Total Facilities Management, 3rd Edition

Appendix A 281

accommodation and that there is a reduction in the need to procure or
acquire additional space, whilst maintaining flexibility in response to
users’ needs.

stakeholder
Any individual or group having a legitimate interest in the activities of the
organisation, including its facilities management.

structured data
Information and data in digital form that can be searched and archived.

SWOT analysis
Strengths, weaknesses, opportunities and threats; a framework used
to focus attention on the essential characteristics of an organisation; usu-
ally drawn as a cross, with each issue in a separate quadrant, where
the aim is to list all possibilities and to examine any correlation between
the lists.

tag
Small device attached to an object containing data about that object – see
RFID.

tele-protection
The use of information and communication technology to support security
and other measures aimed at safeguarding people and property.

total facilities management (TFM)
Total facilities management is where a single entity takes responsibility
for all facets of facilities management. In reality, this entity may, however,
subcontract some of the more specialist elements.

total quality management (TQM)
An approach to work where the aim is to do things right first time, every
time. This has little to do with the administration of quality assurance
schemes and has more to do with the motivation of individuals to give of
their best and accept no compromises.

totally serviced workplace
Serviced and fully operational facilities, enabling users to begin or resume
work immediately.

uncertainty
Events that cannot be foreseen or quantified, unlike a risk for which some
assessment might be made – see also risk management.

unstructured data
Information and data in non-digital form, such as photographs and draw-
ings, being held on paper.

282 Appendix A

value
Worth or utility; also a way of expressing the relationship between quality
and cost – see best value.

workplace productivity
Concerned with the extent to which the working environment (surrounding
an individual) contributes towards or detracts from the amount and/or
quality of work undertaken.

zero carbon building
Minimisation of carbon emissions from a building through energy
efficiency, using micro-generation and low or zero carbon energy techno-
logy to move towards energy self-sufficiency. A zero carbon building will
pay back the carbon expended in its construction by exporting zero carbon
energy to the grid.

Appendix B

Prevention of fraud and irregularity in the award and
management of contracts

Definitions

Fraud may be defined as the use of deception with the intention of
obtaining an advantage. Corruption is the giving or receiving of money,
goods or services for favours provided. The risks of fraud and corruption
can be reduced by awareness of their nature and good procurement
practice.

Fraud should be deterred. Prevention is always preferable to detection,
and strong preventive controls should therefore be applied.

Risks

Facilities management services have long been considered to carry a high
risk of fraud, corruption and other irregularity. The frauds can take a number
of forms, some involving collusion with the client organisation’s personnel
or agents.

One fraud risk is the ‘ringing’ of contracts, whereby a group of con-
tractors conspires to form a ring for submitting tenders ostensibly in
competition but, in fact, having arranged among themselves which firm
will bid the lowest. Even the lowest tender will be overpriced. The aim
of the ring will be to win the majority of the contracts available and share
them.

Frauds can be perpetrated in the execution or pricing of work for new
contracts. This can take a variety of forms from failure to perform to speci-
fication, to deliberate falsification of suppliers’ invoices or labour records
leading to overpayment for services. Maintenance contracts also provide
opportunities for a contractor to claim for more work than has been done,
with or without collusion.

The pricing of contracts not let by competitive tender carries the risk that
costs may be deliberately overstated. This can be a particular problem in
‘cost plus’ contracts and in small value non-competitive contracts which
can add up to large amounts of expenditure over the year.

Particular care needs to be taken about the acceptance of gifts, hospitality
and other benefits, and to ensure there is no conflict of interest in the award
of contracts.

284 Appendix B

Key principles of control

There are a number of basic principles of control to minimise the risk of
fraud in estates-related services and facilities management procurement.

Separation of duties

Duties should be separated to ensure that no single member of staff has
control over the award and procurement process for contracts. For example,
there should be a separation of duties between ordering the work, certifica-
tion and authorisation of payments. Failure to separate duties is one of the
most common elements of fraud in this context.

Organisations should also ensure that all staff are aware of the risks of
fraud and of their responsibilities for reporting any fraud or suspicions of
fraud to the appropriate level of management. One option is to set up an
internal fraud helpline.

Authorisation

All transactions or specified activities should be approved or sanctioned by
a manager or other responsible person before they are undertaken. Limits
for these authorisations should be specified. Authorisation seeks to ensure
that proper responsibility is taken for all transactions and activities. Author-
isation should ensure that delegated limits are complied with, and provide
an independent scrutiny and consistency in the procurement process.

Competitive tendering

Contracts should normally be let by competition. A decision not to use
competitive tendering should require a higher level of authority.

Regular supervision

There should be positive supervision of the procurement process including
regular and unannounced checks of transactions. In addition, managers
should carry out pre-commitment checks to confirm the need for the service,
that the type of contract is appropriate, and that estimated costs are realistic.

Record-keeping

Appropriate records must be kept to enable every decision and transaction
to be traced through the system. The requirement to keep proper records is
an important deterrent to fraud.

Documentation

Standard documentation, in the sense of being uniform and consistent, can
help to enforce conformity with procedures and legal requirements.

Appendix B 285

Budgetary control

Budgetary control matches resources and costs to responsibilities for
objectives and outputs. Managers should be fully accountable for the
achievement of their objectives and targets. Budgets should be closely linked
to planning and review procedures to ensure that proposed expenditure is
essential. This will help to minimise the risk of fraud.

