Malaysian Property Management Standards (2nd Edition-2016)

THE BOARD OF VALUERS, APPRAISERS, ESTATE
AGENTS AND PROPERTY MANAGERS MALAYSIA

MALAYSIAN PROPERTY MANAGEMENT
STANDARDS

(Second Edition 2016)

A-19-13A, Level 19, Menara UOA Bangsar, No. 5, Jalan Bangsar Utama 1,
Bangsar, 59000 Kuala Lumpur

By RAMSCOTT ACADEMY

INTRODUCTION

This is the 2nd Edition of the Malaysian Property Management Standards (PMS) and
is effective from 1st June 2016. It shall supersede all previous editions of the PMS that
has been issued by the Board of Valuers, Appraisers and Estate Agents Malaysia
including the Standards that came into effect on 1st of June 2010. In addition, the
PMS shall prevail over any circulars issued by the Board prior to it, in the event there
is any conflict between them.

The management of real estate involves many facets from managing accounts
and finances of the real estate, tenant relations, staff and vendor's management
code and regulatory compliance, insurance matters, health and safety issues to
general maintenance. The Property Manager should be well versed in his role and
provide a high standard of service to his Client. As a property professional, the
Property Manager must be competent in real estate finance, building construction
and maintenance, real estate laws and taxation as well as general management.
In Malaysia, the Valuers, Appraisers and Estate Agents Act 1981 (Act 242) defines
property management as,

"the management, maintenance and control of any land, building and any
interest therein, excluding the management and maintenance of property-
based businesses, on behalf of the owner for a fee..."

It is compulsory for those professional Property Managers offering property
management services for a fee to be registered with the Board of Valuers,
Appraisers and Estate Agents, Malaysia. The Board of Valuers, Appraisers and Real
Estate Agents is the legislated supervisory and regulatory body that issues annual
authority to practise for practising professionals providing property management
services. Professional Property Managers should be qualified in real estate/property
management or its equivalent with appropriate professional and supervised
training and passed the Test of Professional Competency.

The Strata Management Act 2013 [Act 757] and its regulations address the
management and maintenance of the common properties comprising common
areas, facilities and amenities in strata titled buildings and lands. This Act spells out
the statutory duties and powers of the developers, Joint Management Bodies,
Management Corporations and Subsidiary Management Corporations in the
management and maintenance of the common properties in stratified
development areas and that gave rise to the need for professional Property
Managers for the management and maintenance of common properties.

When entrusted with the management of a property, the Property Manager has
fiduciary obligations to act lawfully, competently, diligently, impartially and in
accordance with the Client's instructions and objectives. Fiduciary obligations
represent the highest level of responsibility under the law in a service industry. In the
case of property management services, "Trust", "Integrity", "Honesty" "Fairness" and

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"Professionalism" underpin this specialist service dispensed by the Property
Manager.
A code of practice standards is necessary to ensure practitioners provide an
accepted standard of professional service and forms a basis for best practice in
property management services. The Standards can also be used as a measure of
performance to benchmark and also to judge whether a Property Manager has
performed his task professionally.
Each Standard deals with a certain aspect of property management. Within each
standard is an INTRODUCTION to the Standard which sets out the broad objectives,
the STATEMENTS OF STANDARD and followed by EXPLANATIONS in the last section.
These Standards aims to cover the key aspects of property management but
should not be taken as exhaustive. It is expected for Property Managers to use
these Standards and adhere to the principles and directives carefully to achieve
the required standards of property management. The Standards are mandatory
and shall come into force on 1 June 2016. Property Managers are required to
adhere to the Standards strictly.
The Standards are based on the prevailing laws of Peninsula Malaysia. In the states
of Sabah and Sarawak, the Standards will have to be guided by the relevant
prevailing laws of the respective states of Sabah and Sarawak.

DATUK SR HAJI FAIZAN BIN ABDUL RAHMAN
PRESIDENT
BOARD OF VALUERS, APPRAISERS AND ESTATE AGENTS MALAYSIA May
2016

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CONTENTS
Introduction.............................................................................................................................. i
Definitions and Meanings as Used in The Standards ........................................................ iii
STANDARD 1 ....................................................................................................................... 1

The Property Manager
STANDARD 2 ........................................................................................................................ 4

Appointment Of A Property Manager
STANDARD 3 ........................................................................................................................ 6

Handing Over/Taking Over Of Property
STANDARD 4 ........................................................................................................................ 8

Building Management
STANDARD 5 ...................................................................................................................... 10

Maintenance Management
STANDARD 6 ..................................................................................................................... 15

Financial Management
STANDARD 7 ...................................................................................................................... 19

Administrative Management
STANDARD 8 ...................................................................................................................... 22

Insurance Management
STANDARD 9 ...................................................................................................................... 26

Health, Safety & Emergency Management
STANDARD 10 .................................................................................................................... 28

Tenancy/Lease Management
STANDARD 11 .................................................................................................................... 30

Facilities Management

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DEFINITIONS AND MEANINGS AS USED IN THE STANDARDS

The following definitions and meanings in the Standards are based on the
prevailing laws of Peninsula Malaysia. In the states of Sabah and Sarawak, the
Standards will have to be guided by the relevant prevailing laws of the respective
states of Sabah and Sarawak.

"Act 242" means the Valuers, Appraisers and Estate
"Act 318" Agents Act 1981 (as amended);

means the Strata Title Act 1985 (as amended);

"Act 757" means the Strata Management Act 2013
"Board" (effective 1 June 2015 save for Penang on 12
"Maintenance Account" June 2015)

"By-laws" means the Board of Valuers, Appraisers and
Estate Agents, Malaysia;

means an account required to be opened
and maintained by a developer, joint
management body, management corporation
or subsidiary management corporation under
section 10, 23, 50, 60 or 66, as the case may be,
in the Act 757 for purposes of general
maintenance, services and management in
relation to the common property in a stratified
development area;

means the by-laws which are in operation in
respect of the building or land intended for
subdivision into parcels or the subdivided
building or land, and the common property as-

(a) prescribed by the regulations in the Third
Schedule of the Strata Management
(Maintenance and Management)
Regulations 2015 made under section
150 of Act 757 for regulating the control,
management, administration, use and
enjoyment of the building or land
intended for subdivision into parcels or
the subdivided building or land, and the
common property; or

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"Charges" (b) provided for in any additional by-laws
"Commissioner" made under section 32, 70 or 71 of Act
"Common property" 757;

"Developer" means any money collected to be paid into
the Maintenance Account;

means the Commissioner of Buildings
appointed under subsection 4(1) of Act 757,
and includes any Deputy Commissioner and
other officers appointed under subsection 4(1)
to exercise the powers or perform the duties
imposed on the Commissioner;

(a) in relation to a building or land intended
for subdivision into parcels, means so
much of the development area -
(i) as is not comprised in any parcel or
proposed parcel; and
(ii) used or capable of being used or
enjoyed by occupiers of two or more
parcels or proposed parcels; or

