be aligned with the objectives of the organization, as well as with the risk criteria and the available resources to use for the risks treatment. Moreover, contextually with the choice of risk treatment options, the organization should take into account the potential involvement of stakeholders, their views and perceptions. Indeed, equal risks can be perceived in a different way by different stakeholders (some risks can be considered more/less acceptable to some stakeholders than to others). The implementation of the different risk treatment forms should be carefully and continuously monitored and reviewed in order to gain feedback about their effectiveness, but also because the risk treatment itself may introduce new risks that need to be identified, monitored, analyzed and managed over time. b. Elaboration and implementation of risk treatment plans. The risk treatment plans aim to specify how the selected treatment forms will be implemented, including information useful to understand: – through what actions the treatment will be implemented; – what schedule (program) of the actions to be undertaken; – who is/are the person/s responsible for approving and implementing the plan and program; – what are the required resources and contingencies; – what methods, tools and criteria for measuring performance; – the required reporting and monitoring. • Monitoring and Reviewing The continuous monitoring and the periodic reviewing are fundamental functions with respect to the improvement of the effectiveness and quality of the whole risk management process. The monitoring and review involve the collection of information, the analysis of collected information, the revealing of indicators, trends and/or patterns and other relevant information and insights useful to improve the whole process and the provision of feedbacks to the appropriate stakeholders. These activities must be performed along the entire process, at each step of the path, ensuring that the relevant feedback is received by the right interlocutor in order to improve decision-making and implement improvement actions.

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• Recording and Reporting The process of risk management should be properly recorded and reported by the organization in order to: – properly communicate and inform the various interested levels of the organization about the outcomes of the risk management process, specifying the implemented activities and related outcomes; – provide appropriate feedback information to optimize decision-making processes at different levels (strategic, tactical and operational), thus being able to make informed decisions with respect to risk management; – improve the risk management plan and program, as well as the performance of the risk management activities; – support the relationship and the communication with the involved stakeholders, including the managers who have the decision-making authority and who are responsible for the risk management process. In order to reach these goals, the organization should preliminarily define, among others: – – – –

frequencies and schedules of reporting; costs and needed resources for reporting; methods and tools for reporting; criteria to identify what information is relevant to report and at which level of the organization it has to be reported, with respect to the objectives of the organization and related decision making processes.

As mentioned above, the general purpose of risk management within the context of the FM service provision is to identify, contain and mitigate potential risks thus, in other words, to lower the likelihood of failure events or accidents and to minimize the related consequences. The scope, requests and obligations (both for the Client and the Service Provider) related to Risk Management (thus to the development and the implementation of the phases of the risk management process) may considerably vary depending on: • the nature and extent of the required FM services; • the specific context in which the FM services will be delivered (e.g. destination of use of the building; characteristic of occupants and users of the building; features of the activities to be carried out in the building; feature and number of Service Providers; etc.). Although the scope of Risk management can vary according to the required FM services and the internal and external context of the demand organization (Client), there are some areas of interest which represent almost fixed points with respect to the issue of risk management (Lundgren and McMakin 2018; Hopkin 2018; Grafova et al. 2017; Yorio et al. 2015; Wetzel and Thabet 2015; Amaratunga et al. 2005). These areas, included within the umbrella of risk management—that must be

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subjected to the process described above recommended by the standard ISO 31000:2018—are mainly related to the following topics: • Environmental protection (ISO 14001:2015; Englund 2014; Gormley et al. 2011; National Research Council 2009; Schierow 2001) • Health and Safety (Englund 2014; Hauke et al. 2011) • Emergency management (World Health Organization 2007; Hauke et al. 2011) • Information security (ISO/IEC 27000:20188; ISO/IEC 27001:20139); • Financial and legal risks (Benedek 2012); • Supply Chain (Sisco et al. 2011; Vanany et al. 2009; Amaratunga et al. 2005) • Reputational risks (Gatzert and Schmit 2016; Deloitte 2014) • Occupational Wellness (Botha and Brand 2009; Amaratunga and Baldry 2004) • Service performance and service delivery issues (Amaratunga and Baldry 2002, 2004). For each of these thematic areas (if relevant with respect to the organization objectives and context), the Client should describe in the ITT its approaches and strategies—as well as processes, procedures and tools to implement them—in order to allow the Service Provider to align with them. For Health and Safety, the Client should also clearly express its needs and requests with respect to the Health and Safety management process, plans and program (i.e. information and communication modalities and tools; allocation of authorities, roles and responsibilities; access and use to a Health and Safety Management System; procedures to be followed by the Service Provider staff; training programs; etc.).

The standard ISO/IEC 27000:2018 “Information technology. Security techniques. Information security management systems. Overview and vocabulary” is a standard belonging to the ISO/IEC 27000 family—Information security management systems, which aims to help organizations in managing the security of assets such as financial information, intellectual property, employee details, etc. (ISO website. https://www.iso.org/isoiec-27001-information-security.html. Accessed May 2018). In particular, the standard ISO/IEC 27000:2018 “provides the overview of information security management systems (ISMS). It also provides terms and definitions commonly used in the ISMS family of standards” (ISO website. https://www.iso.org/standard/73906.html. Accessed May 2018). An ISMS is defined as “a systematic approach to managing sensitive company information so that it remains secure. It includes people, processes and IT systems by applying a risk management process” (ISO website. https://www.iso.org/isoiec-27001-information-security.html. Accessed May 2018). 9 The standard ISO/IEC 27001:2013 “Information technology. Security techniques. Information security management systems. Requirements” belongs to the ISO/IEC 27000 family—Information security management systems and it provides the requirements for an information security management system (ISMS). In particular, the standard ISO/IEC 27001:2013 “specifies the requirements for establishing, implementing, maintaining and continually improving an information security management system within the context of the organization. It also includes requirements for the assessment and treatment of information security risks tailored to the needs of the organization” (ISO website. https://www.iso.org/isoiec-27001-information-security.html. Accessed May 2018). 8

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6.4

Information and Training

Information and Training in the context of FM service outsourcing represent a fundamental function with respect to the effectiveness and the success of the FM service provision. In particular, the development and implementation of an Information and communication plan and a Training plan allow to: • support information sharing between the Client and the Service Provider concerning relevant topics of interest: • share with the external staff the strategies, policies, processes and procedures of the Client at the strategic, tactical and operational levels; • provide to the external personnel the required training and educational support to continually enhance their skills, competences, know-how and knowledge base; • ensure that external stakeholders are aware and conscious of their specific roles, responsibilities and requirements; • mitigate the risk due to lack of knowledge and/or skills; • gain feedback and/or suggestions about several addressed field of interest related to the FM service provision. Hence, training sessions can be related to several topics, depending on the specific context of the organization and on the nature of FM services to be provided, as by way of example: • • • • • • • • •

core business and no-core business objectives and strategies; allocation of authority, roles and responsibilities; health and safety requirements and procedures; safety requirements and procedures; quality policies, requirements and procedures; emergency procedures; information management and information systems requirements and procedures; reference regulatory framework for all the involved areas of interest; etc.

In the context of an FM service outsourcing, then contextually with the writing of the ITT, three broad different cases can occur depending on who is responsible for providing the service of Information and Training both at the start of the FM service and during the whole phase of service delivery. In particular, the three cases are: Case 1. Information and Training provided by the Client. Case 2. Information and Training to be provided by the awarding Service Provider. Case 3. Information and Training provided by a third party specialized in the topics covered by the service. Below, a discussion of the three cases is provided, analyzed from the point of view of the Client, who should properly describe its approaches and express its

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needs and requests related to the Information and Training within the ITT, to allow the Service Provider to align with them. Case 1. Information and Training Provided by the Client In this first case the Information and Training plans and programs, as well as the Information and Training sessions are provided by the Client to the Service Provider. Thus, the Client is responsible to inform, within the ITT, the Service provider about: • topics, plan, schedule and place of information sessions and training lessons; • typology of staff that is required to attend the information sessions and the training lessons; • information regarding possible needed tools, any material and documents to be produced, any needed equipment and software, etc. The Client should also specify if (highly recommended) the information about the training sessions should be recorded during the contract period (specifying contents of the training lessons and list of personnel who attended each lesson) in the personal training records of the Service Provider staff. In this first case, usually the Client pays the cost related to Information and Training activities. Case 2. Information and Training to Be Provided by the Service Provider In this second case, the Client requests—in the ITT—that the awarding Service Provider will be responsible for providing the Information and Training. This choice can be due to several causes, as for instance: • the Client does not want to put effort in this activity; • the Client does not have the required know-how or/and the necessary staff (number of employees) to provide the information and training sessions; • the Client prefers to exploit the specific know-how and expertise of the Service Provider; • the Client does not want to pay the cost for Information and Training. In this case, it is fundamental that: • the Client properly expresses its requests related to the Training in the ITT with respect to its objectives, strategies, policies, information system, etc., clearly stating: – – – –

topics to be developed according to the different typologies of external staff; training materials to be provided to trainees; timing of the training including required number of training hours; indication regarding the im/possibility to provide the training in the space of the organization; – request to deliver training at multiple locations or at one central location; – identification of any experience/skill requirements for the individual/s delivering the training;

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– request of implementation of a specific software for Information and Training; – etc. • the Client clearly states in the ITT that the awarding Service Provider will have to pay the costs for the Information and Training; • the Client clearly expresses that the Service Provider will be responsible for the organization of the information and training sessions (plan and program of sessions, communication with involved staff, elaboration of training records of the staff, etc.) • a preliminary meeting and periodic meetings during the FM service provision between the representatives of the Client and of the Service Provider are scheduled in order to let the Client share its request related to the required Information and Training and to let the Service Provider align with the requests of the Client and accordingly plan and program the information and training sessions. These meeting could also be useful to gain feedbacks from trainees. Moreover, in case of co-presence of two or more external Service Providers, the Client should also require the implementation of supporting activities (e.g. alignment activities, methods of sharing processes, procedures, tools and information, etc.) useful to improve the interaction between the different Service Providers and to make their operating modes homogeneous. Case 3. Information and Training Provided by a Third Party Specialized in the Topics Covered by the Service In this third case, the Client decides to opt for an external third party, specialized in providing Information and Training regarding specific topics of interest for the Client. This solution is generally selected by the Client when the thematic areas to be covered with Information and Training are of a specific and technical nature. In this way the Client can be likely sure that the staff of the Service Provider will be adequately trained and prepared during the whole phase of FM service provision. In this case, the Client should state in the ITT, at least: • the commitment requested to the awarding Service Provider (e.g. timing of the training including required number of training hours; topics to be developed according to typology of external staff; etc.); • the third party that will provide and manage the Information and Training (if already selected). It is important to underline that this solution can be more expensive compared with the two previous cases, and it may also require a higher effort of management from the Client, indeed the Client will have to manage two external parties, thus more control is required. Hence, the Client should pay a particular attention, during the writing of the ITT, to specify in detail the assignment of authorities, roles and responsibilities to each involved subject in order to avoid counterproductive misunderstanding.

References

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References Amaratunga RDG, Baldry D (2002) Performance measurement in facilities management organisations: transition from measurement to management. https://usir.salford.ac.uk/9903/1/ performance_measurement.pdf. Accessed May 2018 Amaratunga RDG, Baldry D (2004) Process thinking in facilities management: an analytical view. http://usir.salford.ac.uk/9966/1/274_Amaratunga_RDG_Process_thinking_in_facilities_ management__an_analytical_review_1st_SCRI_Symposium.pdf. Accessed May 2018 Amaratunga RDG, Haigh RP, Baldry D (2005) Structured process improvements in facilities management organisations: best practice case studies in the retail sector. http://usir.salford.ac. uk/9922/1/structured.pdf:public. Accessed May 2018 Benedek P (2012) Compliance Management–a New Response to Legal and Business Challenges. Acta Polytech Hung 9(3):135–148 Borodzicz E (2005) Risk, crisis and security management. Wiley Botha PA, Brand H (2009) Development of a holistic wellness model for managers in tertiary institutions. SA J Hum Resour Manag 7(1):1–10 Bowers J, Khorakian A (2014) Integrating risk management in the innovation project. Eur J Innov Manag 17(1):25–40 Deloitte (2014) 2014 global survey on reputation risk. https://www2.deloitte.com/content/dam/ Deloitte/global/Documents/Governance-Risk-Compliance/gx_grc_Reputation@Risk% 20survey%20report_FINAL.pdf. Accessed May 2018 Englund E (2014) A proactive health, safety & environment risk management strategy. https:// stud.epsilon.slu.se/6566/7/Englund_E_140318.pdf. Accessed May 2018 Gatzert N, Schmit J (2016) Supporting strategic success through enterprise-wide reputation risk management. J Risk Financ 17(1):26–45 Gormley A, Pollard S, Rocks S (2011) Guidelines for environmental risk assessment and management: green leaves III. Cranfiled University, Department for Environmental Food and Rural Affairs. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/ attachment_data/file/69450/pb13670-green-leaves-iii-1111071.pdf. Accessed May 2018 Grafova TO, Skorev MM, Andreeva LY, Kirischeeva IR (2017) Tools of financial management of reputational risks. Eur Res Stud 20(3B):280 Hauke A, Georgiadou P, Pinotsi D, Kallio H, Lusa S, Malmelin J (2011) Emergency services: a literature review on occupational safety and health risks. European Union: European Agency for Safety and Health at Work. https://osha.europa.eu/en/tools-and-publications/publications/literature_reviews/ emergency_services_occupational_safety_and_health_risks. Accessed May 2018 Hillson D (2006) Integrated risk management as a framework for organisational success. In: PMI global congress proceedings Hopkin P (2018) Fundamentals of risk management: understanding, evaluating and implementing effective risk management. Kogan Page Publishers Kerekes L, Csernátoni Z (2016) News on the implementation of quality management systems according to ISO 9001:2015. Calitatea 17(S2):7 Lai JHK (2010) Investigating the quality of FM services in residential buildings. In: Facilities management and maintenance. Paper from the special track of the CIB World Building Congress at Salford, UK. https://www.irbnet.de/daten/iconda/CIB_DC24104.pdf. Accessed May 2018 Leong TK, Zakuan N, Saman MZM (2014) Review of quality management system research in construction industry. Int J Prod Qual Manag 13(1):105–123 Lepkova N, Uselis R (2013) Development of a quality criteria system for facilities management services in Lithuania. Procedia Eng 57:697–706 Ludford JF (1999). Quality system for facilities management. In: ASQ world conference on quality and improvement proceedings, American Society for Quality, January, p 127 Lundgren RE, McMakin AH (2018) Risk communication: a handbook for communicating environmental, safety, and health risks. Wiley

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Mastor SH, Ibrahim N (2012) Quality management (QM) practices in facilities management (FM) organisation: a case study in Malaysia. In: 2012 IEEE Symposium on business, engineering and industrial applications (ISBEIA), IEEE, pp 635–640 Merkelbach M, Daundin P (2011) From security management to risk management. Geneva Center for Security Policy (GCSP), Geneva National Research Council (2009) Evolution and use of risk assessment in the environmental protection agency: current practice and future prospects. https://www.ncbi.nlm.nih.gov/books/ NBK214619/. Accessed May 2018 Ree H, Mclennan P (2006) FM service quality indicators-benefiting supplier and customer. In: Brown K et al (eds) Clients driving innovation: moving ideas into practice. CRC for Construction Innovation, Brisbane, pp 1–15 Rehacek P (2017) Quality costs as an instrument of verifying the effectiveness of quality management system. Calitatea 18(161):109–112 Schierow LJ (2001) The role of risk analysis and risk management in environmental protection. Congressional Research Service, Library of Congress Sisco C, Chorn B, Pruzan-Jorgensen PM (2011) Supply chain sustainability: a practical guide for continuous improvement. United Nations Global Compact. https://www.bsr.org/reports/BSR_ UNGC_SupplyChainReport.pdf. Accessed May 2018 Tuomi V (2010) How to develop quality management system in a hospital. In: Handbook on business information systems, pp 69–89 Vanany I, Zailani S, Pujawan N (2009) Supply chain risk management: literature review and future research. Int J Inf Syst Supply Chain Manag (IJISSCM) 2(1):16–33 Victorian Civil Construction Industry (2008) Best practice guide for tendering and contract management. http://vccia.com.au/advocacy-and-reports/tendering-&-contract-management. Accessed May 2018 Wetzel EM, Thabet WY (2015) The use of a BIM-based framework to support safe facility management processes. Autom Constr 60:12–24 World Health Organization (2007) Risk reduction and emergency preparedness: WHO six-year strategy for the health sector and community capacity development. http://www.who.int/hac/ techguidance/preparedness/emergency_preparedness_eng.pdf. Accessed May 2018 Yorio PL, Willmer DR, Moore SM (2015) Health and safety management systems through a multilevel and strategic management perspective: theoretical and empirical considerations. Saf Sci 72:221–228

Standard and Laws BS EN ISO 9001:2015 Quality management systems. Requirements ISO 14001:2015 Environmental management systems. Requirements with guidance for use ISO 31000:2018 Risk management. Guidelines ISO Guide 73:2009 Risk management. Vocabulary ISO/IEC 27000:2018 Information technology. Security techniques. Information security management systems. Overview and vocabulary ISO/IEC 27001:2013 Information technology. Security techniques. Information security management systems. Requirements ISO/TS 9002:2016 Quality management systems. Guidelines for the application of ISO 9001:2015

Websites

Websites http://quality.eqms.co.uk/implementing-a-quality-management-system-qms https://www.iso.org/iso-14001-environmental-management.html https://www.iso.org/iso-9001-quality-management.html https://www.iso.org/isoiec-27001-information-security.html https://www.iso.org/standard/44651.html https://www.iso.org/standard/60857.html https://www.iso.org/standard/66204.html https://www.iso.org/standard/73906.html