Indicators of fraud

The following may indicate the occurrence of fraud in the tendering and
award of contracts for estates-related services and facilities management:

• Contracts that do not make commercial sense.
• Contracts that include special, but unnecessary, specifications that only

a favoured supplier could meet.
• Consistent use of single-source contracts.
• Split ordering to circumvent contract conditions.
• Contractors who are qualified and capable of tendering, but who do not

do so for no apparent reason.
• Unusual patterns of consistently high accuracy in estimating tender

costs – this is used to deflect the attention of auditors and senior man-
agers who tend to look for adverse rather than favourable variances.
• Withdrawal, without obvious reason, of the lowest tenderer, who may
then go on to become a subcontractor of a high tenderer.
• Patterns in tenders from a group of firms, for example, fixed rotation of
the lowest tender.
• A contractor tendering substantially higher on some tenders with no
logical cost justification.
• Tender prices appearing to drop whenever a new tenderer submits a bid.
• Obvious links between contractors tendering for these works, for example,
companies sharing the same address, having the same directors, man-
agers and professional advisers.
• Acceptance of late tenders.
• Disqualification of a suitable tenderer.
• Change in tender after other tenders are opened, often by the drafting
of deliberate mistakes into the initial tender.
• Poor documentation of the contract awarding process.
• Suppliers awarded contracts disproportionate to their size.
• Contracts awarded to contractors with a poor performance record.
• Unexplained changes in contract shortly after award.
• Successful tenderer repeatedly subcontracting work to companies that
submitted higher tenders.
• A consistent pattern of the same winners and losers (from the tender lists).
• Undue patronage, by consistently favouring one firm or a small number
of firms over others.
• Close personal relationships between staff and suppliers.

Table B.1 Risks and controls in the award of contracts. 286 Appendix B

Activity Risk Control

Scoping of contract The contract specification is written in a manner which Use of contract panel consisting of technical, end-user and
Contract documentation favours a particular supplier. purchasing representatives, to ensure that more than one person
Setting evaluation criteria is involved in drawing up the specification.
Selection of tenderers Conditions of contract are changed to accommodate a
Tendering favoured supplier and/or exclude competitors who Standard contract conditions and specification to be used.
cannot meet the varied conditions. Any variations to be approved by senior management.
Tender evaluation Original evaluating criteria are changed after the
Post-tender negotiations receipt of submissions to ensure that favoured Use evaluation criteria as agreed by the contract panel prior to
Single-source procurement suppliers are shortlisted. tendering. Where EU procurement directives apply, evaluation
The selection of a group of tenderers with a view to criteria are required to be stated in advance.
ensuring that the favoured tenderer will win.
Selection by panel against clearly defined and objective criteria;
Contract rings – repeat orders using narrow source list. where applicable, in accordance with the requirements of EU
Links between contractors – uncompetitive tendering. procurement directives.

Collusion to ensure that the favoured supplier is Firms should be selected by someone other than the member of
chosen. staff commissioning the work. Widen the sourcing list by the
Modification of favoured supplier’s tender to ensure introduction of new firms and examine tender records for a pattern
that it is successful. of pricing and tenderers who have been awarded contracts. Check
Overstating of prices. for links in names, addresses and telephone numbers plus
tendering partners.

Technical and commercial evaluation to be carried out
independently by the contract panel.

Where necessary, identify reasons for negotiation and negotiate
with a minimum of two suppliers.

Competitive tendering and advance purchase planning. Tight
budgetary control and a comprehensive system of price checking.

Table B.2 Risks and controls in the management of contracts.

Activity Risk Control

Contractual correspondence Altering terms and conditions to suit favoured supplier. Contract terms and conditions will be the procurement team’s
responsibility and may not be altered without senior management
approval.

Contract management False claims for work not carried out or exaggerated Clear audit trail with written records. Authorisation of changes, by
claims for actual work done. senior management, to original document. Site checks, random
and systematic.

Claims negotiation Assisting the contractor to justify claims. Claims negotiation should be carried out using professional
advisers.

Certification of completion Inadequate certification may lead to overpayments or Clear separation of duties between ordering the work, certification
payment for work not carried out. and authorisation for payment. Ensure that certified documents
are not returned to the originator.

Authorisation Contract splitting to keep contract values under The splitting of contracts should not be allowed unless authorised
particular staff member’s authorised financial limit. by senior management. Managers’ and supervisors’ checks and
sampling should be constructed to detect this.

Acceptance of documentation Documentation has been modified or fabricated. Act on original documents. Do not accept copies/faxes. Do not
to support claims accept use of correction fluids etc. without obtaining satisfactory
explanation for any amendments.

Supervision Payment for work not done and duplication. Failure to Good site supervision and audit of site diary. Look for similar work
monitor daywork on site. Duplication of names on in same building and enforce contract management controls.
more than one return or ‘ghost’ workers. Work paid for Separate duties; ensure hospitality rules are formulated and Appendix B 287
under one contract and provided in a different format understood; have clear conduct and discipline code, including
on another contract. Lack of separation of duties, failure conflicts of interest and penalties; take disciplinary action against
to report gifts and hospitality or conflicts of interest. those staff who fail to declare a conflict of interest.

Security of documents Duplication and manipulation of accountable Restricted access to accountable documents, such as works and
documents. stores orders, tender documents and claim forms. Serial
numbering should be used.

288 Appendix B

Declarations of interests

Staff and management should be required to declare any personal interests
in proposed contracts, and appropriate administrative arrangements to
facilitate this should be put in place. ‘Relevant interests’ for this purpose
could include not only financial interests but also interests such as mem-
bership of public bodies or closed organisations. The duty to decline would
also extend to the interests of persons closely connected with the manager
or staff member, such as his or her spouse/partner and the close family
of the individual or of the spouse/partner.

Risks and controls

A formal request to the tenderer to sign to the effect that no fraud or
corrupt practice has occurred when developing the tender could be intro-
duced at invitation to tender acknowledgement stage or at submission.
This has two effects:

• Deterrent – the contractor is alerted to the fact that the client is aware
of the risk of fraud and will be on the lookout for any evidence that
it has occurred.

• Protective – it ensures that should something fraudulent come to light
there can be no excuse that the contractor was not aware of the policy
of the client organisation.

Organisations will need to handle such a declaration with sensitivity so
as not to impair good working relationships with suppliers or service
providers. Tables B.1 and B.2 show the risks of which organisations should
be aware, and suggested control factors that can be used to minimise
the risk.

Adapted from Estates and Building Services Procurement: Prevention of Fraud
and Irregularity in the Award and Management of Contracts (HM Treasury, 1996).

Appendix C

Risks involved in outsourcing

Planning to outsource

• Are the objectives for outsourcing correctly identified?
• Is the service to be outsourced adequately scoped and defined?
• Are the in-house costs of delivering the business to be outsourced

adequately calculated?
• Will adequate competition be generated from credible contractors?
• Does the outsourced management team have the right number and mix

of skills?