(b) in relation to a subdivided building or
land, means so much of the lot -
(i) as is not comprised in any parcel,
including any accessory parcel, or
any provisional block as shown in a
certified strata plan; and
(ii) used or capable of being used or
enjoyed by occupiers of two or more
parcels;

(a) in relation to a development area,
means any person or body of persons,
by whatever name described, who
develops any land for the purpose of
residential, commercial or industrial use,
or a combination of such uses; and

(b) in relation to a subdivided building or

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"Joint Management Body" land, includes the original proprietor of
the lot before the subdivision, and
"Joint Management includes the executors, administrators
Committee" and successors-in- title and permitted
assigns of such person or body of
"Limited Common Property" persons, and in a case where the person
or body of persons is under liquidation,
includes such person or body appointed
by a court of competent jurisdiction to
be the provisional liquidator or liquidator;

means the body established under section 17
of Act 757;

in relation to a joint management body, means
the committee of the joint management body
elected under section 22 of Act 757;

means such part of the common property in a
lot that is-

(a)designated in a comprehensive
resolution referred to in section 17A of
the Strata Titles Act 1985 for the exclusive
benefit of the proprietors of two or more,
but not all, parcels; and

"Local authority area" (b)for which a certificate has been issued
"Management Corporation" by the Director of Land and Mines
certifying that the subsidiary
management corporation has been
constituted under the Strata Titles Act
1985;

means any area in a State that has been
declared by the State Authority to be a local
authority in accordance with section 3 of the
Local Government Act 1976 [Act 171]]

means the management corporation which
has come into existence upon the opening of
a book of the strata register in respect of a
subdivided building or land under subsection
17(3) of Act 318;

"Management Committee" in relation to a management corporation,

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"Maintenance Account" means the committee of the management
"Managing Agent" corporation elected under section 56 of Act
"Property-based business" 757;
"Property management"
means an account required to be opened and
"Property Manager" maintained by a developer, joint management
body, management corporation or subsidiary
management corporation under section 10, 23,
50, 60 or 66, as the case may be, in Act 757;

means a person who is appointed by the
Commissioner under section 86 of Act 757;

includes a hotel, motel, hostel, plantation,
quarry, marina, port, golf course, cinema,
stadium, sports complex and hospital;

means the management and control of any
land, building and any interest therein,
excluding the management of property-based
businesses, on behalf of the owner for a fee
and includes but is not limited to the following
responsibilities:
(a) monitoring outgoings for the property

and making payments out of the income
from
the property;
(b) preparing budgets and maintaining the

financial records for the property;
(c) enforcing the terms of leases and other

agreements pertaining to the property;
(d) advising on sale and purchase decisions;
(e) advising on insurance matters;
(f) advising on the opportunities for the

realisation of development or investment
potential of the property; and
(g) advising on the necessity for upgrading
the property or for the merging of interests;

means a person, a firm or a company who, on

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"Sinking Fund" behalf of the owner of any land, building and
"Sinking Fund Account" any interest therein, manages and controls
such land, building and interest to maintain or
"Subsidiary Management increase the investment in, or physical worth of,
Committee" such property;

"Subsidiary Management means the contributions collected to be paid
Corporate" into the Sinking Fund Account;

means an account required to be opened and
maintained by a developer, joint management
body, management corporation or subsidiary
management corporation under section 11, 24,
51, 61 or 67, as the case may be, in Act 757;

in relation to a subsidiary management
corporation, means the committee of the
subsidiary management corporation elected
under section 63 of Act 757;

means the subsidiary management
corporation which has come into existence
upon the issuance of a certificate by the
Director of Land and Mines certifying that the
subsidiary management corporation is a body
corporate constituted under subsection 17A(5)
of Act 318;

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MALAYSIAN PROPERTY MANAGEMENT STANDARDS

STANDARD 1

THE PROPERTY MANAGER

1.1.0 INTRODUCTION

1.1.1 Property management is a regulated professional practice governed by
the Valuers, Appraisers and Estate Agents Act 1981 (Act 242) which
defines Property Management and the role of Property Managers in the
management of properties.

1.1.2 This Standard specifies the duties, qualification and code of conduct of
the Property Manager so that the Client as well as the general public
are assured of a high standard of service that will be provided by
professional property managers.

1.2.0 STATEMENTS OF STANDARD

1.2.1 The Property Manager shall comply with the provisions of Act 242, Act
318 and Act 757 as well as all relevant regulations, standards, guidelines
and circulars issued by the Board and other relevant authorities.

1.2.2 The Property Manager shall be qualified, competent and experienced in
managing real estate and shall be registered with the Board of Valuers,
Appraisers and Estate Agents, Malaysia.

1.2.3 The Property Manager shall ensure that all contracts of the service
providers, contractors, vendors and suppliers are signed by the Client
unless the Property Manager is required and authorized in writing by the
Client to sign any of the contracts on behalf of the Client.

1.2.4 The Property Manager shall sign important reports and documents
prepared by him.

1.2.5 The Property Manager shall be honest and independent and shall
adhere to the code of conduct and ethics under Act 242 and other
relevant statutes and regulations.

1.2.6 The Property Manager shall be adequately covered by professional
indemnity insurance.

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1.3.0 EXPLANATIONS

1.3.1 Section 19(c) of Act 242 stipulates that no one other than those
registered with the Board of Valuers, Appraisers and Estate Agents shall
be authorised to practise property management for a fee.

The law states that anyone practicing property management without an
authority to practice will be guilty of an offence under the Act which
carries a maximum fine of RM 25,000 or jail sentence of three (3) years or
both.

1.3.2 Act 242 gives exemptions to property based businesses to be managed
by specialist managers other than Property Managers. These property
based businesses includes hotels, motels, hostels, plantations, quarries,
marinas, ports, golf courses, cinemas, stadiums, sports complexes and
hospitals.

1.3.3 The Property Manager may be appointed as the Managing Agent by
the Commissioner of Buildings under section 86 of Act 757 to exercise the
powers and discharge the duties and functions of a joint management
body or management corporation or subsidiary management
corporation, as the case may be.

1.3.4 The Property Manager shall deliver his services professionally and
observe the professional ethics and code of conduct expected of him
as a professional outlined as below:
i. adhere and advocate within the industry to the spirit of
conforming to and complying with all applicable laws and
regulations;

ii. shall practice his profession with honesty, integrity and shall always
act in the best interest of the Client;

iii. affirm and commit to a mission towards professional practice
above personal gain;

iv. continuously improve knowledge and skills, as well as faithfully
observe, practice and comply with every standard, directive,
circular, guideline and decision of the Board;

v. inspire and encourage others to embrace and practice these
ethical principles and standards through their own sense of
dedication and professionalism;

vi. possess a working knowledge of the codes of conduct and ethics
propagated by other professional organisations that serves the
real estate industry;

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vii. maintain the high standards of his profession and cooperate with
the Board to protect the public against fraud, misrepresentation
and unethical practices in property management and any other
act or omission by persons practising property management
which may bring disrepute to the profession;

viii. avoid any criminal offence or professional misconduct;
ix. shall not express or communicate to the public any criticism or

comment on the professional services or conduct of, or
professional fees charged by a fellow registered Property
Manager.
The above guidelines and code of ethics are not exhaustive and serves
as a guide.

