THE MAGAZINE FOR THE BRITISH INSTITUTE OF FACILITIES MANAGEMENT | 7 JUNE 2012
Is your business ready for a viral pandemic?
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VOL 9 ISSUE 11 7 JUNE 2012
8 | Roosvelt University
18 | Pandemic
22 | Gareth Tancred
6 Government slashes the cost of public sector real estate 7 FM’s ‘Rising Stars’ celebrated at event at the Heron Tower 8 Project of the Fortnight: Chicago unveils vertical student accommodation 9 Think Tank: will TFM contracts continue to be popular in the future? 15 Martin Read reports from the Facilities Show held at the NEC 12 Business news: Graeme Davies explains why big players are solid despite a shaky market 13 Mitie gets total FM contract boost due to long-term demand 14 In Focus: Paul Jones of Clearwater Corporate Finance on TFM
16 Perspective of a facilities manager: Finbarr Murray explains his interest in ‘demand management’ 17 Five minutes with Portico managing director, Simon Pratt 42 No Two Days
26 | History of FM
Pandemic: Where does the government’s provision for a viral pandemic end, and your business continuity begin, asks Andrea Kirkby
Top Man: In an in-depth interview with FM World, new BIFM chief executive Gareth Tancred, shares his vision for the future of the industry
History of FM: Lucy Jeynes interviews Martin Pickard in the latest of FM World’s History of FM series, featuring the sector’s formative individuals
30 Legal: Tony Thiaray on incoming changes to asbestos regulations 31 Court report: Beverly Vara outlines a case of ‘Best Intentions’ 32 Technical: Chilled beam systems are in the spotlight 33 Insight: Market intelligence
REGULARS 34 BIFM news 37 Diary of events 38 People & Jobs 40 Appointments
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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.
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Average net circulation 11,357 (Jul 10 – Jun 11) FM World magazine is produced using paper derived from sustainable sources; the ink used is vegetable based; 85 per cent of other solvents used in the production process are recycled © FM World is published on behalf of the British Institute of Facilities Management (BIFM) by Redactive Publishing Ltd (RPL), 17 Britton St, London EC1M 5TP. This magazine aims to include a broad range of opinion about FM business and professional issues and articles do not necessarily reﬂect the views of the BIFM nor should such opinions be relied upon as statements of fact. All rights reserved. This publication may not be reproduced, transmitted or stored in any print or electronic format, including but not limited to any online service, any database or any part of the internet, or in any other format in whole or in part in any media whatsoever, without the prior written permission of the publisher. While all due care is taken in writing and producing this magazine, neither BIFM nor RPL accept any liability for the accuracy of the contents or any opinions expressed herein. Printed by Pensord ISSN 1743 8845
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t the Facilities Show last month, our former editor Cathy Hayward spent some time asking various luminaries to define FM in a sentence. There were a lot of people, and she got a lot of different responses (you can find it online). In fact, the sheer variety of response to seemingly simple questions is a bit of a theme just now. In our ‘History of FM’ interviews, I’m struck by just how much has changed over the course of 40 years during FM’s rise. Yet to date, none of our interviewees has given the same answer when asked to sum FM up in three words. These, remember, are the most practised and distinguished individuals in FM’s admittedly brief history. But if even they are not agreeing on a single definition after all this time, what does that tell us? We, too, are guilty of looking for the single sound bite. It’s the variety of responses that make the exercise so illuminating. If we accept the case that in FM “no two days are the same,” (and they really aren’t – ask anyone), it’s surely no shock to find that no two descriptions of it are the same either. However, ask a group of accountants to sum up what they do and I’d wager there’d be much less variety of response. The old insult is that a jack of all trades is a master of none. And surely facilities managers are, by necessity, jacks of all trades? Well, here’s the thing: arguably, FMs manage a wide and ever-changing range of activities. But just as arguable is the idea that managing a wide and ever-changing spectrum of activities is in itself a single, priceless ability. Could we describe FM as a singular skill, requiring the ability to simultaneously prioritise, delegate, strategise and project-manage? Or have I just shot that argument down by listing four distinctly separate component skills? Plenty of professionals have had to move out of time-honoured comfort zones in recent years – the result, principally, of new technology. People who would once have merely managed accounts, practiced law or administered medicine are all having to do things outside of their comfort zones – making presentations, talking to camera, preparing business cases, adapting to zingy new administration systems and plenty more besides. In the main, facilities managers embrace all of this enthusiastically, perhaps out of the natural inquisitiveness that does indeed characterise so many FMs. But the crucial distinction is that however much extracurricular activity they take on, people from established professions still have a recognised specialism at their core. For FMs, however enthusiastically it’s embraced, it’s simply another aspect of the job, to be juggled with everything else they’re expected to do. When asked at any social event to explain what we do, that opening line of “I provide facilities to enable people to work effectively”, or “I maintain the working environment”, is the very moment at which we confirm FM as something much more than one activity and, just as crucially, something quite different to a single, definable profession. It’s an inescapable conclusion, as well as both a blessing and curse. With so much continuing to impact all the various disciplines that make up the practicing of FM, that’s unlikely to change any time soon.
“PLENTY OF PROFESSIONALS HAVE MOVED OUT OF TIME-HONOURED COMFORT ZONES IN RECENT YEARS, DRIVEN BY NEW TECHNOLOGY”
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The costs of running the central government property estate have been cut by £278 million in the financial year 2010/11. The figures, published in the 80-page State of the Estate Report, were announced by Minister for the Cabinet Office Francis Maude. The number of holdings fell from 6,700 to 5,957, down by 11 per cent. Around 48 per cent of all holdings are small – 500 square metres or less – while only 2 per cent are very large, being over 10,000 square metres. The size of the estate dropped nearly 6 per cent in 2011 to 9.7 million metres – a cut of almost 301,000 square metres. The average cost of office space at £349 per square metre is 16 per cent less than the private sector average. London offices account for 25 per cent of the estate and 41 per cent of annual estate costs. The average cost of £666 per square metre for the estate’s London space is less expensive than comparable private sector London office space. However, in terms of cost per person, the efficiency of the central London estate is worse than the private sector. Space efficiency of the entire estate at 13.2 square metres per full-time employee is similar to the past two years. Running costs were reduced by £278 million year-on-year and “departments beat the 10 per cent Prime Minister’s CO2 reduction challenge as early as May 2011, with a total emissions reduction of 13.8 per cent”, according to the statement. More than half of government 06| 7 JUNE 2012| FM WORLD
buildings with Display Energy Certificates (Decs) had an energy efficiency rating better than the industry standard for the first time. “Since May 2010, we have exited 904 properties, saving millions as well as providing vital opportunities for regeneration in local communities,” Maude said. “The government estate is now greener, leaner and cheaper to run. Today’s report shows just how much we can achieve when the government acts as a single organisation, but there’s more to be done to drive out inefficiency.” Maude also said that leasehold properties exited by the government can lead to muchneeded regeneration opportunities. The government left Market Towers on Nine Elms in London,
Government slashes cost of building estate
Government report reflects efforts to save on property costs
which was used by the Medicines and Healthcare products Regulatory Agency and the National Patient Safety Agency. The report noted that Market Towers is now at the gateway to the Vauxhall Nine Elms Battersea
Opportunity Area, which stretches from Lambeth Bridge to Battersea Power Station. The area has been earmarked by London’s mayor Boris Johnson for major redevelopment, including 16,000 new homes and 25,000 new jobs.
NAO says Beeb savings on the right track The National Audit Office (NAO) has given a qualified thumbs-up to how the BBC manages its support services, despite the broadcaster’s property costs rising by 39 per cent. The report recognises that the BBC has had high transitional costs connected to operating its property function because of the major decentralisation of its estate away from London. Between 2006-07 and 2010-11, after allowing for inflation, the BBC reduced the cost of six divisions – marketing, communications and audiences, BBC people, policy and strategy, finance and the director general’s office. The cost of operating the
procurement function remained static. Even so, the combined operating cost of the seven functions dropped by 23 per cent over the five years, according to the NAO report. “The cost of BBC Workplace has increased by 39 per cent over the period, mainly owing to a transitional period in the reorganisation of the BBC’s estate,” the report noted. “New buildings, including MediaCity in Salford and the extension to Broadcasting
House, have recently been completed, while the BBC’s planned programme to close down all of the buildings scheduled for disposal, such as Television Centre, runs to 2015. So it is currently maintaining a larger estate than it needs.” The report noted that the BBC Trust will explore with the (BBC) Executive how to tie the measuring and reporting of overhead costs to the management of those costs in a more meaningful way.
“The BBC is currently maintaining a larger estate than it needs” www.fm-world.co.uk
BRIEFS FM’s ‘Rising Stars’ assemble in London Thirty-five young facilities managers who have made a significant impact in their roles in a short space of time were recognised on 24 May at a special reception in London’s Heron Tower. FM World’s Rising Stars of FM, sponsored by Office Depot, assembled at the Heron Tower in the City of London. Guests on the night included Polly Plunket, partner at the Heron Tower’s managing agent Cushman & Wakefield; Mike Field, sales director at event sponsor Office Depot UK & Ireland; BIFM chief executive Gareth Tancred and the institute’s newly apppointed deputy chairman, Liz Kentish. The Rising Stars are as follows:
Adrian Harris, Serco; Altaf Lorgat, Serco; Andrew Hulbert, Rollright group; Annette Best, Norland Managed Services; Annie Karastroyanova, Topright group; Ben Luvlagio, CB Richard Ellis; Chris Rowe, Larch Consulting; Claire Blake, CB Richard Ellis; Clifford Yeend, Rydon; Daniel Hawkins, Compass; Darren Raczkowski, Spotless; Dean Botten, Port of Tilbury; Helen Cooper, Diamond Facilities Support; Jackson Matthews, Telereal Trillium; Jason Gurd, PepsiCo; Kate Morris, Co-Operative Group; Kate Smith, Johnson Controls; Kerry Whitebread, Mitie; Lee Griffin, Larch Consulting; Louis Loizou,
Food Standard Agency; Martin Bell, Norland Managed Services; Martin Frohock, Cancer Research; Matt Tucker, Liverpool John Moores University; Paul Andrews, EDF; Peter Burnell-Jones, Vinci Facilities; Rebecca Hodgson, Invesco; Rishi Sharma, Davis Langdon; Ryan Botta, Johnson Controls; Stephanie Kendall, Amey; Tom Robinson, Mitie; Tristam Slater, Kings College; Will Bowen, Sevenoaks District Council; Will Tyler, Mitie; Ryan Jarman, Vinci Facilities; Herbie Hawes, Hearst Magazines. A full report on the people who made the list will appear in FM World’s 21 June edition.