Shortlisting of potential contractors

• Are there appropriate evaluation criteria?
• Are there adequate safeguards against corruption or bias in the

evaluation?
• Is there sufficient expertise on the evaluation team?

Negotiating contracts

• Are customers’ needs translated into business requirements?
• Are measures of contractor performance defined?
• Are appropriate penalties for unsatisfactory contractor performance

included in the contracts?
• Is the organisation’s contract protected against the contractor’s making

excessive profits?
• Are the contingency arrangements that would apply in the event of

disasters defined?
• Are there adequate safeguards against the commercial failure of the

contractor?
• Are termination arrangements specified?
• Are there adequate safeguards to protect the confidentiality of data?
• Are there appropriate arrangements for the control of assets?
• Are there plans for transferring staff in an orderly fashion?
• Is adequate audit access provided for in the contracts?

290 Appendix C

Tender assessment

• Have the evaluation criteria been tested thoroughly?
• Have the contractors’ price proposals and their experience in delivering

equivalent business been tested thoroughly?
• Are there safeguards against corruption or bias in the selection of

contractors?
• Is there sufficient expertise in the evaluation teams?
• Are there safeguards against the possibility of legal challenge by

contractors?

Contract award

• Are there adequate skills in the negotiating team?
• Is the significance of contract terms properly assessed?
• Are there safeguards against disruption to existing business prior to the

handover of business to the successful contractors?

Contract management

• Are there adequate arrangements to manage the contracts after award,
including performance monitoring and price-control mechanisms?

Adapted from Outsourcing the Service Delivery Operations (HMSO, 1996).

Appendix D

Contractual approach and terms

• The contract should normally be for a period of three to five years.
Organisations may wish to include a provision for the option of extend-
ing this by a further one to two years.

• Organisations should ensure that contract documentation is consistent
with the specification.

• Organisations, especially those in the public sector, should ensure that
their contract provisions are in line with the Central Unit on Procure-
ment’s (CUP) Guidance Note 42 (CUP, 1993). The updated form of
contract by the Chartered Institute of Building (CIOB) should also be
considered.

• The contract should include provisions for:
ª Organisations to retain ownership of, and access to, all relevant
records and knowledge.
ª The arrangements for another contractor to take over the service at
short notice in the event of the financial failure of the contractor.
ª The handling of changes in the organisation’s requirements.
ª Full disclosure of all data via an open-book arrangement which
gives the client organisation access to all the contractor’s premises,
systems, books and records.
ª The organisation’s right to check the qualifications and competences
of the personnel the contractor proposes to use and to approve any
appointment beforehand.
ª Requiring the contractor and any subcontractors to have in place
quality assurance or quality management systems.
ª Contingency arrangements.
ª The arrangements for the transfer of assets at the start and end of the
contract.
ª The mechanisms for dispute resolution.
ª The arrangements for handover to a succeeding contractor at the
end of the contract.

• If the contract involves a one-off transfer of assets to the success-
ful tenderer, it should include a clawback provision to allow the

292 Appendix D

organisation to share the benefit if the contractor then sells them on.
The contract should contain clear and precise terms which:
ª Detail the service levels and performance standards the contractor is

required to meet.
ª Define performance monitoring arrangements and the associated

information requirements.
ª Link payment to performance.
ª Detail any remedies in the event of default of whatever nature.

• Organisations may wish to guarantee the expected workload for the
first few years of a contract, in order to generate enough interest from
potential tenderers. If TUPE applies, the contract should stipulate that,
at the end of the contract, the existing contractor will have to provide
other tenderers with information about the staff who would transfer to
them under this.

• The contract should set out the pricing regime:
ª Fixed price for items or tasks which can be defined fully
ª Variable price for those which cannot
ª Arrangements for sharing savings.

• The payment structure should provide the contractor with an incentive
to perform well, for example by:
ª Paying nothing until the required performance standards are met.
ª Making subsequent payments dependent on the continued meeting
of these standards.
ª Structuring payments to provide incentives to improve performance.
ª Making good identified failures at the contractor’s cost.
ª Recovery of costs incurred by organisations in rectifying poor
performance.
ª The removal of particular services from the contractor.
ª In exceptional circumstances, the right to terminate the contract.

• Client organisations should require appropriate third-party protection
in the form of parent or associated company guarantees, performance
bonds, and evidence of the appropriate insurance cover.

• The contract should normally reserve the client organisation’s right
to terminate the contract in the event of a change in the controlling
interest in the contractor.

• The contract should ensure that the contractor cannot assign any part of
the contract to a third party without the client organisation’s agreement.

• Contracts should be consistent internally and with each other.

• The contract should be flexible enough to cope with any client-approved
changes in user requirements over the course of the contract.

Appendix D 293

General conditions of contract for the provision of services

1. Definitions
2. Services
3. Recovery of sums due
4. Value added tax (VAT)
5. Bankruptcy
6. Racial discrimination
7. Transfer, sub-letting and subcontracting
8. Corrupt gifts and payments of commission
9. Drawings, specifications and other data
10. Use of documents, information, etc.
11. Disclosure of information
12. Law
13. Arbitration
14. Official Secrets Act (condition that would not apply outside the public

sector)
15. Security measures
16. Approval for admission to government premises and information

about workpeople (condition that would not apply outside the public
sector)
17. Observance of regulations
18. Safety
19. Accidents to contractors’ servants or agents
20. Special health and safety hazards
21. Liability in respect of damage to government property (condition
that would not apply outside the public sector)
22. Contractor’s property
23. Intellectual property rights
24. Patents
25. Default
26. Insurance
27. Duty of care
28. Design liability
29. Issues of government property (condition that would not apply outside
the public sector)
30. Personal injury and loss of property
31. Hours of work
32. Occupation of government premises (condition that would not apply
outside the public sector)
33. Contractor’s organisation
34. Break
35. Facilities provided
36. Duration of contracts
37. Variation of requirement
38. Contract documents
39. Amendments to contracts

294 Appendix D

40. Monitoring and liaison meetings
41. Price
42. Price fixing
43. Lead-in costs
44. Payment
45. Payment of subcontractors
46. Availability of information
47. National Audit Office access (condition that would not apply outside

the public sector)
48. Transfer of responsibility
49. Quality assurance

Appendix E

Sections for a service level agreement (SLA)

1. Definitions
2. Services
3. Value added tax (VAT)
4. Subcontracting
5. Resolution of dispute
6. Default
7. Duty of care
8. Hours of work
9. Occupation of premises
10. Agreement holder’s organisation
11. Break
12. Facilities provided
13. Terms of agreement
14. Variation of requirement
15. Agreement documentation
16. Amendments to agreement
17. Monitoring and liaison meetings
18. Price
19. Extensions
20. Allocation of costs
21. Transfer of responsibility

References and Bibliography

Aronoff, S. and Kaplan, A. (1995) Total Workplace Performance: Rethinking
the Office Environment. Ottawa: WDL Publications.