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Chapter 7

Analytical Framework for ITTs

Abstract The chapter considers the analytical activities that a Client should perform for the preparation of the tender documents both “ex ante” (self-analysis of its organization and needs, analysis of standards and of good practices to be assumed as references) and “ex post” (actions of monitoring and assessment, related not only to the performances of the Provider, but also to the quality of the ITT). Starting from the topics, analysed in the previous chapters, in the present chapter some frameworks are proposed in order to provide possible supports to be used in different ways according to the various steps of the FM service procurement, in particular: in the preliminary self-analysis of needs and goals developed by the Client, to support the activities of investigation; in the phase of preparation of the ITT, to assume key questions, to guide the organization of the text and to create ITT response templates; in the phase of assessment, to compare the received tenders according to a unique scheme, highlighting weaknesses and strengths; in the phase of service delivery, searching for improvements to be considered for the preparation of the next ITT. Keywords Framework for investigations Comparing and assessing tenders

7.1


Matrix of correlation

“Ex Ante” and “Ex Post” Activities in the Preparation of ITTs

As stated in the previous chapters, a successful ITT—whatever the model of tendering process is—should guarantee the Client to: • obtain tenderers’ proposals appropriate to the specificity of the context (organization and policies of the Client, characteristics of the Real Estate, needs of the users, etc.); • obtain tenderers’ proposals comparable as much as possible to each other in the assessment stage; This chapter is authored by Nazly Atta. © Springer Nature Switzerland AG 2019 C. Talamo and N. Atta, Invitations to Tender for Facility Management Services, Springer Tracts in Civil Engineering, https://doi.org/10.1007/978-3-030-04009-3_7

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• avoid ambiguity in the interpretation of the requests by the tenderers; • stimulate proposals capable of activating innovation and the best skills of the Providers; • stimulate a rich dialogue with the awarding Provider in the development of the FM contract and in the mobilization phase; • be able to objectively monitor over time the provided services, controlling the non/achievement of the expected service levels and the respect of the agreed timescale, procedures and costs; • know, from the beginning of the service provision and without any ambiguity in the interpretation, the ways for managing, without any litigation, possible non-conformities; • know, from the beginning of the service provision and without any ambiguity in the interpretation, roles and responsibilities in strategic decisions, in coordination of the resources, in the information management, and in the control of the services delivery; • increase knowledge and not to lose information and documents produced during the period of service delivery; • be sure, at the end of the service period, to be in the best conditions for developing a new tendering process; • to operate according to a continuous improvement, both during the delivery of the service and when starting a new tendering process. For pursuing this set of goals, the Client should develop a series of self-analysis activities mainly aimed at: • clarifying its current and future Real Estate policies, needs and requirements; • analyzing its organizational structure and policies; • defining its expectations in relation to the organizational and operative model for the delivery of the service; • verifying the amount and the availability of information about the assets to be managed; • clarifying the current and expected knowledge about the Real Estate; • explicating its expectations in relation to the knowledge management; • listing its internal resources and skills; • assuming references (best practices, standards, etc.) and benchmarks. Besides, in order to improve over time its capabilities in preparing an ITT and in orienting and controlling the FM services, the Client should be able to perform two further kinds of activities, one “ex ante” and the other “ex post” the preparation of the tender documents. With regard to the “ex ante” activity, before writing the ITT, in parallel with the activities of self-analysis of its organization and needs, the Client—especially if it is at its initial experiences in outsourcing FM services—could take much advantage from examining and comparing other ITTs. For sure, this activity would be actually useful if the Client, or its consultants, were able to:

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• select ITTs that can be considered comparable regarding the characteristics of the Client itself, its core business, its Real Estate (dimensions, localization, functions, age, etc.,), the users, etc.; • select ITTs that can be considered as good practices to be assumed as references; • investigate all the selected ITTs according to the same set of reading keys. With regard to the “ex post” activity, during the service delivery, the Client should continuously develop actions of monitoring and assessment, related not only to the performance of the Provider, but also to the quality of the ITT. This means that the Client can use the feedback information, coming from the delivery of the service, also for assessing the preparation of the ITT by analyzing possible problems that could be generated, directly or indirectly, by ambiguous, misleading, incomplete or inconsistent requests. This kind of assessment of the ITT can be very useful for highlighting areas of weakness to be corrected and areas of strength to be confirmed in the preparation of the next ITTs. Also in this case, this activity would be actually effective if the Client, or its consultants, had the support of a set of reading keys and of a framework for the analysis. For all these reasons, the Client should assume a set of reading keys, useful at the same time for: • guiding the self-analysis, preliminary to the definition of the main goals of the FM to be requested; • supporting the analysis of sample cases, preliminary to the preparation of the ITT; • orienting the preparation of the ITT; • increasing the skills in writing an ITT; • improving the next ITTs.

7.2

Reading Keys for ITTs

Considering the point of view assumed in this book—that is the importance of information management and knowledge generation and sharing in order to increase the quality of FM services—a list of reading keys can be proposed to the Client. This list can be considered as a basic reference. It derives both from the investigation of international literature and standards and from the analysis and comparison of a large amount of sample ITT documents. It can be surely expanded by adding further reading keys and by enlarging the point of view to other topics, such as costs. The proposed list concerns 20 reading keys; each of these has been deeply treated in the previous chapters: 1. Required services (Chap. 3); 2. Command centre (Chap. 3); 3. Operating structure (Chap. 3);

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4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.

7 Analytical Framework for ITTs

Building inventory (Chap. 4); Registry (Chap. 4); Information system (Chap. 4); Help desk (Chap. 4); Management of the information flow (Chap. 4); Document management (Chap. 4); Quality policies (Chap. 6) Service Provider requirements (Chap. 6) Procedures for services monitoring and control (Chap. 5) SLA and KPI (Chap. 5) Penalty system (Chap. 5) Incentive system (Chap. 5) Responsibility and ownership of information (Chap. 4); Information and training (Chap. 6) Risk management (Chap. 6) Reporting (Chap. 5) Feedback information (Chap. 4).

These reading keys represent a list of basic topics in which the contents of the service can be broken down, developing, for each of them, specific requests within the ITT (see next paragraph). Besides, it can be very useful to consider the relationships of each of these topics with the other topics. For this purpose, a matrix, like the one represented in Fig. 7.1, can be a helpful support. The matrix in Fig. 7.1 highlights general relationships between the possible basic topics; these relationships may vary as they need to be tailored according to the specific situations and contexts. Anyway, this kind of correlation matrix can be useful in the preparation of the ITT for: • analysing how each topic, in order to be requested in the best way, should be linked to other specific requests (as, for instance, penalties must be clearly connected with SLA and KPI); • verifying that the ITT does not contain any inconsistencies between linked topics or that there are no repetitions and redundancies that might confuse the tenderers in the preparation of the offers; • verifying that the connections between topics, considered linked, are clearly underlined, explained and expressed within the ITT; • highlighting the topics that have a greater number of interactions with the other topics (for instance such as the information system) in order to verify the coherence of the requests and to consider their weight in the attribution of scores.

Required services Command centre Operating structure Building inventory Registry Information system Help desk Management of information flow Document management Quality policies Provider requirements Services monit. SLA nad KPI Penalty system Incentive system Responsibility &owner. of info Information and training Risk management Reporting Feedback information

Fig. 7.1 Matrix of correlation

Feedback information

Reporting

Risk management

Incentive system Responsibility and ownership of information Information and training

Penalty system

Quality policies Service Provider requirements Procedures for services monitoring and control SLA and KPI

Help desk Management of the information flow Document management

Registry

Information system

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Building inventory

Command centre

Operating structure

Required Services

7.2 Reading Keys for ITTs

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7 Analytical Framework for ITTs

7.3

Framework for Supporting Tendering Activities

The reading keys may be assumed as a basic reference list for the development of a framework to be used in various steps of the tendering process and of the service delivery. Maintaining the same list of reading keys for the whole life cycle of a service allows to trace and check in the best way the translations of needs into requirements and of requirements into delivered services. At the same time, it facilitates the collection and analysis of feed-back information aimed at the continuous improvement both of the current and of the future services. Starting from the core, represented by the reading keys, the framework may be structured in different ways according to the various steps of the FM service procurement. Without being exhaustive, some examples are briefly given below. 1. In the Client preliminary self-analysis of needs and goals, the framework can support an activity of investigation aimed at: • understanding and summarizing the opinions, needs and expectations expressed by various stakeholders (Table 7.1); • describing the current situation, preliminary to the ITT preparation, and the expected changes (Table 7.2). A synthesis of the “as is” situation can be useful both for a better comprehension of needs and requirements and for preparing documents and information annexed in the ITT. 2. In the phase preliminary to the preparation of the ITT, the framework can support an activity of investigation aimed at: • selecting ITTs, similar for characteristics, that can be considered useful case studies; • analyzing each sample ITT in order to obtain useful suggestions (Table 7.3); Table 7.1 Example of a framework for analyzing and summarizing opinions, needs and expectations expressed by various stakeholders Reading key 1 2 3 4 5 6 n 20

CEO

COO

CFO

CIO

FM

Others

Synthesis of the positions

Services Command centre Operating structure Building inventory Registry Information system … Feedback information CEO = Chief Executive Officer; COO = Chief Operating Officer; CFO = Chief Finance Officer; CIO = Chief Information Officer; FM = Facility Manager

1 2 3 4 5 6 n 20

Services Command centre Operating structure Building inventory Registry Information system … Feedback information

Reading key

As is short description

Documents references

Expected changes

Responsible

Internal/external resources

Table 7.2 Example of a framework for analyzing and reporting the current situation preliminarily to the preparation of the ITT Others

Synthesis

7.3 Framework for Supporting Tendering Activities 195

1 2 3 4 5 6 n 20

Services Command centre Operating structure Building inventory Registry Information system … Feedback information

Reading key

Short description

Synthesis (text extract from the sample ITT)

Table 7.3 Example of a framework for analyzing a sample ITT Reference in the ITT (chapter and paragraph in the ITT)

Weaknesses

Strengths

Other

Lesson learned

196 7 Analytical Framework for ITTs

7.3 Framework for Supporting Tendering Activities

197

• selecting and analyzing reference Standards in order to obtain definitions, criteria and guidelines (Table 7.4); • sharing the lesson learned with various stakeholders; • comparing samples over time; • increasing knowledge and skills. 3. In the phase of preparation of the ITT, this kind of framework can be assumed as a base of key questions and guide the organization of the text of the ITT according to a list of topics (and possibly sub-topics). These topics can be considered as mandatory response sections. Once a score criterion is established, each topic can be supplemented by a score. Furthermore, in order to guide and make comparable the tenders and to be sure that they include enough information, the Client can create a ITT response template. A sample in Table 7.5. 4. In the phase of assessment of the received tenders, the framework (Table 7.6) can be used for comparing, highlighting weaknesses and strengths and scoring each key according to a unique scheme where the responses and proposals of the tenderers are presented in the same order, number and titles; 5. In the phase of service delivery, according to an approach of learning by doing, the framework (Table 7.7) can be used for evaluating the ITT, highlighting weaknesses and strengths of its contents, monitoring and analyzing each key, in relation to the actual development of the service, searching for improvements to be considered for the preparation of the next ITT.

Table 7.4 Example of a framework for analyzing a reference Standard Reading key

1 2 3 4 5 6 n 20

Services Command centre Operating structure Building inventory Registry Information system … Feedback information

Short description

Synthesis (text extract from the reference standard)

Reference in the standard text (chapter and paragraph)

Strengths

Other

Lesson learned

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7 Analytical Framework for ITTs

Table 7.5 Example of ITT response template Roles & Responsibilities (Scored) (8% weighting) Roles & Responsibilities Question 1 (Scored) (2% Weighting) Bidders should provide an overview of their proposed approach to delivering the services within public buildings and healthcare environments. (Maximum Word Count: 1000 words) Bidders must write their response in this box …………………………………………………………………………….. Roles & Responsibilities Question 2 (Scored) (2% Weighting) Please provide details of the organisational set up and roles and responsibilities of your proposed team. (Maximum Word Count: 1000 words) Bidders must write their response in this box …………………………………………………………………………….. Roles & Responsibilities Question 3 (Scored) (2% Weighting) Outline how you would manage availability of resource for projects awarded under this framework especially ensuring that staff have the right capabilities to undertake the work. (Maximum Word Count: 1000 words) Bidders must write their response in this box …………………………………………………………………………….. Roles & Responsibilities Question 4 (Scored) (2% Weighting) Provide CV’s for all staff that will directly provide the Service, noting which areas of work they will undertake. (Maximum Word Count: N/A) Attachments should be provided to your response in a folder titled “B4”. Source Guy’s and St Thomas’ NHS Foundation Trust (2014) ITT & Bidder response template, Ref. no. L0038

Table 7.6 Example of a framework for comparing and assessing the received tenders Reading key

2 3 4 5 6 n 20

Command centre Operating structure Building inventory Registry Information system …. Feedback information

Synthesis

Reference in the ITT

Weaknesses

Strengths

Aspects to be deepened in the agreement/ mobilization phase

Scored

Reference

199

Table 7.7 Example of a framework for extracting useful improvements from the current ITT, to be considered for the preparation of the next ITT Reading key

1

Services

2

Command centre

3

Operating structure

4

Building inventory

5

Registry

6

Information system

n

….

20

Feedback information

Synthesis

Reference in the ITT

Weaknesses

Strengths

Lesson learned

Improvement proposals for the next ITT

Reference Guy’s and St Thomas’ NHS Foundation Trust (2014) Invitation to Tender (ITT) and Bidder response template, Reference no. L0038, Buildings and Facilities Management Professional Services framework—Building Services Framework Agreement. https://www. whatdotheyknow.com/request/321432/response/797455/attach/5/L0038%20Building% 20Services%20ITT%20Template.pdf. Accessed June 2018

Chapter 8

FM Services Procurement and Management: Scenarios of Innovation

Abstract The present chapter introduces some scenarios of innovation of FM practices, namely: Sustainable Procurement, Building Information Modeling (BIM), Big Data and Internet of Things (IoT). These innovations are described in detail and then discussed with respect to the elaboration of ITTs, analyzing the contents that consequently will have to be reviewed and added by the Client. Firstly, an overview of the Sustainable Procurement introduced by the international standard ISO 20400:2017 is provided, highlighting its principles, core subjects and drivers, as well as benefits and advantages. Then, the active measures for the integration of sustainable procurement practices within the steps constituting the traditional procurement process are described and analyzed. Secondly, the chapter introduces BIM as a promising technology for the innovation of the FM sector, highlighting its main features and capabilities—including visualization, interoperability and information exchange—useful to enhance collaboration among FM stakeholders and to streamline FM processes and activities, at the strategic, tactical and operational levels. Lastly, the chapter focuses on Big Data and IoT paradigms and their application to FM, highlighting how the availability of real-time data— gathered by a distributed and disseminated system of IoT sensors and devices implemented within the building—along with the capabilities of Big Data Analytics, may represent a significant driver for improving the monitoring and control processes of service performance, as well as for FM-related cognitive and decision-making processes, gaining the needed awareness useful to properly calibrate future choices and investments.




Keywords Sustainable procurement Building Information Modeling (BIM) Big data Internet of Things (IoT) IoT platform IoT sensors and devices










This chapter is authored by Nazly Atta. © Springer Nature Switzerland AG 2019 C. Talamo and N. Atta, Invitations to Tender for Facility Management Services, Springer Tracts in Civil Engineering, https://doi.org/10.1007/978-3-030-04009-3_8

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8.1

Sustainable Procurement and ISO 20400 Standard

The standard ISO 20400:20171 is the first international standard on Sustainable Procurement. Sustainability2 is widely recognized as a relevant topic with respect to the everyday operation of all organizations. Moreover, during the path of their life, organizations have to deal with the implementation of procurement processes for the provision of product and/or services, as FM services, thus they may have to deal with external providers which can have a great impact on their performance. The implementation of a Sustainable Procurement3—ensuring that both the Client and the external Service Providers have an ethical behavior,4 as well as follow fair operating practices5 and responsible practices (with respect, for instance, to: compliance with legislation, organizational management, risk management, social and environmental impacts, working conditions, etc.)—can lead to several benefits of different nature such as, for instance (ISO 20400:2017): • • • • • •

prevention from economic and reputational damages; legal compliance throughout the whole supply chain; improvement of employees wellness; increasing of productivity; increase in economic value creation; improvement in communication between demand organization and provider/s;

The standard ISO 20400:2017 “Sustainable procurement. Guidance” provides guidance to organizations on integrating sustainability within procurement. The standard addresses stakeholders involved in, or impacted by, procurement decisions and processes (ISO website. https:// www.iso.org/standard/63026.html. Accessed July 2018). 2 According to the standard ISO Guide 82:2014, sustainability can be defined as the “state of the global system, including environmental, social and economic aspects, in which the needs of the present are met without compromising the ability of future generations to meet their own needs. (…) The environmental, social and economic aspects interact and are interdependent and are often referred to as the three dimensions of sustainability” (ISO Guide 82:2014). 3 The standard ISO 20400:2017 defines the Sustainable Procurement as a “procurement that has the most positive environmental, social and economic impacts possible over the entire life cycle. (…) Sustainable procurement involves the sustainability aspects related to the goods or services and to the providers along the supply chains. (…) Sustainable procurement contributes to the achievement of organizational sustainability objectives and goals and to sustainable development in general” (ISO 20400:2017). 4 According to the standard ISO 26000:2010, ethical behaviour can be defines as a “behaviour that is in accordance with accepted principles of right or good conduct in the context of a particular situation and is consistent with international norms of behaviour” (ISO 26000:2010). 5 According to the standard ISO 20400:2017, fair operating practices are meant as “operating practices that concern ethical conduct in an organization and with other organizations, such as providers, with which it has relationships. (…) In a sustainable procurement context, fair operating practices can potentially extend to include the relationships between organizations, their providers and organizations and others that interact with the providers. These include interactions with government agencies, partners, providers, sub-contractors, and communities, with the aim of promoting a healthy relationship between the companies that buy goods or services and those providing them” (ISO 20400:2017). 1

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• increasing of transparency in information management practices; • facilitation and promotion of innovation; • etc. Indeed, the sustainable procurement practices enable organizations to improve their decision-making, combining the needs of the organizations themselves with sustainability issues (e.g. the needs of the society and of the environment, sustainability of products, economic aspects, etc.). Therefore, by providing guidelines concerning the integration of sustainability into procurement processes, the standard ISO 20400 supports organizations in developing and implementing sustainability practices and policies in their entire supply chains. The approach to service procurement that the standard ISO 20400:2017 proposes surely represents an innovation for the current procurement practices of organizations, including organizations that want to outsource FM services. In order to reach a better understanding about the contents of the standard, Fig. 8.1 illustrates the structure and the key topics covered by ISO 20400:2017. In particular, focusing on Section 4 (Fig. 8.1), the standard introduces an overview of the sustainable procurement, describing the principles, core subjects and drivers. Indeed, the standard states that the sustainable procurement is based on some pivotal principles (Table 8.1) which are (ISO 20400:2017): • • • • • • • • • • • •

accountability; transparency; ethical behavior; full and fair opportunity; respect for stakeholder interests; respect for the rule of law and international norm of behavior; respect for human rights; innovative solutions; focus on needs; integration; analysis of all costs; continual improvement.

