FM World 5 December 2013

THE MAGAZINE FOR THE BRITISH INSTITUTE OF FACILITIES MANAGEMENT | 5 DECEMBER 2013

FMWorld www.fm-world.co.uk

HEALTHCARE

Bringing FM into hospital design boosts performance

CENTRE OF

ATTENTION

Keeping up with the fast moving requirements at Liverpool ONE

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PLAYING MUSIC? MAKE SURE YOU’RE LICENSED.

Music creates a better working atmosphere 74% of factories agree that playing music increases staff morale.* If you play music in your business, it is a legal requirement to obtain the correct music licences.

In most instances, a licence is required from both PPL and PRS for Music. PPL and PRS for Music are two separate companies. PPL collects and distributes money for the use of recorded music on behalf of record companies and performers. PRS for Music collects

and distributes money for the use of the musical composition and lyrics on behalf of authors, songwriters, composers and publishers.

A PPL licence can cost your business as little as 19p per day. For more information on how to obtain your PPL licence visit ppluk.com or call 020 7534 1070.

7R o QG RXW PRUH DERXW KRZ PXVLF can work for your business visit musicworksforyou.com. *MusicWorks survey of 1000 people, conducted May 2012.

ppluk.com

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VOL 10 ISSUE 22

5 DECEMBER 2013

CONTENTS

07 | Flexible facilities

18 | VINCI Facilities award win

22 | Liverpool ONE

NEWS

OPINION

FEATURES

6 Kortens and Townsend elected to lead BIFM 7 Better data “will transform buildings” 8 Project of the Fortnight: Snow Globe, Piccadilly Circus, London 9 Think Tank: key FM themes in 2014 10 Business news: Graeme Davies discusses the catch 22 situation in government outsourcing 11 CBRE acquires Norland Managed Services 12 Graeme Davies reviews the year in the FM business sector 14 In Focus: Caspar Ridley on FM providers’ expansion into front-line services in healthcare facilities

16 Perspective of a facilities manager: Finbarr Murray on navigating facilities 17 Five minutes with Simon Alderson 46 No Two Days

26 | Aerobic digestion

18

St Helens and Whiston Hospitals: Bringing FM expertise into the design and build helped VINCI Facilities win the ‘Excellence in a Major Project’ BIFM Award

22

Liverpool ONE: The scale of the Liverpool ONE retail and leisure centre is as broad as the scope of services required to keep the 24/7 site operational

26

Aerobic digestion: Disposing of food waste comes with all sorts of problems. Carolyn Cross looks at one of the latest options – aerobic digestion

28

Green Deal: Decisive action is needed from the government if the Green Deal is to survive

MONITOR 32 Briefing: Local authority funding of FM 33 How to: Informed choices on renewables 34 Insight: Market intelligence

REGULARS 36 39 42 43 44

BIFM news Diary of events Behind the job Products 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 desk: Call 020 7880 8544 ⁄ reporter: James Harris ⁄ digital content executive: Hannah Whittaker ⁄ consultant art director: Mark Parry ⁄ art editor: Daniel Swainsbury

MARTIN READ EDITOR COMMENT

LEADER

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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 ⁄ Martin Bell, independent consultant / Lucy Jeynes, Larch Consulting / Nick Cook, managing director, Haywards ⁄ Rob 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 ⁄ Geoff Prudence, chair, CIBSE FM Group ⁄ Chris Stoddart, director of FM, Regent Street Direct ⁄ Jeremy Waud, managing director, Incentive FM ⁄ Jane Wiggins, FM tutor and author ⁄ Chris Wood, FM consultant Average net circulation 11,920 (Jul 12 – Jun 13) 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

BIFM ENQUIRIES

British Institute of Facilities Management Number One Building, The Causeway, Bishop’s Stortford, Hertfordshire CM23 2ER

ell here it is – Merry Christmas! But before we move on, let me explain how incredibly strange it feels to be saying that. Not that I’m against the idea of a break, good Lord no. But seriously, another year? I still feel that I should be congratulating our Olympic athletes. (How can all of that possibly have been nearly 18 months ago?)

Yet the calendar never lies; 2013 will soon tick over into 2014, and I’m here to contend that we in FM have much to look forward to from the new year – and not all of it confined to England’s glorious run to the first knock-out stage of the World Cup. This time it’s not just one of those vague feelings, either; we’ve much to celebrate in FM and more to look forward to. Of course, the sector’s seemingly intractable problems remain: FM procured as a commodity item, sketchy definitions of FM’s ‘value’, and so on and so forth. But as well as the perception of an economy finally heading in the right direction, I sense a fresh energy and determination among FMs, and those that represent them, to ‘make our case’. And that’s a good feeling indeed.

We had a roundtable event last week on the topic of operative engagement. One particularly interesting piece of learning from it was the idea that to maximise an FM operative’s engagement, management must cater for that operative’s working needs ahead of the business’s. That’s a seemingly bizarre reversal of logic, but one that becomes more and more sensible when you consider what it means for individual operatives whose working lives can be made heaven or hell by relatively minor adaptations to their conditions. (Shifts that start earlier or later, or that are timed around the availability of public transport, for example.)

So, some great food for thought. But when we close these events it’s often the case that the group present has coalesced around a particularly frustrating issue that, were it only to be fixed, would change everything. Typically, we leave knowing that there’s some major problem that remains unresolved. This one was different; we ended in a particularly upbeat frame of mind. We lauded the full qualifications infrastructure now in place, the career-minded FMs who instinctively realise how good FM demands the empowerment of operatives – and there was even talk of a mutual understanding between incoming and outgoing contractors in the TUPE transfer process (well, to a point - let’s not get carried away). Overall, I sensed a room of individuals who were all optimistic about FM’s power for good within the organisations they served.

We already know that the BIFM has big plans for engaging beyond the sector in 2014 and there’s a real mood for grappling with the “wider business community” and its increasingly irrational inability to see what FM brings to organisations.

It’s just a feeling, but I sense a mood of both optimism and determination about the new year and this sector’s place in it.

So, on behalf of all of us on the FM World team, here’s to 2014 – and a breakthrough year in FM. (Quick spot of ho-ho-housekeeping: the FM World Daily will be published until Friday 20 December, and then resume on Thursday 2 January. Our next print edition will be with you on Thursday 16 January.)

W

“I sense a fresh energy and determination among FMs to ‘make our case’”

Tel: +44 (0)1279 712 620 Email: admin@bifm.org.uk Web: www.bifm.org.uk

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Left to right: new BIFM chair Julie Kortens and incoming deputy Ian Townsend

BIFM CHAIR AND DEPUTY CHAIR

Kortens and Townsend elected to lead BIFM Julie Kortens will become the twelfth chairman of the BIFM next year.

Kortens, head of corporate services at Channel 4, was elected chairman by the BIFM board and will take up the role in July 2014.

Commenting on her appointment, Kortens, who was the BIFM’s 2010 facilities manager of the year, said: “I am delighted to have been voted as chair-elect. I am passionate about my role as an FM, and I am so pleased that as chairman I will be an ambassador representing BIFM and promoting the interests of all my FM colleagues. I am relishing the opportunity.

“During the two years I have served on the board, I have been

witness to great progress in the institute and the wider profession.

I very much look forward to taking the helm and building on these strong foundations during my term.

BIFM recently announced its new strategy, so we have a clear direction and are united in where we wish the FM profession to be.”

Current BIFM chairman, Ismena Clout, said: “Julie has very dynamic, versatile and strong skills, which will lend themselves very well to this position, making her the ideal new chairman. When my term ends in July, the institute will be in safe hands.”

The BIFM also announced Ian Townsend as the next deputy chair of the institute.

Townsend, business director at Norland and chair of the BIFM’s Home Counties region, will begin his two-year term next July, replacing current deputy Liz Kentish.

On his appointment by the board, Townsend said: “Our new mission, vision and values have set out who we are and where we want to be.

I know my term will be one of further progress for the institute.

These are exciting times for our sector, and I am proud to be an ambassador for FM.” Liz Kentish, current deputy chair, said: “I’ve known Ian as a board colleague for a few years now. He is a great strategist with

solid managerial experience and an impressive FM career. I know that I am handing the baton on to an exceptional individual, who in turn will be supporting a fabulous new chair. Although I will no longer be serving on the BIFM board after July 2014, I will be watching with interest the progress the institute continues to make.”

The chair and deputy chair are voluntary roles. Any BIFM members who are interested in volunteering, potentially with the aim of representing members on Members’ Council or BIFM board, should contact the BIFM membership team at membership@bifm.org.uk.

IMAGE SOURCE

BIFM calls for living wage in FM sector BIFM is calling for organisations in the FM sector to become accredited Living Wage employers.

The institute has also announced that it is now an accredited employer of the Living Wage.

According to the Living Wage Foundation (LWF), over 400 organisations are now accredited employers, having found that outsourced arrangements that pay the Living Wage increase productivity and service quality.

The Foundation calls for a minimum wage rate of £8.80 in London, and £7.65 in the rest of the UK. The current minimum wage in the UK is £6.31.

The Living Wage is both a major opportunity and a challenge to FM companies.

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The Foundation has launched a new type of accreditation for service providers, who will find it impossible to have 100 per cent of staff on the Living Wage because of market rate expectancies. This new Service Provider option hopes to encourage Living Wage uptake and improve industry pay trends.

FM suppliers sign an

agreement with the Foundation and commit to always offering a Living Wage option alongside every tender, quote or bid.

Current government policy is to encourage contractors to pay Living Wage and actively highlight this at the point of engagement.

Labour has also indicated that it would only contract with recognised Living Wage employers if in government.

Gareth Tancred, chief executive at BIFM, said: “Paying the Living Wage is good for business, good for the individual and good for society. We recognise that adopting these measures is a challenge to many organisations, including FM service providers and in-house teams due to

narrow margins and economic pressures.

“BIFM wants to encourage FM leaders and the organisations they work for to seriously consider the provision for Living Wage rates in their contracts and workplace to highlight the moral dimension of our responsibilities and our impact on the economy and society.”

BIFM hosted an event for its corporate members on Tuesday 12 November at KPMG’s offices in London to encourage take up of the Living Wage in the sector.

Speakers included Rhys Moore, director of LWF and Jane Wills, Department of Geography at Queen Mary University of London. www.fm-world.co.uk

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NEWS

BRIEFS London office rents see rise

Better data ‘will transform buildings’ The Government should make design and planning data more easily accessible to help improve future buildings and spaces, according to the Royal Institute of British Architects (RIBA) and Arup.

A report, Designing with Data: Shaping our Future Cities, says that better data has the potential to transform the way architects and urban planners design built environments. This could result in cheaper testing of designs and better consultation with potential users, the report argues.

The report makes three key recommendations to the Government. It recommends that Government departments talk to each other to ensure that they collect, share, and analyse data that is not only relevant to operational city management, but also to their design and development.

In addition, as part of its Open Data initiative, the Government should scope how it can standardise the digitisation of all information submitted for planning, and standardise design data collection

across local authorities. The report also suggests the Government should commit to work with professionals to incorporate and develop smart design data specific to the built environment.

The report recommends that the Department for Communities and Local Government and Cabinet Office, along with organisations such as the Open Data Institute, should set up a working group of built environment professionals and academics.

WORKPLACE

ISTOCK/REX

Study predicts growth in large scale, flexible facilities The rapid growth of creative, digital and media businesses over the next decade will see facilities managers in charge of more large-scale, flexible space, according to a new survey

by Deloitte.

The professional services firm’s London Futures – Globaltown: Winning London’s Crucial Battle for Talent report researched the growth of London as a hub for high-skill, knowledge-based jobs, concluding a minimum of 300,000 jobs would be created by 2020, 100,000 of which would be in high-skill sectors.

The report also predicted that creative, digital and media businesses would account for a significant number of these new jobs. The expansion of these industries would compensate for the decline in financial services www.fm-world.co.uk

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employment, the report added.

“Facilities managers are going to need to think about the relative movement away from banking towards creative, digital and media,” said Angus Knowles-Cutler, London senior partner at Deloitte.

“This means managing more large-scale, flexible space, often in parts of London where there is regeneration.”

The report found that London ranks third in the world for

the number of jobs in facilities management, behind Hong Kong (first) and Los Angeles (second).

Fourth and fifth place went to Chicago and Singapore respectively.

Facilities management was one of the few sectors in which London did not rank first or second, however.

Of 22 high-skill, knowledge-based sectors studied, London was the world’s leading city in 12 of them in terms of employment numbers.

But Knowles-Cutler added that London was likely to climb up the world rankings for the number of jobs in FM thanks to the rise in jobs predicted by the study.

“London will grow faster than a lot of other cities, so there is a good chance it will climb up the rankings in FM, as there will be more facilities to manage,” he said.

Office rents are rising across central London thanks to a shortage of supply, according to commercial real estate services firm NAI Haywards.

The UK member of NAI Global, the world’s largest managed network of independent property advisers, said that the constriction in lending combined with the need for property companies to conserve cash had translated into rent increases across prime locations in the capital.

The claims echo a statement by property consultants Carter Jonas earlier this month that said prime West End rents had risen by up to 10 per cent since the third quarter of 2012. The forecast from NAI Haywards pushes those rents even higher in 2014, with rises of over 65 per cent predicted.

BIM4FM creates BIM guidance The BIM4FM group is creating a guidance note to support and develop the FM industry’s understanding of building information modelling (BIM) and soft landings.

The BIM4FM group hopes to release the note early next year.

It said it would also engage with institutional BIM forums to input and develop the FM perspective, including the BIM session chaired

by David Philp at Ecobuild in March next year. BIM4FM chairman Geoff Prudence said the group had been encouraged by the response to the survey and the discussions on social media.

FM World’s reader survey FM World’s biennial readership survey remains open until 20th December. The survey helps us to ensure we continue providing the content you need to do your job and develop as an FM. Your views will be an invaluable aid as we constantly improve our offering.

As a thank you for completing the survey, everyone who does so will be entered into a prize draw to win an Apple iPad mini.

The survey should take no more than ten minutes to complete. To take part, go to: tinyurl.com/FMWorldSurvey2013 FM WORLD | 5 DECEMBER 2013 | 07

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PROJECT OF THE

FORTNIGHT NEWS BULLETIN

BIFM to guide sector on contract relationships

SHAFTESBURY MEMORIAL, PICCADILLY CIRCUS, LONDON DESIGN, MANUFACTURE AND INSTALLATION: Architen Landrell CLIENT: Westminster City Council and Wildstone COMPLETION: November 2013 over five days CONTRACT LENGTH: During the Christmas period, until January 2016

WILDSTONE

Piccadilly Circus all shook up Travel into central London at this time of year, and you will likely be bombarded with bright Christmas lights, winter wonderlands and the spicy smell of mulled wine.

This year, however, the West End, as if to honour Monty Python’s reunion show, went for something completely different.

Westminster City Council approached outdoor advertising consultancy Wildstone and fabric structure business Architen Landrell with the challenge of designing the world’s largest snow globe to fit over the Eros statue in Piccadilly Circus.

Architen Landrell, based in Chepstow, South Wales, was given a time frame of two months from the contract award (20 September) through to installation.

The globe, made from 685 square metres of clear PVC fabric, weighing a half ton, stands at 19 metres tall and 15 metres in diameter.

It is kept inflated at all times by two fans, running alternately, and eight snow-blowing machines are installed around the base. Also around the base, eight high definition digital LED screens display sponsor branding.

As well as being a stand-out landmark, and useful for advertising placements, the snow globe is working as protection from vandalism for the Shaftesbury Memorial. Most recently, the archer’s bow was bent during Barcelona fans’ celebrations after the Champions League final at Wembley in 2011. The monument is normally protected by advertising hoardings during the Christmas period.

The temporary structure will be dismantled on 4 January, to be erected again next November. Planning consent is granted for the festive period until January 2016.

A spokesperson from Westminster City Council suggested there may be something “bigger and better” in the coming years. What that could possibly be remains to be seen.

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The BIFM has announced that it is to carry out a series of activities to help engender successful contracts and relationships within the FM sector.

The institute, which will announce details of activities relating to this challenge in January 2014, says that it is “responding to the trend of more organisations outsourcing key services within the built environment, increasingly on a pan-European or global basis. The volume and value of these Total Facilities Management (TFM) contracts have risen dramatically and have become a key area of discussion in the FM sector”.

CEO Gareth Tancred commented: “After extensive research, consultation with FM service providers and client-side FMs, and in addition to a BIFM Leaders Forum, the institute is responding to calls from key industry professionals to take a lead in guiding the sector on how to run effective contracts and relationships.

“BIFM recognises that its position as the professional body of the FM sector is to advise people operating in the workplace and built environment.

Part of this commitment means providing guidance and support for individuals new to FM or for those requiring knowledge when setting up outsourced contracts.”

Energy and transport costs hit SMEs hard The rate of growth of costs for small firms, such as energy and transport, has fallen year on year, but is still above inflation and hitting business hard, according to research.

The Forum for Private Business said that while annual inflation has fallen from 3 per cent to 2.7 per cent, prices have continued to rise faster for micro, small and medium-sized employers compared to larger employers, at 6 per cent this year. However, the forum pointed out this was less than last year’s figure of 6.7 per cent, suggesting a slow improvement.

Energy was the most common increase in costs for small businesses, with 87 per cent reporting an increase during 2013, according to the forum.