Atkin, B. and Björk, B.-C. (2007) Understanding the context for best
practice facilities management from the client’s perspective. Facilities, 25
(13/14), 479–92.

Barrett, P.S. and Baldry, D. (2003) Facilities Management: Towards Best
Practice, 2nd edition. Oxford: Blackwell Publishing.

Bennett, J. and Jayes, S. (1998) The Seven Pillars of Partnering. London:
Thomas Telford.

CABA (2002) Technology Roadmap for Intelligent Buildings. Ottawa Contin-
ental Automated Buildings Association and National Research Council.

CIRIA (1996) Control of Risk: A Guide to the Systematic Management of Risk
from Construction (SP125). London: Construction Industry Research and
Information Association.

Clements-Croome, D. (ed) (2000) Creating the Productive Workplace. London:
Spon.

Gadde, L.-E. (1996) Supplier Management in the Construction Industry: Working
Papers. Gothenburg: Chalmers University of Technology.

Hofstede, G. (1991) Cultures and Organisations: Software of the Mind: Inter-
cultural Cooperation and its Importance for Survival. New York: McGraw-Hill.

Kaplan, R.S. and Norton, D.P. (1996) The Balanced Scorecard: Translating
Strategy into Action. Boston, MA: Harvard Business School Press.

Kelly, J., Morledge, R. and Wilkinson, S. (2002) Best Value in Construction.
Oxford: Blackwell Science.

Kelly, J., Male, S. and Drummond, G. (2004) Value Management of Construc-
tion Projects. Oxford: Blackwell Publishing.

Leibfried, K.H.J. and McNair, C.J. (1994) Benchmarking: A Tool for Con-
tinuous Improvement. London: HarperCollins.

Leiringer, R. (2003) Technological innovations in the context of public–private
partnership projects. Doctoral Thesis, Department of Industrial Economics
and Management, Royal Institute of Technology, Stockholm.

Pande, P.S., Neuman, R.P. and Cavanagh, R.R. (2000) The Six Sigma Way.
New York: McGraw-Hill.

Rostron, J. (ed) (1997) Sick Building Syndrome: Concepts, Issues and Practice.
London: Spon.

SMG (2006) Space Management Project: Summary. 2006/42, UK Higher
Education Space Management Project, Space Management Group.
London: University of Westminster.

References and Bibliography 297

Stationery Office (2000) Public Private Partnerships: The Government’s
Approach. London: Stationery Office.

Thompson, P. and Warhurst, C. (eds) (1998) Workplaces of the Future.
Basingstoke: Macmillan.

Williams, S. (2002) Managing Workplace Stress. London: John Wiley.
Wing, R.D. and Atkin, B.L. (2002) FutureHome – A Prototype for Factory

Housing. Proceedings of 19th International Symposium on Automation
and Robotics in Construction, SP989, Washington DC: National Institute
of Standards and Technology, 173–8.

Index

3-D CAD, 202, 204 –5 Bluetooth, 151, 155, 260, 270 –1
4-D simulation, 203 BMS – see building management systems
accident body of knowledge, 61, 244
bonds, 234, 292
book, 126 BOOT, 231
reporting, 126 BOT, 36, 231
accommodation strategy, 14, 29, 51, 66, 269, BPR – see business process engineering
BREEAM, 123, 270
274 British Institute of Facilities Management,
action research, 58
active tags – see RFID 4
Acuity, 73– 6 British Land, 122–3
agency, 49–50, 124, 162, 248 BTnodes, 155
agent technology – see cyber-agents budget, 3, 10, 14 –15, 36, 60, 62, 69, 76, 164 – 6,
all-inclusive 125, 130
196, 207, 222, 246
design, 265, 266 managed, 49–50, 158, 168, 172
environment, 254 budgetary control, 285–6
alpha test, 185 building
alternative dispute resolution, 208 automation, 145, 147– 8, 156, 261, 270 –1,
annual reviews, 51, 53
applications service provider, 201 277
approved person, 48 energy management, 155–6, 271 – see also
Arup, 204
as-built, 36, 38, 269 energy management
authorisation, 212–13, 284, 287 engineering services, 38–40, 145–6, 152,
Autodesk AutoCAD, 202
autonomous agents – see cyber-agents 156, 271
intelligence, 145–57, 182, 271 – see also
B2B, 64, 270
B2C, 64, 270 intelligent building
BACnet, 147 management systems, 203
Balanced Scorecard, 26, 113, 220, 296 obsolescence, 255
barcode, 151, 154 building information
benchmarking, 5, 7– 8, 16 –17, 57, 180, 204, model, 203–4, 279
modelling, 194, 203–6, 270
215–27, 246, 296 business
club, 51 activities, 14–15
definition, 270 continuity, 37, 41, 186, 271
facilities management, 220 core, 1– 4, 10 –11, 13–15, 17, 25– 6, 31–2, 50,
ICT, 222– 4
out-of-sector – see best-in-class 55, 68, 71, 90, 98, 111, 182–3, 195– 6, 201,
Bentley MicroStation, 204 218, 220, 238 –9, 249, 272
best-in-class, 62, 215, 217, 219, 223 non-core, 2–3, 14 –15, 68 –9, 162, 183, 196,
best practice, 20, 52, 81, 86, 88–90, 105, 111, 229, 278
objectives, 1, 4, 9, 11, 13, 25, 32, 55, 64, 66,
167, 169, 197, 215–27, 248, 296 77, 80, 179, 199, 221, 249
beta test, 185 plan, 13–14, 17, 26, 57, 229
BIFM – see British Institute of Facilities processes, 12, 15, 20, 24–6, 55–6, 64, 142,
196 – 8, 217, 271, 275
Management process re-engineering, 16, 25–6, 56, 61–2,
BIM – see building information 74, 79, 134, 215, 217, 271
strategy, 13, 26, 31, 55, 111, 189, 224

