THE MAGAZINE FOR THE BRITISH INSTITUTE OF FACILITIES MANAGEMENT | 19 JULY 2012
FMWorld www.fm-world.co.uk
ROUNDTABLE:
FM’s role in maintaining a company’s image
Inside Canada Water’s imposing new library
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VOL 9 ISSUE 14 19 JULY 2012
CONTENTS
13 | Barclays deal for ISS
16 | Canada Water Library
22 | Branding roundtable
NEWS
OPINION
FEATURES
6 DIO announces shortlist for three regional prime FM contracts 7 Olympic Stadium partnership deal aims to ensure legacy 8 Project of the Fortnight: The Shard, Western Europe’s tallest building 9 Think Tank: how effective are your wastereduction schemes 10 BIFM confirms new board members at annual general meeting 12 Business news: Graeme Davies sees PFI review pushed back to the Autumn 13 ISS secures international integrated FM deal with Barclays 14 In Focus: Kate Gardner on the Protection of Freedoms Act 2012 15 Bill Dunne is appointed as divisional director of In Depth
16 Perspective of a facilities manager: John Bowen discusses FM’s role in the community 17 Five minutes with Ben Smith, community use manager, Robertson Facilities Management 50 No Two Days
MONITOR
30 | Terry Trickett
18
Canada Water Library: David Arminas visits Docklands’ new library, a striking, angular structure, that also houses a theatre and meeting rooms
22
Branding roundtable: How can FM affect your organisation’s brand? This was the topic of a roundtable discussion sponsored by Interserve
30
History of FM: Joanna Lloyd-Davies interviews Terry Trickett in the latest of FM World’s series chronicling the early years of the sector
36 Legal: Martin Gammon on new tyre legislation to be rolled out 37 Court report: Beverley Vara outlines a case of contractural error 38 Insight: Market intelligence 39 Standards: Stan Mitchell explains the formation of BS EN 15221-5
REGULARS 40 BIFM news 43 Diary of events 44 People & Jobs 47 Appointments
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Redactive Publishing Ltd 17 Britton Street, London EC1M 5TP 020 7880 6200 www.fm-world.co.uk EDITORIAL Tel: 020 7880 6229 email: editorial@fm-world.co.uk editor: Martin Read ⁄ news editor: David Arminas ⁄ sub editor: James Richards ⁄ editorial assistant: James Harris ⁄ art director: Mark Parry ⁄ art editor: Daniel Swainsbury picture editor: Sam Kesteven ADVERTISING AND MARKETING email: sales@fm-world.co.uk
MARTIN READ EDITOR COMMENT
LEADER
senior display sales executive: Adam Potter (020 7880 8543) ⁄ sales executive: Edward Taylor (020 7880 6230) ⁄recruitment sales executive: Carly Gregory PRODUCTION production manager: Jane Easterman production executive: Aysha Miah PUBLISHING publishing director: Steve Bagshaw Forward features lists and media pack available at www.fm-world.co.uk/about-us SUBSCRIPTIONS BIFM members with FM World subscription or delivery queries should call the BIFM’s membership department on 0845 0581358 FM World is sent to all members of the British Institute of Facilities Management and is available on subscription to nonmembers. Annual subscription rates are UK £110, rest of world £130. To subscribe call 020 8950 9117 or email fm@alliance-media. co.uk – alternatively, you can subscribe online at www.fm-world.co.uk/about-us/ subscribe/ To order the BIFM good practice guides or the FM World Buyers’ Guide to FM Services call James Harris on 020 7880 6229. EDITORIAL ADVISORY BOARD Simon Ball, business development manager, Interserve ⁄Jason Choy, director, Persus⁄ Nick Cook, managing director, Haywards ⁄ Robert Greenfield, group SHEQ director, GSH ⁄ Liz Kentish, managing director, Liz Kentish Coaching ⁄ Anne Lennox Martin, FM consultant ⁄ Peter McLennan, joint course director, MSc Facility Environment and Management, University College London ⁄ Lionel Prodgers, principal, Agents4RM ⁄ Chris Stoddart, general manager, Heron Tower ⁄ Jeremy Waud, managing director, Incentive FM ⁄ Jane Wiggins, FM Tutor and author ⁄ Chris Wood, senior associate at Advanced Workplace Associates
Average net circulation 11,357 (Jul 10 – Jun 11) FM World magazine is produced using paper derived from sustainable sources; the ink used is vegetable based; 85 per cent of other solvents used in the production process are recycled © FM World is published on behalf of the British Institute of Facilities Management (BIFM) by Redactive Publishing Ltd (RPL), 17 Britton St, London EC1M 5TP. This magazine aims to include a broad range of opinion about FM business and professional issues and articles do not necessarily reflect the views of the BIFM nor should such opinions be relied upon as statements of fact. All rights reserved. This publication may not be reproduced, transmitted or stored in any print or electronic format, including but not limited to any online service, any database or any part of the internet, or in any other format in whole or in part in any media whatsoever, without the prior written permission of the publisher. While all due care is taken in writing and producing this magazine, neither BIFM nor RPL accept any liability for the accuracy of the contents or any opinions expressed herein. Printed by Pensord ISSN 1743 8845
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ne thing leapt out at me from the roundtable event we held recently on facilities management’s ability to influence an organisation’s brand values – and that’s a giant opportunity for FM to climb the corporate pecking order. Our assembled experts identified two critical issues: first, that there’s a clear gap between how an organisation markets itself to the world and how its own people are organised to live up to and present that image; and second, the way FM is delivered can – and indeed already does – have a decisive impact on how an organisation’s end users perceive that organisation. So, two things – a lack of clear guidance to staff about maintaining brand values and a department perfectly positioned to manage that process. Opportunity knocks! What’s the next step? As you’ll read (in our feature, starting page 22), that lack of clear guidance comes down to a written policy or brand guidelines. Yes, such documents exist to dictate the right font and colour mix for a corporate logo, or to determine how products and services should be named and explained – but what about documents that lay out how employees should act? What should they do when faced with end users, in terms of the information they should impart? How should they answer peoples’ questions? What determines the manner in which they communicate, the way they dress, the people they refer end users to...? And so on. And even further, what about the minimum standards to be adhered to by technicians when they find themselves in front of customers, undergoing maintenance tasks that will put them in situations where they may have to communicate with customers? How often are such documents compiled? At the roundtable, we concluded that it’s surely up to FM to put itself forward for this role. As consultant Lucy Jeynes pointed out, if FM isn’t part of the marketing of a brand, then the corporate perception of what FM can do to influence how its brand is presented will be defined solely by its shortcomings – the things FM does that can compromise the brand when they go wrong. If we sit back and wait, FM will always be dealing with the aftermath of any problem affecting the brand rather than having a controlling influence on how those problems can be both dealt with and indeed avoided in the first place. Brand guidelines for FM’s day-to-day interactions with customers would be a form of planned preventative maintenance for an organisation’s image that FM’s could set up and manage themselves (via marketing). There are great examples of how outsourced suppliers are coming together to ensure a seamless link between theirs and their client’s staff (an important way of ensuring everyone is putting the right message across), but this is more of an interdepartmental issue. FM needs to demonstrate that it actively supports the organisation and is not merely there to mop up. The case FM can make for being integral to an organisation’s marketing is a compelling one. It could even be the big chink in the corporate armour that we’ve been looking for.
O
“FM NEEDS TO DEMONSTRATE THAT IT ACTIVELY SUPPORTS THE BRAND AND IS NOT MERELY THERE TO CLEAR THINGS UP WHEN PROBLEMS OCCUR”
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PUBLIC SECTOR
MOD announces FM shortlist for English sites
Regional Prime Central (including Catterick Garrison, Beacon Barracks Stafford, RAF Shawbury and RAF Valley training bases, DST Leconfield, Wattisham Airfield, RAF College Cranwell, and the intelligence centre at Chicksands) ● Axiam, a joint venture between Interserve Defence and DynCorp International ● Babcock Support Services ● Carillion Enterprise, a joint venture between Carillion Services and Enterprise Managed Services ● KBR, a proposed joint venture between Kellogg Brown and Root and Balfour Beatty Workplace. Regional Prime South East (including RMA Sandhurst, DMRC Headley Court, HQ Land Forces 06 | 19 JULY 2012 | FM WORLD
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Regional Prime South West (including various Royal Marines bases, RNAS Yeovilton, RNAS Culdrose, Defence Equipment and Support headquarters): ● Babcock Support Services ● Carillion Enterprise ● Landmarc Support Services, a joint venture between Interserve and Computer
WIKIPEDIA
The Defence Infrastructure Organisation (DIO) has announced the shortlist for the three prime contracts for providing FM to defence sites in England from 2014. The DIO is part of the Ministry of Defence (MOD) and is responsible for managing and maintaining land and properties to meet the current and future needs of the military and its personnel at home and abroad. Developed under the Next Generation Estate Contracts programme, the contracts have an estimated combined value of up to £4.35 billion over a minimum of five years and a maximum of 10 years. Individual contract values range between £500 million and £1.8 billion, depending on potential contract extensions. The contracts and shortlisted bidders include:
Andover, Hyde Park Barracks, Woolwich Barracks, Horse Guards, RAF High Wycombe and RAF Northolt): ● Babcock Support Services ● Carillion Enterprise ● KBR, a proposed joint venture comprising Kellogg Brown and Root and Balfour Beatty Workplace ● PriDE (SERP), a joint venture between Interserve Defence and SSE Contracting.
RAF College Cranwell is one of the Regional Prime Central contracts up for grabs
Sciences Corporation. The successful bidders will provide maintenance and repairs to the defence estate. Other services will include a 24/7 helpdesk for estate-users,
a regional energy management bureau and grounds maintenance. Each contract includes options for land management services and construction projects valued below £3.93 million.
COMMUNITY
Funds boost for local groups in takeover bids The government has set up two funds to help community groups wanting to bid to run local services or buy their local shop, library or pub. More than £30 million of support has been earmarked for the project, said communities minister Andrew Stunell. Under the £11.5 million Community Right to Challenge programme – which became law this month – communities with good ideas for how they can run local public services can access advice and support to be able to bid for and run them. The programme will also help communities use the Right to Bid
FLICKR
DAVID ARMINAS newsdesk@fm-world.co.uk
Communities minister Andrew Stunell
when it comes into force this autumn, a government statement said. Under the £19 million Community Ownership of Assets
programme, communities wanting to take control of a local asset, such as a pub, will have access to the support they need through each stage of the process, from forming a group through to preparing and submitting a bid. Around 90 per cent of the funding will go directly to communities in the form of grants, allowing them to buy the support they need. Funding will also support a website and advice service at www.mycommunityrights.org.uk.
“More than £30 million of support has been earmarked for the project” www.fm-world.co.uk
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NEWS
BRIEFS Alternative to the CRC?
GETTY
Olympic legacy set for the long haul The London Legacy Development Corporation (LLDC) and Newham Council have formed a partnership to invest up £40 million to create a legacy for the Olympic Stadium. The LLDC and the council’s agency Newham Legacy Investments have set up E20 Stadium, an organisation to manage the stadium post-Games. It will ensure the successful transformation of the Olympic Stadium into a multi-purpose venue, said Daniel Moylan, chair of the London
Legacy Development Corporation. He said a 99-year lease will secure community benefits, including education, grassroots sport and job opportunities. “The benefits will provide a greater legacy for this world-class venue, with more uses still to come,” said Moylan. “It’s another example of how London is further ahead in planning legacy than any previous host Olympic city.” The stadium, as Britain’s ‘national home for athletics’, will be used for
many major athletics programmes, including the IAAF 2017 World Athletics Championships. Construction work to transform the site will start in July next year. Among the projects is the removal of temporary venues and construction of paths and roads to connect Queen Elizabeth Olympic Park to surrounding areas. The 18-month transformation will be the foundation for development across east London over the next 20 years.
Organisations affected by Carbon Reduction Committment (CRC) legislation are being invited to take part in a questionnaire to help re-work the legislation. The decision by the Treasury to retain revenue rather than recycle it as an incentive has led many organisations to consider the CRC as little more than an energy tax. Consultancy Acclaro is working with the Treasury, DECC and BIS to review options for Phase 2, in conjunction with the simplification consultation now underway. The aim is to provide an industry viewpoint and options on taking the scheme forwards, including alternatives to the CRC as a separate environmental tax. To complete the questionnaire, visit http://svy.mk/MGURX3
Olympic horseplay OLYMPICS
G4S faces criticism over Olympics security Olympics security provider G4S has said that it is working hard to get 9,000 additional people through training in time for the start of the Games on 27 July. As FM World was going to press, G4S was responding to heavy media criticism and reports that the government is ready to send in the army to fill up to 3,500 positions should the contractor fail to supply enough security staff on time. A G4S statement said it already had 4,000 people at work across 100 Olympic venues, as well as thousands of new recruits nearly ready for deployment. “We currently have more than 9,000 additional people going through the final stages of the required extensive training, vetting and accreditation process,” the statement said. “We have encountered some delays in progressing applicants www.fm-world.co.uk
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through the final stages, but we are working hard to process these as swiftly as possible. We understand the government’s decision to bring in additional resources and will work with LOCOG [London Organising Committee of the Olympic and Paralympic Games], the military and other agencies to deliver a safe and secure Games.” The G4S statement puts the apparent delay down to “an unprecedented and very complex security recruitment and deployment exercise”. Last year, the Ministry of Defence (MOD) said that it would supply 13,500 troops to conduct Olympic duties, including around 7,500 for guard duty at Olympic venues. The possibility of having to
supply an additional 3,500 troops has created tension between the government and the MOD, which would be seeking compensation for their contribution. In January, FM World reported that G4S had officially begun its recruitment drive in London, reporting that the company was processing applications from more than 20,000 potential recruits. At the time, Mark Hamilton, managing director of G4S security personnel, said: “Our training will provide successful applicants with a professional security services qualification that will kick-start their careers in the sector. During the London Games, G4S employees will carry out a variety of tasks, including bag and vehicle searches.”
“Thousands of new recruits are nearly ready for deployment”
Even before touching down at Heathrow Airport, visitors to London will be reminded that the capital is hosting the Olympics, thanks to grounds maintenance staff at Richmond Park. Staff, along with two of the Royal Park’s shire horses, have cut a huge image of the five interconnected Olympic rings in the grass, which are recognisable from the air. Jim and Murdoch, the two horses who have regularly cut road-side verges in Richmond Park for many years, are maintaining the images throughout the summer.
Location still key Location remains the main driver for European office real-estate decisions, but quality is gaining ground, according to a report from Jones Lang LaSalle (JLL). Quality of real estate as a final deciding factor in whether to rent or not will grow in importance. It means the right fit-out for the right location and occupier will be the most effective formula, JLL’s Office 2020 research found. European prime rents in core locations are, on average, 40 to 70 per cent higher than secondary rents. London, Paris and major German cities see the largest average difference, with premium rent between 60 and 85 per cent higher than secondary rent. FM WORLD | 19 JULY 2012 | 07
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PROJECT OF THE
FORTNIGHT NEWS BULLETIN
Whitehall departments must use resource pool
Spectacular: the tallest building in Western Europe provides FM challenges
The Shard carves a place in London’s skyline Western Europe’s tallest building, the Shard, opened to fanfare this month, adding a sharp-edged landmark to London’s skyline. Standing next to London Bridge Station, the building contains office accommodation, retail outlets, a five-star 200-room Shangri-La Hotel and spa, restaurants and 10 residences at the tops. Designed by architect Renzo Piano, the structure rises 87 levels above the ground and is just shy of 310 metres (1,016 feet) high, where the all-glass outer shell rises into a pinnacle that resembles piece of broken glass, giving the landmark its name. Major facilities contracts have yet to be awarded, such as for window cleaning, which promises lucrative returns: 11,000 glass panels adorn the outside of the building. The building has eight escalators and 44 lifts, including ‘doubledecker’ lifts. A 740-square-metre (7,965-square-foot) photovoltaic array supplies part of the site’s energy requirements. London’s highest viewing gallery, ‘The View from the Shard’, will open in February 2013. For the £25 admission, the experience will, at 244 metres (800 feet) up on level 68, offer a 360-degree view out to 40 miles (on a clear day). The Shard is owned by LBQ, comprising the State of Qatar as majority shareholder and Sellar Property Group. In the wider picture, the Shard is the centrepiece of London’s newest commercial district, London Bridge Quarter, a mixed-use development regenerating part of London’s South Bank. This area includes the Shard’s sister development, the Place, a new building also designed by Piano that occupies adjacent land. At 17 floors, the Place offers nearly 40,000 square metres (428,664 square feet) of office space. Principal contractor for the Shard is Mace, project manager is Turner & Townsend, quantity surveyor is Davis Langdon and services engineer is Ove Arup. Commercial agents are Knight Frank and Jones Lang LaSalle. 08 | 19 JULY 2012 | FM WORLD
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The Cabinet Office’s shared services strategy will fail unless central government departments are ordered to pool their back office functions such as procurement, according to MPs. Efficiency and reform in government corporate functions through shared service centres, published by the Committee of Public Accounts, praised the Cabinet Office for its “renewed focus” on shared services as a mechanism to drive efficiency. The government’s Civil Service Reform Plan, published in June, set out plans that shared services would “become the norm” across Whitehall, with departments sharing services such as procurement, HR and IT. Since 2004, the eight shared service centres that have been established, which cost £500 million more than estimated to set up, have failed to prove their value. Of the five investigated by the National Audit Office, one broke even, two failed to track their savings and two cost a combined total of £255 million. To avoid this happening again, the committee recommended departments be mandated to use the shared service centres, with a “suitably empowered senior responsible owner being given the responsibility to ensure adoption”.
IBM claims energy savings of 7.4 per cent IBM has saved £28 million on energy costs, the equivalent of 175,000 tonnes of carbon dioxide emissions, according to its 2011 Corporate Responsibility report. The technology business exceeded its annual target to save 3.5 per cent of total energy use, reaching 7.4 per cent. The savings were a result of 23,000 conservation projects, which included installing efficient lighting systems at 203 locations and upgrading equipment to reduce natural gas and electricity use. The report also said IBM is implementing technologies to enable real-time management of energy use as part of its ‘smarter building’ technologies program that was deployed at 18 locations in 2012.
Willmott lands school-build deals The construction division of Willmott Dixon has won £54 million of school-building work at three sites in south Wales. Willmott will transform the former Ebbw Vale steelworks site by building a £27 million Ebbw Fawr 11-16 Learning Community School. The three-storey secondary school is due for completion in Autumn 2013, catering for 1,200 pupils, and includes a variety of learning spaces, multi-use games area, a grass running track and football pitch. Willmott Dixon has also been appointed by Cardiff County Council to build the £20 million St Teilo’s Church in Wales High School. The 1,440-pupil high school will be finished in autumn 2013. Rhondda Cynon Taf Council, near Cardiff, has appointed Willmott to build the 420-pupil Abercynon Primary School, worth £7.1 million.