Moreover, the standard lists and describes the seven core subjects of sustainable procurement (Table 8.2), which are: • • • • • • •

organizational governance; human rights; labor practices; the environment; fair operating practices; consumer issues; community involvement and development.

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Fig. 8.1 Content structure of the ISO 20400:2017 standard. Source http://www.learn2improve. nl/about-iso-26000/sustainable-procurement-iso-20400-and-iso-26000/. Accessed July 2018

The standard also identifies some examples of Sustainable Procurement drivers (Table 8.3). In particular, the main advantages and benefits (Table 8.3) achievable by organizations through the implementation of the Sustainable Procurement approach and practice proposed by the standard ISO 20400:2017 are related to the following topics (ISO 20400:2017):

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Table 8.1 Principles of sustainable procurement by ISO 20400:2017 Principle of sustainable procurement

Description

Accountability

“An organization should be accountable for its own impacts on society, the economy and the environment. In the context of procurement, this specifically includes accountability for impacts and for those on the organization’s supply chains, with a life cycle perspective on goods or services” (ISO 20400:2017) “An organization should be transparent in those decisions and activities that impact the environment, society and the economy. In the context of procurement, this specifically includes being transparent in its procurement decisions and activities and encouraging its providers to be transparent. Transparency is the basis for stakeholder dialogue and collaboration” (ISO 20400:2017) “An organization should behave ethically and promote ethical behaviour throughout its supply chains” (ISO 20400:2017) “An organization should avoid bias and prejudice in all procurement decision-making. All providers, including local providers and small and medium-sized organizations (SMOs) should have a full and fair opportunity to compete” (ISO 20400:2017) “An organization should respect, consider and respond to the interests of stakeholders impacted by its procurement activities” (ISO 20400:2017) “An organization should strive to be aware of any violations throughout its supply chains. It should actively encourage its providers to abide by these rules and assess and address compliance as situations require” (ISO 20400:2017) “An organization should respect internationally recognized human rights” (ISO 20400:2017) “An organization should seek solutions to address its sustainability objectives and encourage innovative procurement practices to promote more sustainable outcomes throughout entire supply chain” (ISO 20400:2017) “An organization should review demand, buy only what is needed and seek more sustainable alternatives” (ISO 20400:2017) “An organization should ensure that sustainability is integrated into all existing procurement practices to maximize sustainable outcomes” (ISO 20400:2017) (continued)

Transparency

Ethical behaviour

Full and fair opportunity

Respect for stakeholder interests

Respect for the rule of law and international norms of behaviour

Respect for human rights Innovative solutions

Focus on needs

Integration

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Table 8.1 (continued) Principle of sustainable procurement

Description

Analysis of all costs

“An organization should consider the cost incurred over the life cycle, value for money achieved, and the costs and benefits for society, the environment and the economy resulting from its procurement activities” (ISO 20400:2017) “An organization should work towards continually improving its sustainability practices and outcomes, and encouraging organizations in its supply chains to do the same” (ISO 20400:2017)

Continual improvement

Source ISO 20400:2017

Table 8.2 Core subjects of sustainable procurement by ISO 20400:2017 Subjects of sustainable procurement

Description

Organizational governance Human rights

“Decision-making processes and structures” (ISO 20400:2017) “Due diligence, human rights risk situations, avoidance of complicity, resolving grievances, discrimination and vulnerable groups, civil and political rights, economic, social and cultural rights, fundamental principles and rights at work” (ISO 20400:2017) “Employment and employment relationships, conditions of work and social protection, social dialogue, health and safety at work, human development and training in the workplace” (ISO 20400:2017) “Prevention of pollution, sustainable resource use, climate change mitigation and adaptation, protection of the environment, biodiversity and restoration of natural habitats” (ISO 20400:2017) “Anti-corruption, responsible political involvement, fair competition, promoting sustainability in the value chain, respect for property rights” (ISO 20400:2017) “Fair marketing, factual and unbiased information, fair contractual practices, protecting consumers’ health and safety, sustainable consumption, consumer service and support, and complaint and dispute resolution, consumer data protection and privacy, access to essential services, education and awareness” (ISO 20400:2017) “Community involvement, education and culture, employment creation and skills development, technology development and access, wealth and income creation, health, social investment” (ISO 20400:2017)

Labour practices

Environmental issues

Fair operating practices

Consumer issues

Community involvement and development

Source ISO 20400:2017

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Table 8.3 Key drivers for sustainable procurement by ISO 20400:2017 Sustainable procurement drivers

Description

Customer

“Responding to customer and consumer sustainability expectations, such as safety, environmental benefits and universal design throughout the supply chains” (ISO 20400:2017) “In competitive markets the ability to offer goods or services considering a sustainable value proposition supported by the supply chains can be a differentiator. (…) This can also be an advantage to the provider as well as the purchasing organization” (ISO 20400:2017) “Using sustainable procurement to stimulate innovation from the supply chains in order to gain greater shared value and to generate new markets” (ISO 20400:2017) “Responding to increasing stakeholder expectations to take account of environmental and social factors, e.g. in order to maintain a societal license to operate” (ISO 20400:2017) “Compliance with legislation throughout entire supply chains” (ISO 20400:2017) “Achievement of desired objectives such as promoting competitiveness, creating opportunities for SMOs, efficient management of public resources, good governance or social inclusion” (ISO 20400:2017) “Sustainability issues can influence brand value and reputation, market share, market capitalization, legal exposures, price volatility and access to supply, financial liabilities, moral/ethical exposures and the risks associated with operating licences” (ISO 20400:2017) “Avoiding disruptions due to product recall, financial penalties or provider failure, implementing continual improvement processes, avoiding depletion of resources” (ISO 20400:2017) “Sustainable procurement might improve scores from rating agencies and attract investment” (ISO 20400:2017) “Paying attention to sustainability issues, including promotion of decent work, can lead to greater productivity and attract, motivate and retain talent” (ISO 20400:2017) “Paying attention to sustainability issues can lead to improving provider relationships, leading to an improved provider contribution to organizational objectives” (ISO 20400:2017) “Optimizing use of resources can lead to cost savings, reduced environmental impacts, economies of scales and improved return on investment” (ISO 20400:2017) “Assessing more comprehensive life cycle cost and benefit information can help the organization to be more effective” (ISO 20400:2017) “Committed leadership from key people in the organization can promote sustainable practices including sustainable procurement” (ISO 20400:2017) “Paying attention to sustainability issues can enhance the ethical behaviour of the organization and increase alignment with the organization’s culture and values” (ISO 20400:2017)

Competitive advantage

Innovation

Stakeholder expectations Legislation and regulation: Public policies

Risk management

Security of supply chains: Investor confidence Workers

Provider commitment

Cost optimization

Economic value creation Personal leadership

Organizational ethics

Source ISO 20400:2017

208

• • • • • • • • • • • • • • •

8 FM Services Procurement and Management: Scenarios of Innovation

response to customer and consumer sustainability expectations; competitive advantage for both the demand organization and the provider; encouragement of innovation; response to stakeholders’ expectations; compliance with legislation and regulation; public policies; risk management; security of supply chains; investor confidence; workers; provider commitment; cost optimization; economic value creation; personal leadership; organizational ethics.

Focusing on section 7, the standard addresses the integration of sustainability into the procurement process. Figure 8.2 illustrates the step of a procurement process and it shows how each step of the process can integrate sustainable procurement practices. The first step (Fig. 8.2) consists in Planning. This phase involves the planning of the key elements of the sustainable procurement, (Fig. 8.3) which are: • assessment of sustainability risks and opportunities, involving the analysis of relevant aspects as technical issues, compliance culture, sourcing locations and supply chain structures, etc. (ISO 20400:2017). This assessment leads to improve the decision-making related to the definition of the sourcing strategy, integrating sustainability issues (e.g. life cycle approach to services and products, labour rights, health and safety, environmental management, legal issues, etc.); • analysis of all the costs of goods and/or services during their whole lifetime (total cost of ownership, including purchase costs, operating costs, end-of-life costs, plus positive and negative externalities for the organization itself and for the society) through the application of the Life Cycle Cost (LCC) method (Fig. 8.4); • analysis of organizational needs for specific services or goods, considering also the viable alternatives to deliver the same services or goods in a more sustainable way, e.g. “eliminating the demand by reviewing the need; reducing the frequency of use/consumption; (…) aggregating and/or consolidating the demand; sharing use between divisions or organizations; encouraging recycling, repairing, reusing or repurposing of older goods; determining whether outsourcing is required and how to extend the scope of responsibility for environmental and labour practices throughout supply chains” (ISO 20400:2017);

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Fig. 8.2 Integration of sustainability in the procurement process by ISO 20400:2017. Source ISO 20400:2017

Fig. 8.3 Key Elements of sustainable procurement planning by ISO 20400:2017. Source ISO 20400:2017

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Fig. 8.4 Overview of LCC method by ISO 20400:2017. Source ISO 20400:2017

• analysis of the market in order to outline a framework of the current and possible capabilities of the offer side with respect to the needs of the Client. In this way, the Client can reach a comprehensive understanding of the available solutions on the market and it can assess the ability of these solutions to meet its sustainability requirements; • completion of the sourcing strategy. At this stage, the Client should draft a document describing (ISO 20400:2017): – – – –

key findings about sustainability needs, objectives, risks and opportunities; actions required to manage key sustainability risks and opportunities; how the sourcing approach delivers sustainability objectives; sustainability requirements and the way in which they are included into the specification; – how sustainability aspects are included into the contract draft; – weight given to sustainability in the evaluation criteria; – expected sustainability benefits, including savings throughout the life cycle. The second step (Fig. 8.2) consists in Integrating Sustainability Requirements into the Specifications. This step involves some key activities aimed at defining the sustainability requirements and incorporating them into the specifications, such as: • definition of sustainable procurement criteria. The Client should define and describe in a clear and not ambiguous way the sustainability criteria in order to allow their proper understanding by potential Service Providers. Criteria should be objective, attainable (achievable and feasible) and verifiable (the requirements must be realistically testable);

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• selecting the types of requirements. At this stage, the Client should select the set of requirements defining a balanced combination of physical (or descriptive) requirements,6 performance requirements7 and functional requirements8; • definition of proper evaluation procedures for assessing the satisfaction of sustainability requirements. Evaluation procedures can include activities9 as: documental reviews, audits, inspections, declarations, certifications, labels, etc. The choice of these procedures should be taken according to several factors that can lead to the definition of the set of assessment activities, such as (among others): the importance of the requirements to the organization, the cost of the evaluation procedure, the availability of means and tools to perform the evaluation procedures, etc. The third step (Fig. 8.2) consists in Selecting Providers. Contextually to this step, the Client should perform and implement processes and activities aimed at assessing the Service Providers, in particular: • prequalification of Service Providers (if needed). The aim of prequalification is to understand the capabilities of the Service Providers to deliver expected outcomes (ISO 20400:2017). According to ISO 20400:2017, at the prequalification stage “it might be sufficient to request evidence of respect for human rights, ethical trading, labour and environmental policies by means of suppliers’ declarations of conformity (self-claims) on those subjects” (ISO 20400:2017). Therefore, the prequalification requests and questions are limited to the general overall level and the assessment criteria (Fig. 8.5) “might be optional and can be used to inform a weighted evaluation of further shortlisted providers that comply with all the mandatory criteria” (ISO 20400:2017) since the responding Service Providers will be further assessed through the subsequent tendering process. • management of tendering process. The Client should implement a tendering process (Chap. 1) in order to select the best Service Provider with respect to its needs and requirements, also related to sustainability. With respect to the accountability and the transparency of the tendering process, it is important that the Client clearly defines and states in the ITT the methodology and criteria (Fig. 8.6) that will be applied to evaluate the tenders and to select the awarding Service Provider.

6

Physical or descriptive requirements aim to specify the characteristics and properties of goods or services (ISO 20400:2017). 7 Performance requirements aim to “define the performance standards to be met by the goods or services, including definition of the way goods or services need to be delivered in order to optimize social and environmental impacts related to future performance” (ISO 20400:2017). 8 Functional requirements aim to define the expected functions that the requested goods or services must fulfill, guarantee and perform during its useful life (ISO 20400:2017). 9 The evaluation activities can be performed by the provider itself (first-party), by the Client (second-party) or by an external organization or institution (third-party). The Client should clearly state who will perform the selected evaluation procedure for each requirement (ISO 20400:2017).

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Fig. 8.5 Example of prequalification questions and criteria by ISO 20400:2017. Source ISO 20400:2017

Fig. 8.6 Example of questions and criteria to include in ITT by ISO 20400:2017. Source ISO 20400:2017

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The fourth step (Fig. 8.2) consists in Managing the Contract. The management of the contract by the Client involves the following activities: • implementation of the contract. In the first transitional period at the start of a new contract, the Client should verify that the Service Provider is aware of the importance of the sustainable elements and related required performance to be ensured. Then, during the contract period, the Client has to assess periodically that the sustainability commitments requested in the contract have been fully implemented; • establishment of a contract management plan. The Client can establish, together with the awarding Service Provider, a contract management plan that summarizes sustainability goals and objectives and related KPIs, analyzes sustainability risks and opportunities, and defines priorities in order to reach the best alignment between the contracting parties. Moreover, the Client—with the purpose of engaging and motivating the Service Provider—can implement a system of incentives (Chap. 5) related to the over/achievement of sustainability-related performance; • monitoring and control of performance and management of relationships. During the contract period, the Client should perform a continuous monitoring and control of the performance of the Service Provider (Chap. 5). In order to improve the effectiveness of the performance monitoring and control, it is important that the Client and the Service Provider establish a good relationship based on good communication and mutual exchange of information and feedbacks. Moreover, it could be useful to arrange periodical face-to-face meetings in which both the Client and the Service Provider can communicate, share ideas, visions and possible concerns, promoting in this way a beneficial relationship and facilitating the common understanding of the sustainability elements included in the ongoing contract. The fifth step (Fig. 8.2) concerns: Reviewing and Learning from the Contract. These activities are fundamental for the Client, who has to ensure that: • the lessons learned during the contract period are always shared within the demand organization, enabling in this way the enrichment of the existing knowledge base; • the process of continual improvement is always in progress in order to efficiently achieve, over time, better sustainability performance. Moreover, once the contract is concluded, the Client should summarize in a document the lessons learned, including (ISO 20400:2017): • information concerning the management of the occurred sustainability risks and opportunities; • information regarding the achievement of sustainability objectives (applied methods, implemented tools, used resources, etc.) agreed in the contract; • overview of sustainability performance; • analysis of key success criteria; • key lessons for future contracts.

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This document—which collects the lessons learned from each concluded contract—must be used as a useful information base for the definition of the sourcing strategy for the next procurement process.

8.2

Building Information Modeling (BIM) for FM

Building Information Modeling (BIM) can be considered as one of the most promising technologies for the Architecture, Engineering, Construction and Facilities Management (AEC/FM) sector (Alvarez-Romero 2014). According to the National Building Information Model Standard Project Committee “Building Information Modeling (BIM) is a digital representation of physical and functional characteristics of a facility. A BIM is a shared knowledge resource for information about a facility forming a reliable basis for decisions during its life-cycle; defined as existing from earliest conception to demolition”.10 Although BIM is primarily used to streamline the design, engineering, and construction of new buildings (Kensek 2015), its value with respect to the management phase of (new and existing) buildings is commonly recognized in literature. In facts, BIM enables various functions and capabilities, including visualization, interoperability and information exchange (Kensek 2015; Yalcinkaya and Singh 2014) useful to streamline FM processes and activities (Edirisinghe et al. 2016; Talamo and Bonanomi 2015; Yalcinkaya and Singh 2014; Nawari 2012). For this reason, the use of BIM and its integration within FM practices has gained a strong interest from BIM managers, Facility managers, Real Estate owners and all the other stakeholders of the building process. To date there are several definitions of Building Information Modeling (BIM) in literature, most of them emphasize the role of BIM throughout the whole life cycle11 of a building, from its conception to its disposal. In particular, Succar (2009) defines BIM as a “set of interacting policies, processes and technologies generating a methodology to manage the essential building design and project data in digital format throughout the building’s life-cycle” (Succar 2009). According to Alvarez-Romero (2014) BIM can be defined as a “technology-based collaborative approach that enables different stakeholders at different phases of the life-cycle of a facility to generate, manage and share information through a 3D digital model” (Alvarez-Romero 2014). Moreover, according to Kensek (2015) a building information model contains data—that can 10

National BIM Standard website. https://www.nationalbimstandard.org. Accessed July 2018. Life cycle: “consecutive and interlinked stages of a product (or service) system, from raw material acquisition or generation from natural resources to final disposal Note: The life cycle stages include acquisition of raw materials, design, production, transportation/ delivery, use, endof-life treatment and final disposal” (ISO 14001:2015). Life cycle approach: “consideration of life cycle in decision-making or development processes” (ISO 20400:2017).