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MALAYSIAN PROPERTY MANAGEMENT STANDARDS

STANDARD 2

APPOINTMENT OF A PROPERTY MANAGER

2.1.0 INTRODUCTION

2.1.1 The engagement of a professional Property Manager is contractual in
nature. Therefore, it is important that the Property Manager ensures that
he obtains a written appointment to manage from the owner or the
Management Committee of Management Corporation (MC) or the
Joint Management Committee (JMC) of Joint Management Body (JMB)
or the Commissioner of Buildings (COB), as the case may be (hereinafter
referred to as 'the Client') followed by an agreement or contract.

2.2.0 STATEMENTS OF STANDARD

2.2.1 The Property Manager shall enter into a written Agreement with his
Client in respect of his appointment as a Property Manager.

2.2.2 The Property Manager shall ensure that the Property Management
Agreement includes the following:

i. the scope of work in the services to be provided by the Property
Manager;

ii. the professional fees, disbursements, taxes, salaries and other
payments agreed upon;

iii. the term or period of appointment;

iv. the relevant terms and conditions of his engagement.

2.2.3 The Property Manager shall ensure that the Property Management
Agreement shall incorporate the following fiduciary obligations to the
client without any modification to the wording below:

i. In the discharge of his fiduciary duties and obligations to the
client, the Property Manager shall not receive money or
commission or gift or donation for his own personal benefit from
any vendor, supplier, contractor or service provider in order to
ensure that the client's interest is not compromised by his own
personal interest. For the avoidance of doubt, the said gift will
exclude festive hampers;

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ii. In the discharge of his fiduciary duties and obligations to the
client, the Property Manager shall be prohibited from receiving
any form of commission or money or kickback directly or indirectly
from the contracts with or without the awareness of his client in
order to protect the client's interest and the integrity and
professionalism of the Property Manager.

2.3.0 EXPLANATIONS

2.3.1 An executed Agreement with the Client ensures all scope of work in the
services are understood and mutually agreed upon in the interest of
both parties. The scope of work in the services covered by the Property
Manager may include but not limited to the following:
i. Handing/Taking Over;
ii. Building Management;
iii. Maintenance Management;
iv. Financial Management;
v. Administrative Management;
vi. Insurance Management;
vii. Health, Safety & Emergency Management;

viii. Tenancy/Lease Management.
ix. Facilities Management

2.3.2 The fees, charges and disbursements chargeable by the Property
Manager are stipulated in the Seventh Schedule (Rule 48) of Act 242
and is the basis for the computation of professional fees and related
charges.

2.3.3 It is the Property Manager's obligation to perform the agreed scope of
works to a reasonable standard as per the terms and conditions of the
Property Management Agreement. The Property Management
Agreement gives the Client the assurance that professional and
fiduciary approaches are adopted by the Property Manager in the
discharge of his duties and responsibilities.

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MALAYSIAN PROPERTY MANAGEMENT STANDARDS

STANDARD 3

HANDING / TAKING OVER OF PROPERTY

3.1.0 INTRODUCTION

3.1.1 A proper handing/taking over of the property by the Property Manager
is the first but essential step in the provision of the Property Management
services. It is important to ensure that all the relevant assets, documents
and records on the maintenance and management of the property are
properly handed or taken over by the Property Manager.

3.2.0 STATEMENTS OF STANDARD

3.2.1 The Property Manager shall prepare and set out clearly a defined
checklist to ensure the successful handing/ taking over of the relevant
assets, documents and records with regards to the maintenance and
management of the property.

3.2.2 In the taking over of the property, it is important to check and ensure
that all the relevant documents and financial records of the property
together with the audited accounts are handed over.

3.2.3 Upon taking over the property, the Property Manager shall carry out a
general inspection audit to establish the current state of repair and
condition of the building, infrastructure, installation and facilities,
required rectification of defects and deficiencies to ensure proper
upkeep of the property. This shall be documented in the form of a
Building Condition Report. If there is a need to carry out any form of test
or investigation requiring specialized knowledge, skill, equipment or
instrument, the Client shall, at his own cost, appoint a specialist
consultant to conduct such test or investigation.

3.2.4 The Property Manager shall implement the deed of mutual covenants,
house rules or by-laws, as the case may be, established for the property
management of the property. As and where necessary, the Property
Manager shall advise and assist the Client to review and make
amendments to the deed of mutual covenants, house rules or by-laws,
as the case may be.

3.2.5 Upon the expiry or termination of the Property Management
Agreement, the Property Manager shall return to the Client or his
appointed agent, the said assets, documents and records.

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3.3.0 EXPLANATIONS

3.3.1 Good and proper documentation of stock inventory, assets and
equipment will assist the Property Manager in the effective
management of the property.

3.3.2 It is important that the Property Manager receives the latest
management account and audited account to establish the opening
balance upon taking over of the property.

3.3.3 The Building Condition Report is basically a report on the building
condition based on a visual general inspection of all the relevant
components of the building or the common property, as the case may
be, comprising the fabric, infrastructure, installation and facilities to
establish their current state of repairs and condition. If there is a need to
carry out any form of test or investigation requiring specialised
knowledge, skill, equipment or instrument, the Client shall, at his own
cost, appoint a specialist consultant to conduct such test or
investigation. It is important that the above is made known to the Client
in the scope of work of the Property Manager in order to avoid any form
of misunderstanding by the Client.

3.3.4 If there is any serious defect suspected in the civil and structural
components or the mechanical and electrical components of the
building or the common property, as the case may be, during the
general inspection audit of the building, the Client shall, at his own cost,
appoint the original appointed project engineering consultant or any
other specialist engineering consultant to carry out a detailed
engineering investigation together with proposal for remedial works.

3.3.5 The Building Condition Report is useful for the planning, budgeting and
carrying out of maintenance, repairing, refurbishment and upgrading
works; and also for the drawing up of a preventive maintenance plan. A
copy of the Building Condition Report duly signed by the Property
Manager will be given to the Client.

3.3.6 Deed of mutual covenants, house rules or by-laws, as the case may be,
are drawn up for the proper administration of multi-occupied buildings
especially of common facilities and amenities and for their smooth and
safe operation.

3.3.7 It is good practice that all Building Condition Reports, records and
documents are updated and reviewed for subsequent handover to the
Client or his agent upon the expiry/termination of the Property
Management Contract. This ensures a smooth and professional transition
to the next Property Manager.

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MALAYSIAN PROPERTY MANAGEMENT STANDARDS

STANDARD 4

BUILDING MANAGEMENT

4.1.0 INTRODUCTION

4.1.1 One of the important tasks undertaken by the appointed Property
Manager is to set up a systematic approach for management and
maintenance of building.

4.1.2 A well set up systematic building management and maintenance will
ensure the smooth operation of the building facilities and services at the
optimum operation cost.

