Insourcing Facilities Maintenance Case Study
The Challenge
Fjeld Consulting was tasked to help a 950-bed purpose-built student accommodation property reduce its expense ratio from 35% to the industry standard of 25% and improve its reputation for service. It required the insourcing of their Facilities Maintenance programme. The property did not hold an asset register or any of its current service agreements, as a result the property faced serious issues building new service agreements.
The Approach
- Build asset registers
- Create a company’s standard service agreement
- Create job descriptions and employee scopes of work
- Utilise SFG20 to create generally accepted and standardised scopes of work
- Tender specialised FM planned preventative maintenance & reactive services
- Create contract, Key Performance Indicator and budgetary tracking systems
- Added ancillary income programmes
Fjeld Consulting systematically executed the procurement processes while the property team recruited an in-house FM team.
The main issue was overcoming the internal fear that without the support of the full-service FM company, the building systems would fail. Fjeld Consulting offered many of the specialised system sub-contractors the opportunity to bid directly and therefore retained some building knowledge.
The Results
Fjeld Consulting delivered £400k of facilities maintenance savings per year and a new sub 20% expense-to-rent ratio. Additionally, the property improved the service reputation by reducing the number of reactive callouts by 40%. The specialised services support contracts enabled a smooth transition and an effective out-of-hours reactive response.