Pharma travel buyers top salary list The average UK travel buyer has a base salary of £50,588, rising to £60,464 including bonuses and benefits, according to the Institute of Travel & Meetings (ITM). Salary Survey 2012, the inaugural study on travel buyer remuneration by the ITM, found base salary accounted for 84 per cent of the total package for the average buyer, with benefits making up 9 per cent and bonus making up 7 per cent. The study, based on anonymous responses of 127 ITM members, found buyers in the pharmaceutical sector earn almost £20,000 more on average in terms of total pay on £87,730, significantly above the second highest paying sector of finance/insurance, with an average of £68,448. www.fm-world.co.uk
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FM NEWS SIGN UP FOR FM WORLD DAILY AT FM-WORLD.CO.UK Up to 3% (20%)
THINK TANK
Up to 5% (15%)
WE ASKED 100 FMS…
Up to 10% (30%)
Do you, your organisation or your client have any annual savings targets for cutting back waste? Nearly half of respondents to FM World’s latest Think Tank poll say they have waste savings targets of greater than 10 per cent. Thirty per cent said that their targets were up to 10 per cent. Respondents noted that wasteto-landfill was an important part of waste management targets. “We have a reduction target of 20 per cent a year for waste cost and a three-year target of reaching zero-waste-to-landfill,” one facilities manager said. “We’re working closely with our clients and staff to demonstrate the advantages of effectively managing waste streams.”
One consultant FM noted that many of his clients have targets. “On assessment visits to two sites recently, one business claimed zero waste to landfill,” he said. “Another client had reduced it to 50 per cent direct to landfill and then said the other half of waste went for incineration.” With the landfill tax going up, “it’s in everyone’s interest to reduce the amount of waste going to landfill and recycle more”, said another FM. “Waste companies have targets and so do companies with IS0 accreditation.” Redundant electrical goods are a big waste issue for one FM.
More than 10% (45%)
“The organisation I am currently advising has a target of zero waste for landfill,” he said. “But one of the big issues is our disposal of laptops, as the low price of new ones reduces their second-hand value to next to nothing.” There is also a hidden issue when it comes to waste management, one FM explained: “Recycling in the workplace is not only about compliance and environmental
issues, but also labour efficiency.” The cost to one organisation to pay cleaning staff just to empty their under-desk bins was estimated at over 600 hours a year. When multiplied by the hourly cleaning rate, it was a significant resource cost, he said. “Centralising individual recycling and waste bins on each floor saved many hours of cleaning and waste handling,” he said.
All eyes on security during Olympics
Ian Studd becomes BAR president
The performance of security businesses involved in the Olympics and Paralympics will be watched closely, said Geoff Zeidler, the new chairman of the British Security Industry Association (BSIA). In his inaugural address to BSIA members, Zeidler stressed the importance of “absolute clarity” in setting the long-term direction of the association against a challenging backdrop of a changing regulatory and market environment. Demonstrating the tangible benefits of trade association membership is key to the future of the British Security Industry Association, he said. Police reform and the London 2012 Games are the two most imminent challenges for the UK’s private security industry at a time when all organisations are under pressure to demonstrate a return on costs and investments. “Police forces across the country are beginning to
The British Association of Removers (BAR) elected Ian Studd as its president at its recent annual conference. Studd is business relocation director at facilities services company Harrow Green. In a recent interview, Studd outlined areas to improve on as part of a set of objectives for his term as president. “I see the main challenge for the association as communicating with the membership. A significant amount of work is done that is reported widely through Removals & Storage [official magazine of the BAR], but often this is not fully received or does not filter through to the memberships. [We need to] embrace the work we have done – apprenticeships, new standards, new website, improved customer awareness, better marketing and better communications.” Despite the optimism for the
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Geoff Zeidler, chairman of BSIA
explore different approaches to delivering a critical public service,” he said. “In recent months, many forces have engaged with the private sector to investigate innovative ways of partnering to save cost and enhance service without compromise to their responsibilities for core policing.” (See News, page XX)
future of the BAR, Studd did point out a number of threats to the industry. “The single biggest threat to all removers is the economy. Not just the current ‘recession’, but the wider issues, the cowboy operators, the cash-in-hand merchants, the companies not registered for VAT and companies who perform removals as a service add-on with no real experience, no investment or training. “This is why membership of BAR and the continued improvements in criteria and standards are so important for the industry.” Studd is experienced in relocation and moving services, having worked for various removals companies during his career. He has held the offices of British Association of Removers vice-president, vice-chairman and chairman of the Commercial Moving Group prior to being elected president. FM WORLD | 19 JULY 2012 | 09
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BIFM AGM CONFIRMS ‘EXCELLENT AND DIVERSE’ BOARD MEMBERS A number of key appointments to the board of the British Institute of Facilities Management were announced on 12 July at the Institute’s annual general meeting (AGM). Voting took place during a members’ council meeting held prior to the AGM, where four new board appointments – all involving a two-year tenure – were confirmed. ● New regional representative: Ian Townsend, BIFM home counties chair (replacing Ashley Rogers, who is the new chair of members’ council) ● New special interest group representative: Samantha Bowman (replacing Gordon Ludlow, who is stepping down after two years) ● New members’ council representative: Julie Kortens
Gareth Tancred addresses the AGM
(replacing Liz Kentish, who is the new BIFM deputy chairman) ● New members’ council representative: Emma Bailey (a new position, voted in at the 2011 AGM). Ismena Clout, who assumed the role of BIFM chairman in June, said that the new members bring an excellent and diverse range of skills to the 12-member board.
“The main role of the board is to guide the institute through setting strategic direction and ensure good governance. I am in no doubt that we have a team that can take BIFM to the next level and beyond, as we all work to advance the FM profession. “On behalf of all members, I would like to thank Iain Murray, Stuart Harris and Gordon Ludlow for the time and commitment they have given BIFM over the last few years, as they now leave the board following the end of their terms.” The full BIFM board now comprises: ● Ismena Clout (BIFM chairman) ● Liz Kentish (BIFM deputy chairman) ● Emma Bailey (members’ council representative) ● Stephen Bennett (BIFM
AKIN FALOPE
SitexOrbis deal under scrutiny The Competition Commission has provisionally decided that the completed acquisition of SitexOrbis Holdings by VPS Holdings could harm competition. Higher prices could result from the deal between the two major suppliers of vacant property security services to local authorities and businesses, including residential and commercial landlords, retailers, FM companies and insurance firms, it says. Vacant property security services involve the securing of vacant social housing and commercial properties through the provision of steel screens, doors and wireless alarms. The provisional finding is that the merger may be expected to result in a substantial lessening of competition, leading to higher prices than would otherwise be the case, in the supply of security services for vacant properties. Those affected by the merger
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could be social housing customers across Great Britain. Also affected could be commercial customers in some parts of Great Britain – namely, in Scotland, south Wales, south-west England and north-east England – and commercial customers with national requirements. A statement on the commission’s website said that while some commercial customers may have competitive supply options postmerger, competition is not uniform across the country. There would be areas where customers could also lose out from the merger, in addition to those who require nationwide coverage, it said. “Had it not been purchased by VPS, it seems likely that SitexOrbis would have remained as an independent company or been
taken over by another buyer and so continued to act as VPS’s closest competitor,” said the commission’s deputy chairman and chairman of the VPS SitexOrbis inquiry group, professor Alasdair Smith. “Particularly in social housing, customers are now faced with little in the way of alternatives, either from existing competitors or potential new entrants, to prevent the merged company from raising prices or worsening its service in other ways. “The picture is slightly different for commercial customers, but the nationwide reach of the merged company means that it will also face insufficient competition in some regions and among those customers who require coverage across the whole of the country,” he said.
“The merger may substantially lessen competition, leading to higher prices”
strategy director) ● Sam Bowman (special interest group representative) ● Graham Briscoe (audit committee) ● Bill Clark (governance committee) ● Julie Kortens (members’ council representative) ● Mark Morgan (BIFM finance director and company secretary) ● Ashley Rogers (chair of members’ council, non-voting board member) ● Gareth Tancred (BIFM chief executive) ● Ian Townsend (regional representative) For full details about the council’s new positions, visit the FM World website at: www.fm-world.co.uk/ news/fm-industry-news/bifmboard-members/
Balfour’s support services stutter Cost increases in some of Balfour Beatty’s utilities sector support services contracts have pushed back the division’s profitability into the second half of 2012. “Support services profitability will be further skewed to the second half of the year,” according to a Balfour trading update. The order book remains stable at £15 billion, “giving us good visibility for the remainder of the year”. Major wins this year include Balfour Beatty Workplace’s contract to deliver total facilities management services for UK Power Networks’ properties. The three-year contract worth around £7 million a year was announced in March and covers around 80 of the electricity distributor’s UK sites. A public-private partnership asset disposal programme has been achieving a gain £10 million higher than originally expected. However, this gain will be offset by the support services performance, the update noted. Construction services is strong “in the face of challenging markets, but with a weak performance in the rail division.” www.fm-world.co.uk
12/7/12 17:41:38
If you’ve got what it takes, we’re here to help you progress Are you still at the right BIFM membership grade to reflect your increasing achievements in the FM industry – or is it time to progress? To upgrade to the next level or to find out more, please visit: www.bifm.org.uk/climb or contact the Membership Team on: 0845 058 1358 or email membership@bifm.org.uk FM WORLD | 19 JULY 2012 | 11
FMW.19.07.12.011.indd 38
11/7/12 16:53:19
FM BUSINESS SIGN UP FOR FM WORLD DAILY AT FM-WORLD.CO.UK
ANALYSIS
PFI review on hold until the autumn GRAEME DAVIES newsdesk@fm-world.co.uk
The government’s review of the Private Finance Initiative (PFI) model of financing public construction projects was originally scheduled to report back before Parliament’s impending summer recess. But after the controversy that has flared up again around PFI following the placing of a London NHS Trust into administration due to its punishing PFI debt repayments, it now looks as if the industry participants will have to wait until September before discovering what fate awaits their industry. Many of these have
crossover FM operations. The South London healthcare trust may have been an outlier, but it has added to the sense of uncertainty over how the UK’s future infrastructure needs will be funded. Indeed, the NHS Trust in question appeared to have signed a PFI deal that was costing more than £60 million a year in payments. Even if this is an extreme case, the potential cost of the PFI deals already in place is daunting. A study by the Guardian last week suggested that PFI costs will continue to rise for the next five years, peaking at £10.1 billion a
year in 2017. Indeed, the total capital value of all existing PFI contracts is £54.7 billion, but by the time they are paid off, the total repayments are likely to add up to an eye-watering £301 billion. A good chunk of this extra cost is the maintenance contracts that run alongside the original PFI construction contracts. Critics are also leaping on the fact that interest charges built into PFI contracts are, in many cases, way above the current low cost of borrowing. Amid this confusion there are fears that chancellor George Osborne’s flagship national infrastructure plan, announced last November, could be in tatters. At the time of its launch, the chancellor said he hoped that long–term investors such as pension funds would be keen to provide up to £20 billion of funding for infrastructure projects, attracted by the long-term returns available. For a government with empty coffers, finding such a huge new investment stream is key to
Contract wins
NEW BUSINESS Mitie has won a two-year security contract at Birmingham Airport for airside access at the staff gates, immigration gates at the UK Border, airside vehicular access control and airside patrols. Earlier this year, Mitie won a five-year contract for cleaning, environmental services and pest management at the airport. Ampersand has won a five-year public catering contract for the Zoological Society of London. The deal with London Zoo – worth around £22 million – starts in October. Ampersand has been providing event catering services at the Zoo since 2006. 12 | 19 JULY 2012 | FM WORLD
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Mitie has won an expanded contract to provide integrated FM to the Scottish government and its agencies. The five-year contract is expected to be worth £30 million and starts in October, covering more than 80 buildings across Scotland.
Cleanevent, part of the Spotless International Services Division, has retained the cleaning contract for cleaning at Stamford Bridge, the west London home of Chelsea Football Club.
Logica has appointed Jones Lang LaSalle (JLL) as exclusive real estate services adviser for the company’s property worldwide. JLL will deliver account management, transactions, space planning, strategy and database management.
Notts County Football Club has appointed Lindley Venue Catering to provide match-day and non-matchday catering as well as manage sales and marketing for the club’s events and conference business. Under the five-year, £5 million deal, Lindley will maximise the revenue from the refurbished conference and banqueting facilities at Meadow Lane Stadium, which also hosts rugby matches.
Lovell has been chosen by Homes for Haringey – the arm’s-length organisation that manages Haringey Council’s housing – to undertake £9 million of internal and external refurbishment. Under the year-long programme, Lovell will carry out improvements to 1,500 homes in north London, including the installation of new windows and roofs, concrete repair work and external decoration.
realising infrastructure plans, which were designed to help push the economy back towards a long-term growth trajectory. But indications from the pensions industry suggest that pension fund managers are not exactly enamoured with the idea of taking on the risk of greenfield construction projects. Indeed, so far, only £2 billion or so has been raised for deployment in infrastructure investments from 2013 onwards. Pension funds seek low-risk, long-term predictable returns, hence their preference for the secondary PFI market where they can pick up projects coming out of the construction phase and entering the long-tail period, when returns are steady and predictable. It appears that some companies that have previously been heavily active in PFI and Public Private Partnerships (PPP) are pinning their hopes elsewhere these days. At the time of recent results, Carillion told investors it is optimistic about picking up further local authority outsourcing work, such as the £700 million 10-year contract it recently won with Oxfordshire County Council. At the same time, it has recently sold off £20 million of equity held in PPP projects. Interserve also recently announced the sale of a £35 million stake in London’s University College Hospitals PFI project. This suggests there is still appetite for PFI assets in the secondary market and that some of the original big players are actively churning their portfolios of PFI and PPP assets. PFI is unlikely to go away, after all the government cannot afford to take such costs on to its own stretched balance sheet. Changes are certainly afoot, but it now looks as though we’ll have to wait until September to find out more. Graeme Davies writes for Investors Chronicle www.fm-world.co.uk
12/7/12 09:58:57
BUSINESS BRIEFS
ISS banks on Barclays integrated FM deal ISS has announced a deal with Barclays Bank that will see the service provider deliver integrated FM to sites in the UK, Europe, the Americas, Asia-Pacific and the Middle East. The deal makes Barclays one of ISS’s largest customers, according to its statement. FM World understands that the contract – believed to be worth between £200 million-300 million a year – will see ISS self-delivering the services, a move away from the previous provider Johnson Controls, which also acted as managing agent for local suppliers globally.
Barclays is one of ISS’s largest customers
ISS said that under the deal, which will go live in the autumn, it is designing a management information system called In-sight@ISS to allow “real-time data” on all aspects of the contract to be reviewed and analysed by both Barclays and ISS from any part of the world. Jeff Gravenhorst, chief executive of ISS Group based in Copenhagen, said the contract is a “groundbreaking new partnership”. ISS services include catering, cleaning, M&E and fabric, environmental and energy management, front-of-house, landscaping, mailroom, manned
guarding and security systems, multimedia, transportation and waste management. For Barclays, the consolidation is part of a wider move to bring together the financial institution’s numerous core businesses including retail, credit card, corporate and wealth creation services. The work is being done under the ‘One Barclays’ strategy to provide more efficient services for customers, many of whom use several of the bank’s core offerings. The bank recently set up Corporate Real Estate Services as a single cross-functional group as part of the One Barclays initiative.
SHUTTERSTOCK/SAM KESTEVEN
Carillion on course for stable growth First-half trading for Carillion is in line with expectations, with new orders and probable orders in the period worth up to £2.2 billion. Total revenue is expected to be lower than for the same period last year because of “the planned re-scaling of UK construction, together with the timing of project starts in the Middle East”. However, total operating margin is expected to increase, according to the construction-to-support services group’s update on trading for the first six months of 2012. Cashflow and the balance sheet “remain strong”, with net debt expected to be around £125 million. An extra £20 million of equity in public-private partnership (PPP) projects has been sold. In support services, first-half www.fm-world.co.uk
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Oxford: Home to a 10-year deal
revenue and the operating margin are in line with expectations. “We therefore continue to target full-year revenue growth in this segment with the full-year operating margin remaining broadly stable,” said the statement. The integration of Carillion Energy Services, following its acquisition in 2011, is largely complete and the group says it is on track to deliver integration
cost savings at an annual rate of £25 million by the end of 2013. Local authority contracts continue to show an upward trend and the group is “encouraged by the outlook for growth” in this area after winning many large contracts. “In May 2012, we won a contract to provide integrated property and facilities management services for Oxfordshire County Council, worth up to £700 million over 10 years, the first large, complex local authority contract of this kind,” the statement said. At 30 June, Carillion had a PPP portfolio of equity in 23 financially-closed projects in which it had invested around £101 million. The group is committed to invest a further £107 million.
Savills’ energy measures Real-estate service provider Savills has agreed with the Carbon Trust to introduce a service for commercial property occupiers. This will see the two firms working together to help organisations implement energy efficiency measures across their commercial property portfolios. It’s the first time the Carbon Trust has worked with the commercial occupier team of a real estate advisor and Savills will provide consultancy services to commercial occupiers. The two organisations will make available a ‘one-stop solution’ for occupiers across a variety of sectors, including retail, warehousing, hospitality, leisure and industry.
WRAP for BaxterStorey Independent catering company BaxterStorey has signed up to the Hospitality and Food Service Agreement launched by the government’s Waste & Resources Action Programme (WRAP). BaxterStorey will help WRAP achieve the collective targets outlined in the voluntary agreement, reducing food and associated packaging waste arising by 5 per cent by the end of 2015. It will reduce food and packaging waste being recycled, sent to anaerobic digestion, or composted to at least 70 per cent by the end of 2015.