Its latest Cost of Doing Business survey, carried out among members, showed that firms were still facing an uphill battle, despite signs of an economic recovery. A total of 94 per cent of businesses reported an overall increase in costs, with transport being the most commonly increasing cost after energy, and 83 per cent of firms reporting a rise.

Almost four-fifths (78 per cent) reported a rise in marketing costs, while 69 per cent had experienced a rise in the cost of raw materials and stock.

GCC FM spend totals £13.5 billion, report finds A new report has revealed that $21.8 billion (£13.5 billion) was spent on facilities management in the Gulf Corporation Council (GCC) region in 2012, with the UAE, Qatar and Saudi Arabia leading the region’s growth in FM. The research, commissioned by the Middle East Facility Management Association (MEFMA) and conducted by consultants Credo, will be officially released at an event in the Dubai World Trade Centre on November 27.

Credo interviewed 35 of the region’s companies to identify current trends in FM. The GCC FM Briefing 2013 report concluded that total spend on FM is being driven by a combination of the GDP and construction expenditure.

The report also found that customers in the region do not want to be tied into long-term contracts and prefer deals that do not exceed three years.

Other key findings included that supplier contract margins are down from a pre-recession high of 15 per cent to between 5 and 10 per cent; higher margin opportunities are most likely found in specialised sectors such as healthcare; and price is the most important factor for clients choosing an FM provider.

The research also compared FM in the Middle East with more developed markets to pinpoint areas in which the region should develop in order to protect margins. Four categories were concluded upon: bundling and TFM, performance and control (for example, use of outcomes-based contracts), contract length and investment, and delivery (for example, increasing selfdelivery and use of technology). www.fm-world.co.uk

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THINK TANK

WE ASKED 100 FMS…

Other factors 13%

Continue to be the ‘Cinderella profession’ 9% Growing acceptance of FM’s role in reducing energy costs 26%

Growing acceptance of FM’s role in our organisation’s reputation management 30%

Growing acceptance of FM’s role in risk management 22%

Which of four key themes do FMs expect to benefit from next year? Perhaps understandably, opinion is mixed Which of four key themes do facilities managers expect to benefit from in 2014? Our latest Think Tank question proved contentious.

From the word go, the categories as presented were questioned.

“Growing acceptance should surely be replaced with ‘demonstrated proof and improvement’,” suggested one correspondent. “The hot topic for me will be smarter ways of working that will deliver real estate benefits and more satisfied and productive staff,” they continued.

Another complained that while they were “currently engaging with the strategic organisational development team to offer the services of FM and changes to the environment as one of the symbolic changes to aid culture change,” if

they said it had come from the FM team “it would not be as successful”.

It wasn’t all bad news, said one respondent voting for the ‘risk management’ category. “FMs have always managed risk on a day to day basis. However, their particular skills are being recognised more as infrastructure investment decisions are increasingly based on risk and the consequences of not acting.”

“I’m not entirely sure that your list does the FM profession justice,” said another correspondent. “Most if not all FMs are delivering against the first three items in your list. If they are succeeding, then there is a high chance that it isn’t immediately apparent to the outside spectator.

Somewhat like a duck in the water, all may appear calm on the surface,

but underneath there is a huge amount of coordinated activity and effort to make the duck stay afloat.

“And as for being a Cinderella profession, like the fairy tale character, we are all destined to get our Prince Charming in the end; despite the efforts of the Ugly Sisters. Keeping in the panto spirit, it’s worthwhile remembering that oft shouted phrase “Look behind you!”

– FM has come a long way. Let’s look behind us to see how far we’ve come and build upon this progress to create a stronger, more effective industry that is a cornerstone of the workplace of tomorrow.”

Another correspondent thought 2014 would offer a shift from the previous five years as the improving economic outlook accelerates and

businesses ramp up their investment and growth. Thus, they suggested, we can expect “more opportunity to ‘get under the skin’ of new property design/usage through conventional techniques, but crucially using BIM. “Also, a marked shift from ‘cost cutting’ requirements to a requirement to improve customer service and support growing organisations, not perhaps seen since the mid-2000s.”

Finally, two correspondents were adamant that 2014 had to be the year in which FM truly embraced building information modelling (BIM).

Join the FM World Think Tank LinkedIn group by visiting www.tinyurl.com/fmwthinktank

SHUTTERSTOCK

Skills Commission calls for education link to the workplace A report from the Skills Commission, sponsored by Interserve, is calling for a change in the education system to meet the needs of individuals entering the workplace.

The report is the culmination of a cross-party inquiry by the Skills Commission, an independent body of senior leaders from across parliament and the education sector. It warns that the government has failed to provide enough information, advice and guidance for young learners in terms of setting a course for a career, and adds that the Department for Education does not supply sufficient options for those not wanting to follow www.fm-world.co.uk

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traditional academic pathways.

Interserve CEO Adrian Ringrose commented: “How we develop skills is one of the biggest challenges that we face in the UK. As a large employer, we believe that enabling the next generation to develop the right skills is not only vital to our economic recovery, but vital for the future of UK business.

“Therefore, we embrace the

challenges and support the recommendations to create a more responsive and effective education system to provide young people with the skills and knowledge to build long-term, enriching careers.”

A fundamental conclusion of the report, entitled One System, Many Pathways, is that the UK education system does not put individual learners’ needs at the heart of policy making.

The report makes several recommendations for policy and cultural change in the UK education landscape, and calls on the Department for Education to create a new culture of acceptance of learners repeating a year, in order to ensure the

learning experience matches the individual’s particular learning requirements.

The inquiry’s co-chair Sir Mike Tomlinson, former Chief Inspector of Schools, said: “Our vision for learners is of one, encompassing, coherent system of education and training that is characterised by a diversity of pathways, with clear routes of progression to employment, further training or higher education – whatever is right for the learner. We must be mindful that recent reforms’ focus on academic rigour does not come at the expense of other pathways to employment, further training and, indeed, higher education.”

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ANALYSIS

Catch 22: government outsourcing GRAEME DAVIES newsdesk@fm-world.co.uk

A recent flurry of figures has illustrated just how deep the ties are between the UK government and major outsourcers. With the Coalition still only part way through its proposed slimming down of central government, the indications are that such reliance on the private sector is only going to strengthen in the years to come.

The National Audit Office recently calculated that the biggest four providers of services to the government - Serco, G4S, Capita and Atos - banked £4 billion between them during the last

financial year. Government spending on outsourcing is already considerable, and in the 2012 financial year the biggest spender was the Ministry of Defence (MoD), which splashed out more than £3 billion on outsourcing. Behind the MoD was the Department for Work and Pensions, which spent more than £2 billion, while several other departments, including Transport and the Ministry of Justice, spent north of £500 million. And right across government there are plans to ramp up outsourcing in the coming years, as it continues to grapple with debilitating debts.

At the same time, never has there been more public scrutiny over the relationship between the public and private sector. Recent problems with government contracts at companies such as G4S and Serco have raised questions over delivery and value for money and, when the serious fraud office gets involved, the public are right to be concerned.

One major question here is: what can the government do to enhance competition? Many of the contracts being tendered are of such scale and complexity that only companies with huge balance sheets and considerable operational capacity can carry them out. The government could bring in overseas providers, and indeed does in many cases, but this is politically difficult when the UK economy is only in the early stages of recovery and the government needs to be seen to support domestic businesses. It has

Contract wins

NEW BUSINESS Carillion has won a five-year engineering deal with Nomura, valued at £20 million. The FM and construction services giant will provide engineering services to the investment bank’s operations in the UK. The deal covers the provision of engineering and maintenance services at Nomura properties based in London and the south-east.

Mitie has won a contract to operate Ashford International station worth £5 million over five years. The outsourcing giant inked the deal with HS1 Ltd, owner of the high-speed railway between London St Pancras and the 10 | 5 DECEMBER 2013 | FM WORLD

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Channel Tunnel. Under the contract, Mitie will provide station management, maintenance, cleaning and security at the international train station.

Compass Group UK & Ireland has won a five-year catering deal worth more than £20 million with The Queen Elizabeth II Conference Centre (QEIICC) in London. Compass’ sport, leisure and hospitality brand, Leith’s, will work in partnership with QEIICC to introduce a new range of food concepts and menus.

Shepherd FM has signed a £7.5 million deal with WorldPay to provide a range

of facilities management services at offices across the UK. The privately owned facilities management company will be operating at WorldPay sites in London (excluding The Walbrook Building), Gateshead and Cambridge.

The contract has options to run through to 2018.

Skanska has extended its highways maintenance contract with Somerset County Council. Skanska provides structural maintenance, winter and emergency services, maintenance design and fleet maintenance on more than 6,000km of roads for the council.

The new deal, worth £30 million annually, will run until March 2016.

ISS has won a three-year contract extension to provide catering at the London Guildhall. Under the new three-year deal with the City of London Corporation, ISS Food and Hospitality will provide services at ‘The Gild’ staff restaurant in the historic building.

encouraged the formation of co-operatives and social enterprises, but they do not have the scale to pick up major contracts. Mid-tier operators are trying to scale up to compete with the big boys, but despite success in certain niches, the major contracts remain beyond their capabilities.

The length of outsourcing contracts means the stranglehold can be difficult to break. For example, Serco, which is currently scrambling to effect a rapid corporate transformation demanded by the government before it will allow it to bid for any further contracts, has a confirmed order book with the MoD totalling 60 contracts worth £4 billion, stretching over the next 25 years. Even if Serco never wins another contract with the MoD, they will be entangled for the next two decades.

Yet the state of Serco’s relationship with the government was evident in the surprise withdrawal of the C2HM Hill consortium – partnered with Serco and WS Atkins – from bidding for the massive MoD procurement contract only after the bidding had closed, leaving just one offer on the table.

The government is, in many ways, stuck between a rock and a hard place. Keen though it is to encourage competition, the overriding criteria is value for money and, on that front, the larger players can generally use pricing power to blow their smaller competitors out of the water. The risk then is that, operating on thin margins, the quality of service provision can be compromised. In such a race to the bottom, it can be difficult to see who the winner is.

Graeme Davies writes for Investors Chronicle

www.fm-world.co.uk

28/11/2013 14:08

CBRE acquires Norland for £250 million CBRE Group has announced its acquisition of Norland Managed Services for £250 million.

The commercial real estate services and investment firm, headquartered in Los Angeles, said the acquisition would add market-leading capability to self-perform building technical engineering services in its UK and European Global Corporate Services (GCS) business.

Norland provides building technical engineering services to commercial real estate owners and occupiers in the UK and Ireland. It also boasts customers in the US and Singapore.

Norland’s existing operations, which employ 4,000 people across 14 offices and serve in excess of 300 clients, will operate as CBRE | Norland once the deal has closed.

Norland Managed Services employs 4,000 people across 14 offices

Norland already serves a number of CBRE-managed accounts, including Bank of America Merrill Lynch and State Street Corporation.

Ian Entwistle, CEO of Norland, will lead CBRE | Norland as CEO. He said of the deal: “Our firms fit together very well, both culturally and operationally … [and] by uniting our building

BUSINESS BRIEFS technical engineering expertise with CBRE’s broad service offering and global reach, we foresee significant opportunities to expand our client base and accelerate our growth.”

Norland reported revenue of £385 million for the fiscal year ended 5 April 2013, while CBRE ended the third quarter of 2013 with more than $500 million (just under £314 million) of cash on its balance sheet. CBRE is a Fortune 500 and S&P 500 firm with 37,000 employees (excluding affiliates) throughout more than 300 offices worldwide (excluding affiliates).

The acquisition is expected to close before the end of 2013 and is subject to clearance from the European Commission.

FLICKR

Integrated FM helps Mitie post strong growth Provision of energy consultancy and engineering maintenance services represent the “next stage” of integrated facilities management provision, according to Mitie Group.

Speaking after publication of its financial report for the six months to September 2013, Mitie’s group finance director Suzanne Baxter told FM World that the company believes further development in its integrated FM offering will be led by energy services.

“With most large portfolios these days, control of energy costs and security of supply are critical,” Baxter said.

“Increasingly, we’re working alongside our clients to look at how their energy is purchased; whether it’s being sourced from the right www.fm-world.co.uk

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green suppliers, and whether there is sufficient diversity of supply rather than a complete reliance on the national grid.”

Mitie also expects to see more clients adding the contractor’s engineering maintenance expertise into their integrated FM deals, with Baxter citing the requirements of clients such as Sky, where uptime of equipment is critical.

The Mitie Group is reporting 10.1 per cent growth in the revenues of its FM division, much of it the result of its work with integrated FM clients. Across the group, revenue has risen 10.5 per cent to more than £1 billion, 5 per cent of which is the result of organic growth.

Beyond expected growth of integrated FM deals in the financial

Servest acquires FSG Servest has announced the acquisition of Facilities Services Group (FSG) for an undisclosed sum, adding to its building maintenance and services division.

The FM provider, which operates at more than 4,500 sites across the UK, has made a number of acquisitions over the past 18 months, including mechanical, maintenance and building services business Maxwell Stewart, 7 Day Catering and Stag Security.

Norse in turnover boost Norse Commercial Services is reporting a 13 per cent rise in annual turnover and a net profit of £2.7 million – the company’s best ever performance.

The company’s forward order book is valued at almost £2 billion.

Speaking at the company’s 25th anniversary annual general meeting, managing director Peter Hawes said that Norse Commercial Services’ performance compares favourably with its major national competitors, where it has what the company describes as an “industryleading” customer retention rate of 95 per cent.

Elior launches Ellipse The Mitie Group is reporting 10.1 per cent revenue growth in its FM division

sector, Baxter revealed there has been an increase in retail and manufacturing clients considering bundled and integrated FM options.

“It’s where we’ve had buy-in at senior level and an opportunity to deliver an integrated model that we’ve seen the most success,” Baxter added.

Contract caterer and site services partner Elior UK has launched a new business, Ellipse, to provide dedicated reception services.

The new arm of Elior offers integrated services including reception desk, switchboard, meeting room management and concierge services.

Elior UK currently has £3 million worth of reception contracts. The creation of Ellipse is aimed at serving both new and existing customers.

FM WORLD | 5 DECEMBER 2013 | 11

28/11/2013 14:08

FM BUSINESS SIGN UP FOR FM WORLD DAILY AT FM-WORLD.CO.UK

GRAEME DAVIES newsdesk@fm-world.co.uk

The facilities management sector in the UK experienced a memorable year in 2013 for many contrasting reasons. We saw further consolidation in the sector, as larger players looked to add specialist skills and mid-scale operators tried to bulk up in order to compete both on service and geographical delivery. Meanwhile, the UK government has continued with its drive to outsource yet more of its public services to the private sector, a trend which will continue for some years to come. This has resulted in outsourcing giants such as Capita and Serco continuing to add to their multi-billion-pound order books, and the professional and support services sector in which they reside now accounts for around 10 per cent of the UK economy.

But it has not been all plain sailing. Entering 2014, four of the biggest FM players around – G4S, Serco, Rentokil Initial and Capita – either have relatively new chief executives or are about to welcome a new incumbent to the hot seat.

This state of flux in the sector’s boardooms says much about issues at individual companies, most notably G4S and Serco.

As the year drew to a close, a serious cloud hung over both companies in the form of concerns over fraudulent activity in their guarding operations. G4S offered the government a credit for £24 million against previous 12 | 5 DECEMBER 2013 | FM WORLD

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overcharging in its prisoner tagging business, and Serco launched a process of corporate renewal in an attempt to persuade the government to keep considering it for contracts. Serco also warned in November that its profits will come in below expectations in 2013 and 2014, due to a failure to win as many contracts as it had predicted.

For smaller players in the sector, 2013 remained challenging. Some benefited from concentrating on their specialist skills, but with the trend continuing towards ever larger contracts served by multidisciplinary businesses, the smaller FM providers find themselves scrapping for smaller specialist contracts or on a regional level, or becoming second-tier suppliers to the top line suppliers with all the pressure that can bring on margins in the supply chain.

Domestic outlook The Coalition government has stuck to its programme of austerity which continues to deliver some massive contract opportunities in areas of defence, justice, welfare and health.

What is also becoming clear is that the squeeze central government is putting on local authorities is really beginning to bite, with year-on-

GETTY

2013 in FM: a year of contrasts

year, double-digit reductions to their budgets leading to yet more outsourcing opportunities on a local government level. Indeed, companies such as Capita are increasingly embedded within local government, illustrated by the recent extension of its relationship with Southampton City Council into 2022, one of many multi-year contracts it holds delivering a wide range of services across local authorities.

Despite the current travails of the likes of G4S and Serco, private sector operators are so deeply embedded in public sector service delivery, from running prisons to operating police stations, that the trend is unlikely to be blown off course. The Conservatives want to continue shrinking central government right through the next parliament. Even a change of

“With the trend towards ever larger contracts served by multi-disciplinary firms, the smaller providers scrap for smaller specialist or regional contracts”

government in 2015 is unlikely to change much; while Labour may want to slow the pace if it wins the election, it will also be under pressure to prove its financial acumen. As a result, Labour is likely to find itself unable to roll back the changes made in the preceding five years, unless the current swell of public opinion against outsourcing becomes more powerful.