4.2.0 STATEMENTS OF STANDARD

4.2.1 The Property Manager shall set up a suitable conducive Management
Office to undertake the management and maintenance of the building,
subject to client's agreement and the setting up cost shall be borne by
the client.

4.2.2 The Property Manager shall recommend suitable organisational structure
and an adequate number of personnel to undertake the day-to-day
management and maintenance of the building in accordance to the
contract agreement with the client.

4.2.3 It is the duty of the Property Manager to design and implement the
relevant policies and procedures for the property and ensure all
necessary controls are in place.

4.2.4 The Property Manager shall prepare, review and implement standard
operating procedures (SOP) for the administration of the site office, site
personnel, vendors and service contractors.

4.2.5 The Property Manager shall formulate management and maintenance
procedures to ensure efficient management and maintenance of the
building.

4.2.6 The Property Manager shall also recommend an appropriate
purchasing/procurement procedure for the client's approval.

4.2.7 The Property Manager shall prepare periodic management report on
the building maintenance and management to the client in a timely
manner as agreed by the client.

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4.3.0 EXPLANATIONS
4.3.1 It is necessary to set up a management office where the Property
Manager can manage the site operations. The cost of the setting up
and operating of the management office is borne by the Client. This
shall include furniture, fittings and fixtures, equipment, utilities,
telecommunications and any other cost related to the management
and maintenance of the building shall be borne by the client.
4.3.2 The Property Manager has the responsibility to ensure competent and
skilled staff are employed and deployed according to the agreed
appropriate organizational structure. The cost of the management
office personnel shall be borne by the Client. He shall recommend and
propose the appropriate organisational structure for the Client's
approval.
4.3.3 Building operational policies and systems ensure all aspects of building
maintenance, repairs and supervision are undertaken within the
parameters of the Client's expectations. It lays the foundation for the
efficient carrying out of daily operational work. The Property Manager
shall also liaise and co-ordinate with other consultants, external
contractors and relevant Government agencies on maintenance and
renovation works.
4.3.4 Standard operating procedures provide the guidelines to ensure
performance delivery by Management Office personnel, vendors and
service providers are consistent.

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MALAYSIAN PROPERTY MANAGEMENT STANDARDS

STANDARD 5

MAINTENANCE MANAGEMENT

5.1.0 INTRODUCTION

5.1.1 Maintenance is a key aspect of property management and it is essential
that the building is kept in good condition and facilities in an optimum
operable state. As such, a comprehensive maintenance management
programme in accordance with the Client's objectives and investment
strategies must be devised and implemented.

5.1.2 A comprehensive maintenance management programme of a
property should cover the following areas:

i. Corrective Maintenance;
ii. Planned Maintenance;
iii. Service Providers.

5.1.3 Maintenance Management should be incorporated into the Standard
Operating Procedure to ensure consistent delivery.

5.2.0 STATEMENTS OF STANDARD

5.2.1 CORRECTIVE MAINTENANCE

Corrective maintenance requires a systematic process to ensure the
effective rectification/replacement of the defective or malfunctioned
facilities and equipment.

i. Corrective maintenance works must be undertaken in
compliance with the Client's objective;

ii. The Property Manager shall monitor and supervise all works in
accordance with the conditions of the award of such works;

iii. The Property Manager shall establish an effective system and
procedures to handle repairs and replacements;

iv. The Property Manager shall establish an effective stock and
inventory record system and procedure for utilisation during
corrective maintenance activities.

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5.2.2 PLANNED MAINTENANCE

A systematic planned maintenance programme is important in ensuring
that the building's fabric, finishes, facilities and equipment are
maintained and kept in an optimum operating condition.

Planned maintenance is a systematic and pro-active policy and
procedure of carrying out works and activities in preventing or
minimising defects or malfunctioning of facilities and equipment prior to
such an occurrence.

i. The Property Manager shall formulate and prepare a detailed and
systematic planned maintenance schedule in accordance with
the manufacturer's recommendations and international best
practices;

ii. The Property Manager shall monitor and supervise the planned
maintenance works to ensure they are being undertaken in
accordance with the pre-agreed schedule and scope of work
and is completed with good workmanship;

iii. The Property Manager shall keep proper records of operating and
maintenance manuals and ensure timely renewal of all licenses,
permits and certificates;

iv. The Property Manager shall also keep abreast and be well
acquainted with all relevant laws, amendments or additions to
any codes and/or standards introduced and advise the Client
accordingly.

v. The Property Manager shall implement energy saving measures in
the interest of sustainable environment management.

5.2.3 SERVICE PROVIDERS

Effective maintenance of building facilities and services are essential to
protect an asset's value. Hence, qualified, skilled and experienced
service providers are necessary to ensure high quality and standards of
services are being provided for the building.

i. The Property Manager shall ensure that only qualified, skilled and
experienced specialist service providers are appointed for the
provision of the specific services. The Property Manager shall
manage, administer and supervise all appointed service providers,
taking necessary action to ensure a high level of competency

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and professional service is provided and that the Client's interests
are protected;

ii. The Property Manager shall maintain proper records of contracts,
licenses, insurances, manufacturer's guidelines and warranties to
ensure the services are provided effectively, efficiently and timely;

iii. The Property Manager shall formulate a comprehensive scope of
work, specifications and tender/quotation process that are
transparent, clear and enforceable;

iv. Upon a successful tender or quotation exercise, the Property
Manager shall ensure that a letter of award and/or contract
stipulating the specified terms and conditions is issued by the
Client to the successful contractor/tenderer unless the Property
Manager is required and authorized in writing by the Client to sign
the letter of award and/or contract on behalf of the Client.

v. It would be a good practice for a Property Manager to obtain a
minimum of three quotations for consideration save for proprietary
items or small items or pre-agreed contractual items as the case
may be. It is also a good practice for the Property Manager to put
in place a limit of authority based on the Client's requirements and
approval.

5.2.4 PROCUREMENT
The Property Manager shall recommend an appropriate
purchasing/procurement procedure for the client's approval in
implementing maintenance plan.

5.3.0 EXPLANATIONS

5.3.1 CORRECTIVE MAINTENANCE
The Property Manager shall have an effective Corrective Maintenance
Plan to ensure that the rectification and remedial actions on defects,
failures and malfunctions are dealt with effectively and efficiently.

Corrective measures taken by the Property Manager must be thorough,
transparent, timely and undertaken at an optimum cost.

5.3.2 PLANNED MAINTENANCE
The Property Manager must not only understand the building he is
managing but also the services provided therein. He must have a good
working knowledge of the manufacturer's guidelines, industry best
practices and the recommended maintenance requirements in

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accordance to the manufacturer's recommendation (e.g operating
hours, maintenance, warranties, etc.)

All maintenance personnel and service providers must be made fully
aware of the Planned Maintenance Programme.

5.3.3 SERVICE PROVIDERS

The Property Manager is required to recruit relevant personnel to perform
services or to outsource some of these services to external service providers.
The engagement of in-house personnel or external service providers shall be
with the approval of the Client.

The Property Manager shall formulate job specifications in order to recruit the
most suitable candidate.