11

8.2 Building Information Modeling (BIM) for FM

215

be accessed, extracted and exported—useful for multiple uses during the life cycle of buildings with particular regard to the conduction and management phase and especially to the delivery of FM services. Although the multiplicity of definitions, it is possible to observe that they all highlight the same fundamental aspects of BIM—recognized as the main pillars of the BIM approach—such as: • the three-dimensional geometry of building objects and the related: ID data, geometrical data (dimensions: e.g. height, width, thickness, etc.) automatically included in the model, and non-geometrical data and information useful for FM practices (Fig. 8.7) (e.g. date of installation, warranty description, replacement cost, etc.) (Talamo and Bonanomi 2015; Alvarez-Romero 2014); • the life-cycle approach (applying LCA12 and LCC13 methods) to the building life cycle management; • the communication, collaboration and sharing of valuable information among all the stakeholders involved in the building process (during the whole building life cycle), thus across the AEC/FM sector (Jordani 2008); • the standardization of information management processes and procedures; • the possibility to improve decision-making, taking informed and aware decisions on the basis of the results of scenarios analyses or “what if” analyses that allow to investigate and assess a series of virtual alternatives, viewable on the 3D model. Hence, the BIM approach involves the creation and the continuous enrichment over time of a 3D digital representation of a building, including all data intrinsically present and accessible from the model, during the whole building life cycle (Miettinen et al. 2018; Miettinen and Paavola 2014; Gu and London 2010; Shen et al. 2010). Given the magnitude of the process of acquisition and management of information within the FM (Chap. 4) and the necessary resources involved in this continuous process which covers the entire phase of conduction and management of a building, the extension of the use of BIM to the building management phase (and the exploitation of its capabilities in relation to information management) has the potential to significantly support and optimize the collection and organization of the FM information need (Alvarez-Romero 2014; Nawari 2012).

The LCA (Life Cycle Assessment), as defined by the standard ISO 15686-5:2017, is a “method of measuring and evaluating the environmental impacts associated with a product, system or activity, by describing and assessing the energy and materials used and released to the environment over the life cycle” (ISO 15686-5:2017). 13 The LCC (Life Cycle Cost) is defined by ISO 15686-5:2017 as the “cost of an asset or its parts throughout its life cycle, while fulfilling the performance requirements” (ISO 15686-5:2017). Moreover, the standard ISO 15686-5:2017 defined the Life Cycle Costing as a “methodology for systematic economic evaluation of life-cycle costs over a period of analysis, as defined in the agreed scope” (ISO 15686-5:2017). 12

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Fig. 8.7 Example of geometric and non-geometric data and information useful for FM practices included in a BIM object. Source Talamo and Bonanomi (2015)

In particular, focusing on BIM as a tool to enhance the efficiency of FM processes, practices and activities at the strategic, tactical and operational levels, it is possible to highlight the following potentialities and related advantages: • Availability of a unified and reliable information base The BIM approach involves the creation of a unified database, represented by the model, shared among all the involved stakeholders of the building process during the building life cycle. With respect to FM, the model—created in the design stage for new buildings and continuously updated over time—represents the fundamental information base to analyze the building in the management phase with respect to: – characteristics, properties and features (e.g. identification, destination of use, location, dimensions, material, producer or manufacturer, date of installation, costs, warranty, legal and administrative conditions, technological characteristics and performance, current state of operation, etc.) of the building components (e.g. technical elements, equipments, furniture, etc.) and of the spaces (spatial or environmental units) that compose the building; – history of building components, including information about: occurred faults or anomalies and related causes, repair history (Hosseini et al. 2018) (list and description of all the performed maintenance interventions), estimated useful life, etc. Such an information base is fundamental in order to consequently plan (e.g. define achievable maintenance objectives, define and implement proper

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maintenance strategies,14 etc.) and program FM activities and interventions. Indeed, the availability of a unified and reliable information base—along with the possibility to extract data and information from the model in a usable format—is a crucial condition for an efficient FM practice (Kensek 2015; Parsanezhad 2015; Wang et al. 2013; Schevers et al. 2007). Of course this information base is useful also to allow the Client to write a proper ITT. Being aware of the general and detailed characteristics of its property, it would be easier for the Client to describe within the ITT its property to the potential Service Providers, to elaborate and formulate proper requests, and to estimate the costs of the requested services. • Building (and associated data) visualization BIM enables to visualize the building and its associated data at different level of detail according to the specific purposes through the location-aware 3D model of the building, its spaces and components. As discussed in the previous chapters of this book, the availability and accessibility to reliable (updated and validated) data and information in a timely manner is a crucial issue with respect to the FM service provision at all the management levels (strategic, tactical, operational). As Gallaher et al. (2004) stated, “an inordinate amount of time is spent locating and verifying specific facility and project information from previous activities. For example, as-built drawings (from both construction and maintenance operations) are not routinely provided and the corresponding record drawings are not updated. Similarly, information on facility condition, repair parts status, or a project’s contract or financial situation is difficult to locate and maintain” (Gallaher et al. 2004). Therefore, the possibility of visualize an accessible 3D building model populated with reliable information may represent a tool to overcome these obstacles. In particular, by way of example: – the ability of BIM to provide a data-rich visual model along with standard procedures—common to all the involved stakeholders (architects, engineers, managers, etc.) during the building process—for information management (e.g. rules for data entry, format for storing information, roles for data and information interoperability, etc.) allows to properly collect, store, extract

14

In order to reach a better understanding, the definitions of maintenance, maintenance management, maintenance objectives and maintenance strategies according to the standard BS EN 13306:2017 are here provided. Maintenance: “combination of all technical, administrative and managerial actions during the life cycle of an item intended to retain it in, or restore it to, a state in which it can perform the required function” (BS EN 13306:2017). Maintenance Management: “all activities of the management that determine the maintenance objectives, strategies and responsibilities, and implementation of them by such means as maintenance planning, maintenance control, and the improvement of maintenance activities and economics” (BS EN 13306:2017). Maintenance Objective: “target assigned and accepted for the maintenance activities” (e.g. availability, asset value preservation, etc.) (BS EN 13306:2017). Maintenance Strategy: “management method used in order to achieve the maintenance objectives” (BS EN 13306:2017).

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and use (for different purposes by the different stakeholders) building-related information through the whole building life cycle (Talamo and Bonanomi 2015), overcoming the inefficiencies of the current processes (often still manual) of information handover during the different phases of the building process. In this regard, the implementation of a BIM workflow (Fig. 8.8) (in the earliest phase of the building life cycle) enables the proper handover of data collected in the evaluation, design and construction phases and the following integration of FM-related data during the management phases (Love et al. 2014), preventing the loss of information throughout the building process; – the ability of BIM to offer a data-rich visual model may increase the efficiency of work orders execution. In facts, the model can provide useful information about the component that needs the intervention, including information on its location, the accessibility (its reach-ability) and its physical and technical characteristics. The availability of this information may: reduce the intervention time, speed up the arrival at the work site, speed up diagnostic analysis times, allow the operator to obtain the necessary tools and spare parts prior to arrival at the work site, etc.; – the visual model of the building along with the offered ability to filter data for FM staff use, may assist the planning and support the optimization of paths and routes for the FM staff (Kensek 2015).

Fig. 8.8 BIM workflow. Source Love et al. (2014)

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• Life Cycle approach The life cycle of a building can be roughly articulated into four broad life-cycle phases (Fig. 8.9): Plan and Design; Construction and Commission; Management phase (involving Operation, Maintenance and Renewal/ Revitalization); Decommission and Disposal (Gallaher et al. 2004). The operation and maintenance costs to be incurred in the management phase of a building tend to be the dominant costs of ownership of the building (Gallaher et al. 2004). Therefore, since most lifecycle costs are spent in FM (Miettinen et al. 2018; Lewis et al. 2010), thus the management phase of a building represents the main contributor to the building lifecycle cost (Patacas et al. 2015), the possibility—offered by BIM—of implementing a life cycle approach and of involving FM professionals from the earliest phases of the building process may generate multiple benefits in terms of reduction of operation and maintenance costs. In fact, the possibility to introduce right from the design phase important reflections about the future management phase of the building (exploiting the know-how of different professionals) allows to highlight possible critical future FM-related issues and to accordingly make conscious and proper design choices with respect to the LCC of the building. In particular, this approach allows to achieve the following interrelated benefits: – during the design phase, it is possible to select in a proper way, according to the future building management strategy, technological and technical solutions (components, technical elements, materials, etc.) characterized by high reliability,15 durability,16 maintainability17 and availability,18 in order to reduce the probability of degradations and faults and to limit the possible future O&M costs to be incurred in the management phase; – facility managers have the opportunity to contribute to the sustainability agenda by supporting the design of cost-effective solutions (with respect to FM) that require the employment of less resources in the operation and maintenance phase (such as needed cleaning actions; needed maintenance Reliability, as defined by the standard BS EN 13306:2017, is the “ability of an item to perform a required function under given conditions for a given time interval. (…) The reliability of an item could be calculated from the observed failures of it or/and a set of comparable items during a given time interval. (…) The forecasted reliability of an item expresses the level of confidence on it, estimated from the observed reliability of comparable items and the knowledge about its actual state” (BS EN 13306:2017). 16 Durability, as defined by the standard BS EN 13306:2017, is the “ability of an item to perform a required function under given conditions of use and maintenance, until the end of useful life” (BS EN 13306:2017). 17 Maintainability, as defined by the standard BS EN 13306:2017, is the “ability of an item under given conditions of use, to be retained in, or restored to, a state in which it can perform a required function, when maintenance is performed under given conditions and using stated procedures and resources” (BS EN 13306:2017). 18 Availability, as defined by the standard BS EN 13306:2017, is the “ability of an item to be in a state to perform as and when required, under given conditions, assuming that the necessary external resources are provided” (BS EN 13306:2017). 15

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Fig. 8.9 Life cycle phases of a building according to Gallaher et al. (2004). Source (Gallaher et al. 2004)

interventions; supply of energy, water; etc.). Moreover, choosing solutions characterized by high durability and reliability, indirectly contributes to the reduction of the environmental impact of the building (preserving resources); – facility managers could also provide, to the design team, feedback information (e.g. results of post occupancy evaluations) useful to improve the design of future buildings. • Analysis of scenarios BIM implementation enables decision-makers to extract relevant information— contained within the BIM model—and use them for the development of scenarios (performing “what if” analyses) for supporting decision making related to multiple FM-related issues. According to Rizzi (2009), a “what if” analysis is “a data-intensive simulation whose goal is to inspect the behavior of a complex system, such as the corporate business or a part of it, under some given hypotheses called scenarios. In particular, what-if analysis measures how changes in a set of independent variables impact a set of dependent variables with reference to a given simulation model; such a model is a simplified representation of the business, tuned according to the historical corporate data. In practice, formulating a scenario enables the building of a hypothetical world that the analyst can then query and navigate” (Rizzi 2009). The analysis of scenarios allows decision-makers to “evaluate beforehand the impact of a strategic or tactical move so as to plan optimal strategies to reach their goals” (Rizzi 2009). In this regard, the BIM model can be used as a simulation tool which is based on the information base integrated in the model. For instance, it can be used to perform simulations of the performance of the building, or for supporting the early identification of potential risks (Zou et al. 2015; Liu et al. 2014), for evaluating and assessing costs of different FM strategies, etc.

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• Information interoperability BIM implies information interoperability. According to Poljanšek (2017), interoperability can be defined as a “characteristic of a computer system to work with other computer systems in either implementation or access without any restrictions. In BIM context, a supportive way of interoperability is machine readable information facilitating communication and collaboration. It is a basic requirement to allow interdisciplinary work in the construction industry. (…) To achieve semantic interoperability, both sides must refer to a common information exchange reference model. (…) Interoperability imply open standards” (Poljanšek 2017). To date, the Industry Foundation Classes (IFC)19 schema represents the open international standard (ISO 16739:2013) for data sharing in the construction and FM industries. By specifying the conceptual data schema and the exchange file format for BIM data, the standard enables to achieve the efficient collaboration among the stakeholders of the building process, as well as the interoperability of tools, applications and software (Talamo and Bonanomi 2015). Moreover, with respect to information for FM, the Construction Operations Building Information Exchange (COBie) standard is a data schema able to collect and store the FM-related information during the management phase of a building. Furthermore, COBie represents also an effective data schema for the integration between BIM software and FM Information Systems, as CAFM (Computer Aided Facility Management) and CMMS (Computerized Maintenance Management Systems), in order to implement a bidirectional exchange of information (Talamo and Bonanomi 2015). The potential for streamline the current FM practices and the FM-related information management, made available by the information interoperability capabilities offered by BIM, can lead to a reduction of the cost of inadequate interoperability20 that has characterized—and in most of cases still characterizes— the management of FM service provision. Despite the benefits of BIM adoption and integration within FM processes are widely recognized, the applications are still at an infantile stage and they are limited to an experimental scale (Codinhoto and Kiviniemi 2014; Arayici et al. 2012). Indeed, there are some key challenges to overcome, including for instance:

19

According to BuildingSmart, the developer of the IFC Industry Foundation Classes (ISO 16739), IFC represents “a data schema for sharing construction and facility management data across various applications used in the AEC/FM industry domain. It is an object-oriented data schema based on class definitions representing the objects (such as building elements, spaces, properties, shapes, etc.) that are used by different software applications used in construction or facility management project” (BuildingSmart website. http://www.buildingsmart-tech.org/specifications/ ifc-overview. Accessed July 2018). 20 According to Gallaher et al. (2004), the “cost of inadequate interoperability is quantified by comparing current business activities and costs with a hypothetical counterfactual scenario in which electronic data exchange, management, and access are fluid and seamless. This implies that information need only be entered into electronic systems only once, and it is then available to all stakeholders instantaneously through information technology networks on an as-needed basis” (Gallaher et al. 2004).

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• bringing together different stakeholders, belonging to different phases and sections of such a fragmented industry as the AEC-FM, is not an easily achievable task for Real Estate owners and Facility managers (Naghshbandi 2017); • Real Estate owners and Facility managers have to invest in BIM technology (cost of implementation; cost of know-how; cost of management; cost for stakeholders coordination; etc.) although the benefits of BIM integration in FM have not yet seen a complete validation and they still remain in a phase of experimental analysis; • the integration of BIM in FM is meaningful and beneficial only when there is a coexistence of conditions, such as: – alignment of BIM-FM integration with the organizational objectives of the Client; – the Client must be ready for change and be open to incorporate new practices and new competences/skills; – interoperability issues related to data sharing and data transfer are solved effectively (Naghshbandi 2017; Ghosh et al. 2015); • to date there are some still open issues related to the organizational and legal structures of a BIM-FM integration, such as: definition of roles of all the stakeholders—and their interactions—involved in BIM processes; allocation of authorities and responsibilities for data input, data output and data transfer, etc. (Talamo and Bonanomi 2015); • shortage of best practice and guidelines, along with the lack of validated contractual frameworks for the implementation of BIM in FM (Naghshbandi 2017; Talamo and Bonanomi 2015). Despite these challenges and still open issues, the potential of BIM in improving the management of information related to the provision of FM services is now widely recognized and it is the subject of continuous analyses and researches, aiming at the validation and standardization of such integration and related practices.

8.3

Big Data and Internet of Things (IoT) for Advanced FM Information Management

The current innovations in the field of Information and Communications Technologies (ICTs), the new paradigms of Big Data and Internet of Things (IoT) and the recent developments in Information Management can be seen as scenarios of change for the FM practice, in relation to cognitive and decision-making processes. Since the fundamental and strategic role of the knowledge bases managed through information systems is being increasingly recognized by various industry players, the application of such information technology within FM practices is gaining an increasingly attention. In facts, the advent of new

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ICTs, among all the IoT, makes it possible to collect information on actual conditions, current operational status and performance of the building and its components in real-time from sensors and intelligent devices installed within the buildings, achieving a greater awareness and a greater understanding of the building itself and of the performance of services delivered by/to it. Thanks to this dynamic information base, appropriate strategies (e.g. maintenance strategies) can be put in place, aiming to a significant reduction of management costs and to performance improvements. In order to reach a better understanding of the potential of the integration of this technologies in FM, an explanation of the concepts of IoT and Big Data is below provided and discussed. The term Internet of Things (IoT) was first introduced and discussed in 1999 by Kevin Ashton, the executive director of the Auto-ID Lab at MIT at the time (Ashton 2009). Ashton first describes IoT as a revolutionary technology that has the potential to open the door to a new way of monitoring and interacting with the surrounding environment. Since the 2000s, the IoT has gained more and more attention both in the academic field and in the industrial field and, in 2005, the term Internet of Things was formally recognized and internationally adopted by the International Telecommunication Union (ITU)21 in the ITU Internet of Things Report 2005. In the 20th Tyrrhenian Workshop on Digital Communications, held in 2009, the IoT was defined as the pervasive presence within the environment that surrounds us of a multiplicity of “things”, such as RFID tags, sensors, actuators, etc. which, by using unique addressing schemes, are able to work together and cooperate with other neighboring smart objects, acquiring and collecting huge amounts of data (Big Data) and sharing information, in order to achieve common objectives and goals (Giusto et al. 2010). Over the years, many definitions of the concept of IoT have been proposed both in the academic and in the industrial field. In 2012, ITU-T has published a Recommendation, the Y.2060, in which it defines IoT as a “global infrastructure for the information society, enabling advanced services by interconnecting (physical and virtual) things based on existing and evolving interoperable information and communication technologies. (…) Through the exploitation of identification, data capture, processing and communication capabilities, the IoT makes full use of things to offer services to all kinds of applications, whilst ensuring that security and privacy requirements are fulfilled” (ITU 2012). This definition of IoT, that is currently the most widely recognized on the global scale, highlights how IoT is a global digital network infrastructure based on interoperable communication standards, which is able to give “things” unique 21

The International Telecommunication Union (ITU) is the United Nations agency specialized in information and communication technologies (ICTs). In particular, The Study Groups of Telecommunication Standardization Sector of ITU (ITU-T) is dedicated to the development of technical standards on ICTs. ITU-T “assemble experts from around the world to develop international standards known as ITU-T Recommendations which act as defining elements in the global infrastructure of ICTs” (ITU website. https://www.itu.int/en/ITU-T/about/Pages/default. aspx. Accessed July 2018).