One development which muddied the waters in this respect came in late November, when the Ministry of Justice announced that plans to outsource the management of the South Yorkshire prisons group, for which Serco was the preferred bidder, were being shelved. This suggests that even some in the Coalition government are aware of the need to apply the brakes a little.

Meanwhile, there is also the distinct possibility that the raft of infrastructure projects which have been talked up in recent years may finally begin to break ground. This could aid those FM companies with construction arms, posing the potential to follow up projects with www.fm-world.co.uk

28/11/2013 17:42

long-term service contract wins.

The wobbles suffered by the likes of G4S and Serco could offer a short-term opportunity to midmarket players to step up to the plate, with the likes of Mitie, the newly strengthened Kier Group (emboldened by its successful takeover of May Gurney), and Interserve snapping at the heels of the bigger players. Furthermore, the public outcry over the growing influence of the larger players may prompt the government to redouble its efforts to encourage smaller suppliers, social enterprises and co-operatives to bid for contracts.

However, one issue that is unlikely to go away is that of margin pressure. Those FM companies that have survived and thrived since the financial crisis have done so through strict discipline and sensible cost controls and the government is still hellbent on squeezing the best value possible out of its providers.

Furthermore, there is the potential threat that a recovering economy could prompt inflationary pressure in input costs, most notably wages, which have been held back during the long recovery from recession.

But the growth of the UK economy, with predictions recently upgraded to 2.4 per cent growth in 2014 by the Organisation for Economic Co-operation and Development, also raises hopes of a pick-up in private sector business.

As the economy expands, so private sector businesses are likely to expand too.

International outlook In recent years all the large-scale FM providers have expanded overseas, with differing levels of success. Indeed, for all the talk of domestic woes affecting the likes of G4S and Serco, these businesses already generate more than half of their turnover outside the UK, as their expertise here has led them to pick up contracts in all corners of the globe. www.fm-world.co.uk

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THE YEAR IN FM BUSINESS

2013’S BIG WINS AND ACQUISITIONS BIG WINS five-year contract to provide total FM services at 150 sites for the BBC, valued at £150 million. ● Amey is providing building, security and maintenance services to Westminster City Council, The Royal Borough of Kensington and Chelsea, and The London Borough of Hammersmith and Fulham. The 10-year deal was won in June, and is worth £150 million. ● In July, Sodexo won a £250 million, 15-year deal to manage HMP Northumberland on behalf of the Ministry of Justice. ● Circle Housing Group appointed Keepmoat, Kier FM and United House to a number of planned and responsive maintenance services deals across the south and east of England, in five-year contracts totalling in excess of £700 million. ● The London Borough of Hammersmith and Fulham appointed Mitie to a £177 million, 10-year deal to provide reactive repairs and maintenance works across the borough.

ACQUISITIONS ● Caterer Lindley Group has been bought up by US hospitality group Centerplace for an undisclosed amount. ● CBRE Group has acquired Norland Managed Services for a sum of £250 million. ● Servest has bought Facilities Services Group for an undisclosed sum, adding to its building maintenance and services division. ● Lyceum Capital has led a £32.2 million acquisition of the FM division of AIM-listed Johnson Service Group, which includes SGP Property & Facilities Management. ● Babcock International Group has acquired Conbras, a privately owned Brazilian FM company, for around £22 million. ● Kier’s £221 million acquisition of support services business May Gurney was completed in July, despite competition from engineering group Costain. ● Amey’s parent company Ferrovial Services has completed its purchase of maintenance contractor Enterprise for £385 million.

In emerging markets, many had their fingers burned by the fool’s gold of the Gulf when Dubai’s economic miracle proved to be a mirage. But in the fast growth ‘tiger’ economies of Asia there has been more sustained success. While Asian growth has slowed, it remains in positive territory and now the Gulf market appears to have put itself on a more sustainable platform too.

Opportunities also exist in the more frontier emerging markets such as sub-Saharan Africa, South America and even closer to home in countries such as Turkey.

The US has been a strong market for FM operators, but despite economic growth having returned,

there are big question marks over federal and state budgets in the US, as well as the overarching effect of the potential withdrawal of its quantitative easing medicine.

The return to health of corporate America could offer a lifeline, but 2014 promises to be an uneasy year.

Meanwhile, the European Union is promising to finally emerge from its zombie state in 2014, although economic growth will be anaemic at best. With austerity still reigning there may be more work coming through from European governments looking to slim down their budgets, but Europe is likely to remain a tough hunting ground in 2014.

● In October, Interserve won a

Changing shape of FM markets/players The coming year may see a slowdown in consolidation activity among the FM players, many of whom have already positioned themselves for the opportunities ahead, and will now concentrate on delivery and efficiency as they seek to improve margins that have been seriously squeezed by the competitive nature of the market.

But that does not rule out further acquisitions in the UK market by overseas players or the return of private equity to the market. US and European FM providers have already established footholds in areas such as health and justice, and the scale of the opportunities remains compelling enough to tempt yet more overseas businesses to enter the market.

In terms of the services that FM providers are expected to deliver, the trend towards more holistic and sophisticated service provision will continue as customers increasingly look to FM providers to help them meet sustainability legislation requirements and improve their energy efficiency.

This will largely be achieved through better procurement and use of energy, and even whole building management programmes using techniques such as Building Information Modelling.

The days of FM providers simply guarding buildings, changing toilet rolls and checking the lights are turned off at the end of the day are long gone, as customers increasingly look to eke as much value as possible out of their assets, as well as comply with increasingly stringent legislation on buildings.

The opportunity for FMs to bring specialist skills to play, and more deeply embed themselves with clients, is stronger than ever.

Graeme Davies writes for Investors Chronicle

FM WORLD | 5 DECEMBER 2013 | 13

28/11/2013 17:42

FM BUSINESS IN FOCUS

THE ISSUE: FM providers’ expansion into frontline services in healthcare facilities and in healthcare at home THE INTERVIEWEE: Caspar Ridley, national director of health at Interserve

Healthy competition Interserve’s appointment of Caspar Ridley - the former chief executive of Salisbury NHS Foundation Trust - as national director for health across its support services business, says much about the provider’s ambitions in the healthcare sector.

Indeed, employing an ‘inside man’ (Ridley has also served as director of strategy and business development at University Hospital Southampton NHS Foundation Trust), indicates a strong desire on Interserve’s part to become evermore deeply embedded within public sector healthcare.

Ridley’s new title was announced mid-November, almost a year after Interserve’s acquisition of Advantage Healthcare at the tailend of 2012. The £26.5 million takeover imbued the business with the capability to provide livein, palliative and complex care, delivered by Advantage’s fully trained staff of nurses and carers.

Ridley tells FM World that he is keen to capitalise on the “embarrassment of opportunities” this acquisition offers; ie, the variety of bundled services Interserve can now supply to the sector. The ability to provide healthcare at home in particular could present “solutions for acute hospitals,” he suggests, adding that any opportunity to reduce 14 | 5 DECEMBER 2013 | FM WORLD

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pressure on numbers of available hospital beds is likely to be met with enthusiasm by the NHS. Interserve has delivered health and social care services to both the NHS and the private sector for more than 20 years, but its expansion into front-line services presumably demands a cultural shift in a company more accustomed to managing buildings.

But Ridley insists that for Interserve, “the patient experience is at the heart of everything we do”. And that mantra is applied to facilities management just as necessarily as it is to the provision of care. Indeed, Ridley says he has seen a number of “major contracts where FM has come under the responsibility of the chief nurse”.

“This for me shows the future of where FM is going,” Ridley adds. “It’s about talking the right language and understanding that patient experience.”

While this might seem radical, for Ridley it makes sense in a context where it is absolutely key to ensure that services are delivered within the best interests of the patient. And if FM providers are going to add value in healthcare, they must adapt to that core guiding principle.

“During the life of a contract for an FM provider, there needs to be flexibility in the way

they structure these deals,” he emphasises. “Everyone [should be] working together for a common good.”

But achieving the common good doesn’t come without challenges. Recent research by YouGov and Interserve indicated that 60 per cent of organisations in the healthcare sector expected to make budget cuts by 2016. And while outsourcing is considered part of that solution, there are concerns that a private provider’s ultimate objective – to make a profit – may come down to cutting corners.

Not so, argues Ridley. “It’s not true that cutting costs automatically means the patient experience [suffers],” he says.

“Some of the best customerfriendly innovations save money at the same time.”

He cites Interserve’s ‘patient hotel’ in central London, funded by the University College London Hospital charity, as an example, along with healthcare at home.

“I’m not saying it is easy [to cut costs and improve care], but that is the challenge. And we want to be part of that solution,” he adds.

FM providers looking to add to their capabilities will usually partner with specialists to achieve that end – such as Sodexo’s joint venture with medical diagnostics group Labco, or Mitie Group’s acquisition of homecare provider Enara – and with both Advantage and Ridley on board, Interserve may have doubled its odds.

Having already built a relationship with the NHS through its FM provision, Interserve is a trusted partner that can now offer more complex services, driven by an added insight into the processes, pressures, multiple stakeholders and various boundaries that need to be navigated within the NHS. “Having sat on the boards of Trusts for the past four years and seen around 70 board papers a year, I know that there is no lack of passion for innovation [within the NHS], but frustration at the pace of change and making things happen,” Ridley tells us. “In my view, what private sector involvement can bring is operational excellence, new ideas and new models of care.”

Indeed, should Interserve’s ambitions bear fruit, it could usher in a new model for facilities management, too. Such a multipronged approach to managing facilities and the people in them – including reducing pressure on facilities by taking people out of them with healthcare at home – suggests an unprecedented and comprehensive level of service.

“It’s not true that cutting costs automatically means the patient experience suffers. It’s not easy, but we want to be the solution” www.fm-world.co.uk

28/11/2013 14:39

FM EVENT WORKTECH 13 LONDON

PEOPLE, PLACE AND TECHNOLOGY …are the three key elements of the workplace.

But how should organisations weave those elements together? That was the question at this year’s Worktech conference in London

MATTHEW HARRISON

I

n Ronald Coase’s paper, The Nature of the Firm, published in the November 1937 edition of Economica, he examined why organisations exist.

His conclusion – that firms are necessary, justified and good for society – has been respected and widely referenced for the last 80 years; but today’s working environment seems less fixed on the human element of business.

Writer and philosopher Charles Handy referenced Coase’s work when he started his morning session at Worktech with an explanation of how the relationship between the individual and the organisation has changed significantly over the last 30 years.

“The idea of loyalty and trust comes from the company being paternalistic,” said Handy. “When I went to Shell, the company interviewed my wife. But job security doesn’t really exist any more; nobody is looking out for your long-term prospects.”

The quotable Handy continued to illuminate his view that the world is changing, calling for firms to grow better, not bigger.

“Think of work teams like orchestras. When it works, adding a few more violinists won’t make it better.”

The rest of the conference continued along a similar theme: we may have more resources in our armour, but we need to learn www.fm-world.co.uk

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how to use them effectively. And in an age where communication and technology is more advanced than ever, and its evolution accelerating at such an alarming rate (thanks for that, Moore’s Law), the human element is letting the side down.

Tim Price-Walker, enterprise business consultant at Steljes, told the conference that workers waste two-and-a-half hours a week due to poor internal communication. Surprisingly, this was not down to an increase in flexible working.

The concept of worker performance being measured by pure output, rather than time spent sat at a desk, was discussed in an afternoon session on agile working. A considerable number of audience members raised their hands when asked if they worked at home – but only a small cluster of them would describe themselves as home workers.

Charles Handy sees the workplace a little differently.

His view that our expensively constructed ‘glass buildings’ – beautifully crafted though they are – will be turned into apartment blocks in the future may sound a little dramatic, but it continued a trend throughout the two-day event that the traditional 9-5 role is gradually becoming obsolete.

Handy made the point that thousands commute into a city,

Left to right: Frank Duffy and Charles Handy at Worktech

central London or otherwise, to sit halfway up a skyscraper to be in the same building as the rest of the organisation’s employees – only to send emails to someone a couple of floors away.

Before he could get the audience up in arms to completely bring down the capitalist regime, Handy welcomed individuals on to the stage to join him in conversation.

What followed was a clash of sweet treats metaphors: the doughnut versus the macaroon.

Only delegates will truly know the winner of that one.

A surprise inclusion at the conference was a talk on data and insight from Jim Newton, a director at McLaren Applied Technologies. Learning about the company’s ability to receive and interpret Formula 1 race data from all over the world in its Woking headquarters, the audience was absorbed by how

race decisions and strategies would be made in real time in Surrey.

“Over 90 per cent of all data in the world is less than two years old,” said Adryan Bell, director, workplace strategy and change, Global Workplace Solutions, Johnson Controls, who explained that the smart organisations use data to “anticipate issues and create opportunities”.

Bell spoke of how rainfall and weather data has been combined to provide information on taxi availability.

“We are all data-rich, but insight-poor,” continued Bell.

“We can collect more data, but we don’t always know what to do with it.”

The reality – as with anything new and with so much potential power – is that it is still down to the human brain to interpret, analyse and devise a strategy.

DUFFY ON DIGITAL ow do you justify place in a virtual world? And what can place do that electronics can’t? These were the themes addressed by Frank Duffy, founder of architectural design practice DEGW and former president of the Royal Institute of British Architects.

During his presentation, Duffy often sounded genuinely astonished at the march of the digital world, the consequent impact on workplace design, and how a resultant increase in mobility within and between workplaces was allowing for universal, instant inter-connectedness that his profession needed to respond to.

H

Duffy also presented examples of offices designed so that there is “no hierarchy in the infrastructure”.

He foresaw a future in which, if businesses are procuring services as much as space, those services would be paid for by the hour in much the same way that space is paid for by the square foot.

Architects, suggested Duffy, could be “too much in love with what we do, as serial purveyors of new buildings”. The construction industry needs to break away from the “tyranny of the supply chain”, and those operating in the arena of architecture through to workplace design needed to be “much more critical and imaginative”.

FM WORLD | 5 DECEMBER 2013 | 15

28/11/2013 17:43

FM OPINION THE DIARY COLUMN FINBARR MURRAY

“TRY NAVIGATING YOUR BUILDING PURELY FROM THE SIGNAGE PRESENTED TO YOU. I WAS SURPRISED AT THE DIFFICULTIES”

FM University Local Consultant Estates Authority

Finbarr Murray is director of estates and facilities at East Kent Hospitals University NHS Foundation Trust

NAVIGATIN G FACI L I T I ES

fter a holiday in Spain, Finbarr Murray A decided to attempt finding his way around the workplace using only the provided signage – with embarrassing results Some months ago I commissioned Wayfinding Consultants, specialists in designing navigation for the built environment, to develop a strategy for the Trust. Wayfinding – which, by the way, was a phrase coined in the 1960s by Kevin Lynch in his book, The Image of the City, with its reference to signage, orientation and communication – has been on my radar for some time now. So when I came back to the Trust after a great holiday in the wilds of Spain this weekend, I couldn’t help but fall into wayfinding mode.

Ignoring that I had done the route before, it was interesting trying to navigate the building purely from the instructions and

signage that’s presented to you, and I was surprised at the genuine difficulty it can present. The slightly awkward bit for me was that a corridor I had walked along previously had been refurbished with new signage, and because I didn’t see the six-foot male symbol, I ended up using what I thought was a unisex toilet.

Of course, it wasn’t unisex and I had used the female facilities – thankfully without being discovered and having to give my embarrassing explanation.

At the Trust, we have been very aware of the lack of consistency not only within our sites but across hospitals we have in East Kent.

This inconsistency has led to all sorts of variances in design, style, language, accessibility and terminology, which can make for confusing patient and visitor experiences.

Now reading the engaging strategy and incredibly detailed audit Wayfinding undertook, it’s fascinating to see the everyday in a completely new light. It’s taken someone with an objective view backed with specialist knowledge to point out some painfully obvious “no no’s”, and signage and instructions which, now we see them more clearly, make no sense at all. There are also some good examples of unhelpful wayfinding to radiology instead of X-rays, or phlebotomy instead of blood tests.

The key issue is, like travelling, visiting hospital environments can be stressful. And our mission as FMs is to make what can be a stressful experience as easy and straightforward as possible.

It’s also important that we use the best available advice to address the wide variety of people we serve, including wayfinding that addresses the potentially specific needs of those suffering from dementia, the elderly, visually impaired or those members of the public who want information delivered in different ways, such as virtually (through smartphones, for example).

In summary, using Wayfinding is a very exciting opportunity to make a positive difference to our patients, visitors and staff and I’m keen to now establish the suggested working group to take forward the recommendations. Hopefully this will result in far fewer examples of the weird and wonderful handmade signs which dot all of our working environments.

BEST OF THE WEB Views and comments from across the web In a competitive market, is winning an FM contract more important than making a profit?

(BIFM Group) Andrew Porter: Absolutely not. In my view, any successful contract must give the service provider a return which is in excess of the interest they would gain from 16 | 5 DECEMBER 2013 | FM WORLD

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investing their working capital for the contract in a low-risk investment.

Wayne Greiner: I have seen far too many FM service providers go in skinny (0 per cent profit margin) on day-to-day service provision with the intentions of picking up a profit on extra works, only for it to end in tears for all parties concerned.

Charles Jarvis: Turnover vanity – profit sanity.

Charles Sinton: There are not enough bean counters involved in FM procurement! If the fixed overheads of a contract were properly analysed and understood by the client, the value of the discretionary overhead and true service offering could be focused on.