New CIBSE president calls for benchmarking The incoming President of the Chartered Institution of Building Services Engineers (CIBSE) has called for a much greater use of benchmarking for improving the efficiencies of buildings. David Fisk, in his presidential address entitled ‘Reality Check’, said more data on a building performance should be collected and analysed than is happenng now. At the same time, he urged building services designers to rely less on complex technologies – so-called ‘greenwash’ technologies - that are purported to increase the energy efficiency of buildings. Speaking at the CIBSE annual general meeting, Fisk said it was time to rethink fundamentals. www.fm-world.co.uk
He argued that the right response to the industry’s uncertain times was to get back to fundamentals, reassert normal engineering values and challenge spin. He said a “normal engineering” approach would probably have produced at least as much reduction
in greenhouse gases by focusing on energy efficiency and the UK’s emerging energy situation without any of the complication of many of the current ‘low carbon’ schemes. The industry now needed to concentrate on measuring and learning from the performance of real buildings. “I urge the Department for Communities and Local Government to unlock the rich benchmarking database that underlies the Display Energy Certificates to put the UK back in the lead in tracking building performance,” he said. Professor Fisk is director of the Laing O’Rourke Centre for Systems Engineering and Innovation at Imperial College London.
Costa in O2 WiFi deal Coffee shop chain Costa has agreed a deal with O2 for WiFi access to the internet for its 1,300 coffee shops in the UK. Deployment of the service started in London last month and will roll out across the country, according to a statement by Costa. Customers only need to sign up once and can then use the simple and secure service in any Costa store or at any of O2’s WiFi hotspots. “All O2 WiFi hotspots are premium public hotspots, rather than residential connections with limited bandwidth.”
Outsourcing below par Financial savings is the biggest driver for outsourcing FM, but a third of deals fail to meet their targets, according to a new survey. Of 130 respondents, 83 per cent said financial savings were their reason for outsourcing FM. However, only 67 per cent said that their savings targets were reached. The report The Changing Shape of Facilities Management Procurement, commissioned by Interserve. The next most important reason for outsourcing was to improve service levels, cited by 64 per cent of respondents. But just over half – 55 per cent – said that had happened. The survey is the first in a series and was conducted by the Sheffield Business School at Sheffield Hallam University.
Low carbon targets Some of Britain’s largest businesses have joined government departments in agreeing to focus on low-carbon goods and services when buying catering, transport and renewable energy. They have entered into Procurement Compacts that will commit them to reducing the carbon footprint of the goods and services they buy, according to a statement by the Government Procurement Service. Among the businesses signed up are BT, EDF Energy, BSkyB, Lloyds Banking Group, Department of Energy and Climate Control (DECC) and the Department for Environment, Food and Rural Affairs (Defra). FM WORLD |7 JUNE 2012 |07
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FM World hosting pensions and branding events
High-flying students in the Windy City Students registering next year at Chicago’s Roosevelt University will be moving up in the world – literally – when it comes to on-campus accommodation next year. The university in central Chicago recently officially opened its $118 million campus building – a 32-storey, 413,000 square metres (38,369 square feet) ‘wavy’ steel structure, with student accommodation comprising the top half. Views from the Wabash Building – a temporary name – include vistas across downtown Chicago to out across Lake Michigan. The blue and green glass, 469-foot high building is the US’s second tallest academic structure after the 42-storey Cathedral of Learning at the University of Pittsburgh. The building also increases classroom space at the Chicago Campus by 40 per cent. Floors one to five are for student services and include a recreation centre and a cafeteria with seating for up to 300. There are also university admission, financial aid and advisory offices. Floors six to 13 house classrooms that seat from 36 to 108 students. Included is a mock trading room for Roosevelt’s business school. The 633 student beds, of which nearly 300 are in single accommodation units, are on floors 14 to 31, with the top floor housing building services units. “All FM is done in-house, with the exception of janitorial services,” a university spokesperson told FM World. The university decided to build upwards thanks to a 2004 Chicago city fire safety regulation that required all student residences to have fire sprinklers by the end of 2008. Roosevelt University’s 40-year-old, 17-storey Herman Crown Centre held 300 students, but was without sprinklers and has now been demolished. General contractor for the project was Power Construction Company, which started work in May 2010 and used three-dimensional computerbased Building Information Modelling for the design. 08| 7 JUNE 2012| FM WORLD
With 2012 seeing the biggest shake up in workplace pensions for decades, FM World is partnering with financial benefits provider B&CE on a roundtable event to discuss the changes. From October, facilities service providers in the UK will be obliged to automatically enrol eligible employees into a workplace pension scheme and make contributions on their behalf. The two-hour event, to be held at FM World’s offices in London on June 14, will discuss: ● The cost of managing the new schemes ● How FM providers should consult with staff to communicate changes ● The types of pension scheme that companies can set up ● The cost of incorporating employee pension costs into tender exercises. We’re looking for senior facilities managers and human resources managers in service providers and client organisations to get involved in the discussion. For more information on the subject of pensions in the UK go to: tinyurl.com/govpensions-advice Two weeks later on Tuesday June 26, FM World will host another roundtable event on the topic if “FM’s role in maintaining an organisation’s image.” Organised in partnership with Interserve, the debate will include: ● At what stage should FM come in to discussions of brand management? ● What FM functions impact on an organisations’s brand positioning? ● Should the way FM is procured and deployed be more closely tied to an organisation’s brand management policy? ● What examples show FM’s role in presenting a positive image to clients? To put yourself forward or nominate an individual for either event, please email firstname.lastname@example.org.
Green is still the colour for FMs The green agenda in FM continues to rise in importance, according to a survey from Asset Skills. Initial findings of The Green Agenda in Facilities Management show that 53 per cent of respondents believe that green issues are very important to their organisation. Another 43 per cent stated that they were quite important. Just 3 per cent said that green issues were not very important. Green issues have grown in importance over the past 18 months for 67 per cent of respondents, with financial saving the main motivator for 93 per cent of FM organisations to be more sustainable. This was followed by environmental benefits (67 per cent); legislation (47 per cent); and own personal motivation (33 per cent). 77 per cent of respondents agreed or strongly agreed with this statement, while most people in FM think that the benefits of working sustainably are obvious. The Asset Skills Insight Team surveyed 30 FM professionals at the recent Facilities Show that took place between 15 and 17 May in Birmingham.
Availability of secondary office stock soars Availability of secondary office space in the UK’s major regional cities has increased by 97 per cent since 2007, according to a new report by global property adviser CBRE. However, prime space is now in very short supply, partly due to a lack of development funding since the onset of the economic crisis of 2007, the report noted. All nine of the regional business centres examined – Aberdeen, Birmingham, Bristol, Edinburgh, Glasgow, Leeds, Liverpool, Manchester and Southampton – had an average of 4.5 years of supply in the secondhand market. “This contrasts with the constricted development cycle and healthy demand for newly completed, Grade A stock, of which there is an average of only 2.3 years of supply,” the report said. Availability of prime stock in Aberdeen stands at one year, while Manchester and Glasgow cave around 1.4 years of prime supply to support their growing occupiers markets. www.fm-world.co.uk
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WE ASKED 100 FMS… Do you think that the public and private sectors will be looking at more or fewer TFM contracts in the next two years? Whitehall and large total facilities management providers may be confident that TFM has a bright future, but a large percentage of FMs are sceptical. Six out of 10 respondents to the latest Think Tank Poll believe there will be fewer and not more TFM deals done in the coming years than in the past. TFM has had a good run in central government, which is eager to keep costs down and is where large-scale outsourcing has gained pace in the past decade. This will continue to increase, said one respondent. “Despite the various political sides barking at
each other, the ability to contract out provides savings and in the current climate, savings on expenditure are of paramount importance,” he said. “The trick is to write your tender and contract carefully and at the contractor’s risk.” Sightly less assured was another respondent who believed that TFM would continue to increase simply because it helped to keep costs down. “On the downside, there is total reliance on a single point of contact and less opportunity for FMs to influence the detail,” he said. Sounding a more sceptical
FEWER DEALS (60%)
note, another respondent said FMs entering into TFM deals would soon realise that “very few TFM contracts are as good on the ground as they are on paper; the FM client will seek to revert back as soon as they can”. He also believed smaller suppliers “will be in for a tough time, as they will increasingly find themselves squeezed out by the big players unless they sign up to
framework agreements with the large players”. However, there may be some method to the madness of FMs who embark upon TFM contracts, said one FM. “The FM market changes as procurement fashions evolve,” he said. “But it is evident that some clients use TFM suppliers as a strategic stage in their own FM management.”
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Running costs for new offices rise 3% DAVID ARMINAS firstname.lastname@example.org
The cost of running a new office in the past year has risen on average 3 per cent, according to an annual review. However, in the stagnant UK economy over the past 12 months there were no significant overall changes up or down in total office costs. The division of costs for running a new office building is illustrated in the chart. For new offices, total office costs are broadly level, with small rises, and no falls of more than 1 per cent and an average rise of 3 per cent. The average net effective rent rose by 4 per cent, according to the Total Office Cost Survey 2102
from management consultancy Actium Consult. But some cities and regions have seen significant effective rent rises, noted the 15th annual review Net effective rents on new offices increased significantly in Cambridge (+23 per cent), Aberdeen (+18 per cent), and West End (+7 per cent) and London’s midtown (+10 per cent). The biggest fall in net effective rent was 7 per cent in Milton Keynes, the survey noted. The highest workstation price is for that in a new office in the West End at £16,830. The cheapest is for a 20-year old office in Belfast at £4,097. Overall, the average net effective rent for older buildings remained
RENT 35% RATES 15%
HARD FM 23%
Annualised costs 14% Soft FM 11% Management 2%
unchanged (up 1 per cent), but individual locations varied from -27 per cent in Portsmouth to +31 per cent in Cambridge. The average rent-free period
decreased marginally from 26 months to 25 months for new offices, but increased slightly from 29 to 30 months for 20-yearold buildings. The net effective rents on new buildings are on average 56 per cent above those on 20-year-old buildings. On average, rent and rates combined are 46 per cent of the total office cost for new buildings but only 23 per cent of the total office cost for 20-year old buildings. The cost of energy is up sharply by 19 per cent for new buildings and 21 per cent for older buildings. Energy is now 6.5 per cent of the total occupancy cost of older office buildings.
