1. EstatesMaster Case Study 2 Breakfast Briefing Presentation: Setting the Facilities Budget for a large new Corporate HQ Nigel Anderson IFPI Ltd 14th June 2013

2. The Brief Borough Council Consolidation of facilities to new corporate style head office building Benchmarking required to establish facilities budget Carried out as part of strategic review of FM services

3. Benchmarking Process Workshop –Building specialists –Service area specialists Service level questions discussed and answered by the group Effects on benchmark cost monitored real time Audit trail recorded

4. Process – nudging the drivers Fabric Maintenance: Building Fabric Maintenance 1. What is the annual expenditure on maintenance of the building fabric? 0 2. What is the gross internal area of the building? 21000 3. How many floors are there in the building? 5 4. What is the average depth of the building? 0.7 5. What is the floor area of any atrium? 300 6. How many occupants are there in the building? 1700 External walls, windows, doors and cladding 7. What is the specification? Minimum Maintenance 8. What is the normal routine for maintenance? Casual inspect and repair 9. What was the extent of planned maintenance/ repairs/ minor alterations? Minimum 10. What was the extent of emergency repairs? Minimum 11. What restrictions were there on the time of executing the work? Minimum restrictions 12. What physical restrictions were there on gaining access to the areas? Fairly low restrictions

5. Process – nudging the drivers Results Total Actual Cost 0.00 Total Benchmarked Cost 54,689 Actual Cost per m2 0.00 Benchmarked Cost per m2 2.60

6. Service Definition and Costs

7. Service Level - Cleaning Recommended (medium) Alternative 1 (higher) Alternative 2 (lower) £411,000£585,000£375,000 The levels of service indicated are typical of a provincial or city centre back office building, e.g. as occupied by a Central Government Department or a large professional firm. This higher level would entail a very thorough cleaning regime, e.g. vacuuming carpets every day, emptying waste bins at regular pre-set intervals, cleaning worktops daily etc. Such a regime would be typical of a Headquarters building for a major corporate commercial organisation. This lower level would typically be found in the back offices of industrial estates.

8. Maintenance of Services Recommended (medium) Alternative 1 (higher) Alternative 2 (lower) £631,000£682,000£510,000 The maintenance regime for the major services like air- conditioning and electrical services is set at ‘preventive’ i.e. regular inspection of components and replacement before they begin to put their systems at risk. This is the normal level for offices where occupiers need non- interrupted services but without relying upon full planned maintenance – see Alt’ 1. The costs reflect the wear-and-tear of a 24/7 occupancy regime. This is for a ‘planned maintenance’ regime involving automatic replacement of theoretically life-expired components. Such a regime is really only warranted in very high risk buildings where occupiers are engaged in critical activities e.g. air traffic control, trading floors etc. This is for mainly ‘condition-based’ maintenance where there is no scheduled inspection regime but the engineers report components which require maintenance or replacement. Such a regime is typical of industrial back offices or other buildings occupied by lower-paid staff not involved in critical activities.

9. Thank you for your interest Any questions?