Open space vs the cubicle – a place for both? (The Workplace Community) Andy Lake: It is worth noting that the cubicle is not common outside of North America. It seems in other countries people find ways to do the same kind of work without them. They are unnecessary and a block

on better use of space.

Peter Plant: Many large organisations that are moving away from offices and cubicles are achieving greater collaboration and communication. It is not a new concern – how to continue being agile and innovative once you’re big – but the workspace is being seen as a greater lever to achieve this. www.fm-world.co.uk

28/11/2013 14:08

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BEST OF THE

FMWORLD BLOGS Facility management – quo vadis?

Chris Kane, Smart Spaces and Places Who are the enablers of today’s smart workspaces and what does the future hold for them? Recently, I contributed to a discussion forum on the value of FM. It raised key concerns on the issue of recognition and how the FM sector can demonstrate value to the rest of the business. Clearly, there was a lot of angst in the room, highlighting a lack of self-confidence in this sector.

We need to understand that most business leaders agonise about creativity, innovation and talent. How can the FM sector help to resolve these challenges?

I suggest FM must shift from a purely building-centric focus to a wider, peoplefocused role, which supports the “work anywhere and any time” ethic. We need to stop focusing solely on efficiency and make “effectiveness” a key priority. Fundamentally, there is a need to shift the FM value proposition as a support function to become an enabler of productivity.

We, as a group, agreed that the nature of business is changing – and we need to be ready for the challenges that this will present. We need a proactive roadmap to prepare for the role that FM will play in supporting business in the future.

A key success factor will be the ability to demonstrate value to stakeholders. We must raise our game by applying strategic vision to anticipate the leadership challenges of the future, whatever they may be.

Read the article in full at smartspacesandplaces.com

We shouldn’t be too quick to demonise the open plan office Nigel Oseland, founder of the Workplace Consulting Organisation and Workplace Unlimited There is a witch hunt on in the workplace. “Open plan” has become a dirty word and the national press are leading the mob in vilifying this so-called scourge. The Guardian, The Independent, The Telegraph, The Daily Mail and Business Week have all reported that “we can’t get anything done in an open plan office” as it affects our concentration, our performance and our health.

Open plan is associated with high density … but this was not the intention of the landscaped office environment (Bürolandschaft) with its array of work-settings, plus interesting and somewhat spacious layouts. I have even overheard workplace consultants claiming that good open plan working environments take up more space than cellular offices.

So let’s not mix up open plan design with high density, but that doesn’t mean that high density is always wrong. Consider call centres and trading floors … the density facilitates a buzz and energy that is a prerequisite of such workplaces. However, these environments usually offer good facilities and support spaces, have excellent building services and, if a large floor plate, usually have higher ceilings. The mistake is made when it is assumed that such environments suit all workers and that smaller desks laid out in long and efficient rows is conducive to their work.

My point is that “open plan” should not be a dirty word – it is the misguided application, misuse, lack of management, poor design and low-cost execution of open plan offices that is the demon, not the original principle and intentions. Let’s not kill off open plan just because we have misinterpreted it and adapted it to be a cheap and nasty diluted version of the original concept, with all the best bits taken out.

Read the article in full at officeinsight.org

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FIVE MINUTES WITH NAME: Simon Alderson JOB TITLE: Commercial director, VPS Ltd

Like any premises, vacant properties require protection from weather damage, utilities failures, vandalism and squatters. However, they are particularly vulnerable to these risks because not only are they easier targets, but also the effects of, say, water damage, will frequently go undetected for longer periods, during which time the impact can become far greater and far more costly to rectify.

Manned guards provide a visual, on-site deterrent to vandals or thieves, and also a round-the-clock review of any weather or utility problems. However, 24/7 guarding is expensive, and a guard can only keep an eye on one area at a time.

Sites will have different requirements according to how vulnerable they are through their location, size, the nature of their structure and so on. The answer to the question, “Which is best – guards or technology?” will differ from site to site.

Some will favour a manned presence, others can be appropriately protected by technology, and others still from a blend of both types of protection.

Man-made incidents need to be added into the vacant property risk assessment. There were 209,000 recorded acts of vandalism against business premises in 2012. The majority of these were experienced by premises in the wholesale and retail sector, according to the Crimes Against Businesses survey carried out by the Government.

A total of 20 per cent of property insurance claims are due to water leakages and burst pipes. Leaks from a small burst or fractured pipe can release thousands of gallons of water if left unnoticed. The average insurance claim is an estimated £25,000.

The VPS white paper Manned Guards Versus Technology – Which is Best? is available for free by emailing enquiries@vpspecialists.com .

FM WORLD | 5 DECEMBER 2013 | 17

28/11/2013 14:39

FM FEATURE ST HELENS & WHISTON HOSPITALS SARA BEAN

TRUST ISSUES Bringing FM expertise into the design and build of St Helens and Whiston Hospitals in Merseyside has created two of the topperforming hospitals in the country. Sara Bean finds out why they won the BIFM award for Excellence in a Major Project

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www.fm-world.co.uk

28/11/2013 14:09

ST HELENS & WHISTON HOSPITALS

T

he high quality patientfocused amenities of the new St Helens and Whiston Hospitals in Merseyside, serving a population of 350,000, are a brilliant example of the enormous benefits of embedding facilities management expertise into the design and build of a construction project from the very start.

And as if to prove it, for ensuring the seamless delivery of the new hospitals through the bidding process, design, construction, commissioning and handover through to operations, VINCI Facilities has received the BIFM 2013 award for Excellence in a Major Project.

The project began in 2002, when the St Helens & Knowsley Teaching Hospitals NHS Trust made the decision to replace two outmoded hospitals – originally 19th-century workhouses – with two new hospitals: Whiston Hospital, a £250 million, 80,000 square metres, 900-bed acute general hospital; and St Helens Hospital, a 20,000 square metres day treatment centre (for assessments only). Both were to be constructed on the existing sites, prior to the demolishment of the earlier buildings.

In 2004, NewHospitals Consortium was appointed to construct and manage the redevelopment. VINCI Construction was selected to design and build both hospitals, while VINCI Facilities would provide hard FM services for the interim and steady state periods (35 years), providing 24/7/365 hard FM requirements. These would include building fabric (walls, windows, etc), mechanical and electrical (including medical gasses), grounds, pest control and removal of waste.

From the outset, the VINCI sister companies worked together with client and stakeholders to

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embed FM into building design.

Cliff Morgan, project manager for VINCI Facilities at the St Helens and Whiston Hospitals, explains: “From 2004 to when we put a spade in the ground, there was a lot of work needed to get to what was wanted. This meant bringing massive teams together to make sure that what we built was what the Trusts wanted when they finally moved in.”

Grand designs A FM core group was set up to assess the needs of hospital staff, patients and the community.

Results were fed to the project steering group for authorisation and, from there, to sub-groups responsible for developing the detailed delivery plans. This included Trust User Groups (TUG) where hospital staff at both sites discussed room specification and equipment with designers, the FM team and departmental leads.

Feedback was also sought from patient liaison groups and local community groups.

As well as incorporating feedback from user groups, VINCI Facilities was able to draw on its previous work on PFI hospital builds at Bromley and South Buckinghamshire.

Morgan explains: “Bromley had some access issues, such as it being very awkward to go into a room because a patient was in bed, so with this build we kept all the mains services in corridor areas. Now if we have to do any testing, like turning mains off because there’s a leak, we don’t have to go into the bedroom, but can do it in the corridor, which won’t affect the patients.

“Another initiative was the design of segregated FM routes and spaces. Within both hospitals there are areas where patients and visitors can go which look nice, but if you’ve got a lot of FM movement down those corridors it can damage them, so we asked, FM WORLD | 5 DECEMBER 2013 | 19

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FM FEATURE ST HELENS & WHISTON HOSPITALS SARA BEAN

Clockwise: Cliff Morgan and team; gardens at St Helens; the reception area; the approach to St Helens

‘Could we have a designated area, back of house?’

“The corridors were also designed to be much wider than how a hospital would look traditionally. In this way we affected the whole fabric of the way in which the building was designed.”

Other FM-influenced design features include: encapsulated infection-resistant bathroom pods with easy-to-access maintenance panels; the use of profiled vinyl rather than wooden skirting to aid cleaning and infection control; avoiding the use of high-level lighting to minimise the need to work at height; wall protection to reduce potential damage risk within various areas; and aboveceiling service modules that allow easier access to valves, dampers and controls.

These initiatives were praised by the BIFM judging panel, which said it was “particularly impressed with the close alignment of FM services to deliver an enhanced patient experience and the complete focus by the FM team to achieve patient satisfaction, while maintaining hygiene and asset resilience”.

SIMON KIRWAN

Sustainability solutions As well as providing a free shuttle bus service every 20 minutes between the hospitals to reduce traffic, a sustainable travel policy ensured off-site construction was used for many components, reducing site deliveries, CO2 emissions and traffic congestion. FM also influenced the procurement process, with an emphasis on quality items designed to last at least 35 years as standard. For example, the Schneider BMS and high voltage switchgear selected brings an annual saving of £102,000, a total saving over the 35-year period of £3 million.

FM played a central role in

20 | 5 DECEMBER 2013 | FM WORLD

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the specification of a host of sustainable design features, including individual room controls for air conditioning and heating, and efficient fluorescent lighting which utilises manual, motion and timed switches to minimise energy waste. Apart from the atrium areas where the Building Management System (BMS) maintains a constant temperature, all the windows within the hospitals can be opened for natural ventilation and brise soleil has been provided to south-facing windows to help manage solar gain and reduce the need for energy-intensive AC usage.

To further incentivise energy management, since April 2013 VINCI has operated an “emissions gain share” initiative, whereby targets are set annually. If results go 5 per cent or more above target – or 5 per cent or more below – the resulting energy bills or savings are split between the Trust and VINCI Facilities.

Flexibility for change As well as heavily influencing the design and construction of the building, a “flexibility for change” policy was implemented to ensure the smoothest transition possible

from the old hospitals to the new.

“In 2006, we took over 42 NHS staff and parachuted three VINCI people in to get them ready to move into the new hospital,” says Morgan.

“Then we decided, since we’d got all these staff now under our control, they should go into the new buildings and see behind the plasterboard and above the ceilings, so they’d know where the services were. With everyone going into the building as it went up, they could see how it could be better maintained once we moved in. In this way, they were heavily

embedded into the building before it was completed.”

During the interim period, the FM team was tasked with running both the existing hospitals and the new buildings once they were ready for occupation. To help minimise disruption, a period of “double running” was devised to keep the existing buildings operational while the new facilities were mobilised.

An education programme was also set up to give the hospital staff essential knowledge to resolve simple faults on their own, which enabled the FM team www.fm-world.co.uk

28/11/2013 14:40

ST HELENS & WHISTON HOSPITALS

St Helens Hospital’s mezzanine level

FM QUICK FACTS

2,800 98%

calls a month to the FM team

of those calls are answered within four seconds

to focus on major issues to help ensure a smoother transition.

“Because we mobilised the smaller St Helens hospital first it was a good learning curve,” says Morgan. “We thought it would take three months, but as soon as people saw the new building and what they were getting, you nearly had to lock the doors to stop them moving in on their own!

“The three-month period at St Helens went down to two months, and we helped as best as we could. Then the six months at Whiston went down to three months, which meant we didn’t www.fm-world.co.uk

18-21 Vinci Hospital.indd 21

have to look after the old building for so long. As soon as both the buildings were mobilised [St Helens opened November 2008 and Whiston was occupied from April 2010], we could deal with any teething problems, so we were always ahead of the programme.”

Another example of the FM team’s flexibility was when a generator test revealed less than 100 per cent surety during a mains outage, an absolute essential for a hospital environment. VINCI implemented a 24-hour “generator watch”, using its own staff and specialist contractors to ensure the hospital wouldn’t be affected while the problem was corrected.

Measuring success VINCI Facilities’ input into the design, build and mobilisation of the project was just the beginning of its long relationship with the two new hospitals. The ongoing challenge is to ensure its levels of service excellence complement the maintenance-friendly design of the new builds.

FM staff are equipped with Personal Digital Assistants (PDAs) connected to a new bespoke

£300,000 computer-aided facility management (CAFM) system that automatically assesses response and rectification times against targets. This, together with the introduction of a central, on-site helpdesk to gather and prioritise all FM work orders, means the FM team takes approximately 2,800 calls per month, with 98 per cent of those calls answered within four seconds.

Compare this to previous hospitals where, says Sue Brandreth, project director, St Helens & Knowsley Teaching Hospitals NHS Trust, “staff might wait 20 weeks to have a light bulb replaced, hospital staff are now confident that their service requests will be answered promptly and efficiently”.

However, improving response times isn’t the end of the story. As Morgan explains: “We want to be proactive, not reactive, so we’ve set up an action group called the Weekly Inspections Team, where we go round the hospital with the other service providers checking for any maintenance problems, and if we pick up anything that needs doing, we’ll feed that back to our helpdesk.

“This means that unlike the

old days, when a PEAT (Patient Environment Action Teams) inspection was used to bring facilities up to standard, what we’re focusing on doing is to bring the whole hospital up to that standard already. It’s like we’re conducting our own internal PEAT inspections on a monthly basis.

“It works so superbly that when we had the new Patientled Assessments of the Care Environment (PLACE) inspections [which put Whiston top in the country in the acute care category, and St Helens third] the amount of work we had to do to bring it to the level we thought it should be at was minimal.”

The beautifully landscaped and maintained grounds have also received the North West in Bloom Trophy, judged on horticultural excellence, community involvement, environmental friendliness and sustainability.

Success is also reflected in satisfaction survey results with NewHospitals Consortium, which generated 95 per cent satisfaction in 2012.

In addition, surveys with 100 random hospital staff and 100 random helpdesk staff have reaped satisfaction scores of over 90 per cent apiece for four consecutive years.

While being understandably “over the moon” at the BIFM award, Morgan reflects the collaborative nature of the project when he says: “That award is not just for VINCI Facilities, it’s an award for NewHospitals and the Trust. We’ve all achieved excellence – it’s not just us on our own, as we couldn’t have achieved it without them.”

Brandreth is delighted with the results: “The new buildings will have been opened four years in the spring and you would still think you were walking into a brandnew hospital. It’s my job to make sure that happens, and VINCI helps make my job easier.” FM FM WORLD | 5 DECEMBER 2013 | 21

28/11/2013 14:10

FM FEATURE LIVERPOOL ONE MARTIN READ

VIEW/ALAMY

CENTRE OF ATTENTION The scale of the Liverpool ONE retail and leisure centre means a truly broad scope of services is required to keep the 24/7 site operational. Martin Read reports 22 | 5 DECEMBER 2013 | FM WORLD

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www.fm-world.co.uk

28/11/2013 18:14

LIVERPOOL ONE

This year the contractor built a separate office into the bottom of the OCS stand for stewarding staff

S

et in the centre of the city, Liverpool ONE is the archetypical contemporary retail and leisure complex.

The feel is of a modern, out-of-town retail park somehow woven into the fabric of the city.

Offerings across the site include retail stores, bars, restaurants, a 14-screen cinema, 36-hole indoor golf course and – on the rooftop – a five-acre park. It attracts more than 20 million visitors per year and is managed 24 hours a day, seven days a week by an estates team managing a multimillion pound service charge budget. Topshop, HMV, John Lewis and Debenhams are among the national brand names taking retail space. Since its opening in 2008, the centre has helped Liverpool to become one of the top five retail destinations in the UK. The Liverpool ONE estate is a privately owned asset, owned by an investment fund called the Grosvenor Liverpool Fund. Grosvenor Estates are in that fund as an investor. The fund appoints teams for fund management, asset management and property management.

Fund and asset management is done in-house by staff employed directly by Grosvenor Estates, with a team headed up by head of asset management Miles Dunnett – the person generally referred to as the client.

While Grosvenor didn’t want to directly manage facilities in-house, it was keen to follow a similar model. Accordingly, a subsidiary was set up called Liverpool One Property Management Company, being a 50/50 joint venture between Grosvenor and Broadgate Estates.

Chris Bliss, formerly project facilities manager for Grosvenor, now runs Liverpool One Property Management Company as estate director and reports to its board, which comprises two directors www.fm-world.co.uk

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STATISTICS Estate size: 42 acres Retail stores: 160+ Residents: 300 Office spaces: 10 Lifts: 42 Escalators: 12 Doors on access control: 4,000 CCTV cameras: 710 Park space: 5 acres People employed by Liverpool One Property Management Company: 160

from Grosvenor and two from Broadgate Estates.

Reporting in to Bliss are four team leaders. Chris Grundy is responsible for operations (ranging from health and safety through to security and cleaning); Donna Howitt is marketing director (dealing with everything consumer-facing); Sara Carthy is support services director (with responsibilities ranging from HR to customer service and office management administration); and Cathy Maddock deals with commercialisation. That last role includes brand engagement work including liaison with retailers for the promotion of

new products or the use of short term temporary lets for ‘pop-up’ shops.

Another individual reporting into Bliss is Ian Finlayson, head of business performance.

Finlayson provides analysis of footfall and sales. Finlayson talks to store managers about their individual performance and their performance against similar retailers, data which is then fed into the asset management team so that they can understand how those tenants are performing; solutions to under-performing tenants can then be discussed, such as locating them elsewhere on the estate.