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identities and the ability to communicate and interact with other things and people through intelligent technological interfaces. The concept of IoT is strongly connected to the concept of Big Data. In fact, the countless IoT sensors and devices collect and generate a considerable amount of data, commonly recognized as Big Data because of their peculiar characteristics. The so-called Big Data, in fact, can be defined as data characterized by high volume, variety, velocity, variability and value (Table 8.4), which require innovative and sustainable forms of information processing in order to increase and enrich the knowledge bases and, consequently, optimize decision-making processes. Within this scenario, a role of great importance is therefore covered by devices22 and sensors. According to Hunter et al. (2010), a sensor can be defined as a “sensing element with embedded intelligence. The sensor signal is fed to the microprocessor, which processes the data and provides an informative output to an external user. (…) A complete self-contained sensor system includes the capabilities for logging, processing with a model of sensor response and other data, selfcontained power, and an ability to transmit or display informative data to an outside user” (Hunter et al. 2010). Thus, a sensor has the task of measuring a parameter by generating an impulse (electrical, digital, etc.) proportional to the measured quantity and transmitting the informative output (data) to users. Therefore, the traditional measuring instruments of quantities (such as, for example, thermometers for measuring the temperature, barometers for measuring the pressure, etc.), if inserted into a digital network, acquire the typical characteristics of sensors, in other words they become devices capable not only of detecting a parameter, but also of generating a digital signal and transmitting it to a local computing unit for processing it or sending it to a remote system via network (e.g. Internet), to be aggregated and processed along with other data coming from different sources. In particular, in digital networks, the sensor complement is the smart transducer, that is an intelligent transducer that integrates the hardware part (sensor system), with the software part of digital signal processing, diagnostics and communication consisting of a processing unit and a communication interface. With respect to the FM scenario, the capabilities offered by these technologies may represent a driver for the innovation of the current FM practices in relation to cognitive and decisional processes. The application of Big Data and IoT paradigms to the scale of the building can be translated into a structured approach to data management through the implementation of a distributed and disseminated system of IoT sensors and devices, which are able to detect in real-time a plurality of parameters, in the form of data flows. Such data, if properly contextualized and analyzed, can describe the behavior of the building and its parts in relation to different areas of interest (e.g. maintenance, energy, occupancy, etc.). At the present

22

According to the Recommendation Y.2060 by ITU-T, with regard to the IoT, a device is defined as “a piece of equipment with the mandatory capabilities of communication and the optional capabilities of sensing, actuation, data capture, data storage and data processing” (ITU 2012).

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Table 8.4 The “Vs” of big data “V”

Big data features

Volume

High volume generated by both the considerable size (orders of magnitude: Petabyte, Exabyte, etc.) and the high amount of data High variety referred to: • multiplicity and heterogeneity of sources (e.g. sensors, RFID tags, logs or accesses to public web, social media, social networks, databases and data storage systems, business applications, etc.); • typologies and shapes of data: digital documents (e.g. txt, PDF, Excel, ppt, HTML, XML, etc.); printed or scanned paper documents (e.g. from archives); images, video, audio, live streams, etc. (from media); information from databases and data storage systems (e.g. SQL, NoSQL, Hadoop, doc repository), etc.; • diversity of possible data formats: structured data (numeric, strings, or alphanumeric), semi-structured data (HTML language or XML files), and unstructured data (free text, videos, voice messages, images, etc.) High velocity referred to: • data in motion (fast data streams transmitted from one source to one or more destinations through a communication network); • velocity of data production, collection and storage (data streams are instantly generated and, then, collected and stored at high speed in extremely fast times); • data lifetime (period of time in which data, starting from their generation, remain significant and therefore, have the right to remain stored); • real-time data analysis (data can be extracted, aggregated, processed and analyzed in real-time) Variability may refer to changes in: • data semantic (change of the meaning of data according to the context); • data format (variable data structure); • data quality (variable data interpretation according to different users) High value of the information asset, related to: • forecast abilities (predictive Big Data analyses for forecasting outcomes of processes, possible future events, etc.); • optimization of decision-making processes; • increasing of business value;

Variety

Velocity

Variability

Value

time, it is already possible—by means of sensor systems, RFID (Radio-Frequency Identification)23 tags (Khast 2017) and other IoT devices—to collect data concerning different aspects of the built environment, opening up new possibilities for the monitoring of the environmental units of buildings (Talamo et al. 2016). Indeed, several devices and sensors for the real-time monitoring of key parameters of the environmental units of a building (such as temperature, humidity, flow of energy

According to Khast (2017), RFID “stands for Radio Frequency Identification and it is the concept of identification through radio frequency. It is a method of transmitting data via radio waves in magnetic fields wirelessly and without contact. This technology is used for automatic identification of, for example, goods, objects, and people” (Khast 2017).

23

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and people, air quality, noise pollution, etc.24) nowadays are available on the market (Table 8.5). With regard to the employment of these devices within buildings, the wireless network (wireless sensor network—WSN25) seems to be the most suitable typology of network, due to its flexibility and to the absence of physical limits (e.g. wiring and cabling) that characterize this solution. Moreover, this kind of network ensures a good scalability of the sensor system for monitoring. By analyzing and interpreting the curves of values of the parameters (Table 8.5) detected by IoT devices and sensors, facility managers have the possibility to outline patterns and to identify trends in the operation of the building and its parts, as well as in the performance of the FM services provided by/to the building. This additional information base can support the FM-related decision-making processes: the analysis of the detected Big Data represents an advanced supporting information tool aimed, for instance, at calibrating future choices and investments. This information asset may represent a significant driver for the improvement of cognitive and decision-making processes. In particular, data collected in real-time by sensors about various aspects of the building, if also integrated with static data (e.g. data from traditional databases), can be useful for multiple purposes; for example: • real-time detecting of any interruptions in service delivery or failures of critical equipment or systems (fault detection analysis); • moving from calendar-based maintenance to more advanced maintenance strategies, such as real-time condition-based maintenance and predictive maintenance; • making more efficient the supply chain management for maintenance activities; • etc. In particular, the employment of ICTs allows to base the building management on data-centric approaches, making it possible to collect, in real-time, feedback information about the conditions, operating status and real-time performance of the building components.

24

Among the many measurable quantities, some are commonly detected through traditional measuring instruments (thermometers, barometers, hygrometers, etc.) which, however, acquire data transmission and communication capacity since they are coupled with intelligent transducers and they are inserted into networks (e.g. WSN network via internet). Other parameters, on the other hand, are detected through innovative technologies, such as RFID (Radio Frequency IDentification), GPS (Global Positioning System), etc. 25 A wireless sensor network (WSN) can be described as a network whose nodes are made up of sensors that are able to gather information from the surrounding environment and to transfer them —through different means of communication—to the computational nodes that can locally use this information. Otherwise, this information can be transmitted by means of a gateway to other networks. In this way, the sensors of a network can cooperate in order to monitor and control a defined area of observation.

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Table 8.5 Detectable parameters and related devices and sensors Parameter/s

Devices and sensors

Temperature (°C); (K)

Digital thermometers, calorimeters, etc. (these contact or contactless sensors measure the amount of heat that is present in a system) Hygrometers, moisture sensors, etc. (these sensors measure the degree of humidity of air or mass—e.g. absolute humidity, relative humidity, etc.—by detecting the amount of water vapor present in them) Barometers, piezometers, diaphragms, etc. (these sensors measure the force exerted by liquids or gases, since the pressure is calculated as force per unit of surface) RADAR, electric eye, infrared camera, etc. (occupancy is detected by presence sensors which generate a signal when they detect the presence of people and/or objects. Motion is sensed by kinetic sensors which detect the movement of people and/or objects) Outdoor locations: GPS (Global Positioning System) sensors provide accurate information on the location and the speed of a receiver on the ground in an external environment Indoor locations: radio frequency-based RFID (Radio Frequency Identification) technology, infrared (IR)-based positioning systems, triangulation and fingerprinting methods based on the use of radio frequency (RF) technologies, etc. Accelerometers (linear sensors that measure the speed of the linear motion); gyroscopes (sensors that measure the angular velocity of rotational motions and their inclination with respect to the reference axes); etc. Flow-meters, static gauges, displacement gauges, etc. (these sensor are able to measure the flow or the volumetric flow rate or the mass flow rate) Microphones, geophones, hydrophones vibrometers, stroboscopes, etc. (these sensors measure—directly or indirectly—sound and vibration) Visible light: photo-detectors, photocells and photometers (which measure the luminous intensity (candle/m2)) or luxmeters (which measure the illumination (lux)) Non-visible light: IR (infrared) detectors, etc. Chemical sensors or gas sensors (e.g. detectors of oxygen, carbon monoxide, carbon dioxide, hydrogen, etc.) detect the concentration of gases and gaseous chemical mixtures within an environmental system

Humidity (%)

Pressure (Pa); (Bar)

Occupancy and motion

Location

Speed (m/s) and acceleration (m/s2)

Air-flows (m3/h) and water-flows (l/h) Sound and vibration (Hz)

Light (candle/m2); (lux)

Gases and gaseous chemical mixtures (%)

Focusing on Operation and Maintenance (O&M), the mainly recurring maintenance strategies in the current FM practices are: • corrective maintenance. It is performed after the occurrence of a fault. This strategy often involves high costs, long intervention times and possible long intervals of non-production or interruption of core activities;

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• preventive maintenance. It is performed at predetermined regular intervals, according to an established time schedule (calendar), in order to reduce the probability of degradation or failure of the operation of a given component. Using this strategy, faults can be intercepted before they occur. This model reduces downtime but it can lead to an over-utilization of resources (economic, time, people, etc.). In fact, in order to be effective, the maintenance program should attribute high frequencies to interventions and activities (useful for intercepting the forms of deterioration in time). This happens because the interventions and activities are programmed independently from the current conditions of the components themselves. As a results, this model often involves the performing of interventions on components that are not actually affected by degradation or faults and which are still far from the end of their useful life. In light of this premise, the IoT application and integration within maintenance management allows to define new strategies useful to: contain costs, reduce waste of resources and limit downtimes of systems. These benefits are achievable thanks to the continuous and dynamic monitoring of the building, attainable by employing a distributed system of sensors and IoT devices connected to an Information Platform (which includes a dynamic database and a data analysis software). This technological infrastructure allows to collect and process Big Data useful in order to know, with accuracy and in real-time, the state of operation and use of the building components. The main achievable innovative ICT-based maintenance strategies are condition-based maintenance and predictive maintenance, in particular: • condition-based maintenance. It can be implemented performing descriptive analyses of the collected real-time data concerning several different aspects of the operations and functions of the building. Descriptive analyses analyze present and past events (at different levels of detail depending on the purposes) to delineate the curves of values of the parameters of interest, from which it is possible to extract information and indications useful for appropriately approaching future activities. Condition-based maintenance allows to perform timely interventions when abnormal conditions (that may lead to a drop in performance or to a component failure) occur. In this way, the periodic inspections and checks of the components will no longer have any reason to be, indeed the interventions will be performed based on the real operating profile of the components and the work orders will consequently be generated in real-time. In this way, the maintenance activities will be aligned with the real and actual needs of the building, avoiding unnecessary costs and limiting the use of resources; • predictive maintenance. It introduces the possibility to improve preventive maintenance knowing the real operating conditions of the building components. Maintenance interventions will no longer be performed at regular and periodic intervals, instead their frequencies will be defined using appropriate mathematical models in order to identify the residual time before the failure of components. Thus, in contrast to traditional preventive maintenance, the maintenance program is not determined by a prescribed scheduled timeline, but it is developed and updated over time according to the real condition of building components

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(outlined analyzing data collected by IoT sensors). In particular, this strategy is based on predictive analyses,26 which aim to recognize in advance the occurrence of deterioration or failures in order to: allow the timely planning of interventions; avoid interference with activities in progress; give time to maintenance operators to acquire in advance the necessary tools or spare parts. By performing a predictive maintenance, it is possible to achieve benefits such as: maintenance costs containment; reduction of resource expenditure; reduction of downtimes; etc. From a strategic point of view, the Client, by integrating ICTs within its FM practice, can outline current and future trends (related for instance to: building behavior, service performance, costs and expenditures, sustainability risks, etc.), supporting decision-making processes at strategic, tactical and operational levels. From the side of Service Providers, the implementation of IoT within their business may lead to innovate the range of offered services and to strengthen their competitive advantage, defining a differentiated offer. With regard to ITTs for FM provision, new contents related to ICTs integration should be added and argued by the Client during the drafting of ITTs. Indeed, the new possible cloud-based (or network-based) services (Table 8.6) made available by IoT technologies, along with their capabilities—including cloud computing and storage, descriptive and predictive analytics, inventory and network optimization tools, automation, automatic recognition, etc. (BS 8572:2018)—need to be properly discussed in the ITT by the Client in order to clearly state the related objectives and requests and to avoid grey areas freely interpretable by potential Service Providers. In light of this premise, the main ICT-related topics that the Client should address in the ITT are related to the use of an IoT Platform (and its capabilities with respect to FM information management) and to the consequent involvement of the IoT Provider in the FM supply chain, in particular: • IoT Provider as a new player of the FM service supply chain. The provider of the technological infrastructure and of the digital and cloud-based services will be one of the key players within the FM service provision. In particular, according to the standard ISO/IEC 30141:2018, the role of the IoT Provider is to manage and operate IoT services, providing also network connectivity. Additionally, the IoT Provider is responsible for the management of the security of the network connectivity (ISO/IEC 30141:2018). Moreover, the standard identifies some sub-roles of the IoT Provider, namely: the IoT business manager; IoT service delivery manager; IoT system operator; IoT security analyst; IoT operations analyst; IoT data scientist; IoT chief privacy officer (CPO)/data protection officer (DPO); IoT network & infrastructure security manager; IoT privacy analyst/privacy engineer; IoT safety officer. Each of these actors has its own role and its own set of functions and activities to perform and guarantee during the FM contract period (Table 8.7).

26

Predictive analyses are aimed at predicting the values of the parameters of interest, through the use of algorithms, data modeling tools and scenario simulation.

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Table 8.6 Use case scenarios of IoT application in service management Use case

Brief description

Involved actors

Remote management of large equipment in a plant

An IoT system using cloud services is deployed by the equipment manufacturer. This system is connected to all the manufacturer’s deployed equipment in different plants. In this set up, the operator from the manufacturer remotely monitors the equipment. If an event or an alarm occurs, the operator could act on it remotely; for example, by sending the repair person, ordering spare parts, etc. This use case describes an IoT platform being used to monitor motors in a production line to enable preventative maintenance; sensors in the customer device are connected to improve automation and push processes in the supply chain. Predictive maintenance using cloud services enables operations, manufacturing, production and maintenance personnel in asset-intensive industries to use predictive analytics to improve asset availability, increase throughput, minimize unplanned outages, and reduce maintenance costs This use case describes an IoT-based communication framework with a common information model which facilitates the development of a demand response (DR) energy management system for industrial customers. It also describes an IoT-based energy-management platform based on a common information model and open communication protocols, which takes advantage of integrated energy supply networks to deploy DR energy management in an industrial facility

• Operator • Repair personnel • Procurement personnel • IoT system

Real time motor monitor

IoT-based energy management system for industrial facilities

• Technician • Supervisor • Production line motor • Motor sensors • IoT gateway • Device registry • Predictive maintenance and quality application • Production line control screen

• Production planner or facility manager • Utility power station • Utility meter • Energy manager system • Energy management agent • Monitoring and control system • Meter • Non-shiftable equipment • Controllable equipment • Shiftable equipment • Energy storage system (continued)

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Table 8.6 (continued) Use case

Brief description

Involved actors

IoT security threat detection and management

Cloud service are able to gather large amounts of data regarding the IoT service, endpoint, status, utilization and conduct large scale analytics. This data gathered can be used for centralized threat detection and mitigation through intelligent security policy enforcement

Water plant management

Application of IoT technology for the acquisition of complex information from power devices, mechanical devices, firefighting equipment, safe guarding, running environment, and personnel entry and exit positions, and to perform system analysis, multiple fusion and logic decisions such as alarming, controlling and other action utilizing algorithms from a library

• IoT cloud service provider • Telecom network • Security policy controller • Data analytics engine • Gateways • IoT endpoint • Electrical and mechanical equipment • Temperature and moisture sensors • Water immersion sensors • Smoke sensors • Vibration sensors • RFID tags and readers • Alarm controller • Wind generation controller • Local area network • Wireless base station • IoT gateway • Data filtering and fusion • Data analysis and diagnosis system • Resource access interface • Resource database • Online monitoring system • Assistive controlling system • Operation system • Maintenance system • System manager

Adapted from ISO/IEC TR 22417:2017

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Table 8.7 Sub-roles of the IoT provider according to the standard ISO/IEC 30141:2018 IoT provider IoT business manager

IoT service delivery manager

IoT system operator

IoT security analyst

IoT operation analyst

IoT data scientist

IoT network & infrastructure security manager IoT chief privacy officier/data protection officier