Orders outlook stabilises Morgan Sindall’s order book remains level at £3.2 billion despite tough trading conditions, according to a half-year trading update. The construction-to-FM business should meet expectations for the year, a good result given margin pressure resulting from the highly competitive market, noted the statement for the period 1 January to 28 June. FM WORLD | 19 JULY 2012 | 13
12/7/12 09:59:17
FM BUSINESS IN FOCUS
THE ISSUE FMs need to be focused and primed for the potential effects of the Protection of Freedoms Act 2012
THE INTERVIEWEE Kate Gardner is a business manager for health, safety and facilities management at Workplace Law
Clamp down Now isn’t the time for facilities managers and their suppliers to be complacent about forthcoming legislation designed to protect people’s individual freedoms. FMs could find that their recently installed biometric data entry system is being unlawfully operated. An FM could also find themselves or their organisation in the dock for carting off a car that they claim was ‘illegally’ parked on one of their sites. The coalition’s government’s programme, launched in May 2010, included a commitment to introduce a so-called ‘freedom bill’ to restore the rights of individuals in the face of believed encroaching state power and to reverse the erosion of civil liberties. The Protection of Freedoms Act 2012 is the result. It’s an all-encompassing piece of legislation designed, among other things, to ensure surveillance, security and other service providers obtain people’s consent when gathering their personal information. The act also imposes the requirement for a collecting organisation to seek and receive a person’s consent if their personal data is be stored or distributed. This is particularly
Freedoms: Kate Gardner asks FMs to be ready for the changes
relevant in the case of data concerning children, such as biometric information and fingerprinting, says Kate Gardner, a business manager for health, safety and FM at Workplace Law. Another section relevant to facilities management concerns seizure or immobilisation of vehicles on private land – in particular the controversial practice of wheel-clamping. Worryingly, FMs appear to have little understanding of the act’s importance as to how their facilities could be affected, says Gardner, who has more than 15 years’ experience in the pharmaceutical and biotechnology sectors, working for DuPont and Elan Pharmaceuticals. At her presentation during last month’s Th!nkFM conference in London, Gardner took a straw poll, asking delegates if they were aware of the act. It was less than half. “I thought it might be around 50 per cent at least who weren’t aware and was surprised to see that some of the attendees were quite senior people,” she says. “I think it shows they are very much relying on their third-party supplier or maybe one of their subordinate FMs who handle day-to-day issues to know more about it.” FMs running security or catering operations in schools – especially within academies that have been at the forefront of biometric use – might have a hectic first day back from the summer break. If the school has locks operated through biometric data presentation, some children who have no parental consent concerning its use could be locked out of classrooms, schools
or even from having lunch. Being locked out of a classroom over biometric data use – at least for a day – might put a smile on face of some students. But it won’t be fun for an FM having to find ways of circumventing the system and explaining it all to management and parents. When it comes to CCTV especially, Gardner believes many FMs are relying on their security company to be up to speed with current guidance. The same is probably also true for issues around parking, which is often bundled as part of the overall security function, as there has been very little publicity about the Protection of Freedoms Act coming into force. Indeed, many wheelclamping companies are not aware that this is happening. The result may well see a last minute rush to change things. Under the provisions of the Private Security Industry Act 2001, persons involved in parking control on private land through immobilisation or otherwise restricting movements of a vehicle must be licensed by the Security Industry Authority.
Wheeler-dealers However, due to concern about so-called rogue private sector wheel-clampers, the new Protection of Freedoms Act prohibits wheel-clamping on private land. It will be a criminal offence to immobilise, move or prevent movement of a vehicle without lawful authority. Above all, FMs should be careful not to transgress the new wheelclamping rules, Gardner says. The penalty for a wheel-clamping offence will be an unlimited fine on conviction or indictment. More on the act is available at: www.legislation.gov.uk/ ukpga/2012/9/contents/enacted David Arminas is FM World’s news editor www.fm-world.co.uk
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12/7/12 09:59:41
Looking for safe rapid access?
It’s a Dunne deal for In Depth Bill Dunne has been appointed to the new position of divisional director at In Depth Managed Services. In the role, Dunne will be taking charge of Warrington-based In Depth’s entire UK services portfolio, which covers cleaning solutions and soft services. New service lines are likely to include security management,
horticulture and mechanical and electrical engineering. Dunne is also keen to enter new sectors such as finance, retail and government departments, such as the Ministry of Defence (MoD). He previously worked for Mitie Security in Scotland, a £350 million company. Prior to that, he spent 14 years in the army, culminating in him being awarded the Military Medal in the 1983 News Year Honours list. Dunne’s appointment follows the retirement of Gwyneth Manning as regional manager after 12 years with In Depth and more than 30 years in the cleaning industry.
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Sodexo sets sights on 7% growth Sodexo is on track for up to 7 per cent organic revenue growth for fiscal 2012, despite a sluggish continental European market. The target also remains for growth in operating profit of around 10 per cent, according to Sodexo’s trading statement for the first nine months of fiscal 2012, which closed 31 May. Group organic revenue by region saw North America rise 7.7 per cent to nearly ¤5.17 billion (£4.07 billion) over the same period for fiscal 2011. Continental Europe was sluggish in comparison, rising 2 per cent to ¤4.34 billion (£3.42 billion). But UK and Ireland was up 12.87 per cent to ¤1.02 billion (£805 million) and ‘rest of world’ rose 36.3 per cent to ¤2.62 billion (£2.07 billion). Within the UK and Ireland, divisional organic revenue growth www.fm-world.co.uk
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was up 7.5 per cent, with corporate work up nearly 10 per cent to ¤735 million (£580 million). Revenue from healthcare and senior contracts were up 3.1 per cent while education inched up only 1.5 per cent. “In (UK) corporate, organic growth of 9.6 per cent mainly reflected the success of hospitality services for the Rugby World Cup, which took place in the fall of 2011 and generated revenues of approximately ¤52 million (£41 million),” the statement said. “Excluding this favourable impact, the modest growth in corporate was driven mainly by integrated services contract wins, such as Unilever and Coca-Cola Enterprises – six sites, 1,800 people. Growth in healthcare and seniors reflected the ramping up of new services at the University Hospital of North Staffordshire.
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FM WORLD | 19 JULY 2012 | 15
12/7/12 10:07:35
FM OPINION THE DIARY COLUMN JOHN BOWEN
“ALMOST ALL OF THOSE ASPECTS ARE SOMETHING THAT WE IN FM CAN SIGNIFICANTLY INFLUENCE AND MOSTLY BY JUST DOING THE DAY JOB”
John Bowen is an FM consultant
REPU TATION , F M A N D T H E LO CA L CO M M UNI TY
aving a good reputation in the community is an important part of a company’s image. FM can be the oil in the gears of this process, says John Bowen
H
One of the things that can really affect perception of a company is its reputation in the local community – the way outsiders see it. That may well be to do with the tangible things such as noise and light pollution, cleanliness, general appearance and so on – is it a good neighbour or a blot on the landscape? Almost all of those aspects are something that we in FM can significantly influence and mostly
by just doing the day job in a way that contributes to creating a good impression. There are also things that you might be able to offer the local community, both business and residential that can raise your profile. While these may be local, they are a source of wider media interest and can all help to get a feel-good buzz started. An obvious factor that FM can influence concerns the people. If the people who work in or use
your facilities are not content, they will tell anyone who will listen. So what makes up employee satisfaction? No doubt you have surveys to try and measure these things, but the working environment is a factor and so is the bureaucracy that surrounds things like getting and using your ID pass, car parking or just getting something done. Much of this is controlled, or influenced, by FM, which goes back to my faithful grains of sand in the gearbox analogy: no one grain will do harm on its own, but collectively they will grind things to a halt. If FM is providing facilities that function and allow the people who work in their building to just concentrate on doing their job and be productive, that gives good
performance for the brand. In turn, this will drive stakeholder results and customer satisfaction. There will also be happier employees who will be positive about what a great place it is to work in when they are talking to people in the community, which reinforces a positive culture. When those people are out and about talking to others, they will convey an upbeat message about where they work rather than moaning about it. If you were to overhear someone talking about your company, would you rather them be praising or criticising? FM can do a lot for corporate image and that can open the eyes and ears of the boardroom to us. We want influence and this can be our golden opportunity.
BEST OF THE WEB Views and comments from across the web About 5 per cent of the FM workforce has a Masters degree and only about 1 per cent have a Masters degree in FM. What are your thoughts about increasing the level of skills and knowledge in the industry? Nick Thompson: As the holder of a Masters Degree in Engineering Project Management and having been involved in the FM industry for approaching 20 years, I can offer my unbiased view. Many people are working very hard to place the FM 16 | 19 JULY 2012 | FM WORLD
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industry on the radar of school-leavers and graduates, but we are nowhere near the point when people describe the FM industry as ‘their calling’. Until we reach that point, we might take the more pragmatic approach of attracting the best possible people in terms of role models to our industry, who have developed the FM experience we seek, coupled with the postgrad qualification, which will demonstrate the application and personal bandwidth described by
Graham Forrester. This may not necessarily be an MSc in FM. Graham Forrester: In my experience, an MSc in FM is a management qualification rather than a technical qualification. Other than the few specific property/ facilities-related MBAs available, do generalist MBA courses actually touch upon property and facilities? I have long suspected that a lack of any FM-related content within general business management courses is one of the main barriers to
FM being taken seriously in the boardroom. Imagine an MBA that didn’t cover aspects of HR? BIFM LinkedIn group: What are the main challenges facing the industry, and how can these be overcome? William Bowen: I feel it is an important challenge to keep up to date with the technological enhancements being made within the industry and to invest, where possible, in new technologies that are appropriate to your
company. Take for example Building Information Modelling (BIM). To ignore this at the moment would be a risk. Another hot topic in the last fortnight has been cost versus quality in terms of procurement of services and goods. Learning and development is also core and the range of qualifications that are available will give a good understanding of how to deal with both operational and strategic issues and matters across the breadth of the industry. www.fm-world.co.uk
12/7/12 17:48:42
You can follow us at twitter.com/FM_World facebook.com/FMWorldMagazine
BEST OF THE
FMWORLD BLOGS Defining a ‘director of first impressions’ Dave Arminas, news editor, FM World I love it: FMs are ‘directors of first impressions’. The term is a marketing executive’s dream, let alone that of a recruitment agency. My sincerest thanks to the person who said it in their response to our recent Think Tank Poll question on whether FMs can be ‘brand ambassadors’ for their organisation. Exactly what that person said was: “The facilities team are the ‘directors of first impressions’ for the organisation – the front-of-house teams, switchboard, catering, room set-ups, post and documents are all facets of the client experience that facilities are responsible for. Do not undervalue their influence.” Please excuse me if this is not the first time it’s been said. It’s at least the first time I’ve heard it. What takes me back is that it’s so obvious. Everything that surrounds facilities management starts at that point. If an FM doesn’t want to make an impression, then he or she has no business being an FM and it will show in their performance, as well as in how their building looks. I acknowledge that improving some things will be beyond the greatest efforts of an FM, thanks to finances, a limited job remit, or personalities within the organisation. But the organisation will pay by losing their FM when their ambitions or ideas can’t be accommodated. This is especially true in the current recession where organisations have to work much harder to win contracts. It may be trite, but clients don’t grow on trees; anything that will give them a good impression of the organisation is more than welcome. Having said that – and getting on my high horse – those best efforts to make a good first impression are too often lost because of security when you walk into a building. Why is it that security personnel in many buildings appear to be holding down a day job until their night job at the local pub starts? The business apparel they wear over a one-size-too-small business suit is the day-glo yellow safety vest favoured by airport personnel guiding planes taxiing on runways. Do these buildings have a very bad track record of visitors trashing the place and need to be shown the door? Dunno. All I knows is that the first impression I’ve had of places with this sort of security is one of relief once I pass reception. Not great.
Other interesting blogs: When our Green Deal and BIM worlds collide Martin Brown, improvement advocate and consultant Rushing from a Green Deal event to the ThinkBIM event in Yorkshire has me thinking of when and how these two seemingly separate worlds and agendas will collide. The Green Deal, if successful, will drive mass refurbishment of domestic, non-domestic and commercial existing properties with the objective of reducing energy costs/use and carbon emissions. Not dissimilar to Building Information Modelling (BIM)’s objectives of reducing waste, energy, costs and carbons in a truly collaborative manner. Within Green Deal there will be the need to model energy efficiency options and solutions, to really collaborate across green deal players, and capture all building improvements within CoBie-style BIM’s for future improved approaches and solutions. Perhaps if we were to adopt the American idea of ‘re-modelling’ rather than ‘refurbishment’, the synergies may be more transparent. fairsnape.wordpress.com/
www.fm-world.co.uk
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FIVE MINUTES WITH NAME: Ben Smith JOB TITLE: Community use manager, Robertson Facilities Management
Setting up Robertson Communities was a way of adding value for our clients. We wanted to provide a legacy for our clients, not just tick boxes. The north-east schools we work in tend to be in deprived areas. We’ve been working with school management teams to get parents and guardians into the school. Many of them view visiting schools like going to the dentist – they don’t want to go and they have bad memories of it, which impacts on their child’s view of education. We’re working in partnership with schools and the community to help change that. How involved we get varies from school to school. We’re spreading out into the local areas through our interaction with community groups and users of the facilities. We’ve set up and played in football tournaments in the schools, employed former pupils – there’s a huge involvement with the schools and their wider community. The community work we do isn’t part of our checklist of services. We naturally have a lot more engagement with schools in order to provide it. We have regular meetings with them, consult partners together and work with them to secure additional funding. They ask for advice on additional services and potential projects. Word is definitely spreading about the communities division, not just to public sector clients, but to other potential clients, including our competitors. We’ve been approached by several of them to carry out community work on their behalf – which is a great acknowledgement from the industry. We’re also in talks with existing FM clients in Aberdeen and central Scotland to expand our work with them to include more community work. As well as subcontracting to our competitors, we now offer a consultancy service; schools can ask us to come in and audit their requirements. FM WORLD | 19 JULY 2012 | 17
12/7/12 17:48:58
FM CASE STUDY CANADA WATER LIBRARY DAVID ARMINAS
DEVELOPERS: BRITISH LAND ARCHITECT: PIERS GOUGH, AT CZWG CONSTRUCTION: ISGF ENGINEERING AND BUILDING MAINTENANCE SUPPORT: INVIRON SECURITY: CHARTER SECURITY CLEANING: INTERSERVE IT SUPPORT : SERCO WASTAGE MANAGEMENT: VEOLIA HEALTH AND SAFETY ADVICE: CYRIL SWEET CAFÉ CONCESSION: BARISTA DESIGN THEATRE AND MEETING ROOM MANAGEMENT: THE ALBANY
Photography: John Reynolds
A NEW CHAPTER
David Arminas visits Canada Water Library, part of the ongoing Docklands rejuvenation ou can’t miss Canada Water Library because it’s at Canada Water tube station. More precisely, it’s right on top of Canada Water tube station. Leaving the station puts you outside and in front of an entrance, one of two. In this case, you arrive at the café entrance directly opposite the open expanse of Canada Water basin, part of the old London docks. Many of the Surrey and Rotherhithe-area docks and basins were named after faraway places from where imports were brought into London and British goods loaded up for export. In the library’s case, the area was
REX
Y The library’s distinctive, inverted-pyramid design extends out over Canada Water (above; centre right); book stacks zig-zag toward a central stairwell (centre)
18 | 19 JULY 2012 | FM WORLD
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used to unload and house timber from Canada. The new four-storey building sits on the old dock edge, facing out across the basin with its conservation and ecology zone of water plants and birds such as nesting swans and coots. Imagine a three-sided triangle, turned upside down; the result is a building larger at the top than the bottom. This offers some shelter over the adjoining plaza – an open public space known as Deal Porter Plaza, in tribute to the workers who unloaded shipping in the dock’s heyday. The library was granted planning permission in 2007 and Southwark Council and www.fm-world.co.uk
12/7/12 10:08:06
CANADA WATER LIBRARY
Richard Bareham, library manager (below)
FM QUICK FACTS
2,900 20%
floor-space (square metres)
of the building’s total hot water needs provided on site from renewable sources
development partner British Land Canada Quays started construction in June 2009. It opened to the public on 28 November last year, still with some workmen bustling around inside, says Richard Bareham, manager of the library and who had arrived the previous month. Like many trained librarians, managing the library building comes with the territory, says Bareham, who was born in north London and received his history degree from the University of Wales in Lampeter, southeast Wales. He then did a year of work in the library of the British Medical Association before doing a www.fm-world.co.uk
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post-graduate diploma in library management at Manchester Polytechnic, as Manchester Metropolitan University was then called. After managing libraries in Devon and Hampshire, he moved in 2006 to Dulwich in London to work for Southwark Council. “The library was an old Edwardian building. I was trying to make a 19th-century structure perform to 21st-century standards. Taking over something like Canada Water is what many librarians would love to do,” he says. “It’s also something that doesn’t happen a lot these days,” he says. “This place is
state-of-the-art, with its heatpumps, CCTV, electronic locks and so on.” Many boroughs are closing down libraries and trying to consolidate services in fewer but more central locations. In this day of electronic gadgetry including the increasing use of e-books, new libraries are hard to justify. Bareham estimates that the idea for Canada Water library originated eight years ago, just before the initial financial crash. Such a long gestation period was due to intense public consultation. Bareham wonders if such a building as Canada Water Library would get built today, especially given the
financial crunch affecting all local authorities. In fact, the new building replaces an older building that was across the road. But then Canada Water and the plaza was envisaged as more than just a place to take out books on loan and that is how it is run, he explains. It’s about being a meeting place for people to communicate, study, laugh, eat and be entertained in an environment that should make people feel good. The library is at the centre of a truly public space. This is all the more important because the area is home to affluent City worker types in their modern flats living cheekby-jowl with social housing tenants and people who have lived in the area for decades. The library has to have something for everyone, says Bareham. The most obvious physical feature of the building is its unusual inverted pyramid design. But that makes the building’s footprint very small in relation to its total internal floor-space of around 2,900 square metres (31,215 square feet). The building has few environmental whistles and bells, although it has a sedum roof – “It needs a weeding right now”, says Bareham. There is also a ground-source FM WORLD | 19 JULY 2012 | 19
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FM CASE STUDY CANADA WATER LIBRARY DAVID ARMINAS
Ample on-site bike parking (below); the stairwell seen from below (bottom)
heat pump drawing water from around 50 metres down. The pump, run in conjunction with an array of roof-top solar panels, accounts for around 20 per cent of the library’s hot water needs. The library does have a central building management system whose single computer terminal is located in the small IT data room. Management of the main functions are handled by Inviron, which has a dedicated environmental manager with whom Bareham says he has built up a good relationship, essential for running the buildings as efficiently as possible. “Inviron was the main subcontractor for electrical and engineering plant for the library from the builder ISG, so it is logical that its maintenance arm had the FM maintenance,” says Bareham. In any new building, there will be initial running-in issues with systems, but nothing major has happened so far. Just how well the structure is run won’t become clear until at least the end of the year, when one annual cycle has been completed. The majority of windows open and the building has no air conditioning, says Bareham. Chilled beams work well, but for the moment, maximum efficiency means windows are not opened as much as some people might wish.
