Introduction to EstatesMaster Facilities Benchmarking and Cost Prediction Model A presentation to Breakfast Briefing: ‘State-of-the-art Benchmarking and Cost Management of Facilities in Large Estates’ by Prof. Bernard Williams FRICS IFPI Ltd 14th June 2013
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Introduction to Estates Master Facilities Benchmarking and Cost Prediction Model
Introduction to Estates Master Facilities Benchmarking and Cost Prediction Model A presentation to Breakfast Briefing: ‘State-of-the-art Benchmarking and Cost Management of Facilities in Large Estates’ by Prof. Bernard Williams FRICS IFPI Ltd 14th June 2013. Contents. - PowerPoint PPT Presentation
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Introduction to EstatesMasterFacilities Benchmarking and Cost Prediction
Model
A presentation to Breakfast Briefing:‘State-of-the-art Benchmarking and Cost Management of Facilities in Large Estates’
byProf. Bernard Williams FRICS
IFPI Ltd 14th June 2013
ContentsContents• What is EstatesMaster ?• Modules• What is it used for?• Who uses it?• How does it work?• The data – sources and application• Levels of access • Accuracy• International application
What is EstatesWhat is EstatesMasterMaster??
• intelligent decision-making tool• web-enabled • uses current cost and performance data • predicts the costs of facilities services
without measured estimating• can be applied to single buildings or whole
estates of up to 10,000 buildings.
Current modulesCurrent modulesWeb-enabled• Maintenance • Cleaning• Security• Energy/CO²• Distribution• Stationery• Service chargeExcel (pending web-enablement)• Archiving• Catering• ReprographicsExcel (in development)• Grounds maintenance• Water consumption• Space use
What is it used for?What is it used for?
•Cost benchmarking•Performance level benchmarking•Facilities strategy•Due diligence on bids•Preparing to outsource•Cost management to best performance targets•Negotiating contract extensions at benchmarked prices
Who uses it?Who uses it?
• Estate owners• Service Providers• Managing Agents• Educationalists
Challenges to financial benchmarkingChallenges to financial benchmarking
• Allocation of expenditure – where and what for?
• Every building is different!• Good comparable data• Exact match of buildings and
performance• Exact match of resource drivers
International challengesInternational challenges
• Understanding the local labour market• Cross-border cultural differences• Language barriers
EstatesEstatesMasterMaster model model – – the principlesthe principles
Unit cost - per sq m / per capita etc.
BusinessDrivers
OutputPerformance
FunctionalRequirements
FacilitiesPolicy
1.Service LevelDrivers - Quality
Staff
Equipment
QualityControl
Specificationof Works
2.
Consumables
Service LevelDrivers -Local Factors
Specificationof Regime
Frequency
Time of Day
3.OperationalDrivers
Access
Design
Occupation
Problems ofOperation
4. 5.
How Much /How Many
QuantitativeDrivers
Volume
Areas
Head-count
Economic Drivers
6.
Macro-
Micro-
£
7.
TotalCosts
Problem of identifying Problem of identifying scopescope of activities of activities
Site A Site B Site C Site D Site E Site F
Occupiable areasSpecial areasToilets and washroomsFurniture and equipmentPest controlGeneral wasteSecure waste
Cost / £ m² GIA pa 15 9 9 12 7 8
Ext.WallsWindows
Cleaning scope and cost differentials - same service levels and drivers
Activity Included / excluded from budget
How does it work ? – granular benchmarksHow does it work ? – granular benchmarks
• EstatesMaster benchmarks the scope items in each generic cost centre.
• The known cost range for each scope item has been assessed and the cost drivers identified and weighted.
• The program’s questionnaires address the key cost drivers for each scope item
• The benchmark within the range for each scope item is calculated from the answers given to the questions
• The values of scope items for each generic cost centre (Cleaning, Maintenance etc.)
How does it work ? – granular benchmarksHow does it work ? – granular benchmarks
E.g.•Say Window Cleaning has a normal cost range of £0- £3.00 per sq. m GIA (£0- £ 0.27 per sq.ft.GIA).
•The cost drivers are:– Window/floor area ratio– Standards of cleanliness achieved – and for how long– Local factors affecting condition– Accessibility– Design of windows– Market rates for window cleaners– Competitive basis of any overarching managing
contract
How does it work ? – granular benchmarksHow does it work ? – granular benchmarks• Depending on the answers to the questions the
program will select a figure somewhere between the known min/max in £/sq.m or sq.ft GIA i.e. from:
£0 - £3.00 per sq. mor£0- £ 0.27 per sq.ft
• The result will be added to the results of all the other scope items in Cleaning to give a benchmark for the Cleaning Cost Centre
• All the ranges used in the program relate to best performance
In development• Australia• New Zealand• Nigeria • Philippines
User CommendationUser Commendation• We took our time deciding whether or not to
use this tool but now we have it and are deriving benefit, we’re pleased we adopted it.
• Large estate owners are highly likely to benefit from software such as this….
• …. it really does make it very simple to derive meaningful benchmarks, control costs and performance across significant and diverse property portfolios.