Direct approach The 160-strong facilities staff is employed directly in-house.

“That’s very unusual,” says Bliss.

“Generally, shopping centres have managing agents and that agent may put some of their own staff in and then outsource all sorts of different work streams.

Right back at day one, we made a conscious decision that we didn’t want that model.

“The reason we didn’t want that is that generally the landlord FM WORLD | 5 DECEMBER 2013 | 23

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FM FEATURE LIVERPOOL ONE MARTIN READ

and managing agent relationship will vary in length between three to five years. So there is a tender and negotiation process that has to be factored in. You then have the same process in all those subcontracts that sit underneath it, and sometimes sub sub-contracts of that.

“So you might go to an FM service provider, and they might use separate cleaning and security contractors, and before you know where you are you’ve got the best part of 100 frontfacing staff; staff that you want to sell the brand, be proud of where they work, and to create that wonderful experience – who are almost constantly in some form of contract negotiation.

“We wanted to stand out. We’ve got wonderful architecture; we know we’ve got excellent retailing and the asset management team work really hard on that. But what’s the bit where we can really make a difference? It’s in how we engage with that customer. How can we enliven their day, how can we make Liverpool ONE feel really magnetic? That’s what the driving factor was for us.”

After all, says Bliss, customers need only travel half an hour down the M62 to be in Manchester’s Trafford Centre.

Staff retention over the past five years stands at 38 per cent.

And with 100 of those 160 being shift workers, that’s a significant retention rate, suggests Bliss.

There is an exception to the in-house rule, and it’s the obvious one – M&E. “Where there’s high-risk activity, we use subcontracted specialists,” says Bliss. “Honeywell does all of our M&E and electronics, and they have a permanent team that’s based here. We also use Otis for lifts and escalators and Mitie for high-level glass cleaning and specialist cleaning [for example, the cinema screens] as well as 24 | 5 DECEMBER 2013 | FM WORLD

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grounds maintenance in the park.”

All together now Another difference is that the client, Dunnett’s team, sits in the same office as Bliss’s. “That’s been an interesting journey to go on,” admits Bliss. “There aren’t that many organisations that would plonk their client right in the middle, warts and all.

“It probably was uncomfortable at first, but now quite frequently they’ll ask questions of us and challenge things. We should all be open to challenge and have to reflect on what we do, perhaps tweaking and adjusting things.”

“On a day-to-day basis, the asset manager sat in this office can be having a conversation with the analyst crunching the numbers; if they’re going to go into lease conversations with a tenant, a quick chat beforehand to make sure that they’re informed and up-to-date on any operational issues is helpful.”

All of this can be achieved through analysis of performance data and conversations with the asset manager and retailer.

“Sometimes those issues can be really simple,” says Bliss.

“For example, a change of store manager can be the number one reason why a store starts to struggle. The number two reason is merchandise selection and window dressing – which can also connect back to store management. So having conversations with the client about the retailers can be really quick and efficient.”

Waste management With so much retail activity, deliveries are constant and the need to deal with waste generated across the site is acute. Between 500-600 tonnes of cardboard a year is recycled, while glass recycling was introduced two years ago. In the

last three years the centre has gone from recycling around 8 per cent of waste on site to close to 40 per cent. And while glass and cardboard are the main recyclable items, a further 25 tonnes of coffee granules are also disposed of each year.

At Christmas, more staff are brought in as well as a specialist bailing service to cope with peak demand from retailers.

(Some retailers, John Lewis and Debenhams among them, conduct waste management operations themselves in areas dedicated to them.)

With continual pressure to introduce efficient means of dealing with waste generated across the site, food waste is the latest focus. Recently, waste-towater food digestion machines have been installed. Left-over food is recovered from retail units and put into the machines, which convert the food into water which is then disposed of down the public drains. For more on these systems, see p.26). FM Next issue: How Liverpool ONE’s estates team deals with the site’s underground car park and open park space.

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LIVERPOOL ONE

INFRASTRUCTURE & IT

CONTROLLING INFLUENCE iverpool ONE’s estate’s control infrastructure and IT network was boosted earlier this year when Honeywell Building Solutions was brought in to design, install and commission a major upgrade – and deploy a privately hosted virtualisation solution across the site’s server infrastructure.

Where once stood 33 servers and 28 storage arrays for the CCTV system, virtualisation has helped lower that figure to just four servers and six storage boxes – a reduction which is expected to lead to between £2025,000 in annual energy savings. The team believes the move to virtualisation, and through it the breaking of the traditional hardware/ software replacement cycle, will mean greater flexibility in both software and hardware renewal for the future.

From its control room, the estates team monitors the entire site through 710 CCTV cameras. Recently installed motion-sensing software allows operators to quickly scan for incidents such as shop thefts, tracking potential criminals from store to store. Operators can talk directly to store guards to make them aware, and can also now view and control building systems using a variety of mobile devices, including Blackberry and iPhone.

As well as the move to virtualisation, the BMS upgrade has seen the system better customised for the specific requirements of Liverpool ONE’s varied requirements – a result of five years’ “real life” evaluation of the issues encountered since the centre opened. Small details matter; for example, the batteries that supply back-up power for emergency lighting. These have a tendency to get hot, so now there are temperature sensors set to trigger and inform operators.

“The upgrades have reduced electrical and cooling requirements, which will cut Liverpool ONE’s CO2 emissions significantly,” claims Honeywell’s national account manager John Leonard.

Honeywell is providing training for its Enterprise Building Integrator (EBI) BMS system to members of the Liverpool ONE team who work alongside the resident Honeywell engineers, whiler Honeywell also provides a 24/7 monitoring and support service to ensure the system’s integrity.

L

Estates staff talk to asset managers to deal with operational issues with individual retail outlets

FM QUICK FACTS

38%

The percentage of staff retention over the last five years.

The Liverpool ONE facilities team comprises 160 members

500600 tonnes of cardboard is recycled each year.

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FM WORLD | 5 DECEMBER 2013 | 25

28/11/2013 18:14

FM FEATURE FOOD WASTE

W

hichever way you look at it, soggy, malodorous food waste is the antithesis of the perfect dining experience, but it’s also something that all catering enterprises, from Michelinstarred restaurants to prison canteens, have to deal with.

In the past, choices were straightforward but limited; food waste was simply pulped in a macerator and disposed of to drain, or bulked with other

Disposing of food waste comes with all sorts of problems. Carolyn Cross looks at one of the latest options – aerobic digestion

DIGESTION STATIONS 26 | 5 DECEMBER 2013 | FM WORLD

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waste materials and trucked to landfill, out of sight, out of mind. These days, however, a combination of more enlightened thinking, legislative changes and economic drivers such as Landfill Tax have driven caterers to work on strategies to reduce wastage, and to think of ways to dispose of unavoidable food waste more responsibly.

Composting and anaerobic digestion are well known alternatives to maceration, but an innovative on-site option – aerobic digestion – which does not require storage of food waste, vehicle movements for collection, or the building of large-scale industrial plants, is consuming the nation.

period. Inside the machine, plastic poly chips provide an ideal living environment for bacteria, which make short work of food waste loaded straight into the machine from the kitchen preparation area.

Ian Cresswell, business development director at Mechline Developments, says: “We recommend that customers use special clear buckets to collect food waste prior to loading, which helps to monitor wastage.

This simple visual reference means that operators can make real-time decisions to improve food usage and cut costs at the same time. Warwick Hospital, for example, reported savings of £8,500 per year after installing Waste 2 0.”

Small, but perfectly formed

Industry approved

Small enough to be sited in a standard commercial kitchen, the system employs bioremediation, a biological process. In layman’s terms, the equipment is inoculated with naturally occurring bacteria, which continue to multiply and digest the food waste, resulting only in a liquid digestate which is flushed straight to drain with no risk of causing blockages.

Waste 2 0 was designed and engineered by kitchen equipment specialist Mechline Developments. The machines are in use in restaurants, shopping centres, hospitals, hotels and even boats looking for a simple solution to the food waste dilemma. The units have also recently been installed at the Liverpool ONE retail centre (see p.22). Their appearance is uncannily similar to standard piece of kitchen equipment such as a dishwasher, and it slots into a space measuring fractionally more than one square metre, connected straight to drain.

Up to 180kg of food waste can be digested over a 24-hour

At present, Waste 2-0 is the only commercial food waste system to gain approval from the WRC (Water Research Centre) and also the WRAS (Water Regulations Advisory Scheme).

Cresswell explains: “Approval has confirmed that we adhere to the water companies’ strict guidelines on what can be discharged into drains and that effluent quality, including acidity levels, falls within standard trade effluent levels. In fact, one water company – Yorkshire Water – has funded installation at a site where the food waste management system regularly caused blockages within the sewer system.”

Integral to the design of the machine is the fluid used.

Cardiff-based Biological Preparations specialises in the development of products containing bespoke strains of bacteria and selected the group used in Mechline’s Waste 2 0 aerobic digestion system and its sister product GreasePak. The latter is a drain management system which offers an www.fm-world.co.uk

28/11/2013 17:43

FOOD WASTE

alternative to the traditional grease trap that is required by building regulations for commercial premises.

Technical director Dr John Lear describes bioremediation as an ideal way to treat food waste and fats, oils and grease (FOGs): “It is a natural process, which breaks pollutants down completely rather than just transferring them elsewhere. I also think it is cost-effective as there can be less need to manually clean out pipework and grease traps.”

Costing in the region of £11,800, the machine compares favourably with collection and disposal contracts. Based on optimum usage, the current Landfill Tax rate of £72 per tonne equates to £4,730 per year even before factoring in the additional cost of collection and handling.

GETTY

The science bit Mechline has incorporated a number of safety features to minimise the potential for human error or misuse as well as energy-saving features to help reduce site operating costs even further. Once the kitchen staff has adapted to the idea of a new system, training required is minimal and it’s just a case of loading the machine and letting the bacteria work their magic.

The bacteria used in Waste 2 0 are supplied in the dormant spore form, becoming active once they come into contact with a suitable food source. Bacterial spores are extremely stable, with a very long shelf life, and can be easily incorporated into virtually any type of product.

It is possible to source bacteria that do not form spores, sometimes referred to as “live cultures”, but the term is confusing and these bacteria may be less satisfactory. Lear explains: “Both spore-forming and non spore-forming bacteria are ‘live’, but when people refer to ‘live www.fm-world.co.uk

26-27 aerobic digestion.indd 35

cultures’, they are usually talking about bacteria that do not form spores. These need refrigeration to ensure stability, and some types are not found in the lowest hazard rating set for bacteria, which means safety may be an issue.”

Bacteria need to be provided with the right conditions to thrive, with many working best in a consortium. Lear adds: “They require a suitable temperature and an appropriate food source.

Oxygen is also important for these strains, which is why the contents of the Waste 2 0 machine are agitated.”

When choosing the right blend for Waste 2 0, the first consideration was to find a range of bacteria capable of degrading all of the major food groups.

Speed of degradation and ability to remove odours were also taken into account; however effective the system, it’s certain that no one would be impressed if the resulting reaction left diners holding their noses throughout the dessert course.

Bioremediation may seem like a novel approach, but in fact, bacteria may have been fine-tuning their approach to waste management since before Man took his first steps. Lear concludes: “Microbes have been nature’s binmen for many millions of years. Over that time they have evolved those processes and have become very efficient. Combining this process with the Waste 2 0 machine results in an effective on-site waste management solution.” FM

CASE STUDY

WASTE NOT, WANT NOT hen Bloxham School decided to reduce the environmental impact of its food waste, it chose aerobic digestion. The school quickly discovered that the on-site technology would also help to cut costs and maintenance.

Bloxham School in Banbury, Oxfordshire is part of Woodward Schools, the largest group of Church of England schools in the UK, which educates 27,000 pupils a year. It caters for day and boarding pupils and produces around 180 litres of food waste per day. Historically, it had relied on macerators to dispose of uneaten food and waste from kitchen preparation areas, but in 2008 the school decided it was time to look for an alternative solution.

Alex Linnington, procurements and environmental manager, said that options such as anaerobic digestion had previously been considered, but that cost had proved prohibitive.

Plus, Linnington added, it would have little effect on environmental impact due to the need to transport food waste.

Linnington said: “With the Waste 20 machine, our cost savings on labour are more than £6,000 per year, and as the Waste 20 system uses less water than a macerator, we’re saving there too. We also save around £400 per year on external drain maintenance – using a macerator meant that grease traps and drains needed cleaning regularly; since installing this machine we have cut that requirement out completely.”

W

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28/11/2013 17:44

FM FEATURE GREEN DEAL BILL WRIGHT

THE REAL

DEAL?

Decisive action is needed if the Green Deal is to survive. Bill Wright, head of energy solutions at the Electrical Contractors’ Association (ECA), looks at activity to date – and how the Government must proceed if it’s to be successful

YENPITSU NEMOTO/IKON

F

acilities managers will need no reminder that almost half of the UK’s total energy use comes from buildings. The Green Deal is one of the central planks in the Government’s strategy to drive efficiency in energy consumption within our existing building stock. (See box over the page for how the scheme works.) However, since its launch in January 2013, promotion of the Green Deal has been targeted mainly at homeowners and little has been done to support the commercial building services industry, a sector critical to the Government’s long-term sustainability agenda.

With the UK committed to reducing greenhouse gas emissions by 34 per cent by 2020 and a staggering 80 per cent by 2050, time is of the essence.

While low-energy, new-build projects grab all the headlines, the majority of savings will have to come from both a better approach to energy management

28 | 5 DECEMBER 2013 | FM WORLD

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of existing buildings and simple energy efficiency improvements on refurbishment projects.

And the greatest potential for achieving efficient and sustainable energy solutions lies within the installation of green technologies in office, retail and warehouse spaces.

When the Green Deal was launched in January this year, the ECA expressed concern that a lack of promotion from the Government meant the policy could sleepwalk into obscurity.

That warning has now very much come to pass as both business and Labour take the Coalition to task over what seems to be a failing initiative.

Facilities managers have been left confused about the necessary steps required for business to comply with any further future energy management regulation.

The Government intends to use both “carrots” and “sticks” to help drive take-up of the Green Deal. While the commercial sector hasn’t benefited from

the cash incentives set aside for residential uptake of the Green Deal, there are plans for new regulations to drive energy improvements in rented commercial premises, such as offices and retail space, as well as residential rental property.

Powers in the Energy Act 2011 will mean that by April 2018, regulations will be in place that make it illegal to let privately rented commercial premises that are below a certain level of energy efficiency performance, as set out in the property’s Energy Performance Certificate (EPC). The Government has indicated that it is likely the level will be set at an “E” EPC rating.

The Department for Energy and Climate Change (DECC) estimates that nearly a fifth of all commercial properties currently fall below this threshold. So, the Green Deal is as important to business as it is to homeowners.

Reasons for failure Although thousands of

residential Green Deal assessments have been carried out, very few have been converted into the installation of energy-saving equipment. And the same is true for commercial properties. Nearly one year into the programme, there is very little to show from an initiative which was billed as the biggest building refurbishment project since the end of the Second World War. A major issue with the Green Deal is that it appears to have been almost exclusively designed for the residential property sector, yet is also targeted at business owners of commercial premises. While commercial landlords regularly upgrade their sites to attract and retain good occupants, it can be difficult to justify investment in energy efficiency improvements because the perceived benefits of reduced energy bills accrue only to the leaseholder. Additionally, uplifts in rental or capital value of the property are not guaranteed and may not be achieved.

There are clear reasons why the Green Deal has so far failed to inspire the public and business.

First, the administration of Green Deal quotations following an assessment is arduous and expensive. By the time the cost of the assessment and tendering has been taken into account, the cost of merely getting to the client quotation stage is high for Green Deal Providers (GDPs).

There are also still an insufficient number of GDPs who can provide a full package of finance and installation work for businesses.

Second, loan interest at 7 per cent is – despite political messaging – prohibitive for recipients: both commercial and residential end users. Germany runs its green retrofit scheme at interest rates of between 1 and 2 per cent. By comparison, our rate seems very discouraging. www.fm-world.co.uk

28/11/2013 14:10

www.fm-world.co.uk

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FM WORLD | 3 OCTOBER 2013 | 29

28/11/2013 14:10

FM FEATURE GREEN DEAL BILL WRIGHT

For building owners and facilities managers, there are other existing green initiatives which are designed for the commercial sector, such as the Climate Change Agreements programme and Carbon Reduction Commitment Energy Efficiency Scheme. However, these initiatives are run quite separately and the Government has not fully articulated which initiatives are the most suitable for the different types of buildings and commercial space, or how the Green Deal aligns with other programmes.

Solving the problem The good news is that the Green Deal can be turned around, but the Government needs to take decisive action, and very soon.

Reducing the interest rate of the Green Deal loan, cutting the cost of administration, and fast-tracking the registration of GDPs are obvious first steps to encourage growth.

But new motivational Green Deal incentives are necessary too, particularly designed with commercial purposes in mind as well as being aimed at residential property owners.

With rising energy prices, the underlying financial case for the installation of energy efficiency measures is increasingly sound.

Savings from energy efficiency improvements can vary due to the usage of the premises, but if the UK’s commercial property owners and building managers can see a clear financial benefit from energy efficiency work, then significant Green Deal takeup is still possible.

