Contract Maintenance Models

Trends and Options

Presented by:
Walter Rafin
DTZ

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Presentation Roadmap
n tr a ct Model
i n te n an ce Co
Facilities Management Ma
versus Options
Facilities Maintenance

Summary

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Facilities Management versus Facilities Maintenance
Facilities Management integrates all
organisational processes, people and
workplace. Includes property | space
management, infrastructure, support
services, administration and asset
management

ent
Facilities Maintenance sustains

nag es
Ma aciliti
em

e
sus
building and asset performance to

Mai cilities
anc
ver
design intent, to increase reliability,

nten
Fa
reduce equipment degradation, and
sustain energy efficiency, whilst
maintaining mandatory compliance
requirements.

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Preventative Maintenance
Usually fixed PM fee

Normally includes some corrective elements

To
o
(e.g. coil cleaning)

m
uc
h
Not usually inclusive of repair or
reactive works

Asset owner takes on almost all risk

To
o
Litt
Results in too little or too much

le
maintenance – unclear requirements

Budgeting & cost control difficult

4
Inspection (or Reactive) Based
‘Fly-by’ inspections

Usually fixed inspection fee

Excludes any corrective elements

(e.g. cleaning filters) ti ve?
t effec
s
Lea
Not inclusive of repair or
reactive works

Reporting of issues only

Usually least expensive option

Least effective

5
End Results (or Reliability)
Not yet widely used

All or part risk transfer

D
Risk based on defined

EN
end result requirement
(e.g. comfort)

Payment based on results

Usually tied to Guaranteed Maximum

Price (GMP)

Difficult to define parameters

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Comprehensive

Fixed Fee all inclusive – budget certainty

Full risk transfer to contractor

Excludes capital replacement,

refurbishment and/or

SK
Labou
rehabilitation r

RI
Usually subject to condition
assessment and latent conditions
s
Part
Contractor manages risk via
rigorous PM or not enough PM

Significant administration savings

7
Semi-Comprehensive
Inclusive of all labour only

Fixed labour fee

Normally excludes parts and materials

2nd most expensive model

Works best for large sites or portfolios

Budgeting can be difficult Labour

only

Less risk transferred to contractor

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Repair Work Limit (RWL)
Research shows for M.E.F services:
• 66% <$1000
• 20% rehab | refurb | capex & chargeable
• 14% >$1000 & chargeable
it
L im
r k
Wo
Most reactive calls minor p a ir
Re Labour
Materials
Capped risk at predetermined/agreed
threshold or ‘RWL’
Parts

Usually subject to condition

assessment and latent conditions

Significant administration savings

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Summary

Choose wisely and do your homework

Consider:

- Economic conditions
and what you can afford

- Technical advances th e
end ind
res in m
u lt
Keep
- Your portfolio condition

- Your risk profile

- Contract flexibility for change

- Performance management and reporting framework

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