Lack of office space threatens city growth There is a “striking mismatch” between where offices are needed and where they are being built, according to a new report from the Centre for Cities. In the past decade, fast-growing towns and cities with higher rates of office-based employment in 1998 performed better economically than cities with less office-based employment. But in eight out of 10 of these fast growing places, such as Reading and Aldershot, office-space demand far outstrips supply, contends the report, supported by the British Council for Offices. The report highlights that some of the UK’s economically strongest small to medium-sized towns and 10| 7 JUNE 2012| FM WORLD
cities have seen the lowest net floor-space growth over the past 10 years. “Across these towns and cities, it costs on average 50 per cent per square metre more than the national average to lease an office for a year,” according to the report. “Yet the rate of office building has not responded to these high prices – the increase in office space in most of these cities has been well below the national average.” Conversely, some of the more vulnerable economies such as Bolton and Blackburn have seen the most growth in floorspace despite having weaker property markets. In Blackburn between 2000 and 2008, around 58 new offices were
City City average Reading Aldershot Crawley Cambridge Oxford York Peterborough Northampton Cardiff Milton Keynes
Rental index (2000) 100 215 201 199 173 122 120 117 112 110 109
established for every 1,000 new office jobs. By contrast, in Milton Keynes, one of the UK’s fastest growing cities, the figure was 35 new offices for 1,000 new jobs. One reason for lack of office growth in smaller cities is
Average annual growth in office-class floorspace 2000-8 2.1% 1.2% 1.7% 2.8% 1.6% 2.0% 3.4% 1.8% 1.4% 0.8% 1.7%
development is possible only where land is available and where local authorities allow it. A big marketing push is needed by councils in dynamic smaller cities so developers are as aware as they can be of business opportunities. www.fm-world.co.uk
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BUSINESS CONTINUITY P R O V I S I O N F O R T H E T E L E P H O N E S. I’ L L
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FM WORLD |7 JUNE 2012 |11
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Big names steady despite wobbly outlook GRAEME DAVIES email@example.com
Analysts have long argued that companies in the FM sector with their long-dated order books stuffed with outsourced government and private sector contracts are a safe bet in tough equity markets. And a glance at the share price performance of some of the biggest FM operators over the past six months bears this out. The equity markets have suffered multiple shocks since the end of April as wobbles over the eurozone have laid waste to investor confidence. But despite the blue chip FTSE100 index falling by
around 7 per cent since the turn of the year, the majority of larger FM and outsourcing players have outperformed this benchmark. True, the likes of Interserve, which has fallen 10 per cent since the turn of the year, and Capita, which is down 4 per cent, have turned in negative performances. However, rivals such as Serco, Babcock International and Mitie have risen by between 10 and 15 per cent. This is impressive outperformance in any market, especially one where the recent sell-off has been pretty much indiscriminate. But those investors
who have stayed in the market have been looking for safe havens and companies such as these, which focus on long-dated contracted work mainly in the UK, are regarded as such. Huge order books lend some visibility to these businesses and give investors confidence in their ability to continue paying out decent dividends. A recent spate of results and contract wins underlines the confidence in some of the companies. Profit growth has been strong at companies such as Mitie, where annual profits were up 8.9 per cent, and Babcock, whose pre-tax profits rose by a whopping 56 per cent. Both companies are seeing the longer-term benefits of transforming acquisitions starting to come through: Mitie acquired Dalkia Facilities Management in 2009 and Babcock took over VT Group in 2010. Babcock’s best performing division was support services and the group’s total
NEW BUSINESS Norse Commercial Services has expanded an existing FM agreement with Norwich Research Park by adding cleaning, reception and catering as well as planned and reactive building maintenance at the Innovation Centre. The deal boosts Norse’s overall contract value to more than £1 million a year. Speciality chemicals company Johnson Matthey has awarded a three-year cleaning and support services contract worth £3 million to Incentive QAS for sites in Royston, Hertfordshire and Brimsdown, North London, covering daily office and industrial cleaning and washroom services, external road 12| 7 JUNE 2012| FM WORLD
sweeping, fork-lift driving, laundry management, post deliveries and waste management. Sercon Support Services has won contracts with Glasgow-based businesses Ardenglen Housing Association and Thenue Housing worth around £130,000. Sercon is providing close-cleaning and stair cleaning for Ardenglen’s housing stock and office cleaning for Thenue’s headquarters and service centres in the Glasgow area. Derwent FM has joined a national government document storage framework contract worth up to
£37.5 million a year. Derwent FM’s not-for-profit parent Derwent Living has partnered with a number of small- to medium-size sub-contractors and is responsible for the contract management, customer relationship management, helpdesk, supervisory software, reporting of management information and all on-site storage. Social landlord River Clyde Homes has appointed Lovell to carry out £3.3 million worth of upgrades to 880 homes in Inverclyde, Scotland so they meet the Scottish Housing Quality Standard. Creativevents has won a five-year £5 million catering and hospitality contract with Brooklands Museum. The deal is an early extension mid-way through the initial three-year contract. Interserve has won a five-year total FM contract with Alliance Boots. They will now handle eight office locations, including the head office in London.
order book is now up to £13 billion. Illustrating just how visible these companies are, Babcock already has almost three quarters of next year’s revenues booked. Mitie’s order book has risen by 25 per cent over the past year and is now just shy of £9 billion. Chief executive Ruby McGregor-Smith puts the expanding order book down to the growing breadth of services the company can offer to clients. Elsewhere in the sector, contract wins have boosted confidence in other companies. For example, Interserve has won two contracts worth £200 million in total, one with West Yorkshire Police to build and maintain divisional headquarters buildings, and the other at Alder Hey hospital in Liverpool for FM services. The ministry of justice, the police and the health service are expected to be major growth sectors for outsourced public services over the coming years. Indeed, Interserve and Mitie are already in competition over the prospect of running several prisons. Within the past few weeks, analysts from Jefferies have forecast another wave of public sector outsourcing, which, if they are correct, will deliver £4 billion of incremental revenue. This will particularly benefit the big players like Serco and Capita. Analysts pointed out that much of this value is currently held in ‘prospect’ lists by the companies involved and is not yet visible to investors so should provide a welcome boost to organic revenue growth. This suggests that the value investors see in these companies during the downturn will also prove to be alluring as and when the markets turn as growth in profits and dividends kicks in. Graeme Davies writes for Investors Chronicle www.fm-world.co.uk
Mitie gets total FM revenue boost Long-term focus on total FM contracts by the public and private sectors has kept Mitie revenues and profit high. The company saw revenue increase 5.9 per cent and operating profit jump 7.2 per cent for the year ended 31 March 2012. Revenue was £2,002.5 million, of which 5.4 per cent was organic growth. Operating profit before tax was £111.76 million. The order book at the end of the year was up 26 per cent on the same time last year, to £8.6 billion. Potential bid activity “remains buoyant” and stands at £11.2 billion (2011: £11.4 billion).
BUSINESS BRIEFS Sussex Uni tenders for FM
Mitie gears up for TFM contracts
Mitie also reported that it has secured 83 per cent of 2012/13 budgeted revenue, up from 81 per cent for the same period last year. Mitie’s FM division, which has a client retention rate of 94 per cent, has “performed particularly well in the financial services, transport and retail sectors”. Overall, Mitie has benefited from companies looking to slim down their supply chain through allotting national contracts. In the public sector, Mitie said it remains focused on the justice, social housing, education and health sectors. The Home Office and Ministry of Justice have a
five-year plan running to 2015 within which they have savings targets of 25 per cent over four years. Energy services business accounts for 34 per cent of Mitie revenue. The acquisition of energy consultancy and procurement agency Utilyx in January gives Mitie a complete energy service, from installation and maintenance of equipment to strategic energy planning and purchase. Mitie also recently secured a three-year contract with Bristol City Council to provide public space surveillance (PSS) CCTV operators for housing estates. ● See In Focus, page 14
Imtech boosts turnover and profit Imtech UK, which includes Inviron, achieved a 51 per cent increase in turnover last year to £514.6 million, up from £340.7 million in 2010. Imtech UK’s profit before deduction of interest, tax and amortization expenses almost doubled from £16.6 million in 2010 to £29.2 million in 2011, Imtech’s annual results show. Inviron was an employee-owned, mostly hard FM business when Dutch technical services provider Imtech bought it for an undisclosed sum in February last year. Inviron had a turnover of around £130 million a year and employed nearly 1,100 people at the time of the takeover. Last year Imtech also bought the Smith Group, a construction-to-FM business based in Kirkham, www.fm-world.co.uk
Jim Steele, Imtech UK chief executive
Lancashire. Their other UK businesses include Imtech Aqua, Imtech G&H, Imtech Meica, and Imtech Marine and Offshore. The Inviron and Smith deals were part of a strategy by parent group Imtech, based in Gouda, to boost global revenue to around £6.4 billion by 2015, the company said at the time of the acquisitions. Jim Steele, chief executive of Imtech UK and Ireland, said growth
last year was through the combination of acquisition and contract wins. “Looking forward, our business is underpinned by a strong net cash position of £68 million and an order book of £550 million,” he said. “Altogether, this demonstrates our strong foundations and solid growth.” Last year, the parent company in Gouda had a turnover of more than £4 billion. The order book at yearend was up 12 per cent to over £4,644 million. Earlier this year, Imtech Aqua won ‘Contractor of Year’ by the Chartered Institution of Building Services Engineers for its demolition and redevelopment work at Anglia Ruskin University in Cambridge.
The University of Sussex is outsourcing its estates and facilities services, which are run in-house at an annual cost of £20 million. The contract is to manage around 200,000 square metres (2.15 million square feet) of floor area, rising to 240,000 square metres (nearly 2.6 million square feet) by 2015. Around 168 people would transfer to the new provider. Grounds maintenance and most cleaning and laundry services are already outsourced. Completed pre-qualification questionnaires must be returned electronically no later than June 11.
Servest buys Stag Security Servest Multi-Service Group has bought Stag Security Services for an undisclosed sum. Stag was established in 2002, has 800 people and a turnover of £15 million. The combined businesses will have an annual turnover of £100 million. The growth strategy is to reach a turnover of £300 million by 2014. (see In Focus, page 14)
Compass revenue up 8.6% High contract retention as well as new business has boosted Compass Group’s revenue by 8.6 per cent for the first half of this year. Revenue for the six months ended 31 March 2012 was £8.6 billion, up from £7.9 billion for the same period last year. Profit before tax was up 10 per cent to £581 million, rising from £528 million.
Revenue up 7.5% for G4S G4S grew overall revenue by 7.5 per cent in the first quarter this year compared to the same period last year, helped by its Olympic Games contract, according to the interim management statement covering the period 1 January to 31 March, 2012. FM WORLD |7 JUNE 2012 |13
FM BUSINESS IN FOCUS
THE ISSUE Whitehall is sold on total FM contracts, but do local authorities and big ﬁrms agree?
THE INTERVIEWEE Paul Jones, partner and support services specialist with Clearwater Corporate Finance
All together, now? In its recently issued year-end results, Mitie stated that total facilities management (TFM) is a major growth area for the business. At the same time, the UK division of South African cleaning business Servest bought Stag Security Services as part of a strategy to grow a £100 million turnover to £300 million by 2014. The Stag purchase follows that of Turners Cleaning and Support Services last October and Servest’s 2008 purchase of Sherwood, a provider of integrated on-site support services to blue-chip businesses and public sector organisations. Servest’s purchase of Stag is not unusual, even in the UK’s depressed economy, says the man who helped broker the deal on behalf of Stag. More such deals are likely as FM service providers, be they large, medium or small, gear up for local authority contracts. But clients, both pubic and private, face several questions: what to outsource, how much of it to outsource and what kind of contract is best – bundled or TFM? The Servest-Stag acquisition is typical of a very active market where medium-size businesses are looking for small ones with a turnover of between £10 million and £20 million, even up to £50 million, Paul Jones, a partner and support services specialist at Clearwater Corporate Finance, told FM World. 14| 7 JUNE 2012| FM WORLD
These acquisitions are “in-fill” purchases, he says, where the medium-size business is aiming to fill in a service for a regional need. Medium-size businesses are looking to capture that local authority and regional business market where bundled services is a growth area, but still small in comparison to the overall FM outsource potential. Jones, who has worked in the business for 20 years, believes that only 5 per cent of SME support services firms have bundled contracts versus single contracts. One reason is that a local authority client may not be offered great savings by going with a single supplier for, say, cleaning at several sites. The SME supplier’s costs may remain high regardless of the number of sites. The same is true for regional property company clients that may own, for example, 10 office buildings in different cities. If a building is multi-tenanted, then it can be difficult to get a sufficient number of tenants to agree to go with the property owner’s cleaner.