The Property Manager's duty include the preparation of scope of works,
estimated cost and inviting tenders & quotations and conducting tender
exercise or request for quotations. Tender opening/ Quotations and tender
interview for the short listed tenderers are subject to the Client's policies and
procedures. The Property Manager is to forward his recommendations and
analysis in a tender report to the Client for his consideration. A letter of award /
purchase order must be issued to the successful tenderer or contractor upon
receipt of the Client's approval.

The service contract is an agreement between the Client and the service
provider. It is the duty of the Property Manager to enforce the terms of the
contract for service. He must ensure that all works are done in accordance
with the stipulated terms and conditions. The Property Manager shall ensure
that the Client's interest is protected in the event of any claims arising from the
failure or negligence on the contractor's part to fulfil the terms of the contract.
Any deviation from the terms and conditions and specifications should be
attended to and any defects should be immediately rectified.

The common types of Building Services include but are not limited to the
following:-

1) Air conditioning system 15) Landscaping
2) Building automation system 16) Lifts & escalators
3) Car parking 17) Advertising & signage's
4) Cleaning & sanitary 18) Pest control
5) Communications 19) Plumbing
6) Construction & engineering 20) Refuse disposal
7) Electrical & mechanical systems 21) Roller shutters
8) Fire protection system 22) Roofing
9) Flood gate 23) Security

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10) Water features 24) Sewerage
11) General repairs 25) Supervising engineer
12) Gondola 26) Swimming pool
13) Insurance 27) Water features
14) IT equipment 28) Water proofing

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MALAYSIAN PROPERTY MANAGEMENT STANDARDS

STANDARD 6

FINANCIAL MANAGEMENT

6.1.0 INTRODUCTION

6.1.1 Financial Management is a crucial function of the Property Manager. In
carrying out his duties as a Property Manager, he must ensure that he has in
place proper accounting methods and systems to enable him to discharge his
fiduciary duties satisfactorily.

6.1.2 The Property Manager's fiduciary responsibilities include the following:

i. Issuing invoices and receipts. Collecting rental income, service charges
or Charges, sinking fund and any other charges legally imposed;

ii. Monitoring outgoings for the property and making the payments out of
the income or charges derived from the property or as approved by the
Client; including payment of GST, quit rent, and other relevant taxes;

iii. Preparing budgets, maintaining financial records and submitting
financial reports for the property.

6.2.0 STATEMENTS OF STANDARD

6.2.1 The Property Manager shall administer the finances of the property on
behalf of the Client according to the contractual requirements and
obligations as agreed between the Client and the Property Manager.
The Property Manager owes the Client a duty of care and must conduct
his duties diligently and responsibly in accordance to his fiduciary
obligations.

6.2.2 The Property Manager shall assist his Client to maintain the property
management account operated by his Client, unless instructed
otherwise.

6.2.3 For subdivided or intended subdivided building and land under the
Act 757, the Property Manager shall assist the Client to open and
administer a trust account which is operated by the Client known as the
Maintenance Account for the collection of Charges and other
recoverable charges imposed by the developer, Joint Management
Body, Management Corporation or Subsidiary Management
Corporation, as the case may be, and the disbursements thereof.

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6.2.4 For subdivided or intended subdivided building and land under the
Act 757, the Property Manager shall assist the Client to open and
administer a trust account which is operated by the Client known as the
Sinking Fund Account for the collection of sinking fund contributions
imposed by the Developer, Joint Management Body or Management
Corporation, as the case may be, and the disbursements thereof.

6.2.5 The Property Manager shall be responsible for the preparation of the
Annual Budget covering income and expenditure of the property for the
Client's approval.

6.2.6 The Property Manager shall advise and determine the appropriate rate
and apportionment of service charge or Charges and sinking fund
contributions to be levied in accordance to agreed amounts and
relevant legislations for the Client's approval.

6.2.7 The Property Manager shall prepare and maintain proper and accurate
financial records which shall be transparent and accessible to the Client
and other authorised persons.

6.2.8 The Property Manager shall prepare a Financial Report on a monthly or
other periodic basis as agreed by the client and submit to the Client.

6.2.9 The Property Manager shall prepare the Annual Account and ensure
that this is professionally audited by an approved company auditor
appointed by the Client at the Client's cost.

6.2.10 The Property Manager shall implement proper measures for credit
control and debt recovery on a timely basis including taking
appropriate actions such as issuing of reminders, imposing of interest
charges and advising on the necessity of taking legal action.

6.3.0 EXPLANATIONS

6.3.1 Whenever the scope of work in the service provided by the
Property Manager includes the billing, collection and
disbursement of monies, the property Manager shall act in a
responsible and transparent manner.

In such cases, the Property Manager shall put in place a sound
accounting system that accounts for all monies collected and
expended.
6.3.2 In all cases, a separate property management account should be
opened and maintained for each individual project under

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property management to maintain transparency and avoid
confusion.

For subdivided or intended subdivided building and land,
Act 757 provide for the following accounts to be opened and
operated by the developer, Joint Management Body,
Management Corporation or Subsidiary Management
Corporation, as the case may be:-

i. Separate and independent accounts

Every stratified development area must have two separate
and independent accounts comprising Maintenance
Account and Sinking Fund Account.

ii. Maintenance Account

Pursuant to Act 757, the developer, Joint Management
Body, Management Corporation and Subsidiary
Management Corporation are required to open and
operate a maintenance account for each individual
project known as the Maintenance Account. The
collections of Charges and other recoverable charges
imposed by the developer, Joint Management Body,
Management Corporation or Subsidiary Management
Corporation, as the case may be, shall be deposited into
this account. Expenditure for the general maintenance and
management of the common property, services, utilities,
administration and meetings for the purposes as provided
under the Act 757 are paid from this Maintenance Account.
A financial report shall be submitted to the Client on an
agreed periodic basis and the annual account at the end
of each financial year.

iii. Sinking Fund Account

Pursuant to Act 757, the developer, Joint Management
Body, Management Corporation and Subsidiary
Management Corporation are required to open and
operate a capital expenditure account for each individual
project known as the Sinking Fund Account. The collections
of sinking fund contributions imposed by the developer,
Joint Management Body, Management Corporation or
Subsidiary Management Corporation, as the case may be,
shall be deposited into this account. Expenditure for the
major structural repairs, building refurbishment and
upgrading works, asset acquisitions, repainting of common

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property, replacement of plant and machinery and other
forms of capital expenditure for purposes as provided under
the Act 757 are paid from this capital expenditure account.
A financial report shall be submitted to the Client on an an
agreed periodic basis and the annual account at the end
of each financial year.
6.3.3 The Property Manager should prepare a financial report on a monthly or
other periodic basis as agreed with the Client in respect of the
Maintenance Account and the Sinking Fund Account; and submit to the
Client outlining the income and expenditure for the month with details of
major expenses and debtors' ageing report. These reports will provide
the financial status of the property to the Client.

6.3.4 As the financial accounting is done on behalf of the stakeholders whose
money is managed by the Property Manager, the Property Manager
should ensure that the accounts are audited by approved company
auditors.

