Procedure for a new Facility Management Contract

Procedure for a new Facility Management Contract
31/10/2018 , by , in EXPERT ZONE, Uncategorized

There is an extensive guideline that needs to be followed every time an FM begins the management of a new site. An FM company initially does a thorough site survey and proposes the required manpower and machinery. The manpower is usually broken up and deployed shift wise and area wise to ensure that they have a thorough understanding of the site. The next steps are as follows: –

Built-Drawings – The first step is to check for the drawings of the building. Ensure that the drawings are complete and up to the date. Confirm the dates of the original construction and check if any major changes have been made since then. If there are queries, speak to the PMC who had worked on the building and overseen the building construction work.This shall help with the maintenance planning.


Budget – Evaluate the maintenance records and make a plan as to going forward how the maintenance program should be conducted and which approach will work the best for the facility as well as the tenants, the plan should have specific timeline as per their respective operations. Define the annual budget required for operations/maintenance of the facility. Consult the finance department to check how the budget is calculated and how frequently it’s reviewed. The most important aspect of the above two points would be to derive accurate Common Area Maintenance (CAM) costs for multi tenanted properties, during the handover process as it is crucial to review the CAM charges for at least 6 months prior to the changeover. This process helps the new FM determine key metrics, such as the amount of money spent monthly on different items and also helps identify which area needs more attention, such as if the CAM breakup shows a periodically high cost to maintain a certain equipment, then the new Facilities team can be aware of this from the start and plan their operations accordingly to try to improve in that area going forward.

Review the Facility – Review the premise’s safety and functionality. Make a note of possible violations of building or fire codes, safety hazards, security lapses or accessibility issues. Review the earlier maintenance records to check if everything is in place or if there are changes required in regards to more safety.Get acquainted with the HVAC, security, electrical and energy management system of the company. If an (IAQ) indoor quality test has been performed, ask for a summary of the results.

Review the Equipment – The first step would be to take over the AMC’s and formulate a comprehensive vendor list for each item. It is also important to check if all the equipment is periodically serviced and maintained as this would guarantee the functionality of the equipment and help detect any faults that may result in a malfunction. Create a log book to list all the equipment along with tagging numbers and record the periodic service reports.If you are looking after equipment such as printers, laminating machines, copiers, etc.look into the age and performance of the equipment.Planned Preventive Maintenance (PPM) Schedule should be maintained for each equipment to ensure minimal breakdowns through the year.

Service contracts–Study all the service contracts with their start and end dates. Inspect the work of the current contractors to check their efficiency and assess if the services given by them is as per the facility’s requirements. Ask for a copy of the standards to be maintained by the building and confirm if the services given do match them.Documents explainthe legal requirements and also ensure appropriate maintenance to enable the safety of all the tenants.It is important that they adhere to all statutory obligations & obtains the necessary licenses for the staff that it employs – e.g. labour licenses, Provident Fund, ESI, Welfare Funds etc. 

Technology & Quality of Processes – It is important for the facility management company to be updates with the latest technology& processes available. This will help cut maintenance costs, improve security and improve operating efficiency.

Additionally, if you are servicing a commercial building, examine the planning as per their occupancy. If the Computer-aided facility management (CAFM) is operational, check the accuracy and the detailing of the information in the system. Ask the Human Resources to provide you the details of the company staff and look into change in the number of the staff in last five years. This will help you calculate the growth of the company and also help you not with just the current planning but also future planning.


Authored by Raghav Kapur, Region Head – South India, SILA

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