Once upon a time... The public’s experience starts either through the café entrance or the opposite entrance directly into the small reception. Putting the café on the ground floor with a direct entrance aims to encourage use by non-library visitors to make the concession more financially attractive. Cafés are natural meeting places and draw people in, including many local workers who come in for lunch, or a coffee before work. The building’s free WiFi adds to 20 | 19 JULY 2012 | FM WORLD
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this attraction, says Bareham. The small reception area has only a few books placed around as a taster, to ensure people who may not know they have come into a library are quickly aware of it. Several ‘lobby library’ computers are available on high tables – no sitting – for commuters to check their e-mails. The real work starts on the first floor, up the stairs in the building’s centrepiece wood-panelled circular stairwell. The wood is oak veneer on plasterboard – a nod in the direction of thrift – but is nonetheless effective in giving the impression of solidity. On the first floor, the library layout is seen for the first time.
It’s all open plan, but the rows of shelves are zig-zagged, giving an appearance of more going on and making the layout appear more creative. Plasma-screen TVs are posted on several walls, mostly tuned in at low volume to news channels. During FM World’s late morning visit, a children’s group in the kids’ area was well underway, noticeable by shouts of laughter from time to time. Even so, such noise is deadened to a large degree by sound baffles on the ceiling, as well as the ceiling shape itself, which dips down in some places, says Bareham. Lounge chairs and small seating areas are set around the perimeter of the first floor to take advantage of the views across Canada Water Basin and other directions. The large windows allow a lot of natural light to penetrate the shelving areas. The 20 librarians and administration staff occupy an area off the main floor. There is some hot-desking, says Bareham,
but because there are so few people anyway, people tend to gravitate to a particular desk, unofficially recognised as theirs. He says the system works well enough as long a people leave the desk suitably uncluttered for someone else to park themselves there if needed. The second floor is basically a gallery overlooking the first floor. A continuous study table with seating for nearly 50 people flows around the edge of its internal perimeter. Off the rear of the gallery are several large, flexible-sized meeting rooms, an important part of the library’s financial strategy. The meeting rooms and ‘Cultural Space’ – off the reception area on the ground floor – are rented out for business meetings, community groups and other organisations. This is entirely outsourced to The Albany, a theatre group. “It’s a weight off my shoulders,” says Bareham. All meeting rooms have views across the basin and are IT-ready www.fm-world.co.uk
12/7/12 10:09:06
CANADA WATER LIBRARY
Interior features, such as the ‘boats’ and bright colours, appeal to visitors of all ages (left; below)
FM QUICK FACTS
150 48,000 Seats in theatre
People through the door in first month
250,000
First year footfall target
Lectures, plays and regular comedy acts are put on in the Cultural Space for an admission charge, part of which, as with the meeting rooms, goes to Canada Water Library
for audio-visual hookups. One ‘learning room’ has 15 PCs for use by businesses to train employees. The library has use of the facilities as well as the Cultural Space, a 150-seat, removable theatre with full stage lighting. Lectures, plays, musical performances and regular comedy acts are put on here for an admission charge, part of which, as with the meeting rooms, goes to Canada Water Library. The Cultural Space also has large double doors that open out on to the plaza, making a larger space that can be used for events. Just how well the building performs mechanically will only be known in a year or so www.fm-world.co.uk
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when more operational data is collected and analysed by Inviron. An understanding of how well it performs for the public is becoming clearer as the months go by. The footfall target for the first year is 250,000, says Bareham. “In May, we had 48,000 people through the doors. It was manic in the build-up to school exams. I’ve no doubt that we’ll easily exceed our footfall target for the year,” he says. “The trick is to keep that ball rolling.” Gone are the days of libraries being hush-hush places, although people will generally speak in low voices, says Bareham. But children – one of the main target audiences of most libraries –
are not so constrained, so allowances are made. This invariably creates a noise issue from time to time, even in the best-designed, most soundproof environments. Bareham is also conscious of libraries being less prescriptive than before. There are no big signs telling visitors what to do. In fact, coffee is allowed among the bookshelves, at desks and in study areas, as long as it’s in a cup with a lid. So accidents do happen, he says. Okay, so the carpet-cleaning bill is slightly higher, but that’s the price for having a more friendly, open community library. Bareham is happy to pay the extra. FM FM WORLD | 19 JULY 2012 | 21
12/7/12 10:09:41
FM FEATURE ROUNDTABLE BRANDING
ATTENDEES
Tony Sanders Managing director commercial, Interserve
Stephen O’Driscoll director, Pringle Brandon Perkins + Will Architects
Alistair Carter Director, Clifton Chase Property Recruitment
Mike Packham FM consultant, Bernard Williams Associates
Jon Buckley Facilities manager UK, Yell
Lucy Jeynes Managing director, Larch Consulting
Helen Strother Marketing manager, Claremont Group Interiors
Judith Cutts Marketing manager, BIFM
PHOTOGRAPHY: SAM KESTEVEN
Tony Minns Customer care manager, TWO Cleaning & Maintenance
Vikki Wootton Head of performance, property & workplace, Everything Everywhere
22 | 19 JULY 2012 | FM WORLD
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Paul Hinkley Operations manager, Waitrose
Derrick Tate Real estate advisory consultant, Pricewaterhouse Coopers
Sue Lewis Head of facilities, Cable&Wireless
FIVE-STAR TREATMENT The role that FM should be playing in maintaining and protecting an organisation’s brand values was the subject of a lively roundtable at FM World’s offices in London www.fm-world.co.uk
12/7/12 14:15:44
IN ASSOCIATION WITH
Consultants, clients, service contractors and specialists from training and architecture came together to discuss the issue
department to raise its own profile in the organisation? Lucy Jeynes: If FM isn’t promoting itself as a function that supports, develops and enhances the brand, there’s a danger it will be defined solely by its shortcomings. There are things we do in FM that can compromise the brand if we don’t get them right. We need to demonstrate that we actively support the brand rather than simply seek to avoid fouling things up. Paul Hinkley: With everybody at Waitrose a partner in the business, they expect a lot from our support teams. They need to promote themselves so that people know what it is they can support them with, which they do through regular contact and customer surveys.
Martin Read (Editor, FM World): Is there a case for FM being the department that best conveys an organisation’s brand values? Sue Lewis: It’s all about the people, setting an expectation within your team and deploying guidelines that everybody buys into. Our FM service provider lives and breathes Cable & Wireless Worldwide. The people on the contract feel that they work for us rather than the contractor and we treat them in exactly the same way as our own staff, with the same appraisal processes, and the same www.fm-world.co.uk
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bonuses. They feel integral to Cable & Wireless Worldwide, so they live and breathe our brand values. Mike Packham: It is a communication issue in many cases. When we go into an organisation and look at their FM, 99 per cent of the time they’re getting it right, but sometimes they’re not communicating it properly. As Sue Lewis said, it’s about making the FM team feel a bit more comfortable in the public eye, raising its profile, and getting it to communicate to its end-users. Read: Is it the job of the FM
Derrick Tate: FM manages the building, environment and services that customers might see, so it is perfectly placed to influence how those elements can be improved, controlled and directed. Marketing needs to set out what the brand is, what the image is and what they want to happen. But when, for example, there’s a change of logo or colour scheme, it is up to FM to think: “We were planning to get some new furniture or redecorate – we need to consider the brand.” FM can make a really big contribution, but it needs direction from marketing about the message it is seeking to convey. Vikki Wootton: HR needs to be involved too. It’s all about behaviours and values, people living and breathing the brand internally so that those brand values are what their customers see. Really successful brands do that; what they do internally is exactly the same as what customers see externally. If facilities teams aren’t providing a service that an external customer receives then you are not providing
the right FM standard. For example, in a call centre, there’s a very strict standard – you have to answer in a certain number of rings, using certain greetings and telephone etiquette. If your facilities helpdesk isn’t mirroring that internally, how will it make other employees feel? It won’t make them feel like they are living and breathing the brand. Tony Sanders: It involves HR, but it also involves lots of other departments. But how many times do we sit down with our client’s marketing or HR team, or all those other people? You made a good point about the call centre, but how often do we discuss what the standard is for call centres against the actual delivery? We talk about KPIs on the contract, but we don’t often talk about KPIs for supporting the client’s brand, or indeed about how that can be done. We have discussions about cost savings, but not about what the impact of those cost-saving measures might be on the brand. Read: Does anything exist that’s a measurement of brand performance with FM teams? Helen Strother: There’s often a KPI about complaints received, and complaints effectively impact the brand. If there’s an internal complaint sent to the FM team, FM WORLD | 19 JULY 2012 | 23
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FM FEATURE ROUNDTABLE BRANDING
that’s an indicator of how the brand is reflected internally. Lewis: We have examples of that. About three or four years ago we had some really bad press internally. We were getting lots of complaints on a daily basis. The chief executive told the facilities team: “This has to stop.” So I had an idea. I thought: “How does the Ritz Carlton hotel chain maintain that level of service throughout across all of its hotels globally?” It has a service mantra that the team lives by. I adopted that and got the team to see themselves as general managers of a five-star hotel. We even took them around London hotels to experience what that treatment felt like. Judith Cutts: Is there a link with HR through employee and satisfaction surveys, gauging how the working environment imbues the culture, vision, mission and values of an organisation? The way FMs set up the environment people work in can have a massive impact on the morale of workers. When they get told about the vision and the mission of their organisation, they should feel it through the environment they work in. This is a vital part of bringing a brand to life. Wootton: We run an employee survey every quarter through which we analyse anything relating to facilities and the wider working environment. We use the feedback to put corrective actions in place. Lewis: It’s very important to include your outsourced service provider in that. We do the same survey with every colleague and we include the FM service provider staff. They are asked how they feel about working for Cable & Wireless Worldwide, even though they work for our FM contractor. Read: Are people more sensitive to these issues than they were a few years ago? Are they more attuned 24 | 19 JULY 2012 | FM WORLD
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to the idea that having pride in your workplace can reflect the values of an organisation? Stephen O’Driscoll: Take the example of a large City law firm, which was a client of Pringle Brandon Perkins + Will. The managing partner said: “This is a three-year refurbishment programme – I don’t want my clients to see anyone in a high-viz vest and I want the fee-paying floors prioritised. That’s your criteria, Mr Contractor.” Maintaining the best possible first impression when a client walked in was paramount. Tate: For City law firms, that first customer interaction at the reception desk, or the condition of the meeting rooms, is all absolutely key for them. Facilities’ impact on their brand is phenomenal. Jeynes: Professional services firms are a really interesting. We did some work on this and typically, a customer’s first experience of an accounting or law firm is through security, then reception and then to a meeting room – all before they get to see the person providing the branded service. People often make their minds up about whether they
felt like a valuable customer long before someone providing them with a direct professional service comes into their orbit. It took a long time for companies to realise that. Before, it wouldn’t have become important until the partner arrived. Meantime, the office was too hot or cold, there was no tea or coffee, or the biscuits were broken. When you are waiting to see somebody who’s going to charge you £8,000 a day, you’d think they could rustle up an unbroken biscuit. That sort of thing impacts on the brand. It needs to be a biscuit that reflects the fact you are about to see an £8,000-a-day lawyer. It needs to be a damned good biscuit, a chocolate one… Tate: It is not just biscuits in these law firms – you have those little boxes with sweets, dried nuts, dried bananas – they really push the boat out.
Sanders: But there are an awful lot of industries in a very different space. In retail, there is a massive cost constraint and I often get the discussion about cost before anything to do with brand and services. Quite often it’s us who has to say: “Is this where your brand wants to be? Have you really thought through the implications?” Take high-street window cleaning, for example. A lot of retailers are moving to monthly, three-monthly, even six-monthly window cleaning – but what does that do to your brand on the high street? Hinkley: We may be an exception, but I often find it’s the other way around. When we make an acquisition and refurbish a store into a Waitrose, we have to talk to our design people and tell them what the implications of our work are going to be. We have construction, maintenance design and marketing www.fm-world.co.uk
12/7/12 14:18:05
IN ASSOCIATION WITH
“IT IS GOING TO BE A STRUGGLE TO TAKE ON THE VALUES OF THE CLIENT ORGANISATION IN A THREE-YEAR TERM. ” DERRICK TATE
for a service provider to strike up a consistent relationship, a partnership approach. But does it necessarily move the brand image of the company forward? Wootton: It stems from the top and how that organisation’s strategy is set up. If your complaints go straight to the managing director, and he or she makes sure that they get followed up, that is leadership right from the very top that flows through the organisation and brings departments together. It is not just marketing, FM or HR, it’s the whole thing. And FM has a very powerful role.
teams and we all have to work together to make sure what is delivered is sustainable, that the brand image stays as good as the day the branch opened its doors. You talk about first impressions for lawyers – our customers’ first impression is the car park. Strother: It all depends on what a client’s brief is. People can make the mistake of thinking it’s about the colour on the wall, the finish on reception or the style of the carpet, when it is so much more about culture and values. Sanders: We’ve just mobilised a contract with Alliance Boots, working to brand its FM service team. What was really interesting was that everybody, employees and customers, got to realise just how many people were looking after the clients’ brand on its Beeston site, because all the security and www.fm-world.co.uk
22_29_Roundtable.sr.indd 025
cleaning people suddenly looked the same. Just that simple change, with everybody being brought together as a team to project the brand, had a really positive impact on employees. You mentioned working together with a client to get their culture embedded so that people understand they are part of that organisation, projecting its image. That isn’t easy, in fact it can be very difficult. If you try and change a security team that for years has been based in a gatehouse into one that is customer-friendly, with staff who personally welcome visitors, that’s not something you can do overnight. Read: That brings up the issue of training and recruitment. Alistair, have you noticed any significant change in the type of people companies are looking to appoint? Alistair Carter: It’s interesting to hear Sue explain how her FM service provider’s staff are very much part of the workforce, because that’s not always the case – there are situations where service provider staff don’t feel that they’re part of the client and that can come across in reduced service delivery levels. With contracts where there is a lot of churn, where staff are
TUPE’d over from one supplier to another, people can perhaps work for four or five service providers. They don’t feel as valued as perhaps Sue’s guys do after six years. Tate: It is going to be a struggle to take on the values of the client organisation in a three-year term. With five, seven, even ten-year deals, from day one you are in a strategic partnership with the client. Lewis: If you get it right for the client, that client won’t want to go anywhere else – because it’s the same issue for them: “Here we go again, another new supplier, they have to get to know us and how we work.” Jeynes: Doesn’t the procurement process need to reflect the importance of that? If procurement’s evaluation of value is angled towards other factors, it might be difficult to be able to recognise that. Very often you don’t have very much contact with the organisation until quite a way through the procurement process; procurement can be focused very much on documents rather than people. Read: So what you are saying is that length of term allows
Jeynes: One thing we find is that businesses can be reluctant to conduct personality profiling as part of their recruitment process. We tell them they can spend a lot of money training somebody to sit on a reception desk, smile and remember somebody’s name, but a lot of people will just do that anyway because that’s the kind of person they are. Tate: Service providers are more aware of that and build it into their training and recruitment. An in-house FM does not have the expertise to provide a five-star reception service. Jeynes: It’s been an evolving journey about how brands work, hasn’t it? The idea used to be that if you had the right logo on the right T-shirt, then you were correctly branded. When we first started our consultancy about 18 years ago, there was a lot of emphasis on branding via uniforms. There wasn’t much consideration given to behaviour. Read: Shouldn’t there be more consideration given to these skill sets and behaviours? Sanders: We’ve been trialling this whole idea of personality profiling. FM WORLD | 19 JULY 2012 | 25
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Scan the QR code and watch our video.
FMW.19.07.12.026-027.indd 3
9/7/12 15:15:24
FM FEATURE ROUNDTABLE BRANDING
How FM communicates, both internally and externally was a recurring theme
It’s far easier to train people who have a profile that fits the role. The only thing I’d mention is the distinction between hard and soft services: soft services people are more likely to be customer facing. When you get into technical expertise, engineers are not, as a group, renowned for their customer facing skills. Yet hard FM staff are also protecting the brand by getting the kit working and they also interact with the client’s employees, so they need to know how to handle that. Packham: It’s all about personalities. Some hard FM staff are equally as good with people as those who work on the soft side of FM. In my recent experience, there’s a tendency for companies to only consider client-side applicants, particularly large property management agents who tend to prefer people from the client side, because they can empathise with the client’s problems and issues and add something to overall service delivery. Tate: It works the other way as well, because as you get more of these large, integrated outsourcing deals, you get the intelligent client function, and those clients like the intelligent client people to come from the supply side because they know how the supply side works. Hinkley: The most important thing is being able to communicate in a way that people understand. As an engineer you can talk to people who don’t have a clue what you are talking about. This is why we engaged our HR to put a training package together for our engineers, so that now they can talk to a branch manager and give them a clear understanding of what has gone wrong with a freezer, for example. It’s all about how you talk to people. Sanders: Engineers can suddenly 28 | 19 JULY 2012 | FM WORLD
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“SOME HARD FM STAFF ARE EQUALLY AS GOOD WITH PEOPLE AS THOSE WHO WORK ON THE SOFT FM SIDE” MIKE PACKHAM
find themselves at the heart of writing business continuity or communication plans. They can be doing a major job of trying to fix a serious problem while everybody is simultaneously expecting them to tell them what they should be doing. Quite often the engineering people are in the middle of things. The bigger the contract, the more the engineering side of the business needs the ability to communicate well in a crisis. Wootton: That comes back to the understanding of an individual’s impact on the brand. You need to know that what you do every day is making a difference to that client’s brand. It’s that old maxim: the NASA cleaner asked “what do you do?” and answering with, “I put a man on the moon”. It’s that ethos. O’Driscoll: Pringle Brandon Perkins + Will has just been involved with a company selling off office stock in London and we have spent the last year dealing with its FM guy on site. When showing the building to potential purchasers, it was this guy who fielded the bulk of the questions. He knew when things had been installed, when the lifts
had been refurbished and so on. It was a great sales pitch and it worked – but it was based on the integrity and the accuracy of his technical knowledge. He went into every meeting and when the radar pointed to him he had the answer. One may have the greatest people skills in the world, but you have to back it up with accurate knowledge. Wootton: I still think there is a ‘them and us’ mentality between how companies treat their own employees and how they treat outsourced service providers and unless that issue is addressed, there
will never be true brand loyalty. That’s all about changing how we treat outsourced employees. Sue has given some fantastic examples – they get the same rewards and perks, like the holiday, the bonuses, they get included in surveys, they get the brand induction that we give to our own employees. We mentioned earlier you might have somebody sitting in finance who sits in an office and never touches the customer, but who will get a brand induction because they’re an employee. Yet we may not give that to a receptionist who gets to meet customers every day. www.fm-world.co.uk
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IN ASSOCIATION WITH
Cutts: There’s an interesting issue here about connecting up the way different departments work. A PR department might have processes that it puts in place when there’s a crisis, but as that activity can often take place in isolation, it may not be aware or have planned for crises such as a fire, security breach or a legionella outbreak. Might connections between departments be made earlier on, so that the FM team can help PR departments prepare, and PR can also discuss the action plan of how FM responds to the same crisis? The way in which the FM department responds has a critical impact on the organisation’s public profile and both departments must be singing from the same hymn sheet. Buckley: The Agency Workers’ Regulations came in last year; has that impacted upon how you treat your outsourced partners? Lewis: We can’t do their appraisals and things like that, but we give them a framework. For example, everyone employed by Cable & Wireless Worldwide can go into our system, look up their payroll details, bonus and so on. If you are an outsourced person you don’t have that ability, so we looked at the template and recreated it in Excel. It feels like exactly the same process: once a month they can go in and update their objective. They have the same six-monthly meetings we do and at the end of the year they get the same ratings we get. If we get a bonus, they get a bonus. Tony Minns: One issue I have is that sometimes the FM team does not talk to other contractors on site, such as the caterers. For instance, we recommend that ductwork be cleaned at least once a year. It’s the client’s liability if something goes wrong, but the outsourced caterer does not necessarily communicate that back to the client. If I’m working for a www.fm-world.co.uk
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caterer, do I say to that caterer: “Can I pitch to your client?”. There’s no law to say you have to have your kitchen cleaned, and no law to say you have to have your ductwork cleaned. Read: Yes, but if a company wants to protect its brand, what it wants to be saying to the public is: “We provide our caterers with perfectly clean and safe facilities.” That message connects into all those other departments – marketing again; HR, obviously. It seems to me that there is this disconnection between departments. There’s little connection with the marketing of an organisation and the people providing the FM service on a day-to-day basis. Buckley: You are crossing over to CSR here, but where does CSR sit in the business? Have they thought about how a fire in the ductwork could impact the CSR and therefore the brand? Read: What if the organisation had a brand-protection policy? Is that an important thing to have, and is FM best placed to construct such a document?