The Government’s current message is that the Green Deal is a long-haul measure. This is fine in principle, but without decisive action to boost uptake, it simply won’t deliver on the promise of lower energy bills and greater application of green technologies 30 | 5 DECEMBER 2013 | FM WORLD

28-30 Green deal.indd 30

SUSTAINABLE SCHEME?

HOW THE GREEN DEAL WORKS he Green Deal, launched in January 2013, aims to encourage business and homeowners to install energy efficiency improvements by allowing for the cost to be paid for over time, via a charge as part of the energy bill for a commercial building or property.

The cost of repayments must be estimated to be no larger than the

savings from combined reductions in gas and electricity consumption expected as a result of the improvements. This is known as the ‘Golden Rule’.

All Green Deals must start with an independent survey undertaken by an accredited Green Deal Assessor to advise on a package of energy efficiency improvements specifically recommended for the development.

within building management.

The Green Deal urgently needs clarification and further development to align the policy with existing schemes, so that commercial building managers are able to make clear choices on how to make commercial buildings more energy-efficient and sustainable.

With refinement, the Green Deal could potentially help to overcome some of the complexities that facilities managers face in managing the day-to-day building costs and achieving sustainability targets and initiatives. More importantly, the Green Deal may be critical for property upgrades to ensure compliance with forthcoming legislation which will affect commercial rental properties.

The Green Deal could also

provide an opportunity for commercial landlords or facilities managers to implement energy efficiency improvements without having to justify upfront capital expenditure. This can be achieved by paying for the improvements in instalments over time by leaseholders, who benefit directly from potential bill savings and improved comfort levels.

The ECA still hopes the scheme will offer opportunities to the facilities management sector. The BIFM is a Partner in Excellence with the ECA; BIFM members can benefit from the same advice given to ECA members on how to help clients make big improvements in energy efficiency, through the ECA’s Client Associate Scheme. FM

T

Once the survey is completed and facilities managers have a good understanding of which green technologies are suitable for their premises, Government-authorised Green Deal Providers (GDPs) will then arrange for the installation of improvements using accredited Green Deal Installers.

More information can be found on www.greendealinitiative.co.uk

For more information, or to apply for the Client Associate Scheme, contact the ECA on 01732 471240.

Bill Wright is head of energy solutions at the Electrical Contractors’ Association (ECA).

The ECA is the UK’s largest trade association representing electrical engineering and contracting companies

www.fm-world.co.uk

28/11/2013 14:10

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25/11/2013 12:59

FM MONITOR ROB CUNLIFFE

Rob Cunliffe is senior business development manager, Local Government

BRIEFING LOCAL AU THOR I T Y FUN DI N G O F FM

ow do local authorities fund their facilities management requirements?

Rob Cunliffe looks at the many different finance streams available

H

Local authority (LA) funding is diverse, with money received from many different streams.

How many buildings they have, or what the FM requirement is, does not dictate the funding – yet 6 per cent of total LA expenditure is premises-related (£9.24 billion). So how do LAs fund their FM requirement?

An LA’s property estate can range from large corporate offices to libraries, cafes in parks, high street shops, schools and nurseries. LAs have the same FM requirements as other organisations: they provide day-to-day activities like cleaning, security services, pest control and building maintenance, all of which is funded through the ‘revenue budget’. They also undertake capital projects for life cycle replacement of building fabric and M&E plant (as it reaches the end of its life), for new schools or extensions, and for new buildings, and this is funded through a separate ‘capital budget’. Such is the age of public property that the capital programme requirement for a local authority can be many tens of millions of pounds at any one point in time. Funding for FM comes from a variety of sources, as detailed below: Council tax (15%), Central 32 | 5 DECEMBER 2013 | FM WORLD

32 Explanation.indd 38

Government Revenue Support Grant (6%), National Non Domestic Rates (11%) LAs do not specifically allocate money from these sources to fund FM activities; these sources fund all types of general expenditure, including FM, to local services, excluding education and housing.

Central government uses a number of social factors to calculate the Revenue Support Grant, the main ones being population demographics, deprivation indices and physical geographies.

Historically, all National Non Domestic Rates (NNDR) were passed to central government and re-allocated as part of the formula grant. Central government has implemented an initiative this year where LAs can keep a proportion of NNDR to encourage local economic growth.

Fees and charges (7%) Councils can charge customers set amounts for some services.

These include parking, business fees (trading, licences), hiring of property for functions, leisure centre facilities and cemetery and crematorium.

Funding FM activities may come from these fees and charges. For example, the fee to hire a hall for a function will include the energy costs and the cleaning afterwards.

The Cemetery and Crematorium is almost in its entirety funded by the fees and charges it receives.

Therefore, usually the FM costs of the administrative buildings (chapel, crematoria) will come from the fees and charges levied.

Specific grants and other sources (16%) There are more than 50 grants for specific initiatives handed down by central government. Included in these are PFI credits that some LAs have entered into. Contained in this specific grant will be funding for FM activities that are part of the PFI scheme. None of these grants are specifically for maintenance activity; however, there are some grants that may include funding for maintenance activity. For example, a grant to support travellers’ sites includes funding to maintain amenity blocks.

A Dedicated Schools Grant funds schools (30%) Funding for schools is ring-fenced and delegated to each school to manage. Central government pays this on a per pupil basis.

Schools will allocate money for the maintenance, cleaning, catering and all other FM services from this grant. Therefore, an FM provider to a LA will have around 100 separate clients.

Social housing is funded by the Housing Revenue Account (HRA) (4%) LAs fund maintenance activity to social housing through the HRA. This is a ring-fenced fund specifically for housing stock. Rent and a Central Government subsidy fund the HRA. Social housing expenditure for repairs and maintenance is £1.5 billion.

Capital funding (11%) The main requirements for capital

funding in FM is for replacement M&E or building fabric. LAs fund these in the following ways: ● Transfers from the revenue budget – where projects realise a direct revenue saving or increased income, some money from the revenue budget can be allocated to capital. For example, an investment in new cleaning equipment that increases productivity and lowers cost. ● Capital receipts – by selling off property or land or assets to fund investment in other assets. ● Prudential borrowing – LAs can borrow money for specific projects as long as they meet the “prudential code”; ie, they can pay the money back. Investments will need to demonstrate savings or increased revenue. For example, LAs would use this to fund the refurbishment of a children’s centre and to collocate an adult learning centre so that there is a reduction in operational costs. ● Specific Capital Grants from central government – there are approximately 50 different dedicated capital funding streams provided by central government to local authorities.

Of FM relevance, these include capital maintenance for schools and disabled facilities. Central government does not grant funding on a per project basis, but to a particular targeted outcome. ● Others – councils can bid for other funding pots that are available to other organisations.

For example, Salix funding for new energy-efficient boilers to reduce energy usage.

Next issue: How local authorities manage their FM funding.

www.fm-world.co.uk

28/11/2013 17:44

FM MONITOR CATHRYN HICKEY

HOW TO...

Cathryn Hickey, executive director at the National Skills Academy for Environmental Technologies

IN F OR M ED CHOI CES O N R EN EWA BL ES

hoosing a renewable solution can be hard for FMs who feel they lack the technical acumen. Cathryn Hickey, executive director at the National Skills Academy for Environmental Technologies, explains the basics

C

Facilities managers who have a hand in maintaining and choosing renewable solutions may feel confused by the seemingly technical detail required. While full understanding of specific technologies is not always necessary, it is important that FMs have enough knowledge about the sustainable and renewable options available to make informed choices.

This extends to selecting the right businesses to partner with on any given project.

Apart from how these systems operate, it is also key that those responsible understand schemes such as the Feed-in Tariffs, or FiTs (in the case of solar photovoltaics, or PV), the Renewable Heat Incentive (RHI) and the Green Deal, to get the most financial benefit from going green.

To help FMs get to grips with the essentials of renewables, the National Skills Academy for Environmental Technologies delivers a Level 3 qualification in ‘Understanding the Fundamental Principles and Requirements of Environmental Technology Systems’. The course delivers the skills necessary to specify and manage microgeneration equipment appropriately and understand how environmental technology is implemented.

It is also embedded in all the technology-specific installation and maintenance courses for building services engineering installers. www.fm-world.co.uk

33_HowTo.indd 33

1⁄

Making the right decision

There are a number of elements that need to be considered before choosing microrenewables. For a start, you need to look at the types of buildings they are going to be installed in and consider what equipment is suited to each application – roof orientation, for example, in the case of solar PV. When it comes to FiTs, the Government’s eligibility requirements stipulate that a property meets an energy performance of D or above.

2⁄

Solar photovoltaics – the basics

Solar PV is perhaps the most flexible of all the renewable technologies with regard to integration of the system components within a building.

Most retro-fit PV installations are positioned on the roof as this causes the least disturbance to the existing building and is often the most cost-effective solution.

For new properties, the option of integrating the PV array (many panels joined together) may be more aesthetically pleasing and not as cost prohibitive as in retro-fit installations.

3⁄

Maximising output

When designing a solar photovoltaic system, your

installer should take into account the following external factors to maximise the output: Tilt angle at which the array is mounted ● Orientation of the array ● Geographical location of the site ● Degree of over-shading ●

In the northern hemisphere, the optimum orientation for a solar PV array is due south. However, depending upon the tilt angle, a south-east or south-west orientation can produce reasonable annual generation.

4⁄

Geographical location and shading

Apart from the orientation, how effectively a solar PV system works depends on where a building is located in the UK. A PV array installation in, for example, Aberdeen will typically receive less annual solar radiation than an identical array installation in Plymouth.

PV arrays are also more sensitive to the effects of shade than solar thermal collectors. The potential system yield losses are much higher, particularly on single string arrays. Over-shading can also affect module condition by causing the overheating of solar cells. This overheating is often referred to as a ‘hot spot’ or ‘hot cell damage’.

5⁄

Solar trackers

An option to ensure that a solar PV array has the optimum orientation and/or tilt is to use a solar tracker, a device that tracks the sun as it moves on its path through the sky during the day. Solar trackers are not that common in the UK but as the PV

market continues to grow, this situation may change.

6⁄

Ongoing maintenance

A key consideration for facilities managers is maintenance. This should be minimal, but an annual service is advised to check for signs of damage or stress on any part of the system. Cleaning of the modules and framework is also beneficial to keeping the panels working at optimum performance.

The generation reading on the solar inverters can indicate if the system is fully operational. The roof, or area on which the panels are mounted, should also be checked for signs of damage.

7⁄

Choosing the right supplier

A good renewables installation company can advise on the best building services scheme and may even suggest something different that cuts more carbon and/or saves more money. When selecting work partners, those trained through the National Skills Academy have been trained in line with current Microgeneration Certification Scheme (MCS) guidelines. Our Trained Installer Register is available at www.nsaet. org.uk/register; searchable by postcode, it will help you find the suitably trained installers in your area.

The National Skills Academy for Environmental Technologies is a nationwide network of low carbon and renewables training.

For more information about the environmental awareness qualification, or its range of technology guides, including solar photovoltaics, visit www.nsaet.org. uk/qualifications. FM FM WORLD | 5 DECEMBER 2013 | 33

28/11/2013 14:10

FM MONITOR MARKET INTELLIGENCE

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

GREEN HOUSE 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

The Department of Energy and Climate Change has published estimates of greenhouse gas emissions for the year, to the second quarter of 2013.

In comparing quarter 2 with quarter 1 of 2013, actual and temperature adjusted emissions were slightly lower, thanks largely to the energy supply sector – although this was offset by increased emissions from the business and transport sectors.

The decrease from the energy supply sector owed to lower use of coal in energy generation and an increase in generation from renewables.

The increase from the business sector owed to higher consumption of coke and other manufactured solid fuels; increased use of diesel for road vehicles; and higher use of coal by industries.

Source: HM Treasury (hmrc.gov.uk)

Bank of England base rate: 0.5% as of 7 November 2013.

The previous change in bank rate was a reduction of 0.5 percentage points to 0.5% on 5 March 2009.

CONTINGENT WORKING

Source: Bank of England (bankofengland.co.uk)

Consumer Price Index (CPI): The Consumer Price Index (CPI) annual inflation grew by 2.2% in October 2013, down from 2.7% in September. The largest contributions to the fall in the rate came from the transport (notably motor fuels) and education (tuition fees) sectors. These numbers continue the trend of broadly steady inflation seen since spring 2012.

Source: (www.ons.gov.uk)

2020

30% CONTINGENT; 70% NOT

60% CONTINGENT; 40% NOT

The emergence of the ‘workspace’ versus the ‘workplace’ was the leading topic at this year’s CoreNet Global North American Summit.

The annual gathering of corporate real estate executives concluded that diversity of office space arrangements and an increasingly mobile workforce was the future for all industries.

Peter Miscovich, managing director of strategic consulting at Jones Lang LaSalle, said it was expected that 60 per cent of the workplace will be contingent (casual) by 2020, meaning a ‘workplace’ consisting of workers based at various different sites. That’s twice the amount of the workplace that is contingent today, currently 30 per cent.

Source: CoreNet

CONSTRUCTION PRICE INDICES GROWTH IN CONSTRUCTION MATERIAL PRICE INDICES, UK PERCENTAGE CHANGE OVER A YEAR EARLIER (%)

EMPLOYMENT

15%

National Minimum Wage NOTE: The following rates came into effect on 1 October 2013: Category of worker

Hourly rate from 1 Oct 2013

Aged 21 and above

£6.31

Aged 18 to 20 inclusive

£5.03

10%

5.0%

0.0% All Work Repair and Maintenance

-5.0%

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

£2.65

Other new work New Housing

2013 SEPT

2013 JAN

2013 MAY

2012 SEPT

2012 JAN

2012 MAY

2011 SEPT

2011 JAN

2011 MAY

2010 SEPT

2010 JAN

2010 MAY

2009 SEPT

2009 JAN

2009 MAY

2008 SEPT

-10.0%

Source: Table 1 Monthly Statistics of Building Materials and Components

34 | 5 DECEMBER 2013 | FM WORLD

34_Insight.indd 34

2013

Annual construction material price inflation rose to 1.1% in September, up from 0.9% in August.

The repair and maintenance sector saw an annual inflation increase of 0.1%, up from 1.3% in August to 1.4% in September. The new housing sector, however, was unchanged from August at 1.2%. In the Other New Work Sector, it rose to 1.1% from 1.0%.

Overall, in the last two quarters construction output has demonstrated steady growth, rising by 1.7% in Q3 and 1.9% in Q2 after a prolonged period of negative growth that started in Q3 2011.

In terms of sub sectors, new work showed the highest quarterly growth since Q2 2010 at 3.1%, but there was a fall in repair and maintenance at 0.6%. Within new work, private new housing increased by 15.6%.

SOURCE: ONS

www.fm-world.co.uk

28/11/2013 14:11

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31/10/11 12:17:19

25/11/2013 14:09

BIFM NEWS BIFM.ORG.UK

ITN PRODUCTIONS

FM news programme BIFM has joined forces with ITN in an exciting new video content partnership.

The series of programmes will be presented from the ITN studios by Natasha Kaplinsky.

Focusing on key interviews and event coverage, while defining the importance of facilities management to the UK economy, the series will bring to life examples of FM’s impact in order to introduce the profession to a wider mainstream audience.

ITN is inviting BIFM members to get involved by way of ‘editorial profiles’ on organisations that have a story to tell and can be the examples of best practice in different areas of the sector.

The first programme is set to launch in May 2014 at ThinkFM and will then be distributed across the sector and wider industry media. i Organisations, or individuals wanting to take part in this initiative, should contact Simon Shelley at simon.shelley@itn.co.uk.

KNOWLEDGE

FM experts BIFM is continuing to extend our network of FM ’technical experts’ to support the ongoing development of the institute’s knowledge provision for members.

We would be delighted to hear from members who are interested in becoming part of our technical expert panel to work closely with the product development team on a variety of opportunities to help us continue to develop our knowledge content. This is a great opportunity to become involved in the institute’s 36 | 5 DECEMBER 2013 | FM WORLD

36-38_BIFM news.indd 36

Delegates at the South West region Quarterly Training Day in Bristol

activities and share your knowledge and expertise with other members.

As one of our technical experts, we will ask you to work with us in your area of particular expertise on a variety of tasks. Some may be quick wins resolved over the phone or by email; some may be longer-term projects requiring conference calls, for example.

It won’t be necessary to attend meetings at Bishop’s Stortford.

We need members to help us with a diverse range of tasks: Assisting in our knowledge and information audit. ● Helping develop white papers, briefing documents, best practice, etc. on hot topics and from online forum feedback. ● Peer reviewing technical content – for example, Good Practice Guides, briefing ●

documents, white papers. ● Assisting with technical enquiries from members and sometimes non-members and helping us set up some FAQs. ● Opportunities to become involved in speaking at events on behalf of BIFM. Interested? Please register your interest by completing the registration form (www.surveymonkey.com/s/ FMExpert_2013).

We’ll be back in touch soon to discuss your registration and understand how we can work together.

We will give you as much information as possible about the tasks so that you know what you’re signing up for. i If you have any queries about becoming an FM expert please contact Annie Horsley, annie. horsley@bifm.org.uk.