6.3.5 Prompt collection of rentals and/or service charges or Charges is vital in
ensuring available cash flow and efficient management of the property.
The Property Manager is required to be diligent in the collection of
arrears and take appropriate action on defaulters.

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MALAYSIAN PROPERTY MANAGEMENT STANDARDS

STANDARD 7

ADMINISTRATIVE MANAGEMENT

7.1.0 INTRODUCTION

7.1.1 In addition to maintenance and finance, general administration forms
part of operations and this may include helpdesk and customer service
functions, maintenance of accurate and updated plans, drawings,
service contracts, servicing and equipment maintenance records as
well as tenant, contractors and consultants contact details, application
and renewal of licenses, permits and certificates and handling of petty
cash.

7.1.2 The Property Manager has to put in place an administrative system with
suitable personnel to handle the above functions.

7.1.3 Subject to prior agreement with the client, the Property Manager may
assist the Joint Management Body, Management Corporation or
Subsidiary Management Corporation to organize and facilitate the
committee meetings and/or the general meetings.

7.2.0 STATEMENTS OF STANDARD

7.2.1 The Property Manager shall compile and keep proper records, manuals,
drawings, service contracts and all other necessary documents.

7.2.2 The Property Manager shall compile and keep proper records and
inventory listing of office equipment, tools and stocks used for operations
and maintenance.

7.2.3 The Property Manager shall setup proper procurement procedures.

7.2.4 The Property Manager shall ensure the application and timely renewal
as well as adherence to conditions of relevant licenses, permits and
certificates.

7.2.5 The Property Manager shall ensure the timely settlement of statutory
payments, utilities bills, outgoings and expenses.

7.2.6 The Property Manager shall implement a system of handling and
recording enquiries, complaints and feedback.

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7.2.7 The Property Manager shall keep an approved petty cash account and
ensure its proper utilisation and control.

7.2.8 The Property Manager shall have proper system for human resource
management - selection, recruitment, employment, administration,
records, training, payroll and statutory contributions.

7.2.9 The Property Manager shall provide a list of emergency contacts for
owners, tenants and occupiers.

7.2.10 In a stratified development area, the Property Manager will assist the
Joint Management Committee, Management Committee or Subsidiary
Management Committee to convene and facilitate the committee
meetings in compliance with the Second Schedule of the Act 757.

7.2.11 Subject to an agreed fee with the developer, the Property Manager
may provide consultation, advice and assistance to the developer so as
to convene and facilitate the first annual general meeting for Joint
Management Body or Management Corporation pursuant to the
Act 757.

7.2.12 Subject to agreed fees with the Management Corporation, the Property
Manager may provide consultation, advice and assistance to the
Management Corporation so as to establish the Subsidiary
Management Corporation and to convene and facilitate the first
annual general meeting for Subsidiary Management Corporation
pursuant to the Act 757 and the
Act 318.

7.2.13 Subject to prior agreement, the Property Manager may provide
consultation, advice and assistance to the Joint Management Body,
Management Corporation or Subsidiary Management Corporation in
the convening and facilitating of its general meetings pursuant to the
Act 757.

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7.3.0 EXPLANATIONS
7.3.1 A systematic and efficient administrative system will help the property
Manager to ensure the smooth operation of the building's facilities and
services. With effective and comprehensive records and documents,
the property Manager is able to make recommendations and decisions
on property management matters.
7.3.2 It is prudent for the Property Manager to inform the Client if there is
insufficient fund or cash flow to meet any payments due in respect of
bills or for the purposes of renewals of licenses, permits and certificates
and the consequences thereof.
7.3.3 The Property Manager being an expert professional in property
management practice will be in the best position to provide the
necessary advice and consultation to –
(a) the developer in the convening, facilitating and conduct of the
first annual general meeting for Joint Management Body or
Management Corporation pursuant to the
Act 757;
(b) the Management Corporation in establishing the Subsidiary
Management Corporation and in the convening, facilitating and
conduct of the first annual general meeting for the Subsidiary
Management Corporation pursuant to the Act 757 and the Act
318;
(c) the Joint Management Body, Management Corporation or
Subsidiary Management Corporation in the convening and
facilitating of its general meetings pursuant to the Act 757.

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MALAYSIAN PROPERTY MANAGEMENT STANDARDS
STANDARD 8

INSURANCE MANAGEMENT
8.1.0 INTRODUCTION

8.1.1 The Property Manager may assist the Client in the procurement of
adequate insurance cover to protect the interest of the Client.

8.1.2 Various insurance policies are available for insuring property against
perils. The Property Manager must have knowledge of such insurance
policies as well as an understanding on the adequacy of coverage,
insurance premium and insurance claims.

8.2.0 STATEMENTS OF STANDARD
8.2.1 The Property Manager may assist the Client on the various perils that
affect the property and types of coverage available.
8.2.2 The Property Manager may assist the Client to procure adequate
coverage for the different perils to protect the interest of the Client.
8.2.3 The Property Manager shall enable for proper and timely billing of the
insurance premium to be made to all owners who are liable to pay for it
based on an agreed apportionment.
8.2.4 The Property Manager shall report damages and losses as and when
they occur and assist to make the appropriate claims to the insurers in
accordance with the insurance policies and procedures.
8.2.5 The Property Manager shall ensure that monies received from any claim
is fully utilized for the purpose for which it was claimed for and all monies
received are deposited into the appropriate Client's or trust account, as
the case may be.

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8.3.0 EXPLANATIONS

8.3.1 Types of Insurance Policies

The Property Manager shall coordinate with the Client to procure the
relevant insurance policies to insure the property against the various
perils. He must ensure the proper types of insurance policies are taken
out.

The joint management body, management corporation or subsidiary
management corporation may, apart from the fire insurance, insure
against such other risks as the parcel owners or proprietors may direct by
a special resolution in a general meeting. These other insurances may
include but not limited to the following:-

i. Public liability insurance;
ii. Error and omission insurance or management liability insurance;
iii. Plate glass insurance;
iv. Machinery breakdown insurance;
v. Burglary insurance;
vi. Money insurance (onsite and in transit);
vii. Fidelity guarantee insurance;
viii. Office contents and equipment insurance;
ix. All risk insurance;
x. Personal accident insurance.

The common types of insurance policies available include the following:

i. Fire insurance
Fire insurance cover shall include cost of demolition and removal
of debris and reinstatement or rebuilding. The Property Manager
shall recommend to his Client to seek the advice of the relevant
professionals in ascertaining the insurance value of the property.
In such an event, the Client may commission and bear the cost of
a valuation report prepared for fire insurance purposes.

In the case of strata titled building, the Act 757 under subsection
94(2) provides that, for the purpose of determining the
reinstatement value of the building that is required to be insured
for fire insurance, a reinstatement valuation of the building shall
be obtained from a registered valuer at least once every five
years.

Subsection 93(2) of Act 757 provides that the fire insurance of
strata titled building must cover the perils of the building being
destroyed or damaged by fire, lightning, explosion, bursting or
overflowing of water tanks or pipes and windstorms.