Buckley: Whenever you produce a business continuity plan, the FM should be the person who knows a bit about the potential damage to the brand, the danger of not taking into account things, such as Tony’s issue about ductwork cleaning. It’s the FM who’s best placed to say, “I’d better talk to public relations about that, then to finance about the money that’s going to be needed, then health and safety about the risk element.” Jeynes: FM is not often recognised by the marketing department as having an impact on the things marketing people are excited by.
Wootton: They can see the FM team as dragging them down and bringing them back to the reality of what is physically possible. Sanders: Yet if you think about the number of FM staff on a typical site, that’s a lot of people who can impact on the brand and an organisation’s customers. But I can’t think of the last time that I had a marketer come to see me. When there’s been a disaster event, like closing a branch, and we’re busy trying to move as fast as we can, being asked by customers: “When are you going to get the branch up and running?”; “What are we going to do?’; “Are you going to open up another branch nearby?” – all that work is brand protection with a major impact on the perception of the brand at that time, but it’s treated solely as FM rather than a brand marketing issue. Read: OK, so if we accept this as an issue, who is responsible for moving it forward? Sanders: Isn’t it FM, really? Surely one of the things we have to do is raise the profile of the impact FM can have on marketing. That will benefit FM from both a budgetary and a functional point of view, bringing people into the FM world who really do find FM an interesting and not just functional role. FM
DEBATING POINTS It’s a communication issue The FM team needs to feel comfortable in the public eye, and it needs to be trained properly for situations in which it connects with customers. Length of contract term can mean a more strategic approach Could longer contract terms allow more opportunity for client and contractor to develop policies for engaging with end-user customers? Could FM be involved in setting up brand protection policy documents? There’s a good case for them, and FM can help produce them FM has a key role to play in creating those critical first impressions Marketing departments should be working far more closely with FM.
FM WORLD | 19 JULY 2012 | 29
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FM WORLD INTERVIEW TERRY TRICKETT
JOANNA LLOYD-DAVIES
POINTING THE WAY
THEHISTORYOF
FM
Joanna Lloyd-Davies (JLD): Terry, where did you first hear the term ‘facilities management’? Terry Trickett (TT): When I was working as an architect in New York for a firm called Interior Space Designers. At the time, New York was the centre of the interior and office design industry. I brought back to the UK my first knowledge of FM – that there were these professional people who, although not involved in a building’s creation, were certainly involved in running them. A year after I came back to the UK, I set up my own architectural practice, Trickett Associates, at just the time when the problems that were being solved in New York and the wider US were just becoming paramount in the UK. I’ll define what those problems were: management losing control of their buildings; not knowing how to define a brief for a new building; and having no idea why people were so unhappy working in the premises they had. All those problems were absolutely paramount in the 1970s when I came back to the UK.
and 1980s, that was unusual. Trickett Associates had been going for six months when I got a call from George Young, who’d heard on the grapevine that I was beginning to get jobs with IBM and companies like that. George wanted me to join the Office Design Committee of the Institute of Administrative Management, for which he was chair. That was the start of me getting involved in what we now call FM. I was the only architect on that committee and it was a good way for me to evaluate the state of the market in the UK and compare notes with colleagues around the table. It was also good for networking. During that time, companies were employing me for the same reason: they had tried every possible way to sort themselves out in the premises they had and failed. The managing director would say to his office manager, whatever the problem was: “Can you get somebody to improve that?” And the office manager would call in a contractor, expert or whatever, then sit back and say: “Well, we’ve solved it”. Yet everybody was still grossly unhappy. The
Joanna Lloyd-Davies interviews architect-turnedartist TerryTrickett about his involvement in the early days of the facilities management profession
JLD: So how did your experience of this term ‘facilities management’ reflect in the work that you were doing? What was the extra dimension?
“I WAS THIS RATHER STRANGE BEAST – AN ARCHITECT WHO SEEMED TO UNDERSTAND HOW COMPANIES WORKED”
TT: I was this rather strange beast – an architect who appeared to understand how companies worked. In the 1970s
Photography: Sam Kesteven
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Terry Trickett (left). From architect to artist, and an FM evangelist along the way
CAREER FILE
1st Class Trickett NAME: Terry Trickett QUALIFICATIONS: FBIFM CAREER:
managing directors of these companies were intelligent people. They knew something was missing, they just didn’t know how to find it. A friend of a friend introduced me to the joint managing director of the Financial Times. I told him what I did and he said: “You’re the person we need – why don’t you come in?” So we ended up producing an innovative scheme for embracing new technology in the FT office in Bracken House, City of London. I interviewed FT people from top to bottom and then put to the board a threedimensional model on how the FT could operate in the future. JLD: You mean its processes, or the building? TT: Both: the way that the building could accommodate people, as well as the FT’s www.fm-world.co.uk
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working processes. In the end that plan didn’t go ahead, but the work we did on it got me the work when the FT set up its Frankfurt edition. I designed a new editorial floor, totally re-thinking it. There was a review in one of the papers comparing the various newsrooms in Fleet Street and the comment on our revised newsroom was that it was one of “the most wellconsidered and well-designed places in London”. JLD: What’s been your involvement with the BIFM and its predecessors? TT: In the 1980s, there was this interim stage between the IAM committee’s existence and the BIFM’s existence. I remember a group of people wanted to set up something concerned professionally with this arm of administrative management.
Without saying the word facilities, that is what they were getting at. There was concern that the word ‘facilities’ was American, and that no one would understand what it meant. My view was the opposite – that facilities was actually the only word that really described what it was and the fact it was already used by our American colleagues was actually a very good reason for using it. So I was not involved in the setting up of the Institute of Facilities Management {one of two forerunners to the BIFM], because I needed to spend more time running my company. Although those networking opportunities are valuable, when they take up too much time, they can become counter-productive. I was also getting intimately involved in the ‘big bang’, setting up new dealing floors
2007 – present: Acting as a Client Design Advisor (CDA) for the Royal Institute of British Architects 2004 – present: Lead Judge for the BIFM Awards, Major Projects Category 1974 (approx): Member of the Office Design Committee of the Institute of Administrative Management (IAM) 1972: Set up Trickett Associates 1969: Joined Interior Space Designers in New York as Project Manager 1965: Joined Planning Unit as Project Architect, designing office installations for US companies 1959 – 1965: Architect with Dyson and Haebler, Leslie Creed & Partners, Peter Harland Associates
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FM WORLD INTERVIEW TERRY TRICKETT
for companies such as Schroder Securities in the City of London, designing new furniture for them so they could operate in the way the big bang compelled them to. That was an extremely interesting time and one job was particularly important. I’d developed a relationship with Greycoat Estates, developers of the Cutlers Gardens estate in the City of London. Up until that time, all the professional property activities – property development, property management, architecture, surveying – took place in their own separate compartments and it wasn’t doing anybody any good. It meant that with a place like Cutlers Gardens there wouldn’t have been any forethought on how that building was actually going to be used by potential clients. But Greycoat was ahead of the game and I was asked to do a very unusual job. I was employed to provide an initial space-planning service for any potential tenants taking an interest in Cutlers Gardens. The reason Greycoat did this is that Cutlers Gardens was seen as being on the edge of the City, just outside the square mile and thus not as desirable. The idea was that when a company came to look at the area to look for workspace cheaper then that in the square mile, the agent would have a response if the client subsequently said: “I don’t see how we can fit in here – the windows aren’t right, the lighting’s not very good,” and so on. The agent would say: “Why don’t you let Trickett come along, find out about your business and then match what he suggests against the space available at Cutlers Gardens?” Now that was a brilliant idea, and it worked. On nearly every occasion we provided that planning service, the tenant took up the space. Greycoat was happy, 32 | 19 JULY 2012 | FM WORLD
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JOANNA LLOYD-DAVIES
the agents were happy and, of course, we did the follow-on work in moving that tenant into the space and doing the planning and design for them. That was the first time that service offer had happened in London, so far as I know. JLD: How has your career progressed since? TT: I was on the outside of the IFM, too busy working with my City clients. But I didn’t stop working with the IAM, and I put on a conference in the 1980s at the Holland Park Hilton, on the theme of ‘Facilities management – coming out of the woodwork’. By then, the concept of there being these ‘facilities managers’ doing a full-time job had become accepted and the conference was very well attended. I sent off invitations to a lot of people I knew in the US, asking them
to speak, because we knew that we could learn a lot from the American examples. The various managers and professors we’d only heard about by name all came and talked, mainly because nobody had asked them before! They weren’t paid for taking part, didn’t even get expenses – yet they were happy to come and, in fact, they wanted to. For instance, the chief facilities manager of the World Bank came. He was the first person to use the phrase: “We have emerged from the boiler room and we are now close to the boardroom.” The keynote, entitled ‘Coming out from the woodwork’ was presented by Frank Duffy. As an architect, he has done more in this country to facilitate the facilities management movement than anybody else; he’s always talked at a high level about the importance of making
“AS A JUDGE YOU’RE IN A POSITION OF PRIVILEGE – YOU CAN ASK THEM ANYTHING YOU LIKE AND YOU KNOW FROM THE LOOK IN THEIR EYES WHETHER THAT ANSWER IS TRUE OR NOT”
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WATCH Joanna LloydDavies interview Terry Trickett at fm-world.co.uk
persist with your questioning until you’re satisfied. What are the entries you’ve found of most significance to the FM industry?
FM a professional activity, and he’s been a very effective spokesman for a long time. In a way, that conference was a turning point. There were 200 attendees and it was at that point that I realised this thing called FM had arrived. When questions started coming from the audience f: “We’ve arrived, I said to myself: haven’t we?” Itt was a natural om there for the progression from le to set up and BIFM to be able draw on that event to gather membership. JLD: How long ng have you been judging in the BIFM Awards? TT: David Hogg, ogg, who basically ward system, wrote created the award ellows explaining to all BIFM fellows tute was that the institute udges. looking for judges. I’d been out of y BIFM activity me for quite some www.fm-world.co.uk .uk
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time and thought maybe it was time to get back in, so I replied saying I would be interested. I’m currently lead judge in the major projects category, having judged now for the last eight years. JLD: I’ve experienced your tenacity and know how you
TT: Prior to major projects, I’d created the ‘Impact on organisation and workplace’ award. Various companies had begun to do really good work for accountancy firms and banks, getting to the nub of a particular facilities problem and making it work in terms of space and design. This activity, which had been so amateurish in the past, was becoming more professional. As for major projects, the BIFM awards used to include both a fitout and a major building category, but both were being confused with architecture awards. People used to submit on the assumption that they were going to be judged purely on a piece of architectural design, and of course I wasn’t going to judge them like that. So we gathered those two existing awards together and made them into the major project award. It’s been ongoing for three years and what’s good is that we’ve started to get submissions for all types of buildings. It’s particularly significant that last year a hospital won because, as you know, hospital design tends to be despised. But we found this lovely hospital, Forth Valley Royal, where everything seemed to be right. When you interview these people, you get to find out what lies between the lines of their submissions. In the Royal Forth Valley submission, they spent far too long talking about robots – let me assure you that they didn’t get the award for using robots, they got it for having a very good FM. There’s been a big change –
FMs now instigate major projects. In the past, facilities was brought in only after a major project had been instigated. This is significant; the winner of the major award is always one where that has been the case. It’s not the architect or the developer taking the lead, it’s the in-house facilities manager who’s been proactive enough to set their priorities in order from the beginning. JLD: Do you enjoy your role as a judge? TT: It’s hard work, but of course I enjoy it. You go to a meeting and there will be a group of people including possibly the FM, the architect, the person responsible for sustainability and someone from the client responsible for initiating the project. As a judge, you’re in a position of huge privilege – you can ask them anything you like and you know from the look in their eyes whether that answer is true or not – and they know that you know! JLD: What impact do you think the awards’ process has had on the FM profession? TT: It’s been a continuous lineage of increasing influence, I’m happy to say. For example, the fact that Forth Valley Royal won last year means it will now get a constant stream of visitors from other NHS organisations and trusts wanting to know why this accolade was given. They’ll go away knowing how much the company analysed itself and re-thought its requirements before the building came out of the ground, and engineered its new building to suit its requirements. JLD: Finally, can you possibly sum up FM in three words? TT: Yes: “doing it better”. FM FM WORLD | 19 JULY 2012 | 33
12/7/12 10:56:46
FM CASE STUDY WASTE MANAGEMENT MARTIN READ
OFFENSIVE
ACTION A partnership between Mitie’s Waste & Environmental business and University College London has led to a dramatic shift in the way clinical waste is both categorised and processed or the heavily regulated disposal of healthcare waste, a high level of caution is required. On the contract to manage the disposal of clinical healthcare waste and radioactive waste for University College London (UCL), a multidisciplinary university with 8,000 staff and 22,000 students, curiosity rather than caution has led to a significant new method of dealing with healthcare waste. The approach has been lauded by the Department of Health, and quoted as being “best practice” in its revised waste-guidance document Safe Management of Healthcare Waste. Mitie’s Shane McAteer – employed on the contract as waste advisory manager – was charged with reducing the cost of sending 250 tonnes of clinical waste to be incinerated each year was. He set to work with UCL’s waste contract manager Paul Monk to understand the composition of the waste generated across the UCL campus. A comprehensive waste review was conducted in June 2009.
ALAMY
F
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Forensic analysis “The first thing we did was sit down and discuss the strategy for healthcare waste and radioactive waste management, to understand the logistical issues of waste management for a metropolitan university operating across multiple sites,” says McAteer. “We analysed everything, including the composition, the packaging, the frequency of waste collections from the various different sites – really getting into the nitty-gritty of how healthcare waste was produced, stored and transported, through to delivery at the waste contractor’s site.” “I don’t think anyone had really looked into the actual composition of the clinical waste before,” says Monk. “It just got taken away and paid for. There was an assumption that it was exclusively clinical waste and that there was nothing else you could do but burn it.” It was the Department of Health’s publication of Health Technical Memorandum 07-01: Safe Management of Healthcare Waste (HTM0701) that provided McAteer with a catalyst to get
Mitie’s waste advisory manager Shane McAteer (left) and Paul Monk, waste contract manager at UCL
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WASTE MANAGEMENT
University College London – the site of pioneering FM
we’d had a couple of departments sign up, it was a lot easier to convince the others: a little bit of friendly competition.” “There was a lot of opposition originally,” agrees McAteer. “We were asking them to consider what it was they were throwing away, how chemically contaminated it was, how infectious it was. That’s quite a change in behaviour if you’ve been working in labs for a long time.”
From waste to power
to grips with what was being categorised as healthcare waste at UCL.
Not so yellow peril? This ‘HTM’ document brought in guidance on how healthcare waste should be classified. Says McAteer: “When the guidance came out, we knew we had to really understand what the composition of the waste was. At that point, UCL had a precautionary approach: a large proportion of the yellow bags were filled with both hazardous and non-hazardous wastes. “Everyone assumed that everything going into the yellow bags must be contaminated,” explains Monk, “but it was clear that a lot of what was going into these bags wasn’t hazardous. When we opened these bags we were finding coffee cups and all sorts of other odd things that shouldn’t have been in there.” One building had particular issues as a result of being so far from the centre of UCL’s Bloomsbury campus, so it was here that McAteer and Monk www.fm-world.co.uk
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started. They weighed out the composites of the waste stream, taking each element from the bag, literally laying out the contents and taking photographs. As a result of this work, McAteer and Monk were able to put together a report detailing just how much normal waste was being treated with the same sensitivity and cost of the healthcare waste. “At that point we started to get the buy-in,” says McAteer. The process was then repeated right across all the other buildings and departments. “We were saying: ‘Don’t throw that in there, it’s alright to put that in the recycling bin’, and they weren’t sure about that. But once
Says McAteer: “We’d identified waste that had been autoclaved [sterilised] on site that needn’t in fact have gone through the clinical waste disposal route. This was waste that could be re-classified as ‘offensive hygiene’ under the definitions in the HTM document”. At the time, Andy Stratton worked for UCL’s waste management contractor Grundon (he’s now commercial manager for Mitie’s Waste & Environmental business). McAteer spoke to Stratton, explaining that he’d identified a waste stream that nobody thought was either hazardous or infectious – and asking if there was another route for it. The HTM document detailed a route for waste designated ‘offensive hygiene’ through which it could go to deep landfill. But because of its impact, landfill is not a preferred option.” “At the time, Grundon was building an energy from waste facility at Colnbrook, just west of the M25 motorway,” says Stratton.