IoT PRIVACY analyst/privacy engineer IoT safety officier

Adapted from ISO/IEC 30141:2018

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Discover new business Approve solution proposal Transform business Track compliance to regulations Manage SLA with client Manage customer services Manage, plan and maintain service Manage service financial aspects Run system operation Monitor services Manage system and services; Manage devices at systems Provide customer services Generate system report Create security relevant rules Administrate service security Detect threats Prevent breaches Ensure compliance through audits Analyse system behavior Ensure service availability Improve service performance Generate service and billing report Build analytic algorithms Set-up analytic services Use device data for analysis Analyse and monitor business Provide business deep insight Provide and maintain network connectivity Security management Multi-tenancy and tenant security management Advise organization of PII (Personally identifiable information) Monitor implementation of policies Training on PII Monitor personal data breaches Response to request from regulatory authorities Propose and evaluate solutions Review risk assessment and compliance Integrate privacy into the lifecycle Ensure safety of IoT-Users and system operators Document IoT safety policies Perform IoT system safety investigations Perform accident investigations Evaluate safety-related regulatory compliance

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Therefore, the Client should clearly state, in the ITT, its requests including the specification of the requested sub-roles of the IoT Provider and the related functions to guarantee during the service delivery. Moreover, the Client should allocate to each sub-role the related authorities and responsibilities, as well as the available dedicated resources. In addition, the Client should also clarify the nature of the relationship and interaction between the IoT Provider and the traditional FM Service Provider/s, highlighting boundaries and interface areas, as well as defining procedures for the mutual transfer and sharing of data and information. • Shifting from static Information Systems to dynamic network-based IoT Platforms. The traditional concept of Information System will change consequently to the introduction of a network approach to information management, according to which the sets of data and information (static and real-time coming from sensor monitoring)—included into a dynamic database (always updated)— are shared among all the stakeholders involved in the FM service provision, at the three levels of the management (strategic, tactical and operative). Therefore, the concept of Information Platform will increasingly take place. According to Zdravković et al. (2016) an IoT platform can be defined as a multi-layer technology (Fig. 8.10) that “enables connecting the machines and devices and then acquisition, processing, transformation, organization and storing machine and sensor data” (Zdravković et al. 2016). As regards the characteristics of an IoT Platform, the standard ISO/IEC 30141:2018 proposes a list of key features of IoT systems, focusing on: IoT system trustworthiness characteristics, IoT system architecture characteristics and IoT system functional characteristics (Table 8.8). In particular: • the trustworthiness can be defined as the: “degree of confidence a stakeholder has that the system performs as expected with characteristics including safety, security, privacy, reliability and resilience in the face of environmental disruptions, human errors, system faults and attacks” (ISO/IEC 30141:2018); • the IoT architecture, as defined by the standard ISO/IEC 20924:2015, can be meant as the set of “fundamental concepts or properties of a system in its environment embodied in its elements, relationships, and in the principles of its design and evolution” ISO/IEC 20924:2015. In particular, the term “IoT Architecture” commonly refers to the multi-layered structure of IoT platforms (Fig. 8.10). With regard to the implementation of an IoT Platform, the Client should include in the ITT27—at least—the following contents and requests: • the Client should provide all the information useful to describe the existing information system, specifying functions, objectives, covered areas of interests and technical characteristics of each module. Hence, it has to request to the IoT 27

The acquisition and management of the IoT Platform could be object of a individual and independent ITT or it could be a part of the ITT for the FM service provision.

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Fig. 8.10 Functional structure of an IoT platform. Source ISO/IEC 30141:2018

Provider an analysis of the already present modules in order to understand if and how to incorporate within the new platform all the functions carried out by the existing software that will be substituted; • the Client should express its expectations, needs and requirements regarding the architectural and functional characteristics, capabilities and functions of the new IoT Platform, as well as regarding the modalities of development, gradual implementation and use of the platform. In doing so, the Client could also refer to specific reference standards; • the Client should specify who will be the buyer of the platform and if the platform will be selected in the tendering phase or in the mobilisation phase (after the awarding) when the awarding IoT Provider and the Client can jointly perform and in-depth analysis of the internal and external context of the Real Estate and the related FM service provision;

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Table 8.8 Characteristics of IoT systems Category

Characteristics

IoT system trustworthiness characteristics

• • • • • • • • • • • • • • • • • • • • • • • •

IoT system architecture characteristics

IoT system functional characteristics

• • • • • • • •

Availability Confidentiality Integrity Protection of personally identifiable information Reliability Resilience Safety Composability Functional and management capability separation Heterogeneity Highly distributed systems Legacy support Modularity Network connectivity Scalability Shareability Unique identification Well-defined components Accuracy Auto-configuration Compliance Content-awareness Context-awareness Data characteristics (volume, velocity, veracity, variability, etc.) Discoverability Flexibility Manageability Network communication Network management and operation Real-time capability Self-description Service subscription

Source ISO/IEC 30141:2018

• the Client should specify the roles and responsibilities of the IoT Provider within the FM service provision, in particular it has to state if the IoT Provider will: – only deliver the technological infrastructure; – deliver and maintain (e.g. maintenance interventions on as-needed base) the technological infrastructure; – deliver, maintain and continuously manage the information platform and the involved data and information; – deliver, maintain and continuously manage the information platform and the involved data and information, and manage the interface with other existing/ new applications (e.g. existing modules of software for maintenance or energy management, etc.) etc.

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Moreover, also those ITT reading keys related to the management of information need to be reviewed according to this new concept of Information Platform, as for instance: • Inventory Process and Registry System. The Client should specify how the inventory process could be improved by the adoption of IoT sensing technologies (e.g. what devices and sensors need to be installed, how the information flow has to be managed, categories of information to be adopted for the registry, quantity and types of technical elements to be registered, etc.), or it could ask for proposals to IoT Providers about how to orient and control the continuous process of retrieval, selection, validation, acquisition, collection and updating of real-time data concerning various aspects of the building/s. • Feedback data and information. The Client can request the development of a historical and statistical information base, along with capabilities of Big Data analysis (e.g. software for descriptive and predictive analyses, visualization tools, etc.) for the identification of possible current and future trends and patterns and for the prediction of events with consequent improvement of risk management practices and optimization of FM-related decision making processes. • Service Monitoring and Control. The IoT capabilities could enable to reach an increased accuracy in the assessment of the performance and quality of FM services. The traditional SLA and KPI systems can become dynamic, indeed KPIs can be efficiently measured and in real-time, setting the basis for new remuneration systems and contractual schemas. Moreover, new SLAs and KPIs for the monitoring and control of the digital cloud-based services offered by the IoT platform should be added (Table 8.9). The Client could define itself a set of SLAs and related KPIs and include it in the ITT or it could state the SLAs in the ITT and request to the potential IoT Providers for a proposal of KPIs, to be then agreed together by both the contracting parties in the mobilization phase. However, if on one hand the ICTs integration opens up to innovations in the field of FM, on the other side it may give rise to risks (e.g. social and legal, environmental, health and safety, security, etc.) related to transformations in service delivery. Therefore, in relation to the drafting of ITTs, the Client should be aware of the changes in working methods and their implications and effects on FM service delivery. In particular, the Client should: • firstly, perform a risk assessment in order to “determine the practical implications of managing innovation and transformation in service delivery against the anticipated benefits” (BS 8572:2018). Due to the novelty of the topic, the Client could propose a joint arrangement to the IoT Provider to manage innovation and transformation. Moreover, when doing so, the Client should “ensure that appropriate provisions are incorporated in the service level agreement to accommodate such an arrangement and the changes that might be necessary to the associated service specification” (BS 8572:2018).

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Table 8.9 Examples of KPIs for the monitoring and control of IoT-based services by Frey et al. (2013) Category of KPIs

KPI

Description

Network service KPIs

Round trip time

Time of a network packet to travel from sender to receiver and back. Specifies how long the transmission of one packet needs within the network limits. Usually measured in milliseconds Time taken by a request until the arrival of the response at the requesting interface Percentage of lost packets in the total of transmissions Gross capacity of the connection. Amount of data which cloud be transmitted within a time unit. Here, not the actual capacity is specified but the rated maximum capacity Number of transmitted data per time unit. Only the pure transmitted data is taken into account, thus the capacity available to the user is specified. Measured in Mbit/s or Gbit/s Proportion of the throughput to the bandwidth. Here, it can be seen how busy the connection is Time interval between submitting a packet and arrival at its destination Time interval between sending a request to the storage and the arrival of the response at the output interface. Usually measured in milliseconds Number of transmitted data per time unit. Here, a specified amount of data is transferred to the storage and measured the needed time from a given point. The size of the data set and package sizes are important factors for the validity of this measure In contrast to the throughput, the average reading speed usually refers to an individual hard drive. This value indicates how fast data can be read from the hardware This value thus indicates how quickly data can be written from a source to the hardware Number of possible random input/output operations per second for different block sizes. The higher the IOPS value, the faster the disk. This value is also important to measure how many concurrent accesses can be handled by the system (continued)

Response time Packet loss Bandwidth

Throughput

Network utilization

Latency Cloud storage KPIs

Response time

Throughput

Average read speed

Average write speed Random input/outputs per second

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Table 8.9 (continued) Category of KPIs

KPI

Description

Sequential input/outputs per second Free disk space

Number of possible sequential input/output operations per second for different block sizes Usable free capacity in % of the total capacity or remaining free space in MB, GB, or TB. This indicator can be very useful since thus it can be defined how much memory must always be at minimum available on the system Type of provisioning where at “thin provisioning” the client gets the storage not permanently assigned but it is dynamically allocated at runtime Time, the provider needs to provide a defined amount of data volume growth The time interval in which a backup is performed. Here, an exact specification is given to the provider along with the backup type and a description of the scoop Definition of the backup type, e.g., full backup or incremental backup. Backup types can relate to individual systems or whole service alliances Specification of the minimum and maximum time from the failure of a storage, to the successful restore from an existing backup Specifying the media where the backups are stored, such as magnetic tapes. Indication of media breaks to store backups on different media types Interval and number of archived backups. Specification of when backups are archived and how long they are kept and how these are to be terminated Number and type of CPUs used by the virtual machine

Provisioning type

Average provisioning time Backup and restore KPIs

Backup interval

Backup type

Time to recovery

Backup media

Backup archive

Infrastructure as a service KPIs

VM (virtual machine) CPUs (central processing units) CPU utilization

VM memory

Memory utilization

Proportion of CPU resources in use to the total number of resources provided per time unit. Also the CPU queue, which indicates the number of open requests to the CPU should be considered Amount and type of the provided memory. This may relate to physical memory or virtual memory. Information about the overbooking of allocated memory resources should be stated Proportion of the memory resources used to the total amount of memory made available to the VM (continued)

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Table 8.9 (continued) Category of KPIs

KPI

Description

Minimum number of VMs

Guaranteed number of the provided VMs with the specified specs stated in the previous points Time that is needed to move a VM from two predefined resources Maximum time in which a customer has no access to migration to the resource Retention of log data. Specifies how long log data to be stored by the provider and specification of what level to be logged

Migration time Migration interruption time Logging

Adapted from Frey et al. (2013)

• secondly, the Client has to be aware of some (economic and social) implications which may negatively affect the quality of the FM service provision if not properly analyzed and included as requests, requirements and/or specifications in the ITT, namely (BS 8572:2018): – social and ethical issues arising from the decision to use IoT devices and infrastructure; – nature of the interface between the IoT platform/devices and operative staff; – responsibility for damage or disruption to the normal operation of IoT devices and infrastructure; – restrictions in interoperability required to assure security of data and the protection of building occupants, users and visitors; – individual rights of sensor-gathered data about staff, users, etc.; – ownership of data generated during service delivery; – arrangements for protecting intellectual property between the two contracting parties; – criteria useful for defining and assigning roles and responsibilities of information; – responsibility for the accuracy, reliability and security of data from sensors and devices; – measures to prevent unauthorized access to data and the control of remote sensors, devices and systems.

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References Alvarez-Romero SO (2014) Use of building information modeling technology in the integration of the handover process and facilities management. Doctoral dissertation, Worcester Polytechnic Institute. http://web.wpi.edu/Pubs/ETD/Available/etd-090914-170046/. Accessed July 2018 Arayici Y, Onyenobi T, Egbu C (2012) Building information modelling (BIM) for facilities management (FM): the mediacity case study approach. Int J 3-D Inf Model (IJ3DIM) 1(1):55–73 Ashton K (2009) That ‘internet of things’ thing. RFID J 22(7):97–114. http://www.itrco.jp/ libraries/RFIDjournal-That%20Internet%20of%20Things%20Thing.pdf. Accessed July 2018 Codinhoto R, Kiviniemi A (2014) BIM for FM: a case support for business life cycle. IFIP International Conference on Product Lifecycle Management. Springer, Berlin, Heidelberg, pp 63–74 Edirisinghe R, Kalutara P, London K (2016) An investigation of BIM adoption of owners and facility managers in Australia: institutional case study. In: COBRA 2016, Royal Institution of Chartered Surveyors, pp 1–10 Frey S, Reich C, Lüthje C (2013). Key performance indicators for cloud computing SLAs. In: The fifth international conference on emerging network intelligence, EMERGING, pp 60–64 Gallaher MP, O’Connor AC, Dettbarn Jr JL, Gilday LT (2004) Cost analysis of inadequate interoperability in the US capital facilities industry. National Institute of Standards and Technology, Gaithersburg, Maryland Ghosh A, Chasey AD, Mergenschroer M (2015) Building information modeling for facilities management: current practices and future prospects. In: Building information modeling: applications and practices, pp 223–253 Giusto D, Iera A, Morabito G, Atzori L (2010) The internet of things: 20th Tyrrhenian workshop on digital communications. Springer Science & Business Media Gu N, London K (2010) Understanding and facilitating BIM adoption in the AEC industry. Autom Constr 19(8):988–999 Hosseini MR, Roelvink R, Papadonikolaki E, Edwards DJ, Pärn E (2018) Integrating BIM into facility management: typology matrix of information handover requirements. Int J Build Pathol Adapt 36(1):2–14 Hunter GW, Stetter JR, Hesketh P, Liu CC (2010) Smart sensor systems. Electrochem Soc Interface 19(4):29–34 International Telecommunication Union—ITU (2012) Recommendation Y.2060 (06/12). https:// www.itu.int/rec/T-REC-Y.2060-201206-I. Accessed July 2018 Jordani D (2008) BIM: a healthy disruption to a fragmented and broken process. J Build Inf Model 2(2):24–26 Kensek K (2015) BIM guidelines inform facilities management databases: a case study over time. Buildings 5(3):899–916 Khast, N (2017). Overview of radio frequency identification: security issues and suggesting a solution. https://www.theseus.fi/bitstream/handle/10024/131876/Final%20Thesis.pdf? sequence=1. Accessed July 2018 Lewis A, Riley D, Elmualim A (2010) Defining high performance buildings for operations and maintenance. Int J Facil Manag 1(2):1–15 Liu WP, Guo HL, Li H, Li Y (2014) Using BIM to improve the design and construction of bridge projects: a case study of a long-span steel-box arch bridge project. Int J Adv Rob Syst 11:125 Love PE, Matthews J, Simpson I, Hill A, Olatunji OA (2014) A benefits realization management building information modeling framework for asset owners. Autom Constr 37:1–10 Miettinen R, Kerosuo H, Metsälä T, Paavola S (2018) Bridging the life cycle: a case study on facility management infrastructures and uses of BIM. J Facil Manag 16(1):2–16 Miettinen R, Paavola S (2014) Beyond the BIM utopia: approaches to the development and implementation of building information modeling. Autom Constr 43:84–91 Naghshbandi SN (2017) BIM for facility management: challenges and research gaps. Civ Eng J 2 (12):679–684

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Nawari NO (2012) BIM standard in off-site construction. J Arch Eng 18(2):107–113 Parsanezhad P (2015) A lifecycle approach towards building information management: technical and procedural implications for the facility management and operations sector. Doctoral dissertation, Kungliga Tekniska högskolan. http://www.diva-portal.org/smash/record.jsf?pid= diva2%3A806658&dswid=314. Accessed July 2018 Patacas J, Dawood N, Vukovic V, Kassem M (2015) BIM for facilities management: evaluating BIM standards in asset register creation and service life planning. J Inf Technol Constr 20 (10):313–318 Poljanšek M (2017) Building information modelling (BIM) standardization. European Commission. https://core.ac.uk/download/pdf/146996851.pdf. Accessed July 2018 Rizzi S (2009) What-if analysis. Encyclopedia of database systems. Springer, Boston, MA, pp 3525–3529 Schevers H, Mitchell J, Akhurst P, Marchant D, Bull S, McDonald K, Linning C (2007) Towards digital facility modelling for Sydney opera house using IFC and semantic web technology. J Inf Technol Constr (ITcon) 12(24):347–362 Shen W, Hao Q, Mak H, Neelamkavil J, Xie H, Dickinson J, Xue H (2010) Systems integration and collaboration in architecture, engineering, construction, and facilities management: a review. Adv Eng Inform 24(2):196–207 Succar B (2009) Building information modelling framework: a research and delivery foundation for industry stakeholders. Autom Constr 18(3):357–375 Talamo C, Atta N, Martani C, Paganin G (2016) The integration of physical and digital urban infrastructures: the role of “big data”. TECHNE-J Technol Arch Environ 11:217–225 Talamo C, Bonanomi M (2015) Knowledge management and information tools for building maintenance and facility management. Springer International Publishing Wang Y, Wang X, Wang J, Yung P, Jun G (2013) Engagement of facilities management in design stage through BIM: framework and a case study. Adv Civ Eng. https://www.hindawi.com/ journals/ace/2013/189105/. Accessed July 2018 Yalcinkaya M, Singh V (2014) Building information modeling (BIM) for facilities management– literature review and future needs. In: IFIP International conference on product lifecycle management. Springer, Berlin, Heidelberg, pp. 1–10 Zdravković M, Trajanović M, Sarraipa J, Jardim-Gonçalves R, Lezoche M, Aubry A, Panetto H (2016) Survey of internet-of-things platforms. In: 6th international conference on information society and technology (ICIST 2016), pp 216–220 Zou Y, Kiviniemi A, Jones SW (2015) BIM-based risk management: challenges and opportunities. https://livrepository.liverpool.ac.uk/3001636/1/w78-2015-paper-088.pdf. Accessed July 2018