Index 299

CAAD – see computer-aided architectural compulsory competitive tendering – see
design public procurement

CAD – see computer-aided design computer-aided
CAFM – see computer-aided facilities architectural design, 204–5
design, 202, 271
management facilities management, 194, 202–3, 206,
call centre, 135, 138 271
carbon
concession, 36–7, 241
footprint, 123 concessionaire, 233
neutral, 123 conflict
case study
airline, 24–8 avoidance, 86
bank, 68 –71 of interest, 9, 97, 166, 168, 170, 190, 283,
Diageo, 224 – 6
EastPoint, 61– 4 287
government department, 162–7 contingency plan, 21, 123
ICEconsult, 200 –2 continual improvement, 8, 76, 99, 116, 118,
Sun Life, 73– 6
cashflow, 10, 207– 8, 214 179, 212, 216 –17, 226
CCTV, 10, 156 definition, 272
CDM, 121, 128 culture of, 22, 135, 174–5
change process, 96, 175, 180
communicating, 59 continuing professional development – see
control, 37, 208, 212
management, 1, 4, 16, 20, 32, 54– 65, 74, CPD
contract
216, 242, 245, 251–2, 271
manager, 58, 60, 64 administration, 93, 207–8, 212, 214
process, 59, 64, 74 award, 21, 81– 4, 93, 285, 290
Chartered Institute of Building, 87, 291 conditions, 88–9, 285–6
China, 61 definition, 272
CIOB – see Chartered Institute of Building documentation, 10, 286, 291
CI/SfB, 38 management, 1, 4, 207–14, 244, 287, 290
client negotiation, 21
organisation – see ICF review, 207, 213
representative – see managing agent standard forms, 9, 87–9, 179
climate sum, 48, 88–9
change, 120 contracting out, 272 – see also outsourcing
indoor, 147, 155 cooperative arrangements – see partnering
clinical systems, 187 Cooperative Research Centre for Construction
collaborative arrangements – see partnering
commissioning, 30–2, 35, 38–40, 261, 274 Innovation, 204
communication, 12, 16, 21–2, 34–5, 37, 59, corporate

78, 91, 99, 107–9, 133–9, 143– 4, 160, 179, manslaughter, 121
243 real estate management, 32, 249, 272
plan, 71 social responsibility, 119–20, 122, 131
planning, 73–5 COSHH, 127
problems, 70 cost
community care, 64 analysis, 15
competence benefit analysis, 16
core, 32, 77– 8, 185, 242, 244 –5, 249, 275 direct, 43– 4, 48 –9, 53,
stripping, 192 indirect, 43–4, 47–9, 53, 178
competent person, 119, 122, 127 lifecycle, 16, 91, 238–40
competition, 7– 8, 71, 95, 137, 163, 167, 171, monitoring, 208–10, 214
176, 180, 222, 240, 283– 4, 289 – see also operational, 36–7
tendering running, 3, 143
competitive advantage, 4, 64 whole-life, 38, 91, 255, 262–3
competitiveness, 8, 32, 54, 99, 134, 223–4, 280 CPD, 5, 48, 76, 242, 247– 8
CREM – see corporate real estate

management
critical success factors, 12, 20, 82, 97, 110–11,

118, 218, 246, 272

300 Index

CSR – see corporate social responsibility costs, 156, 246
culture, 2, 4 –5, 17, 25, 66, 70, 111, 129, 135, efficiency, 120, 262
management, 33, 123, 165
137, 168, 174 –5, 180, 246, 252– 4, 268 performance, 120–1, 203, 205
cross-culture, 61, 296 performance certificate, 120
custodial services, 102, 189, 272 saving, 121, 145, 147, 261
customer Energy Performance of Buildings Directive,

definition, xiv 120
feedback, 27 engineering services – see building
focus, 6, 28, 216, 272
internal, 110 engineering services
relationship management, 27, 64 environmental factors, 132, 139–40, 143
requirements, 20, 102, 116 e-tags, 153 – see also RFID
satisfaction, 2–3, 5, 11, 20, 63, 78, 96, European Bank for Reconstruction and

115–17, 159– 60, 172, 175, 181, 213, 221, Development, 235
241, 280 European Commission, 124, 130
service, 44, 49, 52, 105, 115, 245, 247 European Investment Bank, 235
cyber-agents, 152–3, 259–60, 272 extranet, 148

DBFO, 228, 231, 240 facilities management
debt finance, 234 analysis, 9, 12, 15–19, 29, 163
de-layer, 55, 273 brief, 20, 35– 8, 41–2, 274
demobilisation, 273 definition, 1, 4
design and build, 40, 235 implementation, 5, 9, 12, 15–16, 20–3, 29,
design 43, 162, 249
scope, 1, 4, 9, 10, 44, 57, 81–2, 84, 87, 96 –7,
briefing, 30, 34–5 105, 107– 8, 183, 289
scheme, 34–5 solution, 5, 12, 15–16, 19–20, 29
detainee care, 189 strategic planning, 5, 12, 20, 29, 43, 59, 66,
development, 62, 188, 205, 251–68 103
Diageo, 224 – 6 strategy, 12–29, 32, 34 –5, 39, 43, 81, 97,
disability discrimination, 121, 124–5 118, 182, 190, 196, 213, 216, 221, 223,
disruptive technology, 145 249
document
management, 153, 195, 199–200, 273 facilities planning, 30–42, 109, 274
tracking, 153 facility
downsize, 55
drug-testing, 189 handbook, 36
duties management, 4 – see also facilities
contractors, 128, 179
separation of, 10, 284, 287 management
technical, 61, 68, 84, 122, 165, 189 feasibility study, 34–5, 228
financial
EastPoint, 61– 4, 77, 88, 91, 179, 247
EC – see European Commission control, 170, 207–14, 221
education, 5, 10, 22, 25, 59, 221, 242–50, 265 objectives, 12, 20
Finland, 203
higher, 32–3, 296 fire precautions, 121, 126–7
efficiency gains, 10, 12, 20, 180, 228 first aid, 121, 126
embedded technology, 146, 151–2, 154–5, fitness for purpose, 39
flexibility, 37, 41–2, 44, 46–7, 49, 52, 101,
258, 260 –1
employment 106, 137, 142, 144, 171, 177, 179, 239,
281
details, 84 flexible
obligations – see TUPE real estate, 251, 254–7
relations, 121, 124 working, 109, 135– 6, 138, 170, 185, 213,
empowerment, 135, 137, 232, 273 225, 292
energy forensic medical services, 189
consumption, 120 –1, 123, 146, 148, 156, framework agreement, 25, 179, 275
fraud, 10, 283–8
205, 259, 261, 266 FutureHome, 153