However, the retail market is seeing more of a move towards bundled contracts, particularly in cleaning and security. Retailers are under great pressure to reduce costs and they are looking at service providers with a national presence. Service providers can make efficiencies partly due to the fact many retail stores are identical and have similar needs. Within local authorities, bundling contracts can be like “turkeys voting for Christmas”, says Jones. If they bundle out enough services, then “the FM can do him or herself out of a job, or at least get Tuped over,” he says. In effect, a tipping point is reached whereby supplier and client would have to decide whether to make it a TFM contract. In this case, the layer of FM management is stripped out of the client, moving to supplier, not something the in-house FM manager may wish. Even with this bias against TFM in the local authority market, many large service providers of TFM operating in the central government market are eyeing up
“THE SERVEST-STAG ACQUISITION IS TYPICAL OF A VERY ACTIVE MARKET WHERE MEDIUM-SIZE BUSINESSES ARE LOOKING FOR SMALL ONES WITH TURNOVER OF £10-20 MILLION”
council deals. Also, Whitehall is already well outsourced in TFM deals in the education, police and justice sectors. But rather than moving toward TFM, a lot of councils are grouping together to bundle deals through the many buying consortia such as Norse, says Jones. Large providers will be looking for “platform deal” acquisitions, where they pick up smaller support services businesses, paying in the region of £50 million for ones with a strong national presence. SMEs are likely to be asking what might TFM contracts, whether in local authorities or national multi-site businesses, mean for their business? Shrinking margins is one thing, notes Jones. Real efficiencies come when managerial layers are taken out of the client’s structure and the TFM provider slims down their admin and management systems. After that, Jones believes, it’s about squeezing the supply chain’s operational and profit margins. In the repairs and maintenance market for public social housing and private housing associations, a decade ago, there were more SME providers, and margins were about 10 per cent. But big providers are winning more of the work and their margins are 2-3 per cent, says Jones. David Arminas is FM World’s news editor
FM EVENT FACILITIES SHOW 2012
SHOW AND TELL
This year’s Facilities Show proved that, despite the internet age, gatherings of like-minded people at exhibitions still create useful debate, particularly in our sector
n a session chaired by BIFM deputy chairman Liz Kentish, the thorny topic of FM’s demographic timebomb (see FM World, 22 march 2012) saw a variety of common themes getting an airing. Jason Gurd, site services co-ordinator at PepsiCo., was optimistic about the possibility of a shortfall in new FMs replacing older ones because recent activity suggested more interest from young people, a result of a better-defined career pathway and organisations’ more sophisticated demands for facilities qualifications. Instead, said Gurd, “we need to start showing our businesses what we can really do; that we’re a proper management function. Gurd suggested that FMs consider producing annual reports, whether they’re asked for or not. “No one has ever asked an FM to start producing annual reports; they wouldn’t dream that it was something of interest. But if you produce one anyway, the information it contains becomes interesting to the business. In ours we talk about productivity, service, customer satisfaction – the same language the board gets in reports from other departments.
15_Facilities show.indd 15
Nikki Dallas, managing director of Talent FM said that dealing with the ‘timebomb’ was a question of training and development of people, and the ability to transfer skills. But Dallas also said that clients “need to be a little more creative in the talent they’re looking for. Unfortunately, I still get very specific job specs; generally, there’s little desire to look at the wider talent pool.” Dallas also said that “there’s been a massive increase in the last seven years of people understanding what FM involves. I did some work in a school recently, and quite a few of the children there knew what FM was, perhaps a result of parents or family working in the sector.” From the chair, Liz Kentish wondered whether “those of us in our prime” might in fact be reticent to share their experience with younger FMs. “I do wonder if there is enough knowledge sharing from experienced FMs passing on their thoughts.” In a debate on whether FM could be innovative, Maxwell Segal, innovations director at GSH expressed concern that with outsourced service providers constantly squeezed on margins,
Most sessions at the Facilities Show were well attended by visitors
“innovation may end up more inwardly focused rather than instigated by the outsourced FM provider.” In the same debate, Nazali Mohd Noor, senior lecturer, Facilities and Property Management, Liverpool John Moores University, spoke about his Malaysian roots. “The beautiful part of being Malaysian is that the practice of FM in Malaysia is ten years behind what you have in the UK – so whatever you get over here, it’s innovation in Malaysia. “The Malaysian Ministry of Work has just recently launched our first national asset management policy, and that’s all down to you guys! “I’m currently conducting a research project on the BS11000 collaboration standard. And what I’ve learned from service providers is that contract terms are not long enough for innovation to be possible. From
the client’s perspective they don’t want to be in a long-term relationship, so therein lies the problem. How do we meet in-between? Mike Cant, director of Larch Consulting, agreed. “I think there is an issue in terms of length of contract. We also have a serious problem with FM procurement and good practice, although that’s another debate.” Channel 4’s Julie Kortens, fresh from being appointed as the new chairman of BIFM’s Women in FM special interest group, thought that while pressure came from the client side to see innovation on contracts – particularly in organisations with younger and more demanding generations to cater for – it was possible to glean a lot from service providers from work carried out on similar contracts. The next Facilities Show will take place between 14-16 May 2013
FM WORLD |7 JUNE 2012 |15
FM OPINION THE DIARY COLUMNFINBARR MURRAY
“TO CHANGE BEHAVIOUR, YOU NEED TO UNDERSTAND WHAT MOTIVATES PEOPLE AND IDENTIFY WAYS YOU CAN WORK WITH THEIR MOTIVATION”
At the time of writing, Finbarr Murray was head of FM at Croydon Borough Council.
DEM AN D MANAGEM EN T
emand management is a technique that involves understanding your customers’ motivations and trying to alter their behaviour, explains Finbarr Murray
I’ve recently been experimenting with a technique of management known as ‘demand management’. Put simply, it involves trying to influence the behaviour of your customers to reduce the demand for services, hence reducing expenditure. So how does it work? In straightforward terms, the idea is to influence positive behaviours and in doing so decrease negative or costly behaviours, making existing spending more effective. This is the easy part: think
about the behaviours of your customers that you’d love to be able to magic away – messy tea points, the need to print everything in colour, not closing that security door... And now, rather than reacting in the traditional way by thinking about all the new rules you could deploy to stamp these annoying issues out, instead think about how you could go about influencing these negative behaviours positively, thereby reducing the demand on your cleaning, print-room
and security people respectively. Once you understand what is driving demand for services, identifying the behaviours you want to influence is usually quite straightforward. The more difficult part of demand management is working out how you go about changing them. To change behaviour you need to understand what motivates people and identify ways you can work with their motivation to change behaviours. To do this positively, you need to engage and consult with the users. For example, I engage contract cleaners to clean up discarded cigarette butts. But this is money I’d rather spend elsewhere, given that as soon as the areas are cleaned, they need attention again. You can put up signs to warn smokers of the ‘no smoking’
areas or the penalties for littering, but by using demand management techniques to influence the behaviour of smokers, you can impact on the litter. We’ve therefore begun trialling free personal pocket ashtrays, influencing behaviour by encouraging the smoker to empty the ashtray when full or near a rubbish bin. We’ve seen a significant reduction on the demand for cleaning up discarded butts. It’s simple and it works the same for more complex or difficult issues. By understanding the motivation and the behaviour, you understand the demands and as a result you can, with the support of the users, positively influence a range of service demands across your portfolio. Give it a go, and once you start, you’ll find it hard to stop.
BEST OF THE WEB Views and comments from across the web BIFM LinkedIn group: Why do managed services companies perform so poorly, and why do they not do more to sort out these issues? Anne Lennox-Martin: I question the way managed services companies are managed by their clients. In my experience, both client and supply side, there is rarely a company that is performing well on every account and similarly there is rarely a company that is failing on 16| 7 JUNE 2012| FM WORLD
every account. Keith L: From my experience, the smaller service providers can demonstrate more flexibility. They are less likely to be forced to use ‘preferred’ sub-contractors or purchase from ‘recommended’ suppliers. Stephen Moore: What needs to be addressed are the basics of sourcing the right contractor under the right contract in the first place. This initial specification ensures
both parties are aware of exactly what is expected of each of them.
are based on factory testing and not field conditions.
BIFM LinkedIn group: How do you prove an energy-saving solution is performing to specifications stated/ claimed by suppliers? Bob Beattie: On the mechanical side, the manufacturer’s data has to be relied upon, based as it is around standards such as Eurovent and others. The one proviso is that certain performances
BIFM LinkedIn group: From an FM point of view, what single change would you like to magically happen to your current air-con and ventilation systems? Keith L: For it to be maintained correctly. A few years ago, I took part in an exercise where we sent a small task force into 100 key sites for a client. The task force
was asked to undertake a full and comprehensive maintenance of the HVAC systems on site. Almost every site was found to require work, condensers cleaned, motors/belts changed, coils cleaned and filters changed etc... as well as dampers and BMS settings adjusted. The total exercise cost over £500,000 for the client. However they saved over £1 million in reduced energy over the following 12 months. www.fm-world.co.uk
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BEST OF THE
FMWORLD BLOGS The WiFi and wherefores of remote working Dave Arminas, FM World This morning I coulda sworn that a particular businessman in my local Starbucks had also been there yesterday, and at the exact same time. At the same table by the door, in the same seat, wearing the same suit and with the same technology spread around him – opened lap-top along with a mobile phone and ear-plugs. Apparently it could very well have been, according to recent research from the US, as reported by The Telegraph. The world of work is changing, as all good FMs know. But the wonders of technology – coupled with a desire by businesses to save money through having fewer desks in the office than employees – has given us hordes of wandering workers lugging their lap-tops around looking for a place to set up shop. “Changing work habits have created a new class of teleworkers for whom the office is wherever they can access a wireless signal,” according to the report Dibs! Customer Territorial Behaviours, published in the Journal of Service Research. My man hunkered down in my local Starbucks could have been a Wi-Fi “lingerer”, as the report would call him. He might have been lured in by a free or almost free internet connection, which is the life-line – nay, lifeblood! – for these Bedouin businessmen. Like all tribal people, he can get rather aggressively territorial, as the report suggests, causing disputes with customers. Also, to the dismay of the coffee shop staff and owner, his presence and behaviour can reduce sales by scaring off customers. According to the Telegraph report, “in pursuit of undistracted privacy” their territorial behaviours “communicate to other customers that intrusion is not welcome”. Disputes with staff and customers have been recorded, the research noted. What the advocates of teleworking never tell us is exactly where these deskchallenged employees are to work. Standing up in a corner somewhere so they take up as little space as possible? After reading the article I shall now be on the lookout for suspected “café conquerers”, as the report calls them. Anyway, what’s the matter with these people? Don’t they have an office to go to?