“Re-classifying auto-claved clinical waste from HTI to energy-from-waste treatment was an industry first”
“These facilities require permits to handle different types of waste, so we had it permitted to accept the 18-01-04 ’healthcare-related’ code. That then gave us a legally compliant and environmentally responsible route for the offensive waste stream. We were able to burn the ‘offensive hygiene’ waste and turn it into electricity.” Re-classifying auto-claved clinical waste from high temperature incineration (HTI) to energy-from-waste treatment was an industry first. Essentially, the work conducted at UCL has led to the Department of Health introducing new guidance, confirming that offensive hygiene waste can now go either to landfill or energyfrom-waste incineration. While waiting for the permit to allow for the electricity–generating incineration route, McAteer and Monk continued their work, introducing new ways of segregating waste and encouraging more recycling. This included work with UCL’s preferred supplier for disposables and consumables to introduce new types of bags for the additional waste category. New schedules were also developed for the drivers coming on site to pick up the waste to maximise their efficiency. This work involved McAteer producing a ‘driver’s pack’, containing information on the site, the route, and photos of where the bins were and how to get to them. This led to a significant reduction in transport movements. The way Mitie and UCL have changed how waste is dealt with has led to a saving of 18 per cent in disposal cost per tonne and a cut of 27 per cent in carbon emissions per tonne. The approach taken has since been recognised by the Chartered Institution of Waste Management (CIWM), which gave it its 2011 award for innovative practice in waste management and resource recovery. FM FM WORLD | 19 JULY 2012 | 35
12/7/12 16:37:52
FM MONITOR ALASTAIR LEWIS
LEGAL UPDATE
Alastair Lewis is commercial director of OCS Group UK
NEW EU TYRE L A BEL L I N G
nder a new EU regulation, all new tyres U will be labelled with information on three key performance measures. Alastair Lewis discusses the implications for FMs Regulation (EC) No 1222/2009 requires that tyres – on cars, SUVs, vans and trucks – produced after June 2012 and on sale in the EU from 1 November 2012 have information on fuel efficiency, wet grip and noise emissions. A label with this information must either be applied as a sticker to the tyre or displayed at the point of sale. Tyre manufacturers must also distribute the information in promotional material and on their websites. With this regulation, drivers (and fleet/facilities managers) EU-wide are being compelled to buy tyres that are safe, fuelefficient and low noise. This will cut down on accidents, encourage the tyre market to further improve wet-grip performance and reduce drivers’ environmental impact. The increased use of fuel-efficient tyres is expected to save up to four million tonnes of CO2 per year. Noise pollution will also be substantially reduced. Some tyres are excluded, such as re-treaded tyres, off-road professional tyres, tyres only fitted to cars registered for the first time before 1 October 1990, T-type temporary-use spare tyres and certain other specialist tyres. What are the changes? For fuel efficiency, tyres will be graded from A to G (most efficient to least efficient). Tyres graded A have the lowest rolling resistance, a measure of the amount the tyre deflates while rotating. The lower 36 | 19 JULY 2012 | FM WORLD
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the deflation, the lower the rolling resistance, the less fuel needed to propel the vehicle, the lower the vehicle’s emissions. From one grade to another is a change in fuel consumption of between 2.5 and 4.5 per cent, which translates into substantial cost savings per year. A car fitted with A-graded tyres consumes around 0.5 litres less per 100km than one with G tyres. For example, on a car that does 10,000 miles per year, at least 80 litres and over £100 can be saved, just by fitting better tyres. The savings available to organisations with large fleets are substantial. Wet grip, namely how well a tyre brakes in wet conditions, will also be measured using the A to G scale. From one grade to another is a stopping difference of around one to two car lengths when braking at 50mph. Therefore a car fitted with four A-grade tyres driving at 50 mph will stop around 18 metres before a car with G-grade tyres. This could be the difference between a bump and a major accident. Fleet managers beware The implications for fleet managers using tyres at the lower end of the scale are serious. Not only could they be endangering road users
and staff drivers, but they could also be jeopardising the organisation’s reputation. Tyre noise – the noise heard outside of the vehicle and not by the driver – will be symbolised by a loud speaker and a three-wave pictogram. One sound wave coming from the speaker indicates a quiet tyre – 3 decibels (dB) less than the future tighter EU limit (tyres will also have to be quieter based on the new standards). Two sound waves means that the tyre produces an average noise and is already compliant with the future EU limit; three sound waves indicates a noisy tyre, which is compliant only with the current EU limit. Although 3dB doesn’t sound like much on paper, it is double the noise level. Roads with vehicles using tyres that meet the one-wave criteria will therefore be considerably quieter. How is the facilities manager affected? The regulation will impact on the buying decisions of facilities managers who have fleet as part of their remit. Fuel efficiency, wet grip and noise emissions will now be considered alongside price and brand name. Buyers should also bear in mind that the new labelling does not cover everything. The regulation’s aim is to improve safety and reduce CO2 emissions rather than cut costs for drivers, so managers will still need expertise to weigh up other factors such as tyre longevity. In light of the potential fuel cost savings and the reduction in CO2 emissions, fleet managers with
“Fuel efficiency, wet grip and noise emissions will now be considered alongside price and brand name”
G-grade tyres in their existing fleet may very well consider replacing them – expensive in the short term, but with the potential to make considerable savings. OCS has recently undertaken a review of its commercial and company car fleet and has already made a cost saving of over £145,620. Over 200 company cars have been replaced with new Volkswagens, and CO2 emissions are averaging 112kg on the new Volkswagens in comparison to 130kg on the old fleet. OCS’s 1,600-strong commercial van fleet has also been reviewed and 330 of the oldest vehicles are being replaced by the Volkswagen Caddy, Volkswagen Transporter and Mercedes Sprinter. They will improve fuel efficiency on average by 35 per cent and reduce carbon output by 857 tonnes per annum this year alone, increasing to 2,500 tonnes when the business replaces the remainder of the fleet. Although this review has not been specific to tyres, it is proof of the savings and the environmental benefits that can be achieved. Other issues to consider Businesses might decide to educate drivers about the changes while continuing to promote responsible driving. This might include driving at under the speed limit to reduce fuel consumption and taking into account weather conditions. Drivers and fleet managers should also ensure that tyre pressure is checked regularly and optimised. If it is too low, tyres wear out faster and consume more fuel. FM For more information on tyre safety visit www.tyresafe.org To read Regulation (EC) No 1222/2009 in full visit: tinyurl.com/c5e97xp www.fm-world.co.uk
12/7/12 14:21:20
Court Report SCOTTISH WIDOWS FUND AND LIFE ASSURANCE SOCIETY V BGC INTERNATIONAL [2012] EWCA CIV 607
Contractual interpretation and market forces THE ISSUE
A well-drafted legal contract should reflect the intentions of its contracting parties accurately, unambiguously and so as to give effect to the agreed transaction accounting for all appropriate circumstances. However, disputes regarding the drafting of a contract inevitably arise and judges are asked to adjudicate upon a contract’s true meaning. There are limits to a court’s powers, and the extent of this debate has been highlighted in the recent case of Scottish Widows Fund and Life Assurance Society v BGC International. The first instance decision was recently overturned by the Court of Appeal. Pre-contractual negotiations are not always admissible and parties should ensure that any contract that they enter into carefully reflects the reality of the transaction. BACKGROUND
Scottish Widows (SW) underleased premises at One America Square, EC4, pursuant to a 20-year sub-underlease from ING Baring Securities. At the time of the underletting, the premises were ‘over-rented’ due to an upwardsonly rent review in a falling market. SW subsequently negotiated an underletting of its lease to BGC International (BGC). To compensate for the above-market rent, the parties agreed staggered rent increase mechanics such that SW effectively subsidised BGC’s rent
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liability for a period. In a rising market, the rent structure (which was linked to rent reviews in 2001 and 2006) would have eventually aligned the rents under the two leases. However, the downturn meant that the 2006 reviewed rent was lower than the 2001 reviewed rent. Consequently, SW continued to receive a shortfall from BGC. SW issued proceedings for construction or rectification of the BGC lease. The High Court found for SW construing (but not rectifying) the lease to anticipate a falling market in SW’s favour. APPEAL
BGC appealed, arguing that the High Court judge had been mistaken. The rent mechanics were contained in a bespoke clause drafted by experienced and skilled solicitors and the wording was clear and unambiguous. Furthermore, the judge had taken into account inadmissible pre-contract negotiations. On this basis, he had wrongly speculated that the commercial objective of the transaction was that BGC would, via the rent mechanics, receive a reverse premium of £10 million and then take an assignment of the onerous Barings sub-underlease. Consequently, the judge was wrong in interpreting the rent clause so as to insulate SW against a falling market: the parties had not anticipated this in their drafting of the relevant rent clause. Ultimately, BGC’s lease accurately reflected the parties’
intentions and the court did not have the right to disturb the natural outcome. RESPONSE
SW sought to uphold the first instance judgment arguing that the parties had made a mistake at the drafting stage of the BGC lease. If the rent clause were interpreted in the way contended for by BGC, the rents could never be aligned. However, it was not the parties’ intention that SW should subsidise BGC’s rental liabilities indefinitely. In this regard, SW relied both on certain pre-contractual negotiations together with the terms of a supplemental agreement executed at the same time as BGC’s underlease. In this agreement, the parties stated that it was their intention that the rent under SW’s underlease and BGC’s lease should be aligned, following which BGC would take an assignment of SW’s lease. The reference in the rent clause to the 2006 rent review was therefore manifestly wrong. DECISION
The Court of Appeal overturned the first instance decision and upheld BGC’s appeal. SW’s cross-appeal on rectification also failed. The trial judge had mistakenly elevated certain inter-party communications regarding a possible £10 million reverse premium payable to BGC from pre-contractual negotiations to the overriding commercial objective of the transaction. Consequently, the judge had incorrectly interpreted
(and in fact re-drafted) the rent clause so as to ensure that this was the commercial effect of the rent clause, even though on an application of the wording as drafted this was not the clear result. Furthermore, it was stated to be “without prejudice” to the rent mechanics in the BGC lease and therefore these were paramount. CONCLUSION
A failure to ensure that a material matter is included in an executed agreement risks ambiguity (and expensive litigation). In the event that a dispute regarding contractual construction does arise, some salient guidelines are as follows: ● Words should be given their natural and ordinary meaning unless the result is one which flouts common sense ● Statements as to contracting parties’ intentions may be taken into account, but a court is not bound to construe them as obligations ● Pre-contractual negotiations cannot be considered to aid detailed points of interpretation. They can, however, be considered as a basis for rectification, which requires showing a common continuing intention that did not translate into the engrossed document. Beverley Vara is a partner and head of real estate litigation at solicitors Allen & Overy LLP
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12/7/12 10:10:22
FM FMMONITOR SUPPLEMENT MARKET CATERING INTELLIGENCE BY NAME IN HERE
CATERING
INSIGHT
The figures on this page have been compiled from several sources and are intended as a guide to trends. FM World declines any responsibility for the use of this information.
ECONOMY
CONSTRUCTION IN EDUCATION
UK CONSUMPTION EMISSIONS
VAT rates: Standard rate – 20% (from 4 January 2011) Reduced rate – 5% Zero rate – this is not the same as exempt or outside the scope of VAT
Over £9 billion will be spent on education construction and improvement in 2012, with new build and refurbishment activity in schools offering substantial opportunity for growth for manufacturers and contractors targeting this sector. Education spending increased by more than 20% in the past six years and despite current austerity measures, funding is set to rise in real terms until 2015, with government expenditure on schools rising by more than £2 billion in the next four years. The controversial policy of universities increasing tuition fees is also highlighted as a likely stimulus of refurbishment and new-build activity in the higher education sector, enhancing their facilities as a way of enticing students and growing numbers.
C02 EMISSIONS ASSOCIATED WITH UK CONSUMPTION 1990 TO 2009
Bank of England base rate: 0.5% as of 7 September 2011. The previous change in bank rate was a reduction of 0.5 percentage points to 0.5% on 5 March 2009. Source: Bank of England (bankofengland.co.uk)
Education spending increased by more than 20% in the past six years
£9 billion will be spent on education construction and improvement in 2012
700 600 500 400 300 200 100 0
■ C02 embedded in imported goods and services ■ C02 from UK-produced goods and services and generated by households
Source: www.marketresearchreports.co.uk
Consumer Price Index CPI annual inflation stands at 2.8% in May 2012, down from 3.0% in April. The largest downward pressures to the change in CPI annual inflation came from motor fuels and food & non-alcoholic beverages. The largest upward pressures to the change in CPI annual inflation came from air and sea transport.
Million tonnes C02
19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 9 20 9 00 20 0 20 1 02 20 0 20 3 04 20 0 20 5 06 20 0 20 7 0 20 8 09
Source: HM Treasury (hmrc.gov.uk)
900 800
20%
Source: ONS (www.ons.gov.uk)
EMPLOYMENT
National Minimum Wage
(Source: University of Leeds and Centre for Sustainable Accounting)
CO2 emissions from consumption of UK-produced goods and services (excluding exports) and from households’ direct emissions from car use and heating (excluding electricity) are relatively constant across the time series: the main change has been the fall of 10 per cent between 2008 and 2009. This fall can be attributed to a number of factors. There was a significant reduction in emissions from power stations, largely due to a fall in demand, but also due in part to an increase in the use of nuclear power for electricity generation. There was also a large reduction in emissions from heavy goods vehicles and a noticeable fall in emissions from construction activity. Source: www.defra.gov.uk
The following rates came into effect on 1 October 2011: Category of worker
Hourly rate from 1 Oct 2011
Aged 21 and above
£6.08
Aged 18 to 20 inclusive
£4.98
Aged under 18 (but above compulsory school age)
£3.68
Apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship
£2.60
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EUROPEAN ENERGY PRICES
Rising gas and power prices will cost European industrial energy buyers an additional ¤4.6 billion (£3.7 billion) in 2012, according to recent research by EnergyQuote JHA. These rising costs provide an additional challenge to companies already dealing with the effects of the euro crisis, rising oil prices and the burden of environmental legislation. The research also highlighted the growing burden on European industry of non-energy costs (largely made up of energy taxes and transmission and distribution charges). These are rising rapidly and will continue to do so over the coming years. This has dented the significant progress many companies have made in reducing their energy costs through
energy efficiency measures and on-site generation. The vast majority of the increase will be accounted for by rising wholesale gas prices, which will account for ¤4.5 billion (£3.6 billion) of the total increase across the 27 EU members. Collectively, EU members will be paying less than an additional ¤100 million (£80 million) for the wholesale part of their power bills during 2012. The analysis shows that the situation varies widely between individual markets. With expected annualised wholesale gas price increases of up to 15%, UK gas consumers are likely to be the hardest hit. Other markets will see prices rise by between 9% and 14%. www.fm-world.co.uk
12/7/12 17:49:21
FM MONITOR STANDARDS
STANDARDS
Stan Mitchell is chair of the ISO TC 267 Facilities Management Committee
B S EN 15221-5
tan Mitchell examines the BS EN 15221-5 standard, one of the four foundation standards for benchmarking
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Establishing a standard for benchmarking was a tough challenge, given the fact that in our sector the services we provide and the facilities themselves are almost always unique to that organisation. The aim of the standard, was to provide guidance to all stakeholders on the importance of the associated processes and their main purpose in supporting the primary activities of the client organisation. In other words, it is important that the FM regime, whether in-house or outsourced, defines and develops its processes and utilises them to ensure a standard of support service is achieved and appropriate to the needs of the organisation. Facilities management processes are considered at three organisational levels: strategic, tactical and operational. At a strategic level, processes concern the organisational objectives and forward planning. At tactical level, they should be about the organisational activities and management on a day-to-day basis, and at operational level they should be about service delivery and customer care.
Scope This European Standard provides guidance and sets out basic principles. It describes high-level generic FM processes; lists strategic, tactical and operational processes; and provides examples of process workflows. The standard is written from a primary processes demand perspective for an audience of all stakeholders involved. www.fm-world.co.uk
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Some of the areas of focus that should be considered include: ● Awareness that the associated processes are influenced by all stakeholder groups ● The processes themselves consist of an input, a workflow and an output, all of which should be understood and defined ● All facilities management processes should be driven by the demands of the organisation ● Any such processes should influence the effectiveness and efficiencies of the organisational primary processes ● All such processes should routinely be reviewed and continuously improved upon The standard has been designed to guide the reader on to how to develop and align the processes with the organisational requirements. It does so by illustrating the differing types of facilities management processes appropriate to different types of working environments, a variety of which can easily exist within the same organisation. In the same way, the growth or decline of an organisation’s resource will potentially directly influence any such processes.
Guidance Typical FM processes are shown (see box, right) and serve to act as a template, as well as providing a better understanding of the activities and mechanisms involved. The guidance describes various facilities management processes, including: organisational processes;
management and performance review processes; processes for negotiating service levels; managing performance in service delivery. These are identified and described at a strategic, tactical and operational levels. Such processes serve as a useful communication tool when discussing what you are doing as an organisation. Such processes are also considered an essential internal tool and communication medium in order that those who are ultimately going to deliver the services have a clear understanding of how they should do so. While the scope and structure of the processes are dependent on the specific needs of each organisation and location, they can differ in importance as well as content from one organisation to another. The customisation of any given process to the specific requirements, therefore, is an important aspect of their use and adoption.