Index 301

gain-sharing, 178–80 services, 183–7
GPS, 154 skills, 78
Graphisoft ArchiCAD, 204 SLA, 184
green agenda, 123 – see also sustainability strategy, 12–13, 20
IDEF, 197, 275
handover – see commissioning IFC, 203–5, 275
hard issues, 4, 43–4, 235 IFMA, 4, 247
hazards, 119, 121, 127, 279, 293 incentives, 9, 77, 80, 108, 116–17, 176–8, 180,
health and safety, 1, 4, 9–10, 15, 18, 75, 87,
263– 4, 280, 292
119–31, 198, 245, 254, 293 indemnities, 183, 191, 193,
legislation, 104, 115, 119–31, 248–9, 275 information
record, 165
specialists, 24, 70 auditing, 199
healthcare services, 182, 187–8 categories, 198
healthy buildings, 246, 254, 257–61 management, 76, 153, 195–200, 205–6,
helpdesk, 45, 69–70, 92, 164 – 6, 178, 185, 202,
222, 245, 276
212, 275 systems, 62, 111, 187, 194 –206, 277
Hitachi, 151–2, 277 information and communication technology
homeworking, 135
Hong Kong, 61–4 – see ICT
hot-desking, 39, 41, 142 informed client function – see ICF
hotelling, 142 in-house provision, 48, 50, 96–100, 188
human resources, 1, 15, 225, 256 innovation, 61– 4, 79, 179, 190, 204, 216, 220,

audit, 18 242, 245– 6, 251– 68, 276, 296
management, 4, 20 –1, 26, 66 – 80, 190, 221, insurance, 88, 93, 126, 183, 190–1, 193, 235,

242, 245–7, 275 292–3
plan, 12, 20 intelligent building, 145–57, 271, 276, 280,
planning, 18
strategies, 137 296
HVAC, 146 –7, 271 International Facility Management Association

IAI, 203 – see IFMA
ICEconsult, 200 –2 international standards, 104, 197, 205
Iceland, 202 internet, 148, 152–3, 155, 201, 259– 60, 272
ICF interpreter services, 189
intranet, 16, 63–4, 113, 148
definition, 275 inventory control, 150, 152
developing, 25, 68, 159, 163, 207 irregularities, 10 – see also fraud
relationships, 100, 162–3, 166–7 ISO – see international standards
role, 5, 68, 86, 163, 166, 208, 212, 242, 244
ICT, 13, 18, 24, 50, 55, 76, 99, 132, 134, 182, JCT, 88
job
222–3, 245– 6, 252, 254, 258, 268
applications, 22, 26, 111, 129, 137– 8, 164, descriptions, 76, 79–80
satisfaction, 135–6, 143, 164
168, 184 –5, 188, 200 –5, 254, 265 Joint Contracts Tribunal – see JCT
business continuity, 186 just-in-time, 163, 276
client-server, 187
compliance audit, 186 key performance indicators, 77, 101, 110–14,
dashboard, 102, 112–13 118, 199, 217, 246, 272, 276
firewall, 187
forensic services, 186 knowledge
infrastructure, 113, 137, 150, 184–5, 197–8, management, 78, 262–3
worker, 135, 138, 255
256 –7, 260, 266
integration, 58, 134 KPI – see key performance indicators
migration assurance, 186 Kyoto, 261
outsourcing, 73, 183–7
security, 184, 186–8 LAN, 148
server penetration, 186–7 learning

blended, 33
distance, 33
open, 62–3, 125, 247

302 Index

lease, 32, 40 motivation, 44, 78, 102, 124, 136, 204, 245,
lease-back, 73 275, 281
leasehold, 40
legal considerations, 67–8, 72, 85–9, 91, 103, theory, 246
Mu-chip, 151–2, 277 – see also RFID
120, 124, 183, 192, 200, 232–3, 236, 240, multi-skilled, 47
245, 275, 284, 290 MySQL, 202
life cycle, 31, 35, 40, 120, 149–50, 195, 203,
255, 257– 8, 267–70 nanotechnology, 154, 277
cost, 16, 91, 238 – 40, 248 NEBOSH, 126
product, 154, 185 neighbours, 22, 85
local area network – see LAN networks
logistics, 153
LonTalk, 147 data, 184 –5
sensor, 155
maintenance, 1, 4, 24 –7, 32, 38, 45, 69–70, 98, virtual private, 148
105, 108 –10, 127– 8, 140, 149, 152, 163,
165, 202, 220, 228, 231, 235, 238, 240, office automation, 111, 148, 277
255, 257 off-the-shelf – see agency
OJEC, 86
clinical systems, 187 open-book accounting, 25, 28, 167, 169, 180,
contracts, 88, 283
crews, 260 212, 291
plan, 16–17 open plan offices, 33, 105, 141–2
planned preventive, 114, 194–5, 200–1, operating plan, 12
OPTAG, 152
205– 6, 211, 258, 278 optimisation, 16
skills, 45, 48 organisation
special equipment, 211
systems, 194 client, xiv – see also ICF
unplanned, 114, 115 change, 55
vehicle, 15, 176 output specification, 88, 163, 228, 238, 241 –
managed budget, 50, 158, 168, 172
management see also specifications
contract, 52 outsourcing, 5, 10, 42–53, 66–8, 70–4, 81–96,
information – see information
130, 158 –9, 161, 171, 182–7, 190, 192,
management 228, 237– 8, 272, 278
managing risk, 21, 183, 191, 289–90
strategy, 12, 20
agent, 50, 87, 158, 161–9, 171–2, 277 overheads, 98
contractor, 5, 50, 158, 167–9, 172
market PACE, 87
audit, 16, 19, 51 partnering, 8, 23, 25, 28, 48, 73, 171, 174 – 81,
testing, 16, 43, 51–3, 59, 159, 162, 226
mass-customisation, 255, 258 217–18, 222, 246, 278, 296
mentoring, 22, 62–3, 247 charter, 179
metrics, 56, 62 passive systems, 147, 156
Michelin, 154 patient transport services, 187
Micro-Scanfm, 220–2 payments, 15, 68, 78, 93, 116, 167, 208 –9, 211,
Microsoft, 201–2
mission 214, 287
critical services, 191 authorisation, 284
critical systems, 184, 187 commission, 293
statement, 17, 269 performance-related, 101, 117, 208, 292
mixed economy, 5, 69 redundancy, 89
mobilisation, 12, 73– 4, 82–3, 93, 163– 4, 277 penalties, 101, 108, 116–17, 166, 207, 212,
modular building, 255–7, 261, 264
modularisation, 255, 257, 266 280, 287, 289
Monte Carlo simulation, 62, 91 performance
mote, 155, 277 – see also smart dust
appraisal, 66–7, 77–80
measurement, 68, 113, 116, 120, 130, 137,