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In the case of strata titled land parcels, section 97 of Act 757
provides that each parcel owner or proprietor shall be responsible
to insure his building on the land parcel as the building is deemed
to be his private property.

Depending on the Client's requirement, the fire insurance policy
may also include provisions for any possible consequential loss of
rent payable for the period during which the building is unusable
or only partly useable whilst it is being rebuilt or repaired in the
event of the property being affected by fire.

ii. Public liability insurance

Public liability insurance is to indemnify the Client, the Property
Manager and the Client's agents against claims by third parties for
damages arising from acts of negligence or omission by the Client
and/or his servants/agents.

iii. Error and omission insurance or management liability insurance

Error and omission insurance or management liability insurance is
to indemnify the Client, the Property Manager and the Client's
agents against claims or legal suits arising from the acts of
negligence or omission by the insured parties.

iv. Plate glass insurance

Where the property has glass front or glass external cladding or
roofing, a plate glass insurance policy should be bought to cover
the cost of replacement of any plate glass that is accidentally
damaged or broken.

v. Machinery breakdown insurance

Machinery breakdown insurance covers claims and damages
due to unforeseen breakdown of the insured machinery.

vi. Burglary insurance

Burglary insurance covers losses, claims and damages due to
burglaries of the insured items.

vii. Money insurance (onsite and in transit)

Money insurance (onsite and in transit) covers the loss of moneys
kept onsite and in transit to the bank up to the limit of the insured
sum.

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viii. Fidelity guarantee insurance
Fidelity guarantee insurance covers the theft of moneys by the
management staff up to the limit of the insured sum.

ix. Office contents and equipment insurance
Office contents and equipment insurance covers the losses of and
damage to the office contents and equipment up to the limit of
the insured sum.

x. All risks insurance
All risks insurance is to cover all other possible and optional perils
existing in the aforesaid insurance policies.

xi. Personal accident insurance
Personal accident insurance compensate the insured person due
to injury arising from accident up to the limit of the insured sum.

8.3.2 Others
i. All payments of money from an insurer in respect of destruction of
or damage to a building shall be immediately applied in
rebuilding, replacing, repairing or restoring the building.
ii. The Property Manager shall inform the Client of the services
offered by insurance brokers who provide more extensive advice
on insurance matters and on any other insurance products
available. The fees and all other incidental cost for the
appointment of the brokers or any other consultants are to be
borne by the Client.

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MALAYSIAN PROPERTY MANAGEMENT STANDARDS
STANDARD 9

HEALTH, SAFETY & EMERGENCY MANAGEMENT

9.1.0 INTRODUCTION
9.1.1 In every property, there exists the possibility of incidents and accidents
occurring which may create emergencies and risks to the occupiers and
invitees in the property.
9.1.2 As part of good property management practice, the safety and well-
being of the occupiers and invitees in a property should be of prime
concern to the Property Manager.
9.1.3 This section covers the Property Manager's scope in the management of
the health, safety and emergency issues for the property.
9.1.4 Some types of risks, hazards and emergencies that may affect properties
include:
i. Fire and explosion;
ii. Gas leaks and explosion;
iii. Power failure;
iv. Natural disasters - such as earthquake, landslide, flood and
tempest;
v. Structural failure;
v. Mechanical and electrical equipment failure;
vi. Corrosion and leakages;
vii. Riot, demonstration and civil disorder;
viii. Effluent and toxic waste contamination;
ix. Bomb or biological or chemical agent threat
xi. Epidemic of infectious disease.

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9.2.0 STATEMENTS OF STANDARD

9.2.1 The Property Manager shall keep abreast and ensure compliance at all
times of the various legislations and regulations that relates to the health
and safety of the occupiers and invitees in a property.

9.2.2 The Property Manager shall be aware of and be able to identify the
possible risk and safety issues which may affect the property he
manages and takes necessary measures to prevent or reduce or
mitigate the possible risk.

9.2.3 Where appropriate, the Property Manager shall prepare an Emergency
Management Plan that may include the following:

i. Formation of an Emergency Response Team;
ii. Emergency and evacuation procedures;
iii. Training and conducting emergency and evacuation drills.
9.3.0 EXPLANATIONS

9.3.1 It is prudent for the Property Manager to develop a safety and security
programme that meets the Client's and occupiers' needs. Such a
programme is to prevent safety and security breaches and to detect
them should they occur and follow through with proper actions to
minimise harm to people and damage to property.

9.3.2 It is important that the Property Manager ensures that the property
under his care complies with the requirements of the Department of
Occupational Safety and Health (DOSH), the Occupational Safety
Health Act 1994 (OSHA) and other related Acts. DOSH will ensure
thorough enforcement and promotional works that employers and
employees always practise safe and healthy work culture as well as
comply with existing legislation, guidelines and codes of practice. OSHA
provides the legislative framework to secure the safety, health and
welfare among the Malaysian workforce and to protect them against
risks on safety or health in connection with the activities of the personnel
at work.

9.3.3 Where appropriate, the Property Manager shall advise the Client on the
appointment of safety personnel

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10.1.0 MALAYSIAN PROPERTY MANAGEMENT STANDARDS
10.2.0
STANDARD 10

TENANCY/LEASE MANAGEMENT

INTRODUCTION

10.1.1 The role of a Property Manager may include Tenancy/Lease
Management.

10.1.2 The Property Manager's role in Tenancy/Lease Management will
involve aspects of billings, collection and disbursement of rents,
tenants' liaisons, coordination between contractors, management
of utilities and services, and monitoring reinstatement of premises
upon termination or expiry of the tenancy or lease.

STATEMENTS OF STANDARD

10.2.1 The Property Manager shall ensure that all dealings and
transactions are ethical and transparent with his Client's best
interests protected at all times.

10.2.2 Depending on the scope of work, the Property Manager shall
implement relevant processes for the collection of rents, service
charges or Charges, car park charges and/or other relevant
charges and shall keep proper accounts of all monies collected.

10.2.3 The Property Manager shall ensure proper documentation and
records are kept on the Client's property and inventories. He must
ensure that these items are kept in good condition, with the
exception of fair wear and tear.

10.2.4 The Property Manager shall have a good understanding of the
covenants that are entered into between the landlord/lessor and
tenant/lessee in the tenancy/lease agreement, and be well
versed with legal provisions relating to tenancy/lease matters as
well as those under the Contracts Act 1950 [Act 136],

10.2.5 The Property Manager shall ensure that the covenants expressed
or implied, are observed by the tenant or the lessee, under the
tenancy/lease agreement throughout the duration of the
tenancy/lease. He shall diligently monitor and enforce the
covenants without fear or favour at all times.

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10.3.0 10.2.6The Property Manager shall coordinate that the delivery of vacant
possession and handing/taking over are properly executed when
tenants are moving in or moving out. This may include full
reinstatement of the demised premises to its original condition.