Use of processes As with all aspects of facilities management and the delivery of the associated services, any such processes will only be as effective as the manner in which they are applied. Their effective use will be directly influenced by: clarity regarding responsibilities; accurate workflows; data integrity and availability; precise descriptions of each stage of the process; the resources and skill sets associated
with the respective activities; and measurement of affects. The enhanced flexibility, adaptability and reliability of the FM regime will be achieved via integration between inputs, outputs and triggers, corrective actions when required, and accurate and timely communications. The FM processes at a strategic level should be directly linked to the business planning activities of the organisation. Therefore, the processes located on this level contribute to the decision-making process at a senior management level, ensuring effective leadership of the FM organisation itself. Facilities management processes on a tactical level are directly linked to the strategic and operative levels of the FM organisation. At a tactical level, there should be a direct correlation to meeting the needs of the strategic intent while driving the operational requirements in a structured and effective manner. Differentiation of FM processes from the actual facilities services themselves attempts to highlight and clarify the different areas of responsibilities between the two. The overall intent of the standard is that it can be used to assess existing processes or establish new ones. In doing so, at worst you will validate that your existing processes are fit for purpose, and at best you will improve your operational efficiencies across the FM regime. FM
TYPICAL FM PROCESS STEP 1: Check the alignment of your processes with the organisation’s strategy STEP 2: Check the connections between your processes STEP 3: Check the validity of the data utilised STEP 4: Check the workflows and their integrity STEP 5: Check the review and control of the processes
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BIFM NEWS BIFM.ORG.UK
Sponsors Wilton Farrelly, division director – facilities management, H&J Martin and Ray Taylor, regional operations director, Aramark, get ready to put FM in the frame at the 16th annual BIFM Ireland Conference 2012
BIFM RECOGNITION 2012
Volunteer awards The winners of the BIFM Volunteer Recognition Awards were announced at the BIFM AGM on 12 July. The awards recognise and praise the achievements of BIFM volunteers (chairs and committee members) who run the BIFM regions and SIGs, providing high-quality events for our members, sharing and disseminating FM industry knowledge and giving back to the BIFM and wider FM industry. This year, new awards were added, to recognise the efforts of more of our volunteers. The winners were: ● Sig of the year: Rising FMs (honourable mention to Women in FM) ● Region of the year: South West ● Sig committee members of the year: Samantha Bowman, Rising FMs and Liz Kentish, Women in FM ● Regional committee members of the year: Paul Thomas, North East region; Michael Kenny, Scotland region; Cathy Hayward, London region ● Volunteer of the year: Michael Kenny, Scotland region More will follow on the winners in the August issue. BIFM would like to thank everyone involved in the institute for all the time and dedication they give. Without all their hard work, there would not be a BIFM. i If you are interested in becoming a volunteer committee member with the BIFM, you can view our groups at www.bifm.org.uk/groups or email membership@bifm.org.uk
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BIFM MEMBERS
KEEP IN TOUCH » Network with BIFM @ www.networkwithbifm.org.uk » Twitter @BIFM_UK » LinkedIn » facebook » YouTube » Flickr CONFERENCE
All about FM! The BIFM Scotland Region Annual Conference and Exhibition will take place on 28 September 2012 at Our Dynamic Earth, Edinburgh. The theme for 2012 is ‘All About FM!’. John Telling, group corporate affairs director, Mitie, will be the keynote speaker. The programme also includes: ● Win-win: intelligent FM service partner, intelligent FM client – David Sharp, founder and managing director, Workplace Law ● Optimising supplier relationships: is facilities management a purely operational activity or can service providers influence the strategic aims of their clients? Martin Bell, associate director, Strategic Solutions, Norland Managed Services ● Measuring experience, not just SLAs – Alison Bond, director, The Halo Works ● Change for the better: creating value through change management – Stuart Mitchell, partner, ChangeStone Business Consultants LLP ● Driving future innovation in FM:
responding to key megatrends and uncovering opportunities in a collaborative way to gain competitive advantage – Steve Gladwin, director, Nodus Solutions ● Balancing point: optimising engineering uptime requirements and maintenance efficiency – Martin Jolly, director of knowledge and innovation, ISS Facility Services – Integrated Solutions ● A fresh take on health and safety – Claire Walsh, health and safety manager, Robertson FM ● How to successfully implement desk-sharing practices – and still have friends! Adryan Bell, director consulting, Global Workplace Solutions, Johnson Controls. Tickets are priced at £50 +VAT for BIFM members; £60 +VAT for non-BIFM members; £20 for unemployed BIFM members; £20 for students. Exhibitor spaces are available at a cost of £500 +VAT. Thanks to our sponsors Kimberly-Clark. i For further details, or to book, go to www.bifm.org.uk/SC2012 or email morag.brown@hcs-bi.co.uk Learn more about all BIFM regions and groups at www.bifm. org.uk/groups
Corporate members The following companies joined BIFM as corporate members in July: ● Acuman Facilities Management – End user, in-house FM team ● Crown House Technologies – FM management, suppliers ● EFS Facilities Services (Middle East) – FM service suppliers, contractors ● Facility Services Group – FM service suppliers, contractors ● Indian Institute of Learning & Advanced Development (Inlead) – end user, in-house FM team ● Inten – FM management, suppliers ● JD McGeown – FM service suppliers, contractors ● LTT Vending Group – FM service suppliers, contractors ● The Landscape Group – FM service suppliers, contractors ● Thomas Franks – FM service suppliers, contractors ● Waste Cost Reduction Services – FM management, suppliers i Learn more about corporate membership at www.bifm.org.uk/ corporatemembership
www.fm-world.co.uk
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Please send your news items to communications@bifm.org.uk or call 0845 058 1356
Linda Hausmanis is head of awarding organisation at the BIFM
BIFM COMMENT H I GH E R L E V E L A P P R E N T I C E SH I P S I N F M
egree level apprenticeships provide one of the solutions to the facilities management succession-planning dilemma. Over £1 million in government funding was secured at the end of 2011 to support the development of higher level apprenticeships in FM. These apprenticeships will provide a gateway into the profession for fresh talent straight out of school, as well as providing an opportunity for existing employees in FM who are seeking to acquire recognised qualifications. Apprenticeships are already popular with business. A recent survey by EAL, the awarding organisation for the engineering sector, found that more than 70 per cent of employers feel that apprenticeships are at least of equal value to a university degree to help people to prepare for and progress in the workplace. Over a quarter said they are more relevant. A common employer complaint is that university graduates are unprepared for the practicalities of the workplace having only focused on the theory. Higher level apprenticeships will bridge that gap, covering theory and practice in equal measure. The initiative, led by Asset Skills, the sector skills council for FM, in partnership with the BIFM and several educational institutions and training centres will provide qualifications from levels four to six, equivalent to HNC to degree level qualifications. Organisations from across the public and private sectors have been invited to participate in the development, including HM Prison Service, Babcock International, Sodexo and Compass Group. With the first 60 students starting in September 2012 and a further 150 coming on stream in March 2013, the partners are already mid-way through the development of the apprenticeships’ framework. Having this clearly-defined structure can only benefit both employer and apprentice and is recognition of the dual responsibility of both parties. Employers get a check-box method for offering the necessary support and experiences to their apprentices, while apprentices know exactly what is expected of them in order to do their jobs and fulfil their employer’s expectations. The initiative will also promote facilities management as a career of choice. People have traditionally fallen into the profession, but with the input of schools and colleges and the Asset Skills Career Guide to FM, school leavers will learn that an apprenticeship in FM is a gateway to a rewarding, varied career with significant room for growth. Not all school leavers with these aspirations want to go to university, especially given the rising costs. But often they are dissuaded by the overly practical nature of other apprenticeships. The higher level apprenticeship will bridge the gap between learning and doing and so leave students well equipped to become the next generation of managers. FM is one of the industries being supported because it is integral to the economy and business and offers a world of opportunity for school leavers.
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CONFERENCE
Ireland The 16th Annual BIFM Ireland Region Conference takes place on 16 November at the Belfast Waterfront. The theme for the conference is ‘FM Impacting Organisations’. The programme includes: ● 100 years of health and safety – a Titanic journey: David Knott, safety and environmental manager, Belfast Harbour Commissioners ● A major refurbishment at the National Gallery of Ireland. Reconciling a 19th-century structure with 21st-century demands: Christiaan Clotworthy, head of security and facilities, National Gallery of Ireland ● Energy, home and work: Dr Michael Ferguson, managing director, Aramark Environmental Services ● TFM – the Channel 4 journey, Julie Kortens, head of corporate services at Channel 4 Television ● Are you a radiator or a vacuum cleaner? Do you energise your teams or suck the life out of them? Liz Kentish, The FM Coach Prices are £120 +VAT for BIFM or IPFMA members, and £175 +VAT for non-members. i For further information, contact Sharon Dempster, s.dempster@ hjmartin.co.uk, call 028 9023 2622 or visit www.bifm.org.uk/IC2012 Learn about all BIFM regions and groups at www.bifm.org.uk/groups Thanks to sponsors Aramark and H&J Martin
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“FACILITIES MANAGEMENT IS ONE OF THE INDUSTRIES BEING SUPPORTED BECAUSE IT IS INTEGRAL TO THE ECONOMY”
i For more information, contact Linda via linda.hausmanis@bifm.org.uk
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BIFM NEWS BIFM.ORG.UK
REGIONS
Midlands chair Stuart Bonner has been confirmed as the new chair of the Midlands region. He replaces Ashley Rogers, who has stepped down due to his recent election to the position of chair of members’ council. Bonner has been on the Midlands committee for a number of years, as prior to being elected chair he was treasurer for the region. “I am really looking forward to this new role, and representing our great region,” he said. “On behalf of the committee and all our members, I would like to thank Ashley for all his dedication and hard work. “I will continue the good work in the region, having diverse events and excellent networking opportunities for all our members.” i Learn more about the Midlands region at www.bifm.org.uk/midlands. You can learn more about all BIFM regions and groups at www.bifm.org. uk/groups
NETWORK
Historic Buildings Network David Webb of English Heritage is the new BIFM Historic Buildings network leader. He will be leading discussions and ensuring input to the forum via topics such as: ● Listed or scheduled, what is it? What impact does it have? ● How a property is listed/ scheduled or de-listed and de-scheduled? ● How does the status of listed or scheduled affect the use of the property? ● What are the various levels of listing? ● How do I deal with planning for alterations or new additions? ● What impact does it have on 42 | 19 JULY 2012 | FM WORLD
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property maintenance and usage? ● How does a historic property impact on the process and procedures for an FM or someone who looks after an historic building or location as part of its business? ● What other statutory designations could also be linked with a listed or scheduled property? ● Energy management and sustainability within historic properties. i Learn more at www.bifm.org.uk/ forums
KNOWLEDGE
GPGs Are you up to date on all the BIFM Good Practice Guides? These guides are free to all members and aree an indispensablee source of knowledge. 1. Managing vacant property *New* 2. Procuring and running catering contracts 3. Selecting FM software 4. Procuring and running cleaning contracts 5. Inclusive access and the DDA 6. FM procurement 7. Security management 8. Procuring and running guarding contracts 9. Implementing a sustainability policy 10. Project financial appraisal 11. Refurbishing office interiors 12. Managing fire safety 13. Commercial removals 14. Customer care 15. Risk management 16. Business continuity i BIFM members can access all the Good Practice Guides at www.bifm. org.uk/gpgs
BIFM TRAINING SO YOU THINK YOUR BUILDING IS SUSTAINABLE? NOT IF YOU CAN’T CATER FOR POTENTIAL NEEDS… ustainability has an impact on almost everything we do. FMs recognise its importance and continue to place sustainability high on their agenda for action, but it is often overlooked that the accessibility of buildings and estates contributes heavily to their sustainability and longevity in the marketplace. If an environment does not have the flexibility to meet diverse user needs, then it will not meet market demands and is in danger of becoming prematurely obsolete. BIFM Training’s Inclusive FM course has been revised to include a wider interpretation of accessibility. The disappearance of the Disability Discrimination Act (yes, it has gone, but everyone is still talking about DDA compliance!) and arrival of the Equality Act demands a unified and truly inclusive approach that covers all potential user needs. While the course will continue to cover access to buildings, services and information for people with a range of disabilities (physical, mobility, dexterity, sensory or cognitive/learning impairments), it will now also cover other protected characteristics of the Equality Act where they may be affected by access and use of the built environment. This includes cultural and intellectual access, the design of toilet accommodation to meet cultural and physical needs, prayer/faith rooms, baby change, nursing mothers’ facilities and more. This training day has been developed with a string of activities that challenge approaches to design, as well as attitudinal barriers that can arise, and common use of inappropriate terminology. The afternoon session continues to focus on the complexities of fire evacuation arrangements for people with different needs and is warmly welcomed by all delegates as it continues to be an area of great confusion. The topics explored include safer people handling and transfer, horizontal evacuation, how to develop a personal emergency evacuation plan, and writing a building capability statement for visitors. Fire safety is not a separate issue outside the FM remit; people have the right to enter, use and exit the building in the same condition as they arrived and an accessible, sustainable building should be able to meet this requirement.
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i Inclusive FM & The Equality Act next runs on 16 Oct 2012 in London. For further information, visit www.bifm-training.com, email info@bifm-training.co.uk or call 020 7404 4440
www.fm-world.co.uk
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FM DIARY INTERNATIONAL EVENTS 25–27 July World workplace Asia 2012 conference & expo The conference discusses strategies to address current and future global workplace issues. Venue: Raffles City Convention Centre, Singapore Contact: Visit www. worldworkplace.org/asia/ conference for more information. 5–7 September IFMA foundation workplace strategy sumit An exploration into new ways of thinking about effective workplaces. Venue: Cornell University, Ithaca, NY, US Contact: Visit www. ifmafoundation.org/summit 31 October – 2 November IFMA’s world workplace 2012 The largest annual conference for FM. Exhibitors and discussions including ‘Driving Innovation’. Venue: Henry B Gonzalez Convention Centre, San Antonio Contact: Visit www. worldworkplace.org/2012 INDUSTRY EVENTS 23 August FMA 2012 Summer golf day Two stableford competitions, team and individual £600 + VAT per team, £150 + VAT for individuals Venue: Manor House Golf Club, Castle Combe, Wiltshire Contact: Email daveh@i-fm.net or visit www.fmassociation.org.uk/ events/summergolf 30 August FMA 2012 Networking event Further details to be confirmed Venue: Senator International’s London Showroom – 11-13 Melton Street, London, NW1 2EA Contact: Email Chris Hoar at chris.hoar@fmassociation.org.uk
Send details of your event to editorial@fm–world.co.uk or call 020 7880 6229
10–11 October The FM Event Formerly Total Workplace Management. Venue: London’s Olympia Contact: Visit www.thefmevent. com. For exhibiting opportunities, contact Fergus Bird at fergus.bird@ubm.com or call 020 7921 8860 10–11 October The CIBSE conference & exhibition The annual global meeting for the building services industry. Venue: London’s Olympia Contact: Visit www. buildingservicesevent.com. For exhibiting opportunities, contact Josue Paulos at josue. paulos@ubm.com or call 020 7955 3974 18–19 October FM Property & Energy 2012 Talks from various directors, including Helen Ohlsson, global facilities at IKEA, Ian Dunning, global facilities director at Unilever, and Billy Davidson, global property director at Vodafone. Venue: Wokefield Park, Reading Contact: Visit www.fmassociation. org.uk/events/fmpeoct12 or email Leigh Hussain at leighhussain@ globalbusinessevents.co.uk BIFM SIG EVENTS 17 September People management SIG – pensions The impact of auto-enrolment – more information to follow. Venue: TBA, City of London Contact: Email Simon Aspinall at simonaspinall@c22.co.uk or call 0113 242 8055 27 September Fellows forum SIG – Allen & Overy seminar A lunchtime City seminar, ‘Break options – what to do and what no to do’, with a presentation by Sophie Schultz of Allen & Overy LLP and Adam Beck of DTZ – . Venue: Allen & Overy LLP, One
Bishops Square, London, E1 6AD Contact: Email Joanna LloydDavies at jld@joannalloyddavies. co.uk or call 07778 812315 8 October Risk & business continuity SIG – how business continuity plans influence insurance premiums The event will cover the best practices for risk management and business continuity, how they influence the likelihood and severity of insurance claims, and how to present them to an insurer. Brian Sullivan, director of underwriters Thomas Miller, will discuss the Risk carrier’s view. Venue: DCM Elton Lane, Sibson, Peterborough, PE8 6NE Contact: Email Steve Dance at steve.dance@riskcentric.co.uk or call 0113 242 8055 IRELAND REGION 6 August Salt mines at Carrickfergus Site visit, including a presentation on the core business of the mines, and a drive down to the mine face and crushing area. Venue: Salt mines at Carrickfergus Contact: Email Sid Seymour at sid.seymour@virgin.et or call 07974 564974 1 September Lyric Theatre Site visit of the recently opened, award-winning theatre. Venue: Lyric Theatre, Belfast Contact: Email Sid Seymour at sid.seymour@virgin.et or call 07974 564974
NORTH REGION 6 September Chester river boat social Tickets cost £30 per person, which includes entry into the charity raffle, with proceeds going to Macmillan Cancer Support. Barbecue buffet, live entertainment and a cash bar. Venue: Boarding at The Boating Station, Souter Lane, Chester Contact: Email Steve Roots or Claire Bradbury at north@bifm.org. uk or call 07872 829743 SCOTTISH REGION 12 September National golf finals social event A tour of some of Edinburgh’s finest hosteleries in conjunction with the BIFM national golf finals the following day at Dalmahoy Golf & Country Club. Venue: Various, and Dalmahoy Golf & Country Club, Kirknewton, Edinburgh EH27 8EB Contact: Email Michael Kenny at mkenny@fesfm.co.ukor call 07920 136784 28 September All About FM! Scotland region annual conference and exhibition Various speakers, including Alison Bond, director, The Halo Works and David Sharp, managing director, Workplace Law Venue: Our Dynamic Earth, Holyrood Road, Edinburgh EH8 8AS Contact: Email Morag Brown at morag.brown@hcs-bi.co.uk or call 0141 646 3054
LONDON REGION 19 July Annual summer boat party Tickets £25 per person, including a hot and cold buffet, first drink and charity raffle. Cash bar available. Venue: HMS Belfast, Morgan’s Lane, Tooley Street, London. Contact: Email Cathy Hayward at cathy.hayward@ magentaassociates.co.uk.
13 November Prestige building visit and presentation Prestige event at two corporate head offices and a presentation from the RBS FM team. Venue: Morris & Spottiswood HQ, followed by a visit to RBS corporate HQ in Gogaburn Contact: Email Michael Kenny at mkenny@fesfm.co.uk or call 07920 136784
NEED SOME GOOD ADVICE? The Good Practice Guide to SELECTING FM SOFTWARE The BIFM publishes a series of good practice guides which are free of charge to all members. For a full list of titles or to download the guides visit www.bifm.org.uk Non-members: call 020 7880 8543 to order your copy www.fm-world.co.uk
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FM PEOPLE MOVERS & SHAKERS
BEHIND
THE JOB How did you get into facilities management and what attracted you to the industry? I have been associated with facilities for many years, starting as a customer, then moving over to the supply side. I moved south from the north west of England and joined a fast-growing FM supply company on the cleaning and soft-service division, looking after some amazing companies that are well-known brands.
NAME: Simon Lea Smith JOB TITLE: Account director ORGANISATION: Mitie FM JOB DESCRIPTION: Responsible for the facility service supply to the Cable&Wireless Worldwide contract. This comprises 31 main office sites and 200 technical data sites, throughout the UK and ROI
What’s been your career high-point to date? It has to be the last financial year 2011/2012, on this contract and with this team. We achieved an average performance scorecard of 99 per cent over the 12 months, awarded against some tough KPIs and financial reductions within the service supply. If you could change one thing about the industry, what would it be? The disassociation in some sectors within FM. I explain the success I’ve experienced within my current contract as being due partly to my colleagues’ belief in the vision and goals of the client and service contractor. Each of them knows their individual skills are the main driver to our success. If you could give away one of your responsibilities to an unsuspecting colleague, what would it be? My inbox, without a doubt! Too many people send an email rather than having personal interaction.