142, 164 – 6, 189, 218 –19
monitoring, 63, 96, 101, 111, 113, 118, 208,

211–12, 290, 292

Index 303

objectives, 77 decision, 23
review, 83, 117 roles, 123, 286
standards, 15, 117, 292 split, 86, 97
PEST, 16, 278
PFI, 171, 228 –9, 231, 237, 240 –1, 248, 278 – quality – see also performance
assurance, 15, 63, 102, 117, 202, 261, 281,
see also public-private partnership 291, 294
planning and scheduling, 22, 58, 153, 200 system, 116–18
pollutants, 139
pollution control, 37 questionnaires, 39, 46, 102, 128, 219–20
portfolio audit, 16–17
PPE, 121, 127–8 radio frequency identification – see RFID
PPP – see public-private partnership real estate
pre-contract meeting, 82–3, 93
Private Finance Initiative – see PFI acquisition, 19, 31–2, 42
process disposal, 19, 32
management, 1, 4, 30 –2, 41–2, 242, 245,
model, 26, 56, 58, 60, 197, 206 – see also
IDEF 249 – see also corporate real estate
management
modelling, 197 recovery
re-engineering – see business process disaster, 41, 186–7, 273
incident, 31
re-engineering recruitment, 92, 96, 98, 190, 247, 249
procurement, 7–8, 11, 15–16, 48, 53, 64, 145, agency, 50
graduates, 79
150, 162, 178, 279 policies, 242, 244
brief, 35 redundancy, 72
consortium, 176 packages, 71
fraud and irregularity, 283–8 payments, 89
information system, 26 supply chain, 19, 159
legislation – see public procurement re-engineering – see business process
outsourced services, 81–5, 204 – see also re-engineering
REIT, 122
outsourcing research, 32–3, 62, 81, 136, 140, 146, 194, 223,
process, 100 242–3, 245– 6, 251– 68
public-private partnership, 231, 238, 240 resources – see human resources
specialists, 24 responsiveness to change, 149, 157
strategy, 12, 20–1, 23 retraining, 77, 96, 249 – see also training
productivity, 55, 62–3, 96, 110, 129–30, 148, reward, 9–10, 25, 58, 66 –7, 77, 79– 80, 101–2,
116, 129–30, 136 –7, 141, 156, 178, 180,
175, 179, 185, 202 211, 240, 276
workplace, 132– 44, 246, 254, 277, 282 RFID, 145, 149–56, 277, 279, 281
project second generation, 151
execution strategies, 35 RIDDOR, 126
management, 27– 8, 54, 56, 62, 82, 164 –5 risk, 2, 9–11, 18, 20, 36, 122, 131, 156, 158 –9,
Property Services Agency, 169 161, 163, 168 –70, 183, 189, 191, 198, 212,
public-private partnership, 36, 207, 228–41, 228 –9, 234 – 8
allocation, 9–10, 21, 36, 168, 170 –1, 178,
278 –9, 296 180, 238 –9
generic set-up, 231–6 analysis, 16, 46, 74, 186, 192–3
payment mechanisms, 236–7 assessment, 11, 16 –17, 21, 46, 61–2, 82, 91,
procurement approach, 231, 238, 240 122, 125, 127– 8, 192–3, 241, 279
service provision, 237 aversion, 160
types, 230 exposure, 41, 173, 187, 240, 256
public procurement management, 5, 21, 46, 62, 82, 125, 236,
directives, 86 279, 296
legislation, 86–7, 89 mitigation, 10, 21, 46, 82, 193
threshold, 86 response, 11, 21, 46, 171
public sector, 8, 33, 51, 86, 88–90, 111, 162–7,