KEEP IN TOUCH » Network with the BIFM @ www.networkwithbifm.org.uk » Twitter @BIFM_UK » LinkedIn » Facebook » YouTube » Flickr

SOUTH WEST REGION

Quarterly training day The BIFM South West region Quarterly Training Day on 15 November, sponsored by Emcor, presented sessions with a focus on hard FM. The day opened with Greg Markham from Emcor, who gave an overview of the various techniques for maintaining assets. Using real examples to bring his presentation alive, Markham explained how even a very modest spend of £500 on the right monitoring kit can identify potential faults before they occur, saving businesses money and downtime.

Andy Green from Faithful and Gould followed with a session on SFG20 and recent updates.

Building on Markham’s talk, Green explained what SFG20 is, how to use it and the benefits it brings. The three modules – core library, customer compliance and customer service – have all

www.fm-world.co.uk

28/11/2013 14:11

Please send your news items to communications@bifm.org.uk or call +44 (0)1279 712 620

been updated and now include equipment such as biomass boilers and solar panels.

After the morning break, Ark Wingrove of the Institute of Asset Management gave a fascinating talk about the new asset management standard ISO55001. The principles of the standard apply equally to building plant and equipment as they do to infrastructure networks.

R22 (a refrigerant gas) is being phased out. Did you know that if your systems use this gas and they need repair after 31 December 2014, by law you must replace it? Graham Wright from Daikin explained that F-Gas enforcement is now the responsibility of the Environment Agency. He told us how complicated replacement projects can be and advised delegates to use a consultant.

Huw Morgan and Alice Lang of law firm Veale Wasborough Vizards gave delegates some sound advice on contract law and specifically related it to performance “penalty” and “remedy”. This light-hearted talk used real-time voting technology to test delegates’ knowledge.

The afternoon workshop was run by Ben Simpson of BP Solutions and concentrated on performance measurement.

Simpson discussed different methods and delegates agreed that “improvement” beats “evaluation” in most situations.

The trick is, though, to get everyone to understand that and to work together to achieve the common goal.

The region raised £114 for the BIFM Chairman’s Charities, and as usual the facilities and refreshments provided by the Bristol Hilton were excellent.

All in all, it was a great day, perhaps best summed up by the feedback from one delegate: “Excellent day – probably the www.fm-world.co.uk

36-38_BIFM news.indd 37

BIFM COMMENT

Gareth Tancred is chief executive at BIFM

MOMENTUM, SUCCESS, COLLABORATION

uring 2013 I have been very proud to be CEO of such a great institute, representing the FM community. We’ve witnessed great success, alongside new initiatives, all supported by a robust strategy set in 2012. It is a difficult task to detail all that we have achieved this year, so here are a few select highlights.

My board colleagues set a target to close the year with over 14,000 members, which we have surpassed. We also now have close to 600 corporate and group organisations.

We are attracting new members, and the numbers of members renewing are increasing, because we are listening to the needs of the FM community, and taking action to deliver.

It has been another exhilarating year for the BIFM’s awarding organisation. At the time of going to press we have witnessed more than 90 per cent growth in learner registrations and more than 50 per cent growth in recognised centre applications.

Interserve was the first employer to become a BIFM recognised centre delivering Level 2 and 3. We introduced Level 3 FM qualifications, which completes the range of qualifications, so no matter what stage an individual is at in his/her career, BIFM has a professional development programme applicable to them. We have also started to expand our education programme internationally with our first delivery centre in Malaysia.

Members wanted more knowledge in 2013 to help them deliver in their roles. We listened and this year have released a number of our ever-popular Good Practice Guides and hosted further FM Leaders Forums – bringing together influencers within the sector to discuss current and future topics.

In the last quarter we announced our new mission, vision and values. These will define the route of the institute into 2014 and beyond, ensuring we deliver what the FM community needs. ● Our Mission – our purpose: “The professional body responsible for promoting excellence in facilities management for the benefit of practitioners, the economy and society.” ● Our Vision – our aspirations: “To be the internationally recognised authoritative voice of facilities management and the development partner of choice for professionals and their organisations.” ● Our Values – guiding our decisions and behaviours: “Passionate – Proud – Professional – Progressive.”

Our groups, run by volunteers, have planned and hosted some stellar events throughout 2013. These have ranged from full-day conferences to social events – all of which are a crucial part of BIFM membership. It is important that we all acknowledge the hard work of our volunteers, who give so much of their time to BIFM, and all the individuals and organisations who lend their support to such events.

Based on all the momentum we have achieved in 2013, I am very much looking forward to 2014 being a catalyst year for the FM profession and BIFM. I would like to thank each and every one of you who has contributed to BIFM in 2013 – long may this success continue.

D

“WE SET A TARGET TO CLOSE THE YEAR WITH OVER 14,000 MEMBERS, WHICH WE HAVE SURPASSED”

FM WORLD | 5 DECEMBER 2013 | 37

28/11/2013 14:11

BIFM NEWS BIFM.ORG.UK

best of the many I have attended.

Relevant, well-pitched and presented and the workshop was refreshing. Thanks to you all.”

service suppliers, contractors ● ROL Testing – FM service suppliers, contractors ● Verisae Inc – product suppliers

i Thanks to EMCOR for sponsoring, to Dan Knight for organising and to the Hilton for hosting. The next SW QTD will be in March, with the theme “Strategy”. For further details contact richardgreaves@voomeroon.co.uk, 0789 421 6188.

i Learn more about corporate membership at www.bifm.org.uk/ corporatemembership, email corporatemembership@bifm.org.uk or call +44 (0) 1279 712675

2014 GOLF

2014 Finals The 2014 Golf Finals will take place on 18 September 2014 at a venue to be announced shortly.

BIFM would like to thank main sponsors HSS Hire and supporters Interface, Incentive FM, Grosvenor FM, Norland Managed Services and Catch 22 for their support with the 2013 event. i Anyone interested in supporting the 2014 Finals should contact Don Searle on 07850 098 912 or email donsearle@c22.co.uk.

MEMBERSHIP

Corporate members BIFM welcomed the following corporate members in October: Acclimatise – FM service suppliers, contractors ● Airborne Enviromental Consultants – consultants ● Bank of China (UK) – end user, in-house FM team ● CCM Interiors – product suppliers ● Crown MS Facilities Management - FM service suppliers ● DWF LLP - group member organisation ● Galliford Try Facilities Management – product suppliers ● Gilgen Door Systems – FM service suppliers, contractors ● HSL Group – FM service suppliers, contractors ● PSN Painting Services – FM ●

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Key dates Key BIFM dates for 2014 have been confirmed as: ● 13 May ThinkFM, Kings Place, London (www.thinkfm.com) ● 17-19 June Facilities Show, ExCeL, London (www.facilitiesshow.com) ● 10 July BIFM Annual General Meeting, venue TBC ● 18 September BIFM National Golf Finals, venue TBC ● 13 October BIFM Awards, The Grosvenor House Hotel, London (www.bifm.org.uk/awards2014) BIFM Corporate Member monthly events will also take place on the last Wednesday of each month throughout 2014. i See all BIFM events at www.bifm.org.uk

BIFM

Office closure The BIFM head office will be closed from 1pm on Tuesday 24 December, and will re-open on Thursday 2 January.

You can email the team during the holiday period at info@bifm. org.uk, but emails will not be monitored. If you need to contact the membership team prior to the office closure, please email membership@bifm.org.uk or call +44 (0)1279 712 650.

BIFM would like to thank all members for their continued support in 2013, and wish everyone a happy holiday season and a prosperous New Year.

BIFM TRAINING 2014: FROM GLASTONBURY TO BRAZIL, FM HAS A CRITICAL ROLE TO PLAY

re Fleetwood Mac headlining Glastonbury?

Have we moved towards a nation of part-time workers? Will England triumph in the Brazil World Cup? FM plays a key role in all of these headlines, be it the support services for festivals, supporting a more flexible and nomadic workforce, or simply being that critical service of major infrastructure projects which ensures the ongoing legacy of the initiative.

The UK’s FM services have matured and big steps to further professionalise the industry have been established with clear career paths from school to senior strategic roles in business.

We’ve experienced a real surge in overseas learners wanting to adopt UK best practice. We are building a global FM community including interactive training sessions, group discussion and expert advice. We recognise this isn’t a one size fits all, although we have seen a clear overseas demand for hard FM and technical skills, with recurring discussion around supply chain management.

Closer to home, the driver has been on sustainable practices and how companies can differentiate themselves, achieve efficiencies and effect behavioural change that supports future generations.

So what further trends are emerging next year?

A global drive for professionalisation and qualifications – we have spent time developing bespoke tuition packages supported with online learning and tutorial support.

The rise of social media: how do we adjust to the continuous connections around us? A new programme next year will look at how to use and manage this positively for FM. Still on the theme of “managing information and knowledge for FMs”, a course has been designed to help manage data overload and extract meaningful management information to deliver organisational benefits.

FM contract models continue to create debate about best fit. We focus on the pros and cons and help make sense of the variations with a new one-day course.

And lastly, how does FM perform cost-effectively but deliver the right level of service? The course programme on “Client Service and FM Efficiency” aims to give a fresh perspective on how FM delivers service.

Wishing you a very happy Christmas and New Year.

We have been delighted to contribute to the Typhoon Haiyan Emergency Appeal through www.shelterbox.org to support local communities in the Philippines.

A

www.fm-world.co.uk

28/11/2013 14:11

,

FM DIARY INDUSTRY EVENTS 27-28 January | 34th Facilities Management Forum This event is for those seeking to source FM services, products and solution providers that offer the best value for money. Event organisers say that the event can bring client and provider together quickly and efficiently.

The Facilities Management Forum is organised for FMs and directors directly responsible for the purchase of their organisation’s FM products and services.

Venue: Radisson Blu Hotel, London Stansted Contact: Abi McClymont at a.mcclymont@forumevents.co.uk or call 01992 374100 11 February | Workplace futures 2014 – Making innovation work What can we learn from the leaders in innovation – those who have delivered lower costs, greater efficiency, improved employee wellbeing, reduced impact on the environment, or benefits measured in other value-adding ways? Join this opportunity to discuss, share and learn. Features case studies from Sodexo and tri-borough TFM. Venue: The Crystal, One Siemens Brothers Way, Royal Victoria Docks, London, E16 1GB Contact: Call David Emanuel on 0208 850 9520 or visit www. workplace-futures.co.uk 4-6 March | Ecobuild 2014 – Championing a greener built environment This global sustainable construction event connects professionals to help them network, learn and discover new products and find innovative solutions. Ecobuild hosts the most comprehensive showcase of sustainable construction products in the world.

Venue: ExCeL London, 1 Western Gateway, Royal Victoria Dock, London, E16 1XL Contact: Visit www.ecobuild.co.uk 11-13 March | Facilities Management 2014 A new facilities management show, organised by easyFairs UK. Seminars, learnShops, and the Lions’ Lair, where exhibitors will have four minutes to pitch their product to a panel of expert judges.

Venue: National Exhibition Centre, Birmingham Contact: Visit www.tinyurl.com/ fmnec2013 40 | 4 JULY www.fm-world.co.uk 2013 | FM WORLD

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Send details of your event to editorial@fm–world.co.uk or call 020 7880 6229

18-19 March | IFMA Facility Fusion 2014 A high-level facilities management education, leadership training, industry-specific best practices and all-inclusive expo.

Venue: Ottawa, Canada Contact: Visit www.facilityfusion. ifma.org/ottawa 7-10 April | Ergonomics and human factors 2014 Organised by the Institute of Ergonomics and Human Factors.

Full programme to be confirmed.

Venue: The Grand Harbour Hotel, Southampton Contact: Visit www.ehf2014.org.uk 13 May | ThinkFM 2014 The ThinkFM conference will be held at a new location, Kings Place, an award-winning events venue in London. Conference topics and speakers to be announced.

Venue: Kings Place, London, N1 9AG Contact: Visit www.thinkfm.com 17-19 June | Facilities Show 2014 – 15 years at the heart of the FM industry Organised in association with the BIFM, Facilities Show has established itself as the leading meeting place for the industry.

Opportunities to connect with peers and colleagues, see solutions from over 400 suppliers and gain insight from influential industry experts.

Venue: ExCeL London, 1 Western Gateway, Royal Victoria Dock, London, E16 1XL Contact: Visit www.facilitiesshow.com 17-19 September| IFMA World Workplace IFMA’s World Workplace Conference & Expo is the largest, most longstanding and wellrespected annual conference and exposition for facility management and related professions. Each year offers a new experience, addressing challenges and strategies that are universal to every facility type, shape and size.

Venue: New Orleans, LA, USA Contact: Visit www.ifma.org LONDON REGION The BIFM London region holds its monthly CPD events on the first Tuesday of every month.

Contact: www.bifm.org.uk/bifm/ groups/regions/london/events

SOUTH REGION 29 January | Help for Heroes headquarters visit Sponsored by Hays. A tour of the new Help for Heroes headquarters.

Talks from the headquarters facilities manager, and a talk on disability in the workplace.

Venue: 4 Parkers Close, Downton Business Centre, Downton, Salisbury, Wiltshire SP5 3RB Contact: Email Ian Fielder at ian.r.fielder@gmail.com 26 February | Innovation in FM debate An evening of discussion on whether FM suppliers bring innovation to their clients through the life of the contract.

Venue: EDF Energy, 329 Portland Rd, Hove, East Sussex BN3 5SU Contact: Email Ian Fielder at ian.r.fielder@gmail.com 26 March | Legionnaire health and safety Evolution Water Services is to run a portion of its course material that will be beneficial to BIFM members. Followed by a question and answer session with the speakers.

Venue: Specsavers, Forum 6, Solent Business Park, Whiteley, Hants, PO15 7PA Contact: Email Ian Fielder at ian.r.fielder@gmail.com 30 April | Benchmarking: tool or torture?

A debate on benchmarking. Why do so few organisations use benchmarking tools?

Venue: Chichester – TBA Contact: Email Ian Fielder at ian.r.fielder@gmail.com 18 June | Health and Safety – Electrical and mechanical non-intrusive testing From 5.30pm. Come and learn from the experts. We are engaging with two of the UK’s leading company’s in non-intrusive testing. The benefits and risks are fully explained in this essential CPD event.

Venue: Southampton – TBA Contact: Email Ian Fielder at ian.r.fielder@gmail.com or call 07795 181009 SOUTH WEST REGION 25 February | Dorset evening seminar From 6pm. Presentation from

sponsors Waldmann Lighting, who will be discussing energyefficient office lighting, and Plastic Surgeon, who will be showing what can be done with assets to save them from being destroyed or sent for waste. More speakers TBC.

Venue: Executive Business Centre, Lansdowne Campus, 89 Holdenhurst Road, Bournemouth, BH8 8EB Contact: Email Nick Fox at foxer11@hotmail.co.uk or visit bit.ly/1bJnhMW 14 March | Quarterly training day – FM strategy The detailed programme still to be confirmed. A number of speakers in the morning session, followed by an afternoon interactive workshop.

Venue: Bristol Hilton Hotel, Woodlands Lane, Bradley Stoke, Bristol BS32 4JF Contact: Email Richard Greaves at richardgreaves@voomeroon.co.uk or visit www.tinyurl.com/pm6zlyn SPECIAL INTEREST GROUPS 5 December | Rising FMs – End of year social event Celebrating the success of 2013 with networking, mince pies and drinks. Sponsored by Xenon Group.

Venue: London Stone, Cannon Street, London EC4N 5AD Contact: Claire Akin at fmclaireakin@sky.com or register at tinyurl.com/pu5y7d3 11 December | Women in FM – Christmas social, the quiz Teams will be organised on the night. Quizmasters will be Talent FM. Sponsored by BIFM Training and Talent FM. A raffle will be run for Refuge. Guests are asked to bring a wrapped children’s toy to be donated to Refuge.

Venue: Lloyds Banking Group, The auditorium, 33 Old Broad Street, London EC2N 1HW Contact: Jackie Furey at jackief@ aberley.com or visit www.tinyurl.com/q5jen4p 28 May | Sustainability and the south region – People in FM and sustainability Understanding the issues around training, education, HR and sustainability.

Venue: Pall Europe, Unit 5, Harbour Gate Business Park, Southampton Road, Portsmouth PO6 4BQ Contact: Email Ian Fielder at ian.r.fielder@gmail.com FM WORLD | 5 www.fm-world.co.uk DECEMBER 2013 | 39

28/11/2013 14:12

ADVERTISEMENT FEATURE

BIM: high tech meets retro BIM’s real value is the product data, says Paul Reeve, ECA Director of Business Services SMART VIRTUAL PLANNING In 2011, Manchester Council used Building Information Modelling (BIM) as part of a £48 million refurbishment programme for the city’s classically iconic, Grade II-listed Central Library. BIM is usually associated with new build, but this project shows its value on a tough refurbishment – which included significantly restricted site access, as virtually everything had to fit in through one window. As well as providing the design and building teams with the opportunity to test the building’s design and sequencing prior to installation, BIM helped produce more accurate costings, reduce sub-contracted risk, and deal with issues and variations before they became a reality.