More interesting blogs FM United? “If a number of major players got together, including providers, trade and professional bodies, exhibition organisers and publishers, it should be possible to agree and fund a campaign to promote FM to a wider business audience – maybe even to the public.” Richard Byatt of Magenta Associates on promoting FM. Read the rest at: www.magentaassociates.co.uk/2012/05/fm-united-2/
Why you should turn down that counter offer “You have just been offered a new facilities management role, it is now time to speak to your employer and give them the news you are leaving for pastures new. But wait, they have delivered just what you didn’t expect, a counter offer with more money! A counter offer may be very appealing in terms of a pay increase and you will no doubt be flattered – but is accepting it really your best facilities management career move?” Dominic Bradley, recruiter at Maxwell Stephens, answers that question at: bit.ly/L8mW7k
FIVE MINUTES WITH NAME: Simon Pratt JOB TITLE: Managing director, Portico
Where do you think the battleground for frontof-house services will be over the next decade? Demand will move beyond the major cities, although the market for bespoke front-of-house services is still currently London-centric. At Portico, we have already extended our portfolio to provide services for a number of corporate clients outside of London in cities such as Glasgow, Edinburgh, Leeds and Manchester and we will continue to develop these markets. Walk-in medical services are just one aspect of future concierge services – what other areas of innovation do you envisage? I envisage a concierge service able to provide a solution to any request, which is then researched and executed to the satisfaction of the customer. This could be the exchange of foreign currency, the hiring of the latest Aston Martin for the weekend, or ordering an employee’s weekly shop with Ocado, for example. What needs to happen for there to be a good supply of quality concierge staff in the future? Training, development and promotional opportunities are a key factor, as is remuneration. This all needs to be carefully considered and smartly implemented. How does a front-of-house service provider distinguish itself from its competition? By keeping it simple and actually delivering on its promise and commitment, which is to provide a team of highly engaged individuals who are trained to the bespoke requirements for clients and who deliver warm and friendly service, from the heart. Are front-of-house services proving a competitive advantage in the race by high-profile buildings to attract tenants? A building offering exceptional front-of-house services will ultimately have the edge over the competition, as tenants are increasingly aware of that ‘moment of truth’ when their client, guest or employee arrives at the building. They want the first impression to be a positive reflection of their brand. FM WORLD |7 JUNE 2012 |17
FM FEATURE PANDEMICS ANDREA KIRKBY
WARNING 18| 7 JUNE 2012| FM WORLD
ith 5.3 million extra tourists arriving for the Olympics, the risk of avian flu and other pandemics arriving in the UK has greatly increased. But back in December 2005, the Lords Select Committee on Science and Technology said the country was not ready to defend itself against an avian flu pandemic. Have things changed since? According to Dr Doug Quarry, medical director of International SOS Pandemic Planning Services, the spread of the H5N1 virus is not the only issue – new strains have developed, too. Has preparedness kept up to date with the risk, or are we becoming dangerously complacent? Globally, government preparedness varies widely. But overall, in terms of healthcare, preparedness has certainly improved. Major vaccine manufacturers ramped up their capabilities in 2006 and the UK government stockpiled 16,000 doses of Pandemix. In fact, now the political issue is whether the UK government has bought too much vaccine and paid too high a price. The government also put a detailed pandemic strategy in place, which was overhauled in 2011. However, while this covers NHS and social services preparedness in detail, it’s pretty vague on how businesses will cope. Generally, it foresees ‘business as usual’; borders won’t be closed, nor will schools, and while events organisers ‘may prefer’ to cancel major events, there will be no government compulsion. Unfortunately, that throws the entire burden
for preparedness on to individual businesses. And the Association of British Insurers says business interruption policies are unlikely to cover closures as a result of an influenza epidemic. In terms of medical preparedness, a number of businesses are now stockpiling antivirals for key staff and their families. But that’s only the tip of a very large iceberg. Bird flu or swine flu here and in the rest of the world could have a major impact on businesses in many different areas of operations. Logistics is an obvious area where business continuity plans will be vital. Even if the UK itself isn’t affected, companies that import supplies or outsource parts of their business process are at risk from outbreaks in other countries. British business is now highly dependent on the Far East for its components and sub-assemblies. Call centres in other countries could also be badly affected. Continuity plans need to enable a speedy response. Australia declared it would close its borders within two hours in the event of a bird-flu pandemic – that would give businesses little time to prepare.
Know your own needs Many companies are handicapped by lack of detailed knowledge of their own supply chains. For instance, multiple sourcing won’t help if suppliers all depend on a single crop or base component manufacturer. Service Level Agreements should help guarantee supply, but strategic stockpiling may be necessary. Within the UK, cash handling and postal services
ILLUSTRATION: NAZARIO GRAZIANO
A viral pandemic has the potential to cripple the nation’s workforce and infrastructure. Where does government provision end and your contingency planning begin? By Andrea Kirkby
FM FEATURE PANDEMICS ANDREA KIRKBY
are likely to prove bottlenecks – cash handling was one of the concerns arising from the FSA’s marketwide exercise in 2006. Neither banks nor the Post Office are on the government’s list of Category 2 responders, although arguably they are as vital to the smooth running of the nation as the railways or ports. Smaller bank branches could have to close if staff are sick, leaving some areas without banking facilities and ATM top-ups depend on transport, which could be knocked out early in a pandemic. Businesses will also rely on telecoms and so network resilience is a major issue. While telecoms companies (both fixed and mobile) are listed as Category 2 responders, facilities will be stretched, particularly where companies have told staff to work from home. Some companies are now looking at the possibility of using distributed or ‘virtual’ call centres, possible using such services as OPEX hosting. Routing calls to employees’ homes rather than setting up large emergency centres may well be the best way to cope with a pandemic (although ironically, the government plans to set up a centralised public information call centre – just the kind of facility businesses are likely to be avoiding.) Will the internet stand up to increased usage? There are real concerns about the ability of service providers to cope with the increased traffic. A Booz Allen report in April 2006 speculated that internet provision might only last two to four days into a pandemic. Even then, Jeroen Meijer, an expert in risk at Control Risks, says he believes that working from home requires a completely different way of managing staff. “Businesses will have to change and change fast, or their plans won’t stick.” While most business continuity plans are focused on assets – offices and IT – pandemic preparedness has to focus on human resources. Meijer says: “It’s like a neutron bomb – your hardware is still there, but you are losing your staff.”
Worst-case scenarios Government advice appears to understate the risks to business. The 2011 UK Influenza Preparedness Strategy sees the worst-case scenario as flu affecting 50 per cent of the population, with 15 to 20 per cent of staff absent on any single day, and mortality rates of 2 to 5 per cent. However, the 2006 FSA market-wide exercise modelled staff absence as high as a 60 per cent peak in some business units. Businesses with a high proportion of female, particularly part-time, staff also need to assess the likelihood of staff who are not ill having to look after children if schools close. Meijer points out that most business systems aren’t yet able to offer staff absence data in a form 20| 7 JUNE 2012| FM WORLD
that’s useful in stress situations. “Absenteeism monitoring is crucial and not many companies have it on a day-to-day basis, so you could say with one push on the button, who is available where.” This is one area where, compared to the sophisticated systems with which many supply chains are run, human resources scores relatively low. A pandemic is difficult to protect against since it is not a singular event; pandemics typically come in waves lasting six to 15 months. Flexibility has to be built in; equally, companies need trusted sources of information to monitor the pandemic internationally and that feedback will provide the triggers to action. Meijer warns against believing in a “one-button solution” to a dynamic threat. “Your decisionmaking process needs to incorporate flexibility and continuous monitoring.” Fortunately, one area that has advanced a good deal recently has been the availability of good information. National media will generally not report in detail on the situation in other countries – affecting the supply chain – while some governments may downplay the situation in order to avoid panic. There are no government plans for a business-orientated information service, so all public information will be consumer focused and therefore
FM QUICK FACTS
Estimated UK population affected by flu pandemic in worst-case scenario
Mortality rate caused by flu pandemic in worst-case scenario
of limited utility to the business manager. Fortunately, a wide range of information products is now available. For instance, International SOS reports include the ascertaining of medical suppliers and reports monitoring government response.
Keep calm and carry on? One question divides experts: how bad can a pandemic get? At worst, some believe, most of the transport infrastructure might be shut down, telecoms would be badly impacted by lack of maintenance and high usage, and there could be public order problems if the supply of food and other basic items is interrupted. In the face of a social breakdown of that order, there might seem to be no point planning. However, Jeroen Meijer says that even in this case, those businesses that have planned well will gain an eventual competitive advantage from having done so. “The objective is to stay in business as long as possible and if you have to shut down completely, do it in a controlled manner that provides the best security to your staff and assets, and enables you to restart operations quickly and efficiently.” It’s difficult to judge business preparedness, since many businesses won’t talk about their preparations. www.fm-world.co.uk
Most companies do now have pandemic plans as part of their business continuity framework, but those plans may not have been revisited for several years. Perhaps they should be. There’s a huge impact on the work of facilities managers. A plan needs to be put in place for managing the consequences of a pandemic – checking sanitation and air quality, handling high absenteeism and planning for interruption to basic services and to transport. Basic cleaning services should be stepped up – that might mean cleaning lift buttons, door handles, ATM machines and check-in desks as often as hourly. That means increasing the level of service at the same time as managing a staff shortage – not an easy task. Cross-training staff so that they can step in to replace staff who are absent will be vital – particularly where remote working is not a possibility. In some cases, upgrading systems to allow for remote operation could be a good investment. Some facilities may need to implement perimeter protection, possibly including thermal scanners (which can detect if someone has a fever) or even DNA testing. New procedures for deliveries may be required to prevent drivers from entering the building – dropping off the deliveries in a secure car park, for instance. Where security is provided by a contractor, common policies and procedures need to be developed with them, including where staff are not admitted, what to do next (send them home? To hospital?) and who to notify within the organisation. Facilities managers also need to ensure that subcontractors and suppliers have plans to deal with a pandemic. Unlike many disasters, a pandemic will be a sustained event, probably lasting eight to 14 weeks, so planning needs to take that into account. For instance, stocks of critical supplies may need to be built up. Tenant relations and contracts also need to be put under the microscope. If the government or a tenant closes a building, how can you continue to manage it? Are you going to be required – and are you going to be able – to provide emergency relocation for the tenant? However, while the pandemic threat does have some special characteristics, developing a specific pandemic plan could be a waste of effort. Rather, pandemic plans should be developed within the framework of overall continuity plans. The most worrying gap is the absence of government involvement in assuring the regular supply of basic goods. Booz Allen Hamilton noted back in 2006 that government needs to assure the ‘last mile’ – but the 2011 strategy still doesn’t seem to have taken any notice. Is reliance on the private sector, without compulsion or assistance, a responsible government strategy? FM
“Pandemic preparedness has to focus on human resources. It’s like a neutron bomb – your hardware is still there, but you are losing your staff”
FM WORLD |7 JUNE 2012 |21
FM FEATURE GARETH TANCRED MARTIN READ
In February, Gareth Tancred became full-time chief executive of the BIFM. So how did he make it to here? And what is his vision for the institute?