170, 174, 181, 213, 228 – 41, 279, 291
purchasing, 8, 16, 164–5, 168, 245–6

approvals, 15
bulk, 7, 176

304 Index

risk (cont’d ) smart
sharing, 7– 8, 25, 46, 176 buildings, 147 – see also intelligent
transfer, 82, 238–41 building
types, 2, 9, 21, 46, 82, 91, 125, 167, 184, 186, control, 13, 146, 149–52
239, 283–9 devices – see RFID
dust, 155, 277
safety – see health and safety homes, 258, 280
safety management, 121, 147, 149 label – see RFID
satellite sensors, 13, 146, 149–52
systems, 145–57
centres, 135 tagging, 149–52, 157
communications, 148 tags – see RFID
satisfaction rating, 78, 110, 136
Scandinavia, 17, 38, 263 SMG, 32– 4, 296
security, 1–2, 18, 37, 45, 47, 61, 63, 70 –1, social infrastructure, 54–5, 129, 271
soft issues, 4, 43–5, 137, 190, 235, 244, 247,
92, 109, 135, 145, 147– 8, 152, 163, 182,
184 –90, 198, 216, 220, 226, 247, 254, 271, 249
281, 293 software
systems, 146, 156, 272
service concepts, 256 on-demand, 201
serviced workplace – see workplace open source, 150
service level agreement – see SLA space
service providers, 5, 7, 21, 22, 44–5, 67, 76–7, analysis, 16
85, 87, 89, 93, 96, 98 –100, 102– 4, 116 –17, efficiency, 30, 33–4, 42
124, 128, 158 –73, 183, 209, 280 management, 18, 32– 4, 42, 201–2, 274, 280,
failure, 10, 159–60, 208
partnering, 8, 174–5, 177, 278 296
performance, 16, 19, 47, 51–2, 68, 77, 93, owned, 32
101, 106 –10, 113–16, 117–19, 166, 180, plan, 18 – see also accommodation plan
183– 4, 207– 8, 211–14, 217, 222 planning, 164–5, 202
relationships, 9–10, 21–3, 29, 48, 53, 68, strategy, 13–15, 19–20, 28
76 –7, 86, 93, 95, 108, 161, 167, 172, utilisation, 11, 17, 34, 68, 109, 142, 222
174 – 81, 212, 222, 229, 272, 298 special purpose vehicle, 233–4
selection, 7, 16, 50, 91, 158–9, 172, 180 specifications, 9, 38, 47, 82–3, 85–8, 91, 94,
standing, 41, 98, 159, 162, 173, 229
type, 158, 169, 178, 181, 187–9, 191–3, 201 101–18, 163– 4, 189, 192, 214, 222, 228,
services 285, 293
attributes, 43–52, 103, 159, 186, 192, 272 speed of response, 46–7
audit, 15–16 SPV – see special purpose vehicle
bundling, 9–10, 52, 71, 159, 171, 237 SQL, 202
contracts, 172 stakeholders, 5, 9, 19, 22, 34, 36–7, 51, 54,
defining, 83–4 56 –9, 64 –5, 72, 74, 81–5, 87, 92, 94, 96 –7,
quality, 1, 44, 90 –1, 93, 101, 104, 106, 117, 100 –3, 107, 118 –19, 122, 189, 219, 225,
178, 184, 217, 225, 227, 237 – see also 231, 260, 264 – 6
performance statement of need, 34–5
scope, 81, 107–8, 161, 213 statutory authorities, 22, 85
shared facilities, 142 stress, 119, 128 –31, 135, 137, 140 –1, 297
sick building syndrome, 132, 140–1, 280, 296 related illness, 119, 131
single point of responsibility, 40, 158, 160, structured data, 199
172 subcontracting, 159, 169, 285, 293, 295
Six Sigma, 224, 280, 296 Sun Life, 73– 6
skills supplier relationships, 7–8, 109, 174–81
audit, 222 supply chain, 9, 73, 123, 146, 150, 152, 159,
profile, 19 165, 168, 170, 260 –1, 279
SLA, 21, 87–90, 94, 99, 101– 4, 107–10, surveys, 5, 74, 102, 269
114 –18, 183– 4, 189, 191–2, 207, 211, condition, 69
213–14, 280, 295 customer, 114, 116, 140
post-occupancy, 38–9
sustainability, 37, 119, 120–1, 123, 149, 254,
261– 4, 267– 8

Index 305

sustainable transition
communities, 251, 254, 261–4 period, 21, 24
design, 37 process, 60, 73–6, 92–3
development, 145–6, 203, 263
estate provision, 30, 33, 41–2 trust-based relationship – see partnering
TUPE, 9, 27, 71–2, 74, 79, 85, 292
SWOT, 16, 281
Sydney Opera House, 204–5 unconventional working, 142
synergies, 32 unstructured data, 199

teamworking, 9, 10, 135, 143 value
technology-enhanced real estate, 147 – see added, 129, 136, 145, 170, 234, 269
best, 1–3, 5, 7, 8 –9, 11, 14, 18, 20, 23, 43,
also smart buildings 51–2, 66, 91, 96 – 8, 100, 110 –11, 159– 60,
tele-care, 251, 254, 264–7 171–2, 175, 181, 185, 213, 217, 220,
telecommuting, 135, 142 227– 8, 237, 239– 41, 270, 275, 296
teleconferencing, 148 engineering, 103
telemedicine, 165, 167, 188 for money, 1, 5, 7, 116, 169, 176, 213, 222,
tendering 230, 239
management, 103, 296
assessment, 83–4, 91, 290
briefing, 82–3, 90 vehicle fleet management, 189
closed, 89 vendor lock-in, 192
documentation, 81–3, 87–91, 94, 97, 163, videoconferencing, 148
virtual
287
list, 86, 285 office, 41, 135
open, 89 private network, 148
period, 82, 90–1 reality, 202
process, 72, 83, 86, 89–93, 95, 239 VoIP, 148
selective – see closed tendering
submission, 62, 90–1 water harvesting, 123
threshold, 86, 90 work environment, 129, 132–4, 137–41,
two-envelope system, 93
TFM – see total facilities management 144
time zones, 138, 187 workers’ rights, 124
top-down approach, 13, 58, 141, 197 workflow, 60, 64, 138, 153, 197, 275
total facilities management, 50, 52, 68, 108, working time, 122, 124, 130, 226
workplace
158, 168 –72, 281
total quality management, 134, 281 design, 245, 257
tracking dynamics, 3, 64
productivity, 132– 44, 246, 254, 277, 282
materials, 153 strategy, 132, 136, 143– 4
product life-cycle, 154 totally serviced, 31, 40–2, 281
trade union, 72 workstations, 40, 127, 140, 142–3, 148
training, 5, 10, 12, 16, 22, 48, 50, 62–3, 76 – 8, world wide web – see internet

92, 96, 98, 122–3, 126 –7, 130, 137, 165, zero carbon buildings, 149, 262, 282
183, 186, 221, 242–50 zoning, 37, 142
transaction costs, 41, 62, 64
transfer of undertakings – see TUPE