ULTRA-EFFICIENT BUILDINGS Once the refurbishment is completed and the library reopens in 2014, staff members are looking forward to being able to employ the BIM data for more efficient facilities management. Even in simple scenarios, BIM can save money – for example, if a lamp fails, interrogating the BIM data rather than relying on a traditional lamp inspection has

Building Services Contractors you can trust For the gold standard, hire an ECA Member on your building project:

40 | 5 DECEMBER 2013 | FM WORLD

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been shown to save £108 each time, and potentially reduce the investigation period from six weeks to just one day.*

WHOLE-LIFE VALUE BIM technology has plenty to offer any major refurbishment programme, including the all-important building services design.

Using BIM enables a thorough review of the building’s access and available space, so that complex service installations can be virtually threaded through the existing structure. It is true that using BIM often requires additional time and investment upfront to obtain accurate laser scans and to

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convert the original design into the model, but the practical and financial returns can be impressive. Then after the work is complete, the data-rich model that’s been created can be handed over to the facilities management team for use throughout the operational life of the building. And this, really, is where its power lies: don’t let the rotating 3D models distract you; the real whole-life value of BIM is embedded in the rich product data.

JOIN THE DEBATE AT THE ECA BIM E-FORUM Open to ECA Client Associate Members: Join us for free at www.eca.co.uk/client

the ECA Visit www.eca.co.uk to find an ECA contractor in your area

Join ECA for free as a Client Associate Free technical helpline Free health & safety advice ■ ECA website login for exclusive member-only content ■ Access to ECA’s BIM and ■ ■

Energy Solutions e-forums Discounted BSI and IET publications ■ Preferential rates on training ■ Free subscription to ECA Today ■

Call ECA Membership on 020 7313 4800 quoting FM World 2 or visit www.eca.co.uk/client

www.fm-world.co.uk

28/11/2013 17:27

HOT DATES Keep an eye out for even more new training programmes in 2014 including Social Media for FMs, Managing Information and Knowledge for FMs, FM Contract Models and Client Service & FM Efficiency Email info@bifm-training.co.uk to register your interest.

JANUARY COURSES 21-24 28-30 29-30

IOSH Managing Safely Understanding FM [Foundation] Creating & Sustaining Modern Workplaces

FEBRUARY COURSES 3 4 4-6 5 5 6 6 11

Study Skills Workshop [for ILM and BIFM qualification programmes] The Tender Process The Professional FM 1 [Intermediate] Financial Management 1 - The Essentials Contract Management Negotiating to Win Financial Management 2 - Getting Results Strategic Financial Management in FM [BIFM Executive Programme]

+44 (0)20 7404 4440 info@bifm-training.co.uk | www.bifm-training.com facebook.com/bifmtraining

twitter.com/bifmtraining

linkedin.com/company/bifm-training

Accelerate your FM prospects To speed up your FM prospects ACT FAST and join the BIFM today.

If you want to get on in facilities management, get into the BIFM. As Britain’s leading association for our profession, we’re here to advance your cause. Use our extensive network of training and expert advice to progress your career.

BIFM accelerate NEW 186x123.indd 1

FMW.05.12.13.041.indd 41

Gain invaluable knowledge and contacts at our industry leading events and specialist networks.

Increase your standing through our recognised professional qualifications and accreditations.

Profit from the latest professional and industry news – online and in print.

Take your opportunity to shape your industry’s future by getting involved in everything from regional committees and local events to national strategy planning. And make it your first priority.

T: 0845 058 1358 E: membership@bifm.org.uk www.bifm.org.uk 2/8/10 12:13:00 FM WORLD | 5 DECEMBER 2013 | 41

25/11/2013 14:11

FM PEOPLE MOVERS & SHAKERS

BEHIND

DATA

THE JOB NAME: Elaine Jevon JOB TITLE: Facilities manager ORGANISATION: Imperial Place JOB DESCRIPTION: Delivering the total FM contract for Bilfinger HSG Facility Management at Imperial Place, a 225,000 sq ft office campus in London

ELAINE JEVON

TOPIC TRENDS it can feel like they don’t quite give me the respect that my role, with all its responsibilities, warrants.

If you could give away one of your responsibilities to an unsuspecting colleague, what would it be?

Car park management is the bane of my life. There are just too many cars on the roads and not enough spaces to accommodate them all. It’s the same issue on site. Each tenant has their own allocation, but if someone arrives to find their space has been taken, they then park anywhere, which quickly gets messy.

Then, of course, they want me to fix it.

What attracted you to the job?

I like the variety. That’s what has kept me in FM rather than specifically attracted me to it. Again, as is the case with many FMs, I fell into the job.

How did you get into FM?

If you could change one thing about the industry, what would it be?

I’d love to see more women in senior roles and for there to be equal pay. I think men can be more cut-throat at negotiating things like pay, whereas women let emotions get in the way, which I actually don’t think is a bad thing. I’d like to see more people with more emotional intelligence in senior roles in business and society.

I worked as a receptionist at Imperial Place in 2007.

Back then, I hadn’t even heard of FM. But I knew that I wanted a career that would put my skillset to good use. I‘m pleased to have had the chance to work my way up to being responsible WHAT IS YOUR for the delivery of the total FM PET HATE? FM contract, which includes “People don’t understand that I self-delivery of engineering can’t go out to the car park, pick services, security, cleaning, up an offending car and move it. landscaping and health and I’m not Superwoman.” safety, as well as management of all associated hard and soft sub-contractors.

My top perk at work is ...

This is quite shallow, but a perk of managing the car park is that I get a space really near the front door.

When it’s raining or snowing, I just need to take a few steps from my car into the building. It’s the simple pleasures in life!

Any interesting tales to tell?

We have a new, young and vibrant client whose team likes to celebrate anything worth celebrating. At Halloween they decided to do a ‘best-dressed wins an iPad’ competition, and to get in the mood they used a smoke machine. Which, of course, set off the fire alarm. We had to evacuate the entire building and the fire brigade was called out. Luckily we didn’t get charged for the call-out.

And I must admit that I did enjoy eyeing up the handsome firemen.

Which FM myth would you like to put an end to?

What’s been your career high point to date?

My recent move into the total FM role has been the high point. That my superiors trust me and back me and want to give me the opportunity really has meant a great deal. And I get to do more of the things that I enjoy, such as dealing with finance and HR issues and taking on a lot more responsibility.

Your biggest career challenge so far?

Some people in the building still think of me as that young girl on reception. Managing their attitude to me can be quite challenging. Going from working with people who were my peers to managing them presents issues, as does dealing with clients and tenants who still think of me as one thing. Sometimes 42 | 5 DECEMBER 2013 | FM WORLD

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People sometimes see the FM as a bit of a skivvy.

I don’t think they understand how important the FM role is within a business. Let’s face it, after a month, an office without an FM would probably be derelict!

OUR INTERVIEWEE RATES THE IMPORTANCE OF CURRENT FM TOPICS OUT OF 10. THE ‘AVERAGE’ SCORE (IN GREEN) IS TAKEN FROM OUR OTHER 2013 INTERVIEWEES.

Working with procurement

6

5

AVERAGE

ELAINE JEVON

Introducing/ working with new forms of IT

4

2

Working on energy-efficiency initiatives

7 5

Adapting to flexible working

5 2

Maintaining service levels while cutting costs

7 10

How do you think facilities management has changed in the past five years?

We’ve seen this shift from FM being carried out in-house to it being outsourced, much of which has been driven by the recession. I see this trend continuing for the next few years at least, which is good news for Bilfinger, as it gives us opportunities to work with organisations that hadn’t previously considered outsourcing their FM. We can help them to professionalise the service and add value.

Adapting FM to changing corporate circumstances

7

7

www.fm-world.co.uk

28/11/2013 14:12

FM NEWS

Call Norbert Camenzuli on 020 7880 8543 or email jack.shuard@fm-world.co.uk For full media information take a look at www.fm-world.co.uk/mediapack

FM innovations ▼ Toshiba AC shortlisted for five awards Toshiba Air Conditioning, a division of Toshiba Carrier UK, has been shortlisted for five awards in the Cooling Industry Awards 2013.

The accolades include a shortlisting in the Air Conditioning Product of the Year category for the company’s recently launched SHRM-i three-pipe heat recovery air conditioning system. It is believed to be the most efficient VRF system in the market at part-load conditions. Toshiba’s refrigerant leak prevention and management systems have also been shortlisted in the same category. The technology, which attracts ‘BREEAM’ points, is being adopted by a growing list of national end users, keen to eliminate the possibility of refrigerant leaks from their buildings.

T: 0870 843 0333 W: www.toshiba-aircon.co.uk

▲ Shentongroup on standby in Southampton

▼ Jangro moves for Macmillan Jangro, the UK’s largest network of independent janitorial supply companies with 41 member companies across the UK, has seen those companies working together for Macmillan Cancer Support.

The fundraising started with a head office staff sponsored walk around the Pennine Moors in Lancashire which raised £1,252.

Mark Cullumbine of Ace Janitorial in Sheffield organised a poker tournament that took place six metres underwater, raising £6,000.

Hygiene Cleaning Supplies Morecambe raised £1,250 with a sponsored swim.

Kyle Macintyre ran the Edinburgh Half Marathon, raising £500 for Co-An UK Ltd Jangro’s Perthshire member.

T: 0845 458 5223 E: enquiries@jangrohq.net W: www.jangro.net or www. justgiving.com/jangro

A large 1250 generator and a 400kVA uninterruptible power supply (UPS) system was installed as part of the extensive refurbishment of an old retail headquarters in Southampton for its new occupiers, a large insurance company.

The standby generator was designed to perform to specification, without the requirement for bulk fuel tanks. As the functionality of the specified system was critical for business continuity, there was a customer witness test before work began.

The installation of the standby generator and UPS was covered by the Shentongroup Power Care Premier package. This includes remote monitoring, 24/7 technical support (with emergency response) and refuelling. The new occupants of Portswood House can be confident that, whether a brown-out or black-out, their business is protected.

▲ Another win for LCC LCC Support Services has won its fourth Golden Service Award, this year for cleaning excellence at the Grand Arcade shopping mall in Cambridge. The award was received by Lawrence Tew, LCC’s key account director, and director of operations Paul Lunn.

LCC has been winning Golden Service Awards for 20 years in a range of sectors including Offices, Use of Technology and Education. Winning client sites are SmithKline Beecham and The Cambridge College. LCC has also won for its exclusive IBMS client management technology system.

Paul Lunn said: “Our profession is focused on quality of delivery. That’s what the client and judges of this national awards programme are looking for.

The win acknowledges the professionalism and hard work of our team.”

T: 01865 865549 E: peter@prman.org.uk

▶ OCS and Land Securities go Green OCS and Land Securities have been named Wales Green Champion at The Green Apple Awards 2013 for their work at St David’s shopping centre in Cardiff.

Run by The Green Organisation, The Green Apple Awards are presented annually to companies, councils and communities carrying out projects in Great Britain that enhance the environment.

The winning project began in April 2012 when OCS and Land Securities set about reducing the environmental impact of Land Securities’ entire retail portfolio. To date, the project at St David’s has diverted 1,673 tonnes of waste from landfill.

a success in a less regimented career This is one of the thousands of stories of how people have found success in their working lives with Randstad. We’d love you to join them.

8KUKV TCPFUVCF EQ WM JQYKDGECOG VQ ƂPF QWV OQTG

Mark Piacentini Fire and Security Manager

www.fm-world.co.uk

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Appointments

44 | 5 DECEMBER 2013 | FM WORLD

FM New appoints051213.indd 044

Call the sales team 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

jobs.fm-world.co.uk

28/11/2013 15:21

PFI PERFORMANCE & QUALITY TEAM

the

natural choice in FM recruitment

PFI Hard FM (M&E) Manager Job Ref: 321-MNS-150 Salary: Band 7 £30,764 - £40,558 pa Hours: f/t 37.5pw We have a vacancy within the PFI Performance & Quality team at the Oxford University Hospitals NHS Trust for an M&E Hard FM Manager working Monday to Friday 8.30am to 5.00pm. You will ensure value for money is being achieved with all 3 PFI Contracts and services are being provided in line with statutory regulations and Trust policies The successful candidate will be knowledgeable about PFI process with excellent written and oral skills, flexible, quick learner, work on own initiative and a solid team worker. Successful candidates will have significant relative Estates and Facilities management experience, the majority of which being within NHS or equivalent.

For more information or to arrange an informal visit please contact Antony Hudgell, PFI Hard FM Client Manager on 01865 737636, email: antony.hudgell@ouh.nhs.uk Closing Date: 29 December 2013 To apply please visit: jobs.ouh.nhs.uk and search by vacancy reference: 321-MNS-150 PRACTICE PLUS

To find out how you can benefit from working with Eden Brown, contact us today on 0845 4 505 202.

Some posts will be subject to criminal records bureau checks.

Equality of opportunity is assured and we are committed to improving your working life.

Our no smoking policy advances a healthier environment.

www.edenbrown.com

PLAN YOUR NEXT MOVE

on the move

www.ouh.nhs.uk

JOBS

See latest job listings Create job alerts by email Save and email jobs from mobile Apply for jobs by saving your CV to your profile Keep track of your activity

Go to www.fm-world.co.uk/jobs jobs.fm-world.co.uk

FM New appoints051213.indd 045

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28/11/2013 15:21

FINAL WORD NOTES FROM AROUND THE WORLD OF FM

NO 2

DAYS

IT'S ALL ABOUT WORKER ENABLEMENT THE SAME

OSLO BLOW Norway’s new wave of 24-hour working hubs for entrepreneurs and start-ups is interfering with the country’s ‘work to live’ culture, according to the BBC. Norwegians clock up one of the lowest rates of working hours per year in the developed world (1,436 hours per person on average), with employees traditionally knocking off at 4pm. But the rise of roundthe-clock bespoke facilities for a new generation of app developers and web designers – giving budding businessfolk a chance to develop their ideas alongside day jobs, or helping new businesses connect with various time zones – could slash an unsightly tear in the fabric of Norway’s anti-overtime society.

Never mind that these uber-cool workspaces, such as Oslo’s Mesh, bear all the hallmarks of East London hip (exposed brickwork, industrial beams, table tennis, on-site nightclubs) – making them more fun to spend time in than our own drab-by-comparison homes.

No, Asbjorn Grimsmo, a senior researcher at Norway's independently funded Work Research Institute fears the health implications of working evenings and weekends, no matter how in vogue the venue. “There is a danger you may be unhealthy and feel lonely because you haven't had the time for a social life,” he said.

“As an entrepreneur you will eat your sausage at both ends.”

We presume that's a bad thing.

As we prepare to welcome a new year, it seems a major line well have been crossed in the development of the FM profession – at least, if a report presented at the CoreNet Global Summit of corporate real estate executives is to be believed.

It transpires that 'worker enablement' has become the main focus for FM, not building management – with technology the primary tool for utilising facilities to meet that end. That's the claim in a report by global real estate services firm Jones Lang LaSalle (JLL), entitled 'The Proworking Roadmap: The Enterprise Guide to Workplace Strategy'.

The report suggests that corporate real estate should not provide just facilities, but “a menu of services and capabilities … to support productivity”, adding that it was all about “matching people to the places in which they are most effective”.

At the summit, JLL also introduced a new 'Space Exchange' tool which, it said, helps corporations “matchmake” mobile employees with workspace, coining the phrase “highly productive prolocations”.

The firm then pointed to its Global Corporate Real

Estate Trends (GCRET) 2013 report, which helpfully found that 46 per cent of respondents felt they needed occupancy planning tools in order to deliver workplace solutions and measure productivity gains.

Accordingly, JLL’s Space Exchange cloud-based marketplace technology uses web and mobile apps to address workforce space requirements, align people and venues, make under-utilised space ready for productive use, connect corporations with a vetted network of professional locations outside of a company’s portfolio, and manage those locations on an ongoing basis.

“Corporate real estate executives need technological tools that support workplace strategic planning,” JLL concluded.

The GCRET report also found that 72 per cent of global companies expect real estate to drive workplace productivity. In The Proworking Roadmap report, JLL linked this to the idea that “constant collaboration and mobility” is now a core competency, with the activity that is going on in a workplace "ultimately shaping the workplace itself".

SEASON'S GREETINGS

It's been a fascinating year for facilities management and in our 22 print editions we've tried to cover it all. Some brief highlights of 2013? How about the naming of an FM of the year who works within central government; the Co-operative Group's

extraordinary One Angel Square building (and FM's critical role in its development); the story of BT's decision to move its FM provision back in-house and indeed to sell the service on to other businesses; and by contrast the BBC's huge outsourced FM deal in which operatives will become ever more "embedded" with the BBC's own operational teams.

Anyway, we've enjoyed bringing all these stories to you, and more – and we've great plans for 2014. Until then, and in case you find yourself at a loose end (hah!), we're putting up a prize for anyone who can spot the odd one out among our front covers in the montage on the left. Email us if you've worked it out. If you're a recipient of the FM World Daily, we'll see you online – otherwise, we wish you a very happy Christmas.

IN THE NEXT ISSUE OUT 16 JANUARY

FEATURE: FM OPERATIVE ENGAGEMENT ROUND TABLE /// FEATURE: MOVE MANAGEMENT /// EMPLOYING VULNERABLE OPERATIVES /// LEGAL UPDATE: WHEN TO MOVE TENANT EQUIPMENT /// THE LOOMING 2018 ENERGY ACT DEADLINE /// ALL THE LATEST NEWS AND BUSINESS ANALYSIS

46 | 5 DECEMBER 2013 | FM WORLD

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