TOP MAN areth Tancred’s appointment as BIFM chief executive followed five months of doing the same job in an interim capacity and just over two years as the institute’s chief operating officer. As the new man at the top, he is acutely aware that his is a high profile position in an institute representing a dynamic, often misunderstood sector. Since his appointment as interim chief executive last October, Tancred has overseen plenty of change to the institute. It’s a work in progress and more announcements can be expected. But Tancred speaks of a more
PHOTOGRAPHY: SAM KESTEVEN
22| 7 JUNE 2012| FM WORLD
agile organisation with faster decision-making processes, more transparency and less aversion to risk – all issues that he readily admits the institute has been criticised for in the past. Tancred is also keen to make the institute a more rewarding organisation to work for, giving managers more leeway to get things done without necessarily going through the existing bureaucracy. “In the past, most decisions have been made from the top,” he says. “We’re empowering our people to make more decisions, giving them more responsibility where we can. We restructured
earlier this year at executive team level, and now we’re in the process of re-engineering our management team. “We’re also streamlining the front end of the business, speeding up our processes and making them more integrated with our individual and corporate members. In the past, we’ve had separate front-facing parts of the business. We’re re-organising around a more process-focused view, ironing out some of the creases. Our new website project is key to these process changes and, as a spin-off, that will give us some internal process improvements too.”
Tancred emphasises how his career history makes him particularly well qualified for this role. Although an accountant by profession, he’s keen to debunk the assertion that he’s just a numbers man. “For me it’s an absolute positive that I have a financial background. One of the things about chartered management accountants is that they are accountants for business – and that means you get to know a lot about running an organisation, not just running the numbers. “In the past I’ve inherited property portfolios; acquired properties, disposed of them and managed fit-outs. I was at the heart of projects managing that. In two or three organisations, I had the responsibility for FM without fully realising it at the time. “Also, I’ve been a member of professional institutes for the best part of 20 years, so I already knew a lot about them before I joined the BIFM. I’d obviously done my homework before I came here, but what still surprised me was the speed at which institutes work compared to private businesses. Because of their business model as not-forprofit organisations, institutes typically don’t have the number of dedicated non-executive www.fm-world.co.uk
FM FEATURE GARETH TANCRED
directors that firms in the private sector have. You become reliant on volunteers, and although volunteers are excellent – particularly this institute’s – it’s a process that can slow things down, as they all have day jobs”. Giving the BIFM the kind of speed of response and agility of a private business is a challenge Tancred relishes and he’s already looking at comparable membership organisations to see what lessons the institute can learn from them. “What motivates me is making a difference. In this role I see a huge opportunity for FM. If you look at the big issues of the day – cost consciousness, the carbon agenda, welfare – FM has a significant role to play. As the institute representing it, we should have a voice and we should be helping the people in our sector to address the issues on those agendas. Tancred also has ambitions to increase the reach of the institute. “When you look at the size of the sector, it feels that we should be bigger. FM in the UK is world renowned, but in some countries they’re where we were 20 years ago. What opportunities do we at the institute have to influence FM across the rest of world? That seems to me an important question to ask. “As for my personal motivation, I’ve always liked working with and helping to develop people. I really enjoy keeping in touch with people I’ve worked with over the years.” So that’s the motivation, but what of the inspiration? Who are the business leaders Tancred admires? Sir John Harvey-Jones stands out in particular. “He was always outspoken and quite controversial. But he took ICI from a loss-making business into one that posted the first billionpound annual profit of any company in the UK. The way he 24| 7 JUNE 2012| FM WORLD
worked was inspirational to me.” And then there’s the publicityshy Richard Branson. “People either love him or hate him,” says Tancred, “but what inspires me is that he’s not afraid of a challenge – he will take on a project that looks impossible and puts good people in place to make it happen. Also, he never asks people to do things he wouldn’t do himself. As a leader, being able to show to your team that you’re not asking them to do anything you wouldn’t do yourself is a very important quality in my book.”
“This is not a business I own. I can’t just go off in one direction. We’re a membership organisation and we need to listen to what our members want”
Breaking the mould “I’ve spent 20 years as an accountant, but I’ve never seen myself simply moving from one financial director’s role to another. I’ve always enjoyed getting outside of mainstream accounting so I’ve taken career choices that have given me exposure to more commercial areas. I’ve always seen myself as a general manager rather than simply a financial director. Getting a finance qualification has given me a good business grounding, but there are lots of other things in business I like doing. “I’m really enjoying this role and would probably have done something similar in another type of general management role. There is so much to this role and it’s great to meet so many leaders in so many organisations that I can learn from personally. We’re seeing the role of the FM change, with organisations increasingly aware of the value
OVERCOMING ADVERSITY ancred’s biggest business test, to date, occurred 15 years ago in one of his financial director roles. “I realised that the numbers presented to me at interview stage were no more than forecasts presented as reality. The company was virtually bankrupt. What’s more, it was going through the acquisition of a new head-office building that hadn’t been fully developed, and there simply wasn’t the money to complete it. Also, there was a huge delapidations bill going back to 1964 for which it had no provision and
it was in debt by a sum close to its annual turnover. “I had to refinance the debt, get the head office development up and running and renegotiate the delaps bill so that it could be paid over number of years. “It was tough, but we promised each member of staff that if we achieved all the targets we’d set, we’d buy everyone a holiday. And gradually, we did turn the business around, posting a 5 per cent profit. It felt really good to be able to tell everyone they were going to get that holiday.” www.fm-world.co.uk
FAMILY SNAPSHOT arried to Anne and with three adult children, Tancred likes to keep his private and professional lives separate. That said, he’s happy to admit to being an avid sports fan, having been a keen sportsman in his youth. Today, he’s more often a spectator rather than participant, with cricket and rugby his main passions. Says Tancred: “If there’s a rugby union match on, you’re welcome to come and watch it with me, but don’t choose that moment to talk to me about anything else going on in life…” A supporter of Northampton RFC, he has spent plenty of time following England both home and abroad.
He’s also a keen amateur photographer, as I learn from his relaxed attitude when posing for FM World’s exacting photographer Sam Kesteven. “I started learning when I was a lad. My dad was a photographer and he taught me the principles, although back then, the cost of film prohibited experimentation. These days, I’ve got a bit of kit at home. I do landscape and portraits, mainly friends and family. If we’re going out I tend to take the camera with me, much to the annoyance of Anne and the kids. But I just like to capture the moment. Also, I’m fortunate that my son is brilliant at Photoshop – he can put right anything I mess up.”
“Unfortunately, the accountants of this world don’t typically recognise FM as a sector and when presenting costs to the board, all of these component parts are broken down into disparate elements – insurance, rent, rates, lighting, heating, and so on. But when you lump all that together as property costs it soon becomes a very big number indeed.” He has a message for government, too: “If you want to drive better value from the UK’s building infrastructure and deliver all your environmental initiatives, who better to talk to than FMs? And if that’s the case, who better to talk to than the institute that represents those FMs? We are already very active in a number of
government forums to promote various things that help UK plc as a whole.” I ask Tancred what he thinks it takes to do this job. He pauses. “You need to be a good listener. This is not a business I own. I can’t just go off in my own direction. We’re a membership organisation – we need to listen to what our members want. “Also, it’s such a wide sector that we’re not always going to get things right first time. There’ll be people who’ll say you should be doing this and that, so I guess you also need broad shoulders and a thick skin. “Oh yes, and one more thing. You could really do with eight days a week…” FM
they get from their FMs. As an organisation, we need to adapt to what our members want and we’re already doing so. Take sustainability: it’s clearly a key issue for organisations and when we set up our sustainability special interest group [Sig] it quickly became one of our most successful Sigs. “I’m also enjoying meeting and getting to know the younger people in our profession. The FM World Rising Stars event [full report in the next edition, 21 June] was an opportunity to meet some of the up-and-coming people in the sector. Speaking to them, it’s clear that most have come out of university with all sorts of degrees, but have just found themselves in FM. I www.fm-world.co.uk
believe this is something we need to change. We need to make FM a career of choice rather than a career of chance. “One of the ways we can do that is develop appropriate pathways. At the moment, we’re working with Asset Skills to develop apprenticeship pathways and, of course, there’s the qualification framework from levels 3 to 7 to embed people into careers and is transportable with them. For young people thinking about a career in FM, it’s important that they can see all these things in place.” And Tancred believes his experience as an accountant allows him a good insight into how easy it is for people to underestimate the sector.
FM WORLD |7 JUNE 2012 |25
FM WORLD INTERVIEW MARTIN PICKARD LUCY JEYNES
Martin Pickard is one of the industry’s most recognisable figures, and a pioneer in its development. Here, consultant Lucy Jeynes asks him about going boldly where no FM... Photography: Sam Kesteven
LJ: So when did you first hear the term ‘facilities management’? MP: Around 1980, I was working at British Telecom doing relocations and fit-outs. BT was on a big push at the time to move everything out of London and we were doing a lot of work with Herman Miller, which had been working with user groups in the US on what finally became the IFMA. So I heard this term FM, 26| 7 JUNE 2012| FM WORLD
but it was clearly an American thing. It wasn’t until 1983, when Frank Duffy launched the Facilities Journal, with the famous rallying cry that “the occupier needs a voice” that I got really excited – because I worked out that FM was what I was doing and that it had a name. Ultimately, that led to a group of us getting together and forming the Association of Facilities Management (AFM).
CAPTAIN PICKARD www.fm-world.co.uk
The first meeting of like-minded souls was in 1983 and the formal formation of the AFM in 1985, but the dates fade. I know there were 35 founding members – all of us men, although Marilyn Standley joined soon after.
and wanted me to market it. I’d never heard of FM and in 1992 we didn’t even have Google to find out what it was. I had to see people physically and ask them what this thing ‘FM’ actually was.
LJ: I didn’t come across the term until about 1992. I’d been working for Crown Agents on the procurement side. It was starting a joint venture in the field of FM
MP: I remember when I was at the Post Office as building manager getting a letter from the director of the British Telecoms Building Management division
saying that “there was not and would never be a place for FM in BT” – a decision made on the basis that FM was this strange American invention and that, in fact, they already knew all they needed to know when it came to managing buildings. Of course, it was just a new name for the stuff we’d been doing before. LJ: In my case, the government had started compulsory
competitive tendering so suddenly the procurement of these services was key. MP: And that was when FM was just starting to be more about services. For the first ten years or so, FM was all about the design of the workplace, with very little ever said about management of services. But it’s interesting that we seem to have come full circle now – everyone’s talking FM WORLD |7 JUNE 2012 |27
FM WORLD INTERVIEW MARTIN PICKARD LUCY JEYNES
about the workplace again these days – workplace design, agile working, all that good stuff. The 20 years in the middle was all about service provision and outsourcing. That’s much less the case now. LJ: Now it’s all about what people need in the workplace rather than simply the maintenance of building assets. Crown Agents procured a lot of engineering, so we were just thinking we’d be able to do the same for the public sector, the universities, the colleges. Our focus was on looking after the assets; we didn’t really think about the people. But then soft services came in, and we were looking after the food rather than the people, the grounds rather than the people; pulling everything together around the people became the interesting part. That’s why ultimately I ended up on the consulting side, because I’d realised that it wasn’t anything like buying a commodity. MP: But there’s still a lot of that going on – an awful lot of people who think FM is simply about buying the same old stuff offthe-shelf, one size fits all. FM has always been about the people, which is what makes it fab. When I decided that delivering mail wasn’t for me, I got a clerical job in the payroll office thinking that would be a proper office job. I soon longed to be back going around the building talking to people. I thought working in personnel would be about working with people, but it absolutely wasn’t. Working in what was then called accommodation was about working with people. That is the thing at the core of FM. It’s about helping those people to do whatever they do. The building is incidental to that.