Standards and Laws BS 8572:2018 Procurement of facility-related services. Code of practice BS EN 13306:2017 Manutenzione. Terminologia di manutenzione ISO 14001:2015 Environmental management systems. Requirements with guidance for use ISO 15686-5:2017 Buildings and constructed assets. Service life planning. Part 5: Life-cycle costing ISO 16739:2013 Industry Foundation Classes (IFC) for data sharing in the construction and facility management industries ISO 20400:2017 Sustainable procurement. Guidance ISO 26000:2010 Guidance on social responsibility ISO Guide 82:2014 Guidelines for addressing sustainability in standards ISO/IEC 30141:2018 Internet of Things (loT). Reference Architecture ISO/IEC CD 20924 Information technology. Internet of Things (IoT). Definition and vocabulary ISO/IEC TR 22417:2017 Information technology. Internet of things (IoT) use cases

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Websites http://biblus.acca.it/come-il-bim-cambia-il-nostro-modo-di-lavorare/ https://www.buildingsmart.org/about/what-is-openbim/ifc-introduction/ https://www.itu.int/en/ITU-T/about/Pages/default.aspx https://www.itu.int/en/Pages/default.aspx

Conclusions

The Invitation to Tender (ITT), as a formal invitation to potential Service Providers to make an offer for the supply of services, should contain all the information that tenderers may need to properly elaborate their proposals with respect to the needs and objectives of the Client. Therefore, it is important that Clients devote sufficient time and effort to accurately develop the ITT in order to: • ensure a proper and accurate transfer of their strategies, policies and needs to the potential Service Providers; • increase their ability to adequately evaluate the received offers; • ensure the comprehensiveness and clearness of the future FM contract; • reduce possible misunderstandings, debates and litigations during the FM service delivery. Although the fundamental importance of this document, the common practice is currently characterized by the absence of shared and consolidated guidelines and tools able to support companies in the drafting process. As a consequence, ITTs prove often to be incomplete and lacking, in terms of contents, in significant parts that sometimes can generate misunderstandings among the involved parties and possible future litigations, as well as economic and operating inefficiencies. Therefore, it emerges the need of guidance lines, useful to support companies in the writing of ITTs, focused on some keys contents, namely: Command Centre; Operating Structure; Call Centre; Responsibility and Ownership of Information; Building Inventory; Registry; Information System; Management of the Information Flow; Document Management; Feedback Information; Procedures for Services Monitoring and Control; SLA and KPI Systems; Reporting; Penalty and Incentive; Requirements for Service Providers; Quality Policies; Information and Training; Risk Management. To these keys contents, which in some way represent the current scenario of FM service provisions, some innovative notions—as Sustainable Procurement, Building © Springer Nature Switzerland AG 2019 C. Talamo and N. Atta, Invitations to Tender for Facility Management Services, Springer Tracts in Civil Engineering, https://doi.org/10.1007/978-3-030-04009-3

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Conclusions

Information Modeling (BIM), Big Data and Internet of Things (IoT)—should be added. In particular: • Sustainable Procurement practices enable organizations to improve their decision-making, combining the needs of the organizations themselves with sustainability issues (e.g. sustainability of products, needs of society and environment, etc.). Moreover, the implementation of Sustainable Procurement practices ensures that both the contracting parties have an ethical behavior and follow fair and responsible practices with respect, for instance, to: compliance with legislation, organizational management, risk management, social and environmental impacts, working conditions, etc. Consequently, several benefits arising from this implementation, can be achieved, as for instance: increase in economic value creation; increasing of transparency in information management practices; legal compliance throughout the whole supply chain; prevention from economic and reputational damages; facilitation and promotion of innovation; etc. • Building Information Modeling (BIM). BIM is widely recognized as one of the most promising technologies for the AEC/FM sector. BIM enables various functions and capabilities, including visualization, interoperability and information exchange useful to enhance the efficiency and streamline FM processes and activities, at the strategic, tactical and operational levels. In particular, it is possible to highlight the following potentialities: – Availability of a unified and reliable information base. The BIM approach involves the creation of a unified database shared among all the involved stakeholders of the building process during the building life cycle; – Building (and associated data) visualization. BIM enables to visualize the building and its associated data at different level of detail, according to different purposes, through the location-aware 3D model of the building; – Life Cycle approach. The possibility to introduce right from the design phase important reflections about the future management phase of the building— exploiting the know-how of different professionals—allows to highlight possible critical future FM-related issues and to accordingly make conscious and proper design choices with respect to the LCC of the building. – Analysis of scenarios. BIM implementation enables decision-makers to extract relevant information from the model and use them for the development of scenarios, performing “what if” analyses for supporting decision making processes related to multiple FM-related issues. • Big Data and Internet of Things (IoT). Nowadays, IoT technologies make it possible to collect information on actual conditions, current operational status and performance of the building and its components in real-time from sensors and devices installed within the buildings, achieving a greater awareness and a greater understanding of the building itself and of the performance of services delivered by/to it. The application of Big Data and IoT paradigms to the scale of the building can be translated into a structured approach to data management,

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through the implementation of a distributed and disseminated system of IoT sensors and devices, which are able to detect in real-time a plurality of parameters, in the form of data flows. Such data, if properly contextualized and analyzed, can describe the behavior of the building and its parts in relation to different areas of interest (maintenance, energy, occupancy, etc.). Several devices and sensor for the real-time monitoring of key parameters of building spaces (such as temperature, humidity, flow of energy and people, air quality, noise pollution, etc.) nowadays are available on the market. By analyzing and interpreting the curves of values of the parameters detected by IoT devices and sensors, facility managers have the possibility to outline patterns and to identify trends in the operation of the building and its parts, as well as in the performance of the FM services provided by/to the building. This additional information base can support the FM-related decision-making processes: the analysis of the detected Big Data represent an advanced supporting information tool aimed, for instance, at calibrating future choices and investments. Hence, this information asset may represent a significant driver for the improvement of cognitive and decision-making processes. Hence, these new paradigms nowadays are offering more and more possibilities for the innovation of the current FM practices, enabling: • to streamline the procedures for collecting and management information, improving traditional FM processes; • to innovate the range of FM services, also introducing new digital services that will contribute to define a differentiated and advanced service offer; • to implement a life cycle approach to the building and to the FM services provided by/to the building, taking into account sustainability aspects; • to facilitate and increase the interaction and collaboration among stakeholders. However, if on one hand the ICTs integration opens up to innovations in the field of FM, on the other hand it may give rise to risks and implications (e.g. social and legal, economic, environmental, health and safety, security, etc.) which can negatively affect the quality of the FM service provision if not properly analyzed and included as requests, requirement and/or specifications in the ITT. Consequently, the Client should be aware of the changes in working methods and their implications and effects on FM service delivery and it should accordingly review and enrich the contents of the ITT—as discussed in the book—taking into account the transformations and implications of this new ICT-based FM scenarios. Concluding, it is possible to state that the FM is a sector in continuous growth and transition towards innovative solutions that—although still limited at the experimental stage—require an in-depth discussions and harmonization efforts, also with respect to the elaboration of ITTs and, therefore, of FM contracts.

Glossary

Agreement statement agreed between the demand organization and the provider of services or products (ISO 41011:2017) As-built information expression of the design, its working detail, construction works and/or installations, functions, operations and maintenance needs of a facility in a form suitable for use in managing that facility (BS 8536:2010) Asset register collection of records holding information about facility assets in terms of their manufacturer, vendor, make, model, specifications, date of acquisition, initial cost, maintenance cost and requirements, accumulated depreciation and written-down value (BS 8587:2012) Asset item, thing or entity that has potential or actual value to an organization (ISO 55000:2014). Anything considered by an organisation as having a positive value, especially financial (BS EN 15221-2:2006) Audit criteria set of policies, procedures or requirements used as a reference against which audit evidence. Note: If the audit criteria are legal (including statutory or regulatory) requirements, the terms “compliant” or “non-compliant” are often used in an audit finding (ISO 19011:2011) Audit evidence records, statements of fact or other information, which are relevant to the audit criteria and verifiable. Note: Audit evidence can be qualitative or quantitative. (ISO 19011:2011) Audit systematic, independent and documented process for obtaining audit evidence and evaluating it objectively to determine the extent to which the audit criteria are fulfilled. Note 1: An audit can be an internal audit (first party) or an external audit (second party or third party), and it can be a combined audit (combining two or more disciplines). Note 2: An internal audit is conducted by the organization itself, or by an external party on its behalf. Note 3: “Audit evidence” and “audit criteria” are defined in ISO 19011 (ISO 41011:2017) © Springer Nature Switzerland AG 2019 C. Talamo and N. Atta, Invitations to Tender for Facility Management Services, Springer Tracts in Civil Engineering, https://doi.org/10.1007/978-3-030-04009-3

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Availability property of being accessible and usable upon demand by an authorized entity (ISO/IEC 27000:2016) Benchmark reference point or metric against which a strategy, process, performance and/or other entity can be measured (BS EN 15221-7:2012) Benchmarking process of comparing strategies, processes, performances and/or other entities against practices of the same nature, under the same circumstances and with similar measures (BS EN 15221-7:2012) Big Data data set(s) with characteristics (e.g. volume, velocity, variety, variability, veracity, etc.) that for a particular problem domain at a given point in time cannot be efficiently processed using current/existing/established/traditional technologies and techniques in order to extract value (ISO/IEC JTC 1— Information Technology. Big Data. Preliminary Report 2014) Big Data Paradigm distribution of data systems across horizontally-coupled independent resources to achieve the scalability needed for the efficient processing of extensive datasets (ISO/IEC JTC 1—Information Technology. Big Data. Preliminary Report 2014) Building Information Modeling (BIM) process of designing, constructing or operating a building or infrastructure asset using electronic object-oriented information (PAS 1192-2:2013) Classification systematic identification and arrangement of business activities and/or records into categories according to logically structured conventions, methods, and procedural rules represented in a classification system (ISO 15489-1:2004). System for grouping and categorising items with similar characteristics (attributes) (BS EN 15221-4:2011) Cleaning services related to hygiene and cleanliness that maintain a proper working environment and help to maintain assets in a good condition (BS EN 15221-4:2011) Client organisation that procures facility services by means of a Facility Management agreement. Note: The client acts on a strategic level and has a general and/or key function in all stages of the relationship with the service provider. The customer specifies the facility services. (BS EN 15221-1:2006) Cloud computing paradigm for enabling network access to a scalable and elastic pool of shareable physical or virtual resources with self-service provisioning and administration on-demand. Note: Examples of resources include servers, operating systems, networks, software, applications, and storage equipment (ISO/IEC 17788:2014) Cloud service one or more capabilities offered via cloud computing invoked using a defined interface (ISO/IEC 17788:2014)

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Command centre entity which, within a service, oversees a number of organizational activities aimed at supporting and improving the delivery of operational services with particular reference to the functions of: planning and coordination, management of information flows, monitoring and checking Competence ability to apply knowledge and skills to achieve intended results (ISO/IEC 27000:2016) Compliance obligations legal requirements that an organization has to comply with and other requirements that an organization has to or chooses to comply with. Note 1: Compliance obligations are related to the environmental management system. Note 2: Compliance obligations can arise from mandatory requirements, such as applicable laws and regulations, or voluntary commitments, such as organizational and industry standards, contractual relationships, codes of practice and agreements with community groups or non-governmental organizations (ISO 14001:2015) Conformity fulfillment of a requirement (ISO/IEC 27000:2016) Consequence outcome of an event affecting objectives. Note 1: A consequence can be certain or uncertain and can have positive or negative direct or indirect effects on objectives. Note 2: Consequences can be expressed qualitatively or quantitatively. Note 3: Any consequence can escalate through cascading and cumulative effects (ISO 31000:2018) Continual improvement recurring activity to enhance performance. Note 1: Enhancing performance relates to the use of the environmental management system to enhance environmental performance consistent with the organization’s environmental policy. Note 2: The activity need not take place in all areas simultaneously, or without interruption (ISO 14001:2015). The process of establishing objectives and finding opportunities for improvement is a continual process through the use of audit findings and audit conclusions, analysis of data, management reviews or other means and generally leads to corrective action or preventive action (ISO 9000:2015) Contract data document that identifies the applicable conditions of a contract and states the associated contract-specific data (ISO 10845-1:2010) Contract agreement under which two parties undertake to exchange a product or a service for a payment (ISO 41011:2017). Binding agreement (ISO 9000:2015) Control comparison of actual performance with planned performance, analysing variances and taking appropriate corrective and preventive action as needed (BS ISO 21500:2012) Core business entity from which needs are derived (ISO 41011:2017) Corrective action action to eliminate the cause of a nonconformity and to prevent recurrence. Note 1: There can be more than one cause for a nonconformity (ISO 14001:2015)

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Customer Organisational unit that specifies and orders the delivery of facility services within the terms and conditions of a Facility Management agreement. Note The customer acts on a tactical level (BS EN 15221-1:2006) Data information stored but not yet interpreted or analyzed (PAS 1192-2:2013) Deliverable measurable and verifiable outcome, result or item to be produced within a specific timeframe to complete a project or part of a project (ISO 22128:2008) Demand stated requirement for a services or products to be delivered (ISO 41011:2017) Demobilization phase to transfer facility services back to the demand organization or to a new service provider as specified in the facility management agreement (ISO 41011:2017) Device With regard to the Internet of things, this is a piece of equipment with the mandatory capabilities of communication and the optional capabilities of sensing, actuation, data capture, data storage and data processing. (ITU-T Y.2060) Document physical support of the information in a specific form. This may take the form of a paper sheet, the screen of a video monitor of a computer system, an electronic board, a blackboard, etc. and the figures, type, size and distribution on the available surface may vary without affecting the main purpose of the information system. Note: A document is permanent. Program results displayed on a screen do not make any document unless it is stored. Document can be information stored in a database which can be shown on a screen or printed out. (BS EN 13460:2009). Fixed and structured amount of information that can be managed and interchanged as a unit between users and systems (ISO 29845:2011) Documents review activity aimed at searching, selecting, analysing, gathering and organizing the various and heterogeneous documents coming from design, construction, operations and maintenance phases Due diligence process through which organizations proactively identify, assess, prevent, mitigate and account for how they address their actual and potential adverse impacts as an integral part of decision-making and risk management (ISO 20400:2017). Process of conducting a walkthrough survey and appropriate inquiries into the physical condition of a commercial real estate’s improvements, usually in connection with a commercial real estate transaction. The degree and type of such survey and inquiry may vary for different properties, different user purposes, and time allotted. (ASTM E 2018-08) Element construction entity part which, in itself or in combination with other such parts, fulfils a predominating function of the construction entity (i.e. elements are: external wall, floor, roof, etc.) (e.g. predominating functions are: space enclosing, supporting, servicing, furnishing). (ISO 12006-2:2015)

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Employer person or organization intending to or entering into a contract with the contractor for the provision of goods, services, or engineering and construction works (ISO 10845-1:2010) End user Person receiving facility services. Note: A visitor could also be an end user. (BS EN 15221-1:2006) Energy Management System (EMS) equipment/infrastructure used to monitor, measure and control the energy consumption in private households, residential buildings or industrial customer installations. Note 1: The term EMS is also commonly used to refer to a set of applications used by operators of transmission power grid to monitor, control, and optimize the performance of the generation and/or transmission system (ISO/IEC 27019:2017) Engagement involvement in, and contribution to, activities to achieve shared objectives (ISO 9000:2015) Ethical behaviour behaviour that is in accordance with accepted principles of right or good conduct in the context of a particular situation and is consistent with international norms of behaviour (ISO 26000:2010) Event occurrence or change of a particular set of circumstances. Note 1: An event can have one or more occurrences, and can have several causes and several consequences. Note 2: An event can also be something that is expected which does not happen, or something that is not expected which does happen. Note 3: An event can be a risk source (ISO 31000:2018) Facility handbook organized collection of documentation covering the operation of a facility (BS 8536:2010) Facility Management (FM) organizational function which integrates people, place and process within the built environment with the purpose of improving the quality of life of people and the productivity of the core business (ISO 41011:2017). Integration of processes within an organisation to maintain and develop the agreed services which support and improve the effectiveness of its primary activities. (BS EN 15221-1:2006) Facility management agreement written or oral agreement stating the terms and conditions for provision of facility services between a client and an internal or external service provider. (BS EN 15221-1:2006) Facility management service provider Organisation that provides the client with a cohesive range of facility services within the terms and conditions of a Facility Management agreement. Note: A Facility Management service provider can be internal or external to the client (BS EN 15221-1:2006) Facility manager person responsible for the facility management organisation who is the single point of contact for the client on strategic level; leads the FM organisation, ensures quality and continuous improvement and conducts strategic projects and tasks (BS EN 15221-4:2011)

