the Role of the FM Provider in PPPs
presentation to RMIT Students as part of
“Advanced Construction Management”
Presentation Overview σ
Introduction to Sodexo
σ
PPP consortium structures
σ
FM in PPPs
σ
Risk
σ
FM as part of the design process
σ
Whole of Life and Lifecycle Management
About Sodexo σ
Global company HQ’d in Paris
σ
20th largest organisation in the world
σ
385,000 employees
σ
Integrated facility solutions provider
σ
Remote sites, healthcare, education, defence
σ
End to end PPP project principle
σ
More than 30 live PPP/PFI projects globally
Typical PPP Structure Government Agency
Project Co (SPV)
Finance Principal
Architects Design Team
Engineers & Consultants
Builder
Equity & Debt
FM Provider
PPP Agreements & Contracts Government Agency Construction Deed
PROJECT AGREEMENT
Lease
Project Co (SPV) Construction Contract
FMC
FM Provider
Builder
SPV MOU
Financier Direct Agreement
Finance & Security Documents
Shareholder Agreement Service Provider Deed
Financiers
Equity Providers
FM Role in PPPs σ
Responsible for: σ
Operational management
σ
Maintenance
σ
Lifecycle management and refreshment
σ
Integration of services
σ
Management of subcontractors
σ
Assessed against KPIs
σ
Controlled through financial abatement
FM Services Asset & Facilities Management
Soft Services
σ
Client coordination
σ
Cleaning
σ
Asset management
σ
Concierge
σ
Project management
σ
Pest control
σ
Lifecycle management
σ
Grounds and landscaping
σ
Subcontractor management
σ
Waste management
σ
Energy & utility benchmarking
σ
Laundry services
σ
Call centre services
Hard Services σ
Building fabric maintenance
σ
Equipment maintenance
FM – Accepted Risk σ
FM provider accepts risk arising from: σ
Service delivery
σ
Facility performance – operationally only
σ
Maintenance standards
σ
Shortened lifecycle refreshment periods
σ
Additional lifecycle refreshment requirements
σ
Subcontractor performance
σ
Industry benchmarking
FM Issues for Rating Agencies σ
FM Component: longest risk exposure period
σ
Comfort derived from: σ
Market testing soft services
σ
Comprehensive documentation of FM CMP
σ
Create a transparent delivery model that can be transferred with minimum disruption
σ
Financial backing: σ
balance sheet strength
σ
parent guarantee
Services in the Design Process σ
Traditional D&C model (Principal’s perspective): σ
Design for ease of construction
σ
Meet scope
σ
Look good
σ
Cheapest construction options utilised
Services & FM in PPPs σ
PPP model: σ
FM provider part of design team
σ
Robust fabric, materials and FFE utilised
σ
Maintenance considered in design layout
σ
LCC a core element of design
σ
NPV of cap-ex and op-ex costs used for procurement decisions
FM role through the Project EOI Phase Architects Engineers Builders SPV Equity Provider FM Team
ACTIVE
PASSIVE
RFT/Design Phase
Construction Phase
Handover Phase
Operational Phase
Lifecycle Management σ
FM provider manages capital works program
σ
Lifecycle profile is managed with design team
σ
Lifecycle model and costs are bid in RFP
σ
Lifecycle model addresses fitness for purpose:
σ
σ
Operational performance
σ
Aesthetic requirements
Lifecycle includes run-out period (5-10 years)
Whole of Life (WoL (WoL) WoL) σ
FM provider is required to approach the entire project from a Whole of Life position σ
Bring client perspective into design
σ
Consider day-to-day operations
σ
Design: ease of access for maintenance tasks
σ
Procurement : balance robustness, capex & opex
σ
Maintenance : cost, profile, operational impact
σ
Lifecycle : refreshment rates, obsolescence
Handback σ
FM provider required to ensure LCC position
σ
Cost and management of run-out included in PPP
σ
Never been tested, is likely to be subject to: σ
Sinking fund position
σ
Option to absorb risk transfer for self-management
σ
Change in use negates last refreshment cycles
Ďƒ
Questions