EXPLANATIONS

10.3.1 The Property Manager plays an important role as the link between
the landlord/lessor and the tenant/lessee. Whilst ensuring that the
tenant /lessee has quiet enjoyment of the demised premises, the
Property Manager must also ensure that the tenant/lessee
observes all house rules or by-laws and complies with all his
obligations under the tenancy/lease agreement.

10.3.2 The Property Manager may be required to collect rents in addition
to service charges or Charges. He must ensure that all monies are
properly collected and accounted for in the appropriate
account.

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11.1.0 MALAYSIAN PROPERTY MANAGEMENT STANDARDS

STANDARD 11

FACILITIES MANAGEMENT

INTRODUCTION
11.1.1 Facilities management is the integration of processes within an

organisation to maintain and develop the agreed services which
support and improve the effectiveness of its primary activities.

11.1.2 The Property Manager in his capacity as Facilities Manager is
required to control and manage all building management and
maintenance functions except for the collection of rental,
maintenance charges and other charges on behalf of the Client.
Lack of facilities management will lead to the loss of confidence
of building owners and investors in the building and the value of
the building may also be affected by adverse publicity.

11.1.3 In the Malaysian context, facilities management does not involve
the collection and administration of monies collected on behalf of
the Client. It encompasses mainly the management and
maintenance of the facilities and services within the building.

11.1.4 The Property Manager may carry out facilities management for
the Client who does not require any of the services in the billing
and collection of rental and service charges or Charges.

11.1.5 At the operational level, it is the role of the Property Manager in his
capacity as Facilities Manager to ensure compliance in all the
aspects of building operations to create an optimal, safe and cost
effective environment for the occupiers to function. Such areas of
facilities management include the following but not limited to:

i. Upkeep and cleaning
ii. Fire safety
iii. Health and occupational safety
iv. Mechanical & electrical (M&E) facilities and services
v. Maintenance, testing and inspections
vi. Operation of facilities
vii. Security, surveillance and safety
viii. Space allocation and changes
ix. Tender process
x. Tenancy and lease management

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11.2.0 STATEMENTS OF STANDARD
11.2.1 Upkeep And Cleaning

Upkeep and cleaning operations are undertaken during business
hours for the upkeep and cleaning of common areas, refuse
disposal, upkeep of restrooms which include replenishing
consumables such as tissue rolls, soaps, air fresheners, etc.
Cleaning is scheduled based on the agreed scope of work and
the frequency of certain specific tasks.
The training and certification of cleaning operatives should be a
factor in the award of contracts to cleaning services providers.

11.2.2 Fire Safety

Building fire poses the highest risk to loss of life and has the
potential to damage or shut down a businesses and livelihoods of
a building and its occupiers. As prevention against building fire,
the building will have in place inspection, maintenance and
repairs, replacement and upgrading, and testing of all the fire
safety installation, equipment and systems, records keeping and
certificates of compliance.

11.2.3 Health And Occupational Safety

The building is required to have safety control measures in
managing many safety related issues. Provisions and regulations in
the Factories and Machinery Act 1967 (Act 139) and the
Occupational Safety and Health Act 1994 (Act 514) should be
adhered to. Oversight or failure to comply with the provisions and
regulations will lead to injury, loss of premises/businesses,
prosecution and insurance claims. With regard to commercial
properties, the confidence of customers and investors carrying out
businesses in the building may be shaken and affected by
adverse publicity.

11.2.4 Mechanical And Electrical (M&E) Facilities And Services

M&E activities fall into two basic categories - planned (i.e. routine
maintenance) and unplanned (i.e. breakdowns). Manuals and
specification documents should be used as a guide when
developing a maintenance program which should clearly outline
what needs servicing and when, as well as general routine
maintenance tasks, who will undertake them and when. This
particular area is covered in detail under Standard 5 -
Maintenance Management.

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11.2.5 Maintenance, Testing And Inspections

Maintenance, testing and inspection schedules are required,
some in compliance to regulations and laws, to ensure that the
facility is operating safely and efficiently, to maximise the
economic life span of installation and equipment and reduce the
risk of failure. The works are planned in line with the manufacturer's
manuals, warranties etc. This particular area is covered in detail
under Standard 5- Maintenance Management.

11.2.6 Operation Of Facilities

The Property Manager has responsibilities for the day-to-day
running of the building where these tasks may be outsourced or
carried out by directly employed staff. The Property Manager will
often require daily reports and operating procedures.

A help desk may be set up to book meeting rooms, car parking
spaces and many other services but this depends on how the
building is organised. It may be split into two sections often
referred to as "soft" and "hard" services. Soft would include
booking of facilities such as badminton courts, post room,
cleaning, etc. and hard comprises the mechanical, fire and
electrical services.

11.2.7 Security, Surveillance And Safety

Security, surveillance and safety to any organisation or site is
necessary to protect the occupants and the businesses.

Security, surveillance and safety are an essential component of
creating and maintaining a safe environment for the occupants
and other key stakeholders, which also encompasses protection
of the physical assets and infrastructure. Maintaining security for
large groups of people coexisting together brings a unique set of
challenges and a mix of required attributes.

11.2.8 Space Allocation And Changes

Layouts are subject to changes, more so in the commercial and
industrial sectors. These changes are normally planned by the
Property Manager to meeting the needs of the business usage,
compliance with statutory requirements related to layouts, fire
safety arrangements, lighting levels, signage, ventilation,
temperature control and welfare arrangements such as
washrooms and drinking water. Consideration may also be given

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to vending, catering, pantry or a place where staff can make a
drink and take a break from their desk.

11.2.9 Tender Process

The Client will seek to periodically re-tender contracts with the
service providers. It is necessary to have an up to date list of
equipment or assets to send out with the tenders requests. This
information is often retained in the same maintenance schedule
for equipment to be changed, replaced or having new items are
installed. The asset register is also an important tool for budgeting,
used for life cycle costings and for capital expenditure
forecasting. To conclude, tender process is therefore an important
aspect of his duties. This particular area is covered in detail under
Standard 5 - Maintenance Management.

11.2.10 Tenancy And Lease Management

The building may be owned by the occupier or may be tenanted
or leased; and tenanted/leased properties will be subject to
periodic rent reviews. Certain tenancies/leases can also be
subjected to sub-tenancies and may require options to be
renewed. This particular area is covered in detail under Standard
10 - Tenancy / Lease Management.

11.2.11Energy Management

Efficient use of energy and water may minimise the impact on the
environment and optimise the expenditure of the property.
Property Manager, where necessary shall control and conserves
energy and water through monitoring the use of energy and
water.

11.2.12 Environmental Management

Sustainable environmental management strategy is important to
minimise the environmental impact to the property. Property
Manager, where necessary shall collect, analyses and evaluates
information on environment and waste management issues with
actions taken to minimise the environmental impact on the
property.

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by Ramscott Academy

11.3.0 EXPLANATIONS
11.3.1 The Property Manager plays an important role in facilities
management to ensure the integration of the systematic process
in fulfilling the agreed facilities management services.
11.3.2 The Property Manager shall establish the implementation and
evaluate facilities management strategy through effective
processes and procedures within the scope of work of facilities
management.

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by Ramscott Academy