LJ: I lecture on the BIFM foundation course and every month there are 25 new people on it. They are so keen and enthusiastic; the course is never the same twice because you never get the same question twice. I would say, though, that when we first started there were never any young people or women. The age profile has come down a good 15 years and it’s a 50/50 gender mix now. MP: I echo all that. I started training with Quadrilect back in the 1990s and we still do a lot today. The number of women is definitely up and there are a lot more people making a choice to be in FM as opposed to going off on sick leave and finding out, they’ve been given FM to do on their return. There was a lot of that in the early days. But what do I like most about FM? The people. What frustrates me most about FM? The people! So many people just don’t raise their eyes above the daily reactive stuff to understand what it is they could do. It’s such a shame that you sometimes get these terrific brains in the sector who don’t stay because they don’t find it as rewarding and exciting as they should. Many of the competencies prevalent in great FMs – interpersonal skills, communication, project management, admin, creativity, problem solving – are all really valuable business skills. If you show that you’re really good at any of those things in a corporate, chances are you’ll be bumped upstairs into something that’s not FM related. We lose a lot of talent that way. One of the reasons I went supply side was because I was never going to get on the board of a telecoms company and I had ambitions to be in the boardroom. If you have serious www.fm-world.co.uk
“IF PEOPLE CAN FEEL FM’S CONTRIBUTION, THEN FM CAN START DELIVERING ON ITS POTENTIAL – AND THAT POTENTIAL IS HUGE” career aspirations in FM, the place to go is the supply side. LJ: Looking back, is there anything that you’d have done differently? MP: When I moved to the supply side, I was really fired up to set up an FM company that would deliver the kind of FM service I wanted when I was a customer: full of innovation and leadingedge ideas. I soon found out that actually what most people want is a safe pair of hands and reliable, consistent service. That was a disappointment, and I went about it all wrong. I was full of evangelical zeal but as I’ve got older I’ve realised that people just want to get the basics right, and that just doing that is pretty difficult in itself. LJ: Yes, that’s one of the challenges we face: there are a lot of customers not getting the basic FM service they want. MP: …and therefore developing a negative view of FM and what it can do for them. But we do ourselves no favours in this sector; we don’t sell ourselves
to business and society in the positive way we should. In fact, we spend too much time in little circles talking to ourselves instead of engaging with the wider business community. It frustrates me that people still don’t get what FM can really do. LJ: You’ve contributed to the development of various bodies in your time. MP: Yes, as council member of the AFM, council member of the BIFM, president of the IFMA UK chapter, and so on. I perhaps regret putting so much effort into all that and not into promoting the profession beyond its boundaries. But at the time it felt like the right thing to do. Of course, the world has changed. The challenge for us in the 1990s was in telling people what FM was. People get what it is now, but the challenge now is to get those same people to understand fully what FM can really deliver. It’s exciting to track the growth of the sector through the qualifications structure. In the 1980s, myself, Gideon Meade and Graham Riche – the education committee of the AFM – trawled
the country knocking on the doors of universities trying to find someone, anywhere, who’d be interested in running something to do with facilities management. They just weren’t interested – but now there’s a great long shopping list of options. LJ: And FM is an accepted term now – you hear it on Casualty and Eastenders. MP: Ah, but the challenge used to be that no one knew what FM was. Now it gets mentioned on television as you say, but you can bet it’s some building manager taking a bung for messing up the air conditioning or something, and not a positive role model. LJ: What do you see as the challenge for the next generation of FM professionals? MP: They’ve got to sell the contribution of FM to the broader business community, government and society. Eight per cent of GDP is spent on FM and yet the government and business hardly seems to know we exist. We have a great
professional institute and trade association, but compared to the size of thec facilities management sector they’re still pretty small. If people can feel FM’s contribution, then FM can start delivering on its potential – and that potential is huge. It should be a focus on outcomes – not inputs or outputs, but outcomes. What’s the result of the stuff we do? If we can measure that, people will flock to it. LJ: What would you have done if it hadn’t been FM? MP: There was a point where I had to choose between two professions – the other being a politician. So I would probably have been a political activist, journalist or elected member of some kind. LJ: You don’t think you might come back to that later? MP: What, you mean stop doing this? I’m never going to stop doing this… FM A longer version of this article is available online at www.fm-world. co.uk, together with video highlights of this and other interviews in the series.
The rise and rise of a guru NAME: Martin Pickard EDUCATION: QUALIFICATIONS: Awards: Winner of two BIFM awards in 1996; Winner of the BIFM Award for Excellence in FM Journalism 2005 and 2008; Freeman of the City of London
CAREER: 2007 – PRESENT: Managing Director, FM Guru Training (The Asset Faculty Ltd) 2003 – PRESENT: Managing Director, FM Guru Consultancy 2003 – PRESENT: Chief Executive Officer, Denton Business Services Ltd www.fm-world.co.uk
1996 – PRESENT: Managing Director, Denton Drapes 2006 – 2009: Non Executive Director, Facilient Ltd 2002 – 2003: Chief Executive Officer, Reliance Integrated Services 2000 – 2002: Managing Director, Citex 1989 – 2000: Head of Property & Business Services, Cellnet 1983 – 1989: Head of Estates – BT Mobile, BT Plc 1979 – 1983: Head of East Anglian Building Unit, BT Plc
FM WORLD |7 JUNE 2012 |29
FM MONITOR TONY THIARAY
Tony Thiaray is legal consultant at ICE Legal
ASB ESTOS REMOVA L
he legislation covering asbestos T in the UK is set to change. Tony Thiaray sums up the new rules and explains how it will affect your business Asbestos was traditionally used in buildings for its thermal and electrical insulation properties, as well as its high tensile strength. However, despite its use being banned in the UK, there are approximately 1.5 million asbestos-containing buildings nationwide. As most facilities managers know, contact with asbestos and its removal is heavily regulated by law, particularly in light of the implementation of the Control of Asbestos Regulations 2012 (the ‘2012 regulations’). Such compliance is necessary because it is a legal requirement for all duty holders of non-domestic premises to comply with the Control of Asbestos Regulations (as amended). Most facilities management companies will, or should, be familiar with the legislation applicable to the handling and management of asbestos, especially if they have responsibility for the repair and maintenance of premises. The key legislation in question is the Duty to Manage Asbestos (Regulation 4 of the Control of Asbestos at Work Regulations 2006), where the duty holder has a responsibility to: ● identify asbestos-containing materials (ACMs) present ● assess the risk posed by ACMs ● prepare a detailed written plan on how to manage the risk of asbestos ● implement the plan ● review and monitor the plan to 30| 7 JUNE 2012 | FM WORLD
ensure compliance with legislation at all times. Key point: The above legislation applies to all non-domestic premises. This includes all commercial, public and industrial premises. It will also apply to common parts of domestic premises, for example stairwells, lift shafts and corridors in a block of flats. The new regulations The 2012 regulations came into force on 6 April 2012, repealing, modifying and re-enacting the Control of Asbestos Regulations 2006 (the ‘2006 regulations’). The 2012 regulations were required as a result of a European Commission ruling that the omission in the 2006 regulations of certain terms from the EU directive on the protection of workers from the risk related to exposure to asbestos at work meant that the UK had failed to implement the directive fully. Effectively, the 2012 regulations change the current two-tier regime, where work with asbestos is either licensed or non-licensed, depending on whether it can be carried out by contractors who are not licensed. Arguably, one of the most
significant changes imposed by the 2012 regulations affects the current non-licensable work on asbestos that impinges on the vast majority of work carried out on asbestos within the UK. The non-licensable category is further split into two and an additional category is created termed ‘notifiable non-licensable work’ (NNLW), sitting between the current non-licensable and licensable categories. As from 6 April 2012, some non-licensed work will need to be notified to the relevant enforcing authority (using an online form at the HSE website). This category of work will be known as ‘notifiable non-licensed work’ (NNLW). In brief, NLNW will require: ● notification before work starts ● medical examinations every three years ● health records ● compliance with risk assessments ● control of exposure ● training requirement. The requirements in respect of licensable work have not changed and the 2012 regulations do not amend the requirements for carrying out risk assessments, planning work, implementing appropriate control measures and/ or training workers. The above amendments also update references to other areas of legislation such as REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals Regulations 2006). The 2012 regulations are also important for those submitting
“The 2012 regulations change the current two-tier regime, where asbestos work is either licensed or non-licensed”
tenders into the public sector for services or works including asbestos, or for bid writers working in organisations dealing with asbestos, such as FM companies, or specialist asbestos companies, which will be expected to be compliant with the 2012 regulations and who, in turn, may well have to demonstrate their compliance to the same when completing a PQQ or when writing a tender for a contract. Key point: In all cases, no matter what obligations or duties fall to each individual, group or organisation, the need to know the location, type and condition of asbestos-containing materials is paramount to ensure effective compliance. In order to locate, identify and assess asbestoscontaining materials, an asbestos survey of some type will be required. Summary In practice, the changes brought in by the 2012 regulations may be limited. Nevertheless, strict compliance is vital as the new laws will affect anyone who owns, occupies, manages, or otherwise has responsibilities for the maintenance and repair of buildings that may contain asbestos. Facilities management companies responsible for the repair or maintenance of such buildings, therefore, ought to be aware of the changes brought in by the 2012 regulations. They should re-familiarise themselves with all legislation relating to working with asbestos in order to avoid potentially large fines and criminal convictions, and ensure that any work involving asbestos is done safely and in compliance with the law. FM www.fm-world.co.uk
Court Report JET2.COM V BLACKPOOL AIRPORT LIMITED  EWCA CIV 417
Best Intentions THE ISSUE
Where a contracting party’s obligations are unclear, or where insufficiently precise descriptions of relevant ancillary matters are given (for example, appropriate qualitative and quantitative criteria pertaining to those obligations), this can generate fertile ground for dispute. Where phrases such as “best endeavours”, “reasonable endeavours” and “all reasonable endeavours” are used to define a party’s obligations, this is particularly the case. Any obligation that encompasses an “endeavours” element is inherently qualified and is therefore not absolute. But deciding where to draw the line between what is required and what is not is difficult. The recent Court of Appeal case Jet2.com Limited v Blackpool Airport Limited highlights these difficulties and looks at, among other things, the question of to what extent a party owing a “best endeavours” duty can take into account its own commercial position when considering to what extent it must comply with that duty. BACKGROUND
The agreement stated: “[Jet] and BAL will co-operate... and use their best endeavours to promote [Jet’s] low-cost services… and BAL will use all reasonable endeavours to
31_Court Report.sr.indd 32
provide a cost base that will facilitate [Jet’s] low cost pricing” (Clause 1). The agreement was silent as to operating hours. For four years, Jet operated services outside of normal operating hours. Following a deterioration in relations, in 2010 BAL notified Jet that it could no longer operate outside of normal hours. Jet issued proceedings seeking damages for breach of contract and a declaration. At first instance the judge ruled in favour of Jet. BAL appealed. ARGUMENT
BAL first argued that Clause 1 was akin to a contractual preamble and that the parties had not intended it to be legally binding. Furthermore, the objects of the “reasonable endeavours” were so uncertain as to be incapable of giving rise to a legally binding obligation. In the event that Clause 1 was held to be legally binding, BAL argued that it did no more than impose a duty on BAL to use its “best” or “all reasonable endeavours” (which the parties accepted had the same meaning in this context). This extended no further than “promoting” Jet’s services in the narrow sense, in other words to carrying out promotional and marketing activities. It did not require BAL to act contrary to its own commercial interests by keeping the airport open beyond normal hours, the cost of which was not recouped in extra revenue. In any event, the agreement did not operating hours.