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Facility process support process which is integrated and managed by FM. Note 1: The output of a facility process is a facility product. Note 2: Facility processes are subdivided into facility management processes on strategic and tactical level and facility services processes on operational level (BS EN 15221-4:2011) Facility service Support provision to the primary activities of an organisation, delivered by an internal or external provider. Note: Facility services are services related to Space & Infrastructure and to People & Organisation (BS EN 15221-1:2006) Facility collection of assets which is built, installed or established to serve an entity’s needs (ISO 41011:2017) Fair operating practices operating practices that concern ethical conduct in an organization and with other organizations, such as suppliers, with which it has relationships. Note 1: In a sustainable procurement context, fair operating practices can potentially extend to include the relationships between organizations, their suppliers and organizations and others that interact with the suppliers. These include interactions with government agencies, partners, suppliers, sub-contractors, and communities, with the aim of promoting a healthy relationship between the companies that buy goods or services and those providing them (ISO 20400:2017) Framework documented set on the rationale of how to create a common understanding of the way of work. (ISO/DIS 37500:2007) Global service for maintenance (contract) integrated activities of maintenance with full responsibility by supplier of the results in terms of achieving and/ or maintaining of performance levels established by the client. (UNI 11336:2004) Health, Safety, Security and Environment (HSSE) services protecting from external dangers or internal risks and protect assets and the health and well-being of the people and providing a safe and sustainable environment (BS EN 15221-4:2011) Hierarchy structure of levels in which each level includes its lower levels. Note: Taxonomies are frequently arranged in a hierarchical structure. Typically they are related by supertype-subtype, also called parent-child relationships. (BS EN 15221-4:2011) Indicator measure that provides an estimate or evaluation of specified attributes derived from an analytical model with respect to defined information needs (ISO/IEC 27000:2016) Information exchange structured collection of information at one of a number of pre-defined stages of a project with defined format and fidelity. (PAS 1192-2:2013)

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Information management task and procedures applied to inputting, processing and generation activities to ensure accuracy and integrity of information (PAS 1192-2:2013. Processing and storage of information in a controlled manner. (BS 10008:2008) Information security preservation of confidentiality, integrity and availability of information. Note: In addition, other properties, such as authenticity, accountability, non-repudiation, and reliability can also be involved. (ISO/IEC 27000:2016) Information system decisional and operational support tool consisting of databases, procedures and functions to collect, store, process, use and update the information necessary for the setting, the implementation and management of the maintenance service. (UNI 10951:2001) Information representation of data in a formal manner suitable for communication, interpretation or processing by human beings or computer applications. (PAS 1192-2:2013) Infrastructure system of facilities, equipment and services needed for the operation of an organization. (ISO 9000:2015) Internet of Things (IoT) global infrastructure for the information society, enabling advanced services by interconnecting (physical and virtual) things based on existing and evolving interoperable information and communication technologies. Note 1: Through the exploitation of identification, data capture, processing and communication capabilities, the IoT makes full use of things to offer services to all kinds of applications, whilst ensuring that security and privacy requirements are fulfilled. Note 2: From a broader perspective, the IoT can be perceived as a vision with technological and societal implications. (ITU-T Y.2060) Inventory a system of activities and procedures aiming to provide the knowledge of the dimensional and physical characteristics of a Real Estate. The goal of a Real Estate inventory is to gather the information useful for planning, managing and checking the provision of facility services. This goal is achievable through a plurality of integrated activities, such as analysis, audits, surveys, collection and selection of technical, administrative and legal data and documents Key Performance Indicator (KPI) measure that provides essential information about the performance (ISO 41011:2017) Knowledge acquisition process of locating, collecting, and refining knowledge and converting it into a form that can be further processed by a knowledge-based system. (ISO/DIS 37500:2007) Knowledge base a collection of facts, assumptions, beliefs, and heuristics that are used in combination with a database to achieve desired results, such as a diagnosis, an interpretation, or a solution to a problem. (McGraw-Hill Dictionary

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of Scientific & Technical Terms, 6E, Copyright © 2003 by The McGraw-Hill Companies, Inc.) Knowledge transfer structured process of imparting pre-existing or acquired information to a team or a person, to help them attain a required level of proficiency in skill. (ISO/DIS 37500:2007) Knowledge the result of application, processing, relating, combining of information in specific contexts Life cycle consecutive and interlinked stages of a product (or service) system, from raw material acquisition or generation from natural resources to final disposal. Note: The life cycle stages include acquisition of raw materials, design, production, transportation/ delivery, use, end-of-life treatment and final disposal (ISO 14001:2015) Life cycle approach consideration of life cycle in decision-making or development processes (ISO 20400:2017) Life cycle assessment (LCA) method of measuring and evaluating the environmental impacts associated with a product, system or activity, by describing and assessing the energy and materials used and released to the environment over the life cycle (ISO 15686-5:2017) Life Cycle Cost (LCC) cost of an asset or its parts throughout its life cycle, while fulfilling the performance requirements (ISO 15686-5:2017) Life cycle costing methodology for systematic economic evaluation of life-cycle costs over a period of analysis, as defined in the agreed scope (ISO 15686-5:2017) Likelihood chance of something happening. Note: In risk management terminology, the word “likelihood” is used to refer to the chance of something happening, whether defined, measured or determined objectively or subjectively, qualitatively or quantitatively, and described using general terms or mathematically (such as a probability or a frequency over a given time period) (ISO 31000:2018) Management system set of interrelated or interacting elements of an organization to establish policies and objectives and processes to achieve those objectives. Note 1: A management system can address a single discipline or several disciplines (e.g. quality, environment, occupational health and safety, energy, financial management). Note 2: The system elements include the organization’s structure, roles and responsibilities, planning and operation, performance evaluation and improvement. Note 3: The scope of a management system can include the whole of the organization, specific and identified functions of the organization, specific and identified sections of the organization, or one or more functions across a group of organizations (ISO 14001:2015) Measurement process to determine a value (ISO 41011:2017)

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Mobilization phase to establish and implement all resources, systems, data and procedures prior to taking full responsibility for the facility services to be delivered as specified in the facility management agreement. Note: Start up can also be used in this context. (ISO 41011:2017) Monitoring determining the status of a system, a process, a product, a service, or an activity. Note 1: For the determination of the status there can be a need to check, supervise or critically observe. Note 2: Monitoring is generally a determination of the status of an object, carried out at different stages or at different times (ISO 9000:2015) Need expectation, specific or abstract, from the demand organization which is essential to enable the achievement of the core purpose and key objectives (ISO 41011:2017) Nonconformity non-fulfilment of a requirement (ISO 14001:2015) Objective result to be achieved. Note 1: An objective can be strategic, tactical, or operational. Note 2: Objectives can relate to different disciplines (such as financial, health and safety, and environmental goals) and can apply at different levels (such as strategic, organization-wide, project, product, service and process). Note 3: An objective can be expressed in other ways, e.g. as an intended outcome, a purpose, an operational criterion, as an environmental objective, or by the use of other words with similar meaning (e.g. aim, goal, or target) (ISO 14001:2015) Organization person or group of people that has its own functions with responsibilities, authorities and relationships to achieve its objectives. Note: The concept of organization includes, but is not limited to, sole-trader, company, corporation, firm, enterprise, authority, partnership, association, charity or institution, or part or combination thereof, whether incorporated or not, public or private (ISO 9000:2015) Outsource make an arrangement where an external organization performs part of an organization’s function or process (ISO/IEC 27000:2016) Outsourcing business model for the delivery of a product or service to an organization by a third party provider (ISO 37500:2014) Performance based payment system method of payment based on agreed output criteria (BS EN 15221-2:2006) Performance measurable result. Note 1: Performance can relate either to quantitative or qualitative findings. Note 2: Performance can relate to the management of activities, processes, products (including services), systems or organizations (ISO 41011:2017) Policy intentions and direction of an organization as formally expressed by its top management (ISO 9000:2015)

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Primary activities activities that constitute the distinctive and indispensable competencies of an organization in its value chain. Note: The distinction between the primary activities and support services is decided by each organization individually; this distinction needs to be continuously updated (ISO 41011:2017) Primary processes processes, identified by an organisation, as essential to the provision of a service or product in its value chain, direct to its customers (BS EN 15221-1:2006) Procedure specified way to carry out an activity or a process. Note 1: Procedures can be documented or not. (ISO 9000:2015) Process set of interrelated or interacting activities that use inputs to deliver an intended result. Note 1: Whether the “intended result” of a process is called output, product or service depends on the context of the reference. Note 2: Inputs to a process are generally the outputs of other processes and outputs of a process are generally the inputs to other processes. Note 3: Two or more interrelated and interacting processes in series can also be referred to as a process. Note 4: Processes in an organization are generally planned and carried out under controlled conditions to add value. (ISO 9000:2015) Procurement activity of acquiring goods or services from suppliers. Note 1: The procurement process considers the whole cycle from identification of needs through to the end of a services contract or the end of the life of goods, including disposal. Note 2: Sourcing is a part of the procurement process that includes planning, defining specifications and selecting suppliers (ISO 20400:2017) Product result of a process. Note 1: There are four generic product categories, as follows: services; software; hardware; processed materials. Note 2: Products can be tangible or intangible. (ISO/IEC 17065:2012) Provider (or supplier) organization that provides a product or a service. Example: Producer, distributor, retailer or vendor of a product or a service. Note 1: A provider can be internal or external to the organization. Note 2: In a contractual situation, a provider is sometimes called “contractor” (ISO 9000:2015) Quality policy policy related to quality (3.6.2). Note 1: Generally the quality policy is consistent with the overall policy of the organization, can be aligned with the organization’s vision and mission and provides a framework for the setting of quality objectives. Note 2: Quality management principles presented in this International Standard can form a basis for the establishment of a quality policy (ISO 9000:2015) Quality totality of features and characteristics of a product or service that bears on the ability of the product or service to satisfy stated or implied needs (ISO 10845-1:2010)

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Real Estate encompasses land along with anything affixed to the land, such as buildings. Note: Real estate, immovable property, real property, realty are used synonymously (BS EN 15221-4:2011). Immoveable property including structures, grounds and undeveloped land (ISO 41011:2017) Record information created, received and maintained as evidence by an organization or person (BS 8587:2012) Registry system framework of criteria useful for the classification and coding of spatial and technical elements and of an apparatus of sheets, useful for collecting information, over time according to the same formalized scheme Registry data base—supported by appropriate methods for classification of the buildings and their technical components and spaces—containing the information necessary to describe the consistency, the functional and the technical characteristics of the built assets Requirement need or expectation that is stated, generally implied or obligatory. Note 1: “Generally implied” means that it is custom or common practice for the organization and interested parties that the need or expectation under consideration is implied. Note 2: A specified requirement is one that is stated, for example in documented information. Note 3: A qualifier can be used to denote a specific type of requirement, e.g. product requirement, quality management requirement, customer requirement, quality requirement. Note 4: Requirements can be generated by different interested parties or by the organization itself. Note 5: It can be necessary for achieving high customer satisfaction to fulfill an expectation of a customer even if it is neither stated nor generally implied or obligatory (ISO 9000:2015) Risk assessment overall process of risk identification, risk analysis and risk evaluation (ISO Guide 73:2009) Risk management policy statement of the overall intentions and direction of an organization related to risk management (ISO Guide 73:2009) Risk management process systematic application of management policies, procedures and practices to the activities of communicating, consulting, establishing the context, and identifying, analyzing, evaluating, treating, monitoring and reviewing risk (ISO Guide 73:2009) Risk management coordinated activities to direct and control an organization with regard to risk (ISO 31000:2018) Risk owner person or entity with the accountability and authority to manage a risk (ISO Guide 73:2009) Risk source element which alone or in combination has the potential to give rise to risk (ISO 31000:2018)

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Risk effect of uncertainty on objectives. Note 1: An effect is a deviation from the expected—positive and/or negative. Note 2: Objectives can have different aspects (such as financial, health and safety, and environmental goals) and can apply at different levels (such as strategic, organization-wide, project, product and process). Note 3: Risk is often characterized by reference to potential events and consequences, or a combination of these. Note 4: Risk is often expressed in terms of a combination of the consequences of an event (including changes in circumstances) and the associated likelihood of occurrence. Note 5: Uncertainty is the state, even partial, of deficiency of information related to, understanding or knowledge of an event, its consequence, or likelihood (ISO Guide 73:2009) Risk is usually expressed in terms of risk sources, potential events, their consequences and their likelihood (ISO 31000:2018) Scope of work document that specifies and describes the goods, services, or engineering and construction works which are to be provided, and any other requirements and constraints relating to the manner in which the contract work is to be performed (ISO 10845-1:2010) Sensor device that observes and measures a physical property of a natural phenomenon or man-made process and converts that measurement into a signal (ISO/IEC 29182-2:2013) Service Level Agreement (SLA) document which has been agreed between the demand organization and a service provider on performance, measurement and conditions of service delivery (ISO 41011:2017). Agreement between the client or customer and the service provider on performance, measurement and conditions of services delivery. A Facility Management agreement consists of general clauses, applicable to the whole agreement, and SLA specific clauses, only applicable to a facility service. In a Facility Management agreement, several SLAs are included. (BS EN 15221-1:2006) Service level complete description of requirements of a product, process, or system with their characteristics (ISO 41011:2017) Service provider Organisation that is responsible for the delivery of one or more facility services. Note: A service provider can be internal or external to the client's organisation. (BS EN 15221-1:2006) Service output of an organization with at least one activity necessarily performed between the organization and the customer. Note 1: The dominant elements of a service are generally intangible. Note 2: Service often involves activities at the interface with the customer to establish customer requirements as well as upon delivery of the service and can involve a continuing relationship such as banks, accountancies or public organizations, e.g. schools or hospitals. Note 3: Provision of a service can involve, for example, the following: (i) an activity performed on a customer-supplied tangible product (e.g. a car to be repaired); (ii) an activity performed on a customer-supplied intangible product (e.g. the income statement needed to prepare a tax return); (iii) the delivery of an

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intangible product (e.g. the delivery of information in the context of knowledge transmission); (iv) the creation of ambience for the customer (e.g. in hotels and restaurants); Note 4: A service is generally experienced by the customer (ISO 9000:2015). Results generated by activities at the interface between a supplier and a customer and by supplier internal activities to meet customer needs (ISO 5127:2001) Smart grid electric power system that utilizes information exchange and control technologies, distributed computing and associated sensors and actuators. Note 1: Smart grid technologies are used for purposes such as: (i) integrating the behaviour and actions of the network users and other stakeholders; (ii) efficiently delivering sustainable, economic and secure electricity supplies (ISO/IEC 27019:2017) Specification detailed description of the essential performance and/or technical requirements for services or products and processes set out by the demand organization to make clear to the service provider the requirements to be fulfilled. Note: This is the documentary interface between the needs of the demand organization and the activities of the service provider (ISO 41011:2017). Document stating requirements (ISO 9000:2015) Stakeholder person or organization that can affect, be affected by, or perceive themselves to be affected by a decision or activity. Note 1: The term “interested party” can be used as an alternative to “stakeholder” (ISO 31000:2018) Strategy plan to achieve a long-term or overall objective (ISO 9000:2015) Supplier Provider of a facility service or a product (BS EN 15221-1:2006) Supply chain system of organizations, people, activities, information, and resources involved in delivering a product or service to an end user from a supplier (ISO 41011:2017). Sequence of activities or parties that provides goods or services to the organization (ISO 20400:2017) Sustainability state of the global system, including environmental, social and economic aspects, in which the needs of the present are met without compromising the ability of future generations to meet their own needs. Note 1: The environmental, social and economic aspects interact, are interdependent and are often referred to as the three dimensions of sustainability. Note 2: Sustainability is the goal of sustainable development (ISO Guide 82:2014) Sustainable procurement procurement that has the most positive environmental, social and economic impacts possible over the entire life cycle. Note 1: Sustainable procurement involves the sustainability aspects related to the goods or services and to the suppliers along the supply chains. Note 2: Sustainable procurement contributes to the achievement of organizational sustainability objectives and goals and to sustainable development in general (ISO 20400:2017)

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Glossary

Task work item in a schedule. Note: The term “task” is used in this British Standard instead of “activity”, as defined in BS ISO 21500:2012, to refer to a work item in a schedule. This distinction is necessary to avoid possible confusion when referring to work in an organizational and business process context, where “activity” is the generally accepted term ( BS 8892:2014) Taxonomy practice and science of classification. Note: A knowledge map of a topic typically realised as a controlled vocabulary of terms and or phrases. An orderly classification of information according to presumed natural relationships. A classification system for improved information management, which should contribute to improving the capability of users to sustain and improve the operations of their business, into a series of hierarchical groups to make them easier to identify, study, or locate. (BS EN 15221-4:2011) Tender data document that establishes the tenderer’s obligations in submitting a tender and the employer’s undertakings in administering the tender process and evaluating tender offers (ISO 10845-1:2010) Tender offer written offer for the provision of goods, or to carry out a service or engineering and construction works under given conditions, usually at a stated price, and which is capable of acceptance and conversion into a binding contract (ISO 10845-1:2010) Tenderer person or organization that submits a tender offer (ISO 10845-1:2010) Tendering (or bidding) process of obtaining tenders with the intention of forming a contract with one or more of the tenderers (ISO 6707-2:2017) Thing With regard to the Internet of things, this is an object of the physical world (physical things) or the information world (virtual things), which is capable of being identified and integrated into communication networks. (ITU-T Y.2060) Top management person or group of people who directs and controls an organization at the highest level. Note 1: Top management has the power to delegate authority and provide resources within the organization. Note 2: If the scope of the management system covers only part of an organization, then top management refers to those who direct and control that part of the organization (ISO 14001:2015) Transition activities for migrating agreed upon knowledge, assets, liabilities, systems, processes and people from the client to the provider in order to create desired delivery capability and the reverse situation (BS ISO 37500 2) Unit of measurement particular quantity, defined and adopted by convention, with which other quantities of the same kind are compared in order to express their magnitude relative to that quantity (ISO/IEC 15939:2007) Useful life time interval from first use until the instant when a limiting state is reached. Note 1: The limiting state may be a function of failure rate, maintenance support requirement, physical condition, economics, age, obsolescence, changes

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in the user’s requirements or other relevant factors. Note 2: The limiting state may be redefined by changes in conditions of use. Note 3 to entry: In this context, “first use” excludes testing activities prior to hand-over of the item to the end-user (BS EN 13306:2017) Work order (W.O.) document containing all the information related to a maintenance operation and the reference links to other documents necessary to carry out the maintenance work standard. (EN 13460:2009) Workplace services related to the working environment, for example, furniture, equipment and tenants fit out (BS EN 15221-4:2011)