How do you think facilities management has changed in the last five years? The focus has changed away from building cleaning and how well it is done towards people, and the FM team improving the people’s environment. There is also a greater focus on the environment, with CO2 emissions and corporate social responsibility. And how will it change in the next five? With the advancement of computers and video communication, business will need less space and we will have more service hot-desk centres and businesses having one central HQ. What single piece of advice would you give to a young facilities manager starting out? The industry is very diverse and exciting; it is also constantly evolving, so your career will never become stagnant. When starting in the industry, focus on a supply sector and gain your knowledge, then move out into the multi-service supply. The FM community is good at networking through professional bodies and institutes. Do your friends understand what facilities management is? What about strangers? No. When I say I am in FM they always say: “What’s that?� and the long explanation starts. My daughter told me one evening after school: “I still don’t know what you do, even though you have told me many times, so I tell my friends you’re a spy.�
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Johnson Controls Global WorkPlace Solutions is a leading provider of facilities and commercial real estate management for many of the world’s largest companies. Our employees across the world have delivered more than $3 billion in savings for our customers over the last 10 years.
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We have opportunities in South Africa for facilities management and workplace professionals looking to develop their careers. If you would like to help us deliver innovative solutions and high-value support to our global clients please visit our website www.johnsoncontrols.com/careers to view current opportunities and register for future alerts. Our Level 3 Value-Adding Supplier BBBEE status demonstrates our commitment to the socio-economic transformation of South Africa.
www.fm-world.co.uk
12/7/12 10:12:35
12th National Golf Finals Marriott Dalmahoy, Edinburgh
main sponsors:
Thursday 13th September 2012 BIFM’s only national sporting event takes place for the first time in Scotland, the home of golf! Regional qualifying events have taken place all over the country to decide which members will represent their region at this prestigious contest. Sponsorship opportunities are still available if you’d like to be part of this memorable occasion. Just contact Don Searle on 020 7220 8900 or email don@c22.co.uk for full details.
BIFM Golf HPH.indd 1
organised by:
29/6/12 12:24:10
Join in the biggest celebration of facilities management in the UK by booking your places now to guarantee a prime position when the leading FMs, teams and projects are crowned. 8 October 2012, London Book your places: Email awards@bifm.org.uk Call 0141 206 3717
www.bifm.org.uk/awards2012 Headline sponsor:
Sponsors:
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Call Adam Potter on 020 7880 8543 or email adam.potter@fm-world.co.uk For full media information take a look at www.fm-world.co.uk/mediapack
FM NEWS
FM innovations ▼ OCS ‘greens’ its fleet
▲ Contractor monitors underage drinking
Total FM provider OCS has introduced nearly 200 new company cars – with plans for another 100 by the end of 2012 – from its new fleet partner Volkswagen in an effort to further reduce its carbon emissions. The move follows a review of the company and commercial car fleet by OCS Group UK Fleet and procurement, which identified a major opportunity to drastically reduce carbon output and costs for the 10.4 million miles driven by the fleet every year. CO2 emissions are averaging 112kg on the Volkswagens, in comparison to 130kg on the old fleet. OCS has also made a cost saving of over £145,620 for the new contract period. OCS’s 1,600-strong commercial van fleet has also been reviewed and 330 of the oldest vehicles are being replaced by the Volkswagen Caddy, Volkswagen Transporter and Mercedes Sprinter.
▲ No doubting the Danubio from Zigor
National grounds maintenance company John O’Conner will make the St Albans parks even safer in 2012, thanks to greater powers given to its Park Rangers in tackling anti-social behaviour and underage drinking. In May 2010 Hertfordshire Constabulary under the Community Safety Accreditation Scheme accredited four of its Park Rangers. They were granted the power by the Chief Constable to request the name and address of anyone involved in anti-social behaviour. This has resulted in a reduction of recorded incidents. These powers have now been extended to enable six John O’Conner Rangers to confiscate alcohol from suspected underage drinkers in any of the three main parks. All rangers now have instant radio links to the police seven days a week throughout park opening hours. T: 01438 717175 W: www.johnoconner.co.uk
Zigor is proving with the Danubio uninterruptible power supply range that businesses can enjoy line interactive technology at offline prices. Designed with an automatic voltage regulator, the Danubio protects systems from fluctuations in the electricity supply, avoids data loss and provides a longer service life for hardware. Zigor’s high-quality battery offers at least 10 minutes of back-up time depending on the load. Ideal for small servers and workstations, the Danubio is available in 1000VA, 1600VA and 2000VA and includes monitoring software. The Danubio also offers easy access for battery replacement and includes a two-year warranty. The 1000VA starts at £192 (inc VAT). T: 0844 854 6264 E: salesuk@zigor.com W: www.zigor.com/uk
▼ A natural choice for Wilson Vale Wilson Vale has re-launched its CRS programme, ‘A Natural Choice’, giving an updated over-review of the company’s CSR commitments over the past two years since it was first launched. The document outlines Wilson Vale’s progress on sustainability and illustrates the many CSR initiatives undertaken by the independent caterer. For example, the company’s fleet emissions have reduced by 27 per cent since 2010 and 70 per cent of all food packaging is now biodegradable. Andrew Wilson, co-founder and managing director of Wilson Vale said: “We felt it was appropriate to reflect on our progress since 2010 and consider how we can continue to reduce our carbon footprint further. There is no doubt that the core element of a strong CSR policy should beat at the heart of every company.”
▲ Get more from floors – get more speed
▲ Mod-U-Pod ‘plug and play’ server solution
Flowcrete UK is promoting its rapid response flooring solution in its ongoing Get More From Floors campaign, which uses a multimedia approach to show specifiers how floors can play a major role in supporting good working environments. Flowcrete’s Flowfast is a fast cure MMA (methyl methacrylate) resin floor coating, which is generally ready for use just two hours after installation. Available in a variety of colours and finishes, Flowfast achieves full chemical and physical cure at an accelerated rate compared to other industrial resin systems, minimising disruption to working environments. The system, used extensively across commercial and industrial environments worldwide, is explored in detail by Flowcrete at the Get More From Floors online portal, available at www.flowcrete.co.uk E: uk@flowcrete.com
Built off-site in the UK, the Mod-U-Pod, ‘plug and play’ server solution is fully equipped to your specifications. A normal modular server room comprises a ‘shell’ of walls, ceiling and floor. It is built on site and is fire resistant, water resistant, energy efficient and secure. The Mod-U-Pod develops this ‘shell’ to become a fully equipped and fully operational server room. It is built off site to be complete and ready to use upon arrival at the customer site. It is ideal for disaster-recovery sites and premises where space is limited or lease arrangements are short term. The Mod-U-Pod includes pre-installation of floor, false ceiling for hot-air return, lighting, data cabling and cabinets, UPS power backup systems, fire suppression and air conditioning. T: 0870 777 1830 E: sales@commsroomservices.co.uk
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Appointments
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Call Carly Gregory on 020 7324 2755 or email jobs@fm-world.co.uk For full media information take a look at www.fm-world.co.uk/mediapack
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Offices in: Abu Dhabi, Auckland, Berlin, DĂźsseldorf, Frankfurt, Hamburg, London, Manchester, Melbourne, Moscow, Munich, Singapore.
www.cobaltrecruitment.com
London FM Opportunities General Manager (PFI) London ÂŁ50,000
Senior Facilities Manager London ÂŁ45,000 - ÂŁ50,000
Facilities Manager Central & Greater London ÂŁ35,000 - ÂŁ40,000
A General Manager is required for a PFI Education contract. Within this key role, you will have full P&L responsibility for an ÂŁ8m contract that is a full TFM hard and soft FM service delivery. With a proven track record of running a similar sized account and a strong understanding of the PFI scheme, you must be able to maintain and develop strong client relations and be a good people manager. Our client requires someone who can hit the ground running given the gravitas of the contract.
An experienced Senior Facilities Manager is sought to help a developing Property Management team that is striving to expand their FM function. You will have extensive experience of managing a portfolio of multi-let commercial properties, preferably including high-end city office buildings. As well as managing the existing portfolio, you will help implement new policies and procedures to ensure the organisation is well placed to bid for high proďŹ le FM contracts.
A managing agent organisation seeks a Facilities Manager to manage a regional portfolio of over 30 properties including, commercial, industrial and retail multi-let sites across London. The ideal applicant will have experience of managing a similar sized portfolio for a managing agent and will be able to balance and prioritise a high volume workload. As someone who is NEBOSH or IOSH certiďŹ ed, you must be strong on the statutory compliance and will have previously worked within a similar property management team.
Ref: 1177100
Ref: 1123900
Ref: 1173600
To apply for any of these roles please email your CV in conďŹ dence to info@cobaltrecruitment.com or call +44 (0)207 478 2500 to speak with Claudio Rojas or Ryan Coombs.
the
natural choice in FM recruitment
Professional Facilities Management with the investment in mind
Eco Fm is a young, fast growing Facilities Management company operating a number of prestigious portfolios across the UK. Due to growth and internal promotion, we have vacancies for 2 Regional Facilities Managers in London and the South West. Demonstrating at least 12 months experience in a Facilities Management role, the successful applicants will be fully versed with the running of hard and soft building services along with the management of contractors and must have excellent interpersonal skills as liaising with our Client’s Asset Managers forms a important part of these roles. The Regional Facilities Managers will be expected to perform monthly property inspections, ensure statutory compliances are met, manage and monitor PPM and FM schedules, attend quarterly tenant meetings and communicate with the Managing Agents on service charge/budget issues. Based in the suburbs of Leeds, Eco FM’s national 24/7 HelpDesk manages the reactive element of all the Portfolios. They work closely with the Regional Facilities Managers who would be expected to ensure relevant reactive issues that require SURDFWLYH VXJJHVWLRQV DUH LGHQWL¿HG D VROXWLRQ IRXQG DQG WKLV presented back to the client for consideration.
To ďŹ nd out how you can beneďŹ t from working with Eden Brown, contact us today on 0845 4 505 202. www.edenbrown.com
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An excellent package is on offer for these positions along with the opportunity to work with an experienced, dynamic team of individuals, if you are interested in applying please send your CV with a covering letter to bev.tuke@eco-fm.co.uk
jobs.fm-world.co.uk
12/7/12 16:17:09
Director of Campus Services Salary: £100,000 | Newcastle upon Tyne Northumbria is a thriving university with 33,000 students and over 3,200 staff experiencing a dynamic culture of research-engaged teaching, innovation and enterprise. Now is an exciting time to join Higher Education, during a period of significant change with increased marketisation, and a greater focus on service delivery, our strong business focus helps us to maintain an enviable market position. Campus Services is the largest professional service with a wide portfolio of activity incorporating Facilities, Student Accomodation, Security, Catering and Sport as well as the commercial operations and HSE team.
We are seeking an innovative, dynamic and visionary Director with a strong track record of leading a professional and commercially focused service, delivering enhanced performance and strategic change. Professionally recognised at a national level you will have the drive and ability to lead and inspire others, build relationships and networks and influence commercial delivery. For full details and how to apply please visit www.workfornorthumbria.co.uk/hrvacs/CAM11/28 Closing Date: 13 August 2012 Selection Date: 6 September 2012
Northumbria University is an Equal Opportunities Employer
www.workfornorthumbria.co.uk
HEAD OF FACILITIES MANAGEMENT Band 8D £65,270 - £80,810 per annum • Estates and Facilities Directorate Full time, 37.5 hours per week • Ref: COR-3868 The Central Manchester University Hospitals NHS Foundation Trust is the largest NHS Trust in the North West. It also has one of the biggest PFI Schemes. Indeed, our £500 million PFI project represents the biggest investment in Manchester healthcare history. Responsible for the overall direction, leadership and management of our Estates and Facilities Directorate, you’ll ensure high quality FM services are delivered right across the Trust’s estate. You’ll also see that an effective strategy is implemented and service providers are held to account for their delivery. Leading the development of services will be important too, as will liaising with Property & Estate Development colleagues on issues such as the lifecycle replacement of the estate. You will be the main contact for PFI partners.
A graduate educated to masters level, you have a detailed understanding of PFI contractual principles and significant experience of managing, monitoring and outsourcing FM services in an NHS environment. What’s more, you’re well versed in the relevant legislation, demonstrate excellent communication and negotiation skills and a proven ability to provide leadership and motivation to a multi-disciplinary team. For an informal discussion please contact Cheryl Lenney 0161 276 8862 or email cheryl.lenney@cmft.nhs.uk Apply online at www.careers.cmft.nhs.uk Closing date: 31st August 2012. Interview date: 11th September 2012.
We are an equal opportunities employer.
jobs.fm-world.co.uk
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FINAL WORD NOTES FROM AROUND THE WORLD OF FM
NO 2
DAYS
THE SAME FM WORLD'S WORLD FM DAY RELAY STANDING UP FOR STANDING UP There's no getting away with it: a sedentary lifestyle can have a negative effect on your health. And now, to cap it all, there's a study that suggests – to put it bluntly – “sitting is bad”. Professor Peter Katzmarzyk of Pennington Biomedical Research Center in the US is the lead author of a paper published recently in the online journal BMJ Open. The research suggests that sitting for more than three hours a day can cut two years off your life, even if you're someone who otherwise exercises regularly; by cutting the amount of time you sit by a couple of hours a day, you could increase your life expectancy by two years. Extraordinarily, it can shorten life expectancy almost as much as smoking. Sure, facilities management itself is perhaps the least sedentary profession in the world – but all those offices, all those benches, stools chairs and other 'sitting opportunities'? That's something an FM can certainly influence. In another study, this time by Leesman Index (and with a survey sample of 10,000), 58 per cent of respondents said that they were unhappy with the chairs they were using in the workplace. The obvious solution would be to upgrade the chairs – but who's talking about the real issue? Let's just cut down on chairs! Less expense on furniture, increased desk space, and, er, no chairs with which to sit at desks. It has to be the way forward. Right?
World FM Day in London, 2012 – an opportunity to showcase a typical day of FM activity in the Olympic capital. Armed with iPhone and tripod, we leave our Farringdon HQ and walk into the sunlight.
9AM – LASTMINUTE.COM At the Leather Lane offices of the travel deals website, we're greeted by deck chairs and pictures of palm trees. Summer is here! At least, on the inside. Europa Services' Neville Moriarty explains how sustainability issues are top of his agenda.
10AM – HORSE GUARDS PARADE Derek Young, who's managing Horse Guards Parade for PRIDE, explains how business continuity in the face of the impending London Olympics is his top priority. As we speak, actual Horse Guards parade past, London buses roar by and diggers deposit beach volleyball sand.
11AM – THE FOREIGN & COMMONWEALTH OFFICE Olympic preparation is key to Alan Sillince's working day, representing the culmination of a year's collaboration between the FCO and contractor Interserve. Following our interview, we repair to the local McDonald's, which proves as good a place as any to upload the video interviews taken thus far.
is the perfect host, and quick to explain how his top issue is the mobilisation of a new building repairs maintenance contract.
WATCH the editorial team interview London's FMs fm-world.co.uk
1PM – SODEXO HQ At Sodexo's London HQ, Richard Priestley provides an insight into his role, explaining how he uses his building as a showcase for the FM services his company provides, as well as providing the FM service on site to his own colleagues.
2PM – THE KIA OVAL James Wagg, OCS's FM running the famous cricket ground, explains how the Olympics will have a curious effect on him – it means all the venue's big matches being brought forward. As we visit, the wicket is being prepared for the upcoming one-day international between England and arch-rivals Australia.
4PM – SHELL INTERNATIONAL, CANARY WHARF Mark Clelland, real estate services site manager, tells us how he's prioritising the provision of a safe working environment.
5PM – EMIRATES AIR LINE CABLE CAR Chris Kearney, general manager at this latest addition to the London tube map, talks us through his eventful first day. 'A typical day?' he says. 'There isn't one. Yet'.
12 NOON – THE GUILDHALL The central line proves arguably the most arduous part of the World FM Day journey, but on arrival Guildhall manager Stephen Bursi
All in all, an entertaining snapshot of FM in London, late June 2012. Thanks to all our participating FMs for their time and patience!
IN THE NEXT ISSUE OUT 16 AUGUST
FEATURE – IS FM HAMPERED BY A LACK OF INDEPENDENT RESEARCH? /// CASE STUDY – BBC'S MEDIA CITY, SALFORD /// FACILITIES MANAGEMENT'S CONTRIBUTION TO CORPORATE SOCIAL RESPONSIBILITY REPORTING /// HEATING, VENTILATION AND AIR CONDITIONING /// PRINT SERVICES /// THE LATEST NEWS, ANALYSIS AND COMMENT
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HOT DATES
Embarking on a formal qualification programme but feeling a little out of practice with your study techniques? Study Skills Workshop – 10 Sept 2012 It’s an exciting time to be in facilities management, especially with the wide choice of qualifications and other learning opportunities now available. But for many people, finding the time and motivation to study can be a challenge, particularly as it may have been some years since you’ve undertaken any formal studying. Written assignments form a core part of many qualifications and rather than feel overwhelmed by the perceived amount of work, this workshop will show you how to effectively plan your time, schedule in slots, ask for support and set achievable milestones so that you may maximise your chances of passing. Call now for a detailed programme 020 7404 4440
All dates listed are in Central London unless otherwise stated
SEPTEMBER COURSES 10 10-14 10-14 11-13 11-13 12 12 13 18 18-19 19-20 19-20 20
Study Skills Workshop NEBOSH General Certificate in Occupational Health & Safety [Week 1] IOSH Managing Safely The Professional FM 1 [Intermediate] Project Management Quality Management & Customer Service in FM [BIFM Executive Programme] Energy Management Energy Legislation Selecting and Controlling Contractors on Site The Essentials of Property Management Security Management Introduction to Sustainability IOSH Refresher Day
+44 (0)20 7404 4440
Telephone info@bifm-training.co.uk | www.bifm-training.com facebook.com/bifmtraining
twitter.com/bifmtraining
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It will be illegal to use HCFC R-22 Refrigerant through-out Europe by 2015
If your clients are still operating R-22 equipment, have you advised them that they will have: U Higher maintenance and repair bills U Limited spare part availability U DifďŹ culties in the event of a system breakdown Space Air can provide a complete replacement management solution encompassing all aspects of the R-22 replacement process.
Call us 01483 504 883 or visit www.spaceair.co.uk W Scan here for more information about the HCFC R22 Replacement legislation. Š Space Airconditioning plc. All rights reserved. 101470-05.12
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N o b o d y k nows Dai k i n bet t er
10/7/12 11:19:32