Jet argued that Clause 1 did oblige BAL to allow it to operate flights outside of normal opening hours. It supported this argument by reference to the nature of the low-cost airline industry and its contention that the parties understood that in order for Jet’s business model to be viable, it would have to operate outside BA’s normal opening hours. Even though the agreement was silent on the matter of operating hours, the parties must therefore be taken to have understood that this was necessary. In addition, Jet argued that the word “promote” should be given a broader interpretation and that it meant “advance” rather than “advertise” or “market”. This therefore obliged BAL to take any steps that might help Jet’s business. In the alternative, Jet argued that BAL should be prevented from curtailing the operating hours by means of an estoppel arising out of the previous four years’ practice. DECISION
The Court of Appeal ruled in favour of Jet by a majority of two to one. An obligation to use “best endeavours” will be legally enforceable provided that the object is defined with sufficient certainty. In this case, the Clause 1 obligations were not uncertain and therefore bound BAL, although the court conceded that delineating their scope was a “more difficult question”. The obligation to use
best endeavours in this case meant that BAL had to do “all that it reasonably could do to enable [Jet’s] business to succeed and grow” and this extended to opening the airport early and late. With regards to BAL’s right to protect its own financial interests, the court held that BAL could not restrict the opening hours even if in so doing it incurred a loss. However, the duty was not infinite: if Jet were bound to lose money, BAL would not be expected to “promote” a failing business. IMPACT ● The Court of Appeal’s decision was not unanimous and Lord Justice Lewison gave a strong dissenting judgment. The lack of consensus at this level evidences the degree of debate over these issues. ● Parties negotiating any agreement by which they intend to be bound are advised to take legal advice to ensure that the various rights and obligations are described with sufficient precision. ● The extent to which a party can have regard to its own financial interests when complying with an “endeavours” obligation will depend on the facts of the case. Beverley Vara is a partner and head of real estate litigation at solicitors Allen & Overy LLP
FM WORLD |7 JUNE 2012 |31
FM MONITOR HYWEL DAVIES
TECHNICAL CHILLED B EAM S
ith the cost of energy rising, managers are opting for efficient chilled beam systems in new fit-outs. Hywel Davies explains the science behind the units
Chilled attitude: beams are easy to maintain and energy efficient
Chilled beams are a form of heating, ventilation and air conditioning system and are a popular choice in many modern office fit-outs. Usually, chilled beams consist of a heat exchanger (the ‘beam’) that is suspended below the ceiling of a room. Water pipes pass through the beam and allow the temperature of the heat exchanger to be controlled. When the beam is cold, it cools the surrounding air, which therefore becomes heavier and falls towards the floor by convection. They can be open, relying entirely on convection, which is known as a passive system, or there can be mechanical assistance to move the air through the heat exchange coils, which is an active system. Chilled beams are designed for use in large buildings, where there is a central supply of chilled water to cool the beams. These systems should not be confused with chilled ceilings,
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where the pipes are placed above metal plates that act as the heat exchangers. Chilled beams are more effective than chilled ceilings, but both systems are similar in that they require a separate supply and extract system for ventilating the space. Chilled beams are often installed in new buildings. But can they also be used as part of a refurbishment? As with many questions, the answer will depend on the circumstances. If a building is undergoing a major refurbishment there needs to be sufficient floor-to-ceiling height to accommodate the system and adequate plant space for the chilled water system.
Why chilled beams? Chilled beams provide quiet, draught-free cooling in a relatively shallow ceiling void. They can handle cooling loads of 100–160 W/m2 and can work with chilled water at higher temperatures, which may not
Hywel Davies is technical director at the Chartered Institution of Building Service Engineers
require a chiller. They are also lower-maintenance systems, which reduces operating costs. There are other considerations. The proposed floor plan, including the position of doors and partitions is important. All ventilation and air conditioning systems depend to some extent on the layout of the space. But while it is quite possible to install partitions and mess up the airflow on some systems without realising it, chilled beams do create a physical constraint on future layout changes. The influence of layout and future changes to it also need to be considered when working out the controls strategy for the beams. Another consideration is the interaction between the chilled beams and the lighting. It is important that the lighting scheme is well designed, not just to provide the right levels of light in the right places, but to avoid providing extra heat gains for the chilled beams to handle. Also, specifiers need to ensure that the luminaries and the beams do not physically clash. A further key piece in the jigsaw is to consider the cooling loads and the required room temperature. How much heat is there to remove from the space, and is it evenly distributed, or concentrated, perhaps above a cluster of heat-generating machines or appliances? How
will air be supplied into the space and what are the extract arrangements? Chilled beams can work well with a displacement ventilation system, supplying air at floor level at a temperature just below that in the space, thereby displacing the warmer air upwards towards the beams, taking pollutants with it towards the extracts. Chilled beams have an aversion to the sun and should not be placed where there is likely to be a significant warm updraught due to solar gains. This can overwhelm beams. It is far better, especially in a major refurbishment, to eliminate the solar gains as far as possible by the selection of glazing, if that is possible, or addition of shading. Finally, the designer does need to consider the risk of condensation forming on the beams. It is essential to ensure that the chilled water temperature in the beam does not fall below the dew point, the temperature at which condensation will form in the room air. Generally, there are more cost-effective ways to retrofit staff showers and more appropriate equipment for those locations. FM For more information on chilled ceilings, see the BSRIA Illustrated Guide to Building Services. Designers should also refer to CIBSE Guide B, section 2.4.8.
“Chilled beams work well with a displacement ventilation system, supplying air at floor level at a temperature just below that in the space” www.fm-world.co.uk
FM FMMONITOR SUPPLEMENT MARKET CATERING INTELLIGENCE BY NAME IN HERE
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.
UK COMMERCIAL MARKET ACTIVITY
Source: HM Treasury (hmrc.gov.uk)
Bank of England base rate: 0.5% as of 7 September 2011. The previous change in bank rate was a reduction of 0.5 percentage points to 0.5% on 5 March 2009. Source: Bank of England (bankofengland.co.uk)
Consumer Price Index Annual inflation stood at 3% in May, down from 3.5% in March. The timing of Easter had a significant impact on the April data. Air transport, off-sales of alcohol, clothing and sea transport were the most significant drivers behind the decrease in annual inflation between March and April. Source: ONS (www.ons.gov.uk)
National Minimum Wage
The latest RICS UK commercial market survey shows that there was little change in overall activity during the first quarter. The net balance readings for both occupier demand and available space broadly stabilised, resulting in slightly tighter market conditions compared to last quarter. As such, there was a small improvement in the rental outlook; rent expectations remain negative, but less so than in the previous quarter. Surveyors in many parts of the country are continuing to suggest that occupiers are remaining cautious with regards to new letting activity. At the headline level, occupier demand and available space were largely unchanged in Q1, at +3 and +4 respectively, suggesting a relatively flat quarter for activity. However, the rental picture has yet to materially improve – or even stagnate – with expectations easing in the short term. On the investment side, enquiries to purchase also stabilised, while future activity is set to pick up slowly in the coming three months.
Category of worker
Hourly rate from 1 Oct 2011
Aged 21 and above
Aged 18 to 20 inclusive
Aged under 18 (but above compulsory school age)
Apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship
45 40 35 30
10 5 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Occupier demand and available space, England and Wales 80
60 40 20 0 -20 -40 -60 -80
The following rates came into effect on 1 October 2011:
Final energy consumption by user 50
Millions of tonnes of oil equivalent
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
% Balance, seasonally adjusted
1998 2000 2002 2004 2006 2008 2010 2012
In 2011 total final energy consumption in the UK was 7.9 per cent lower than in 2010, falling 14.7 per cent between the fourth quarter of 2010 and the fourth quarter of 2011. Domestic sector energy consumption fell 29.5 per cent between the fourth quarters of 2010 and 2011; annually it fell by 18.7 per cent. Industrial sector energy consumption fell by 13.5 per cent between the fourth quarter of 2010 and the fourth quarter of 2011; annually it fell by 6.8 per cent. Transport sector energy consumption fell by 0.4 per cent between the fourth quarter of 2010 and the fourth quarter of 2011; annually it fell by 0.7 per cent.
Total unadjusted final energy consumption (excluding non-energy use) fell by 8.0 per cent between 2010 and 2011. On a seasonally and temperature adjusted basis final energy consumption (excluding non-energy use) fell by 2.6 per cent. Total unadjusted final energy consumption (excluding non-energy use) fell by 15.1 per cent between the fourth quarter of 2010 and the fourth quarter of 2011. On a seasonally and temperature adjusted basis final energy consumption (excluding non-energy use) fell by 4.9 per cent between the fourth quarter of 2010 and the fourth quarter of 2011. Source: DECC (www.DECC.gov.uk)
Seasonally adjusted and temperature corrected final energy consumption 50 000 45 000 40 000 35 000 30 000 25 000 0
Seasonally and temperature-adjusted consumption Temperature-adjusted consumption Unadjusted consumption
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
www.fm-world.co.uk FM WORLD |7 JUNE 2012 |33
BIFM NEWS BIFM.ORG.UK
Most careers involve a mixture of activities, some of which will seem more stressful than others
What is stress? Head of Ofsted Sir Michael Wilshaw provoked the indignation of teaching unions last month by claiming that teachers do not know the meaning of the word ‘stress’ and that they use it as an excuse for poor performance. Although it was a misjudged and insensitive comment, it provides a useful springboard to consider what it means when employees start complaining of overwork and the implications of stress on career choices in general. Needless to say, stress is a complicated matter. It is hard to measure and compare when you factor in personal situations and the different environments people work in. You can’t make assumptions about how much stress someone is under simply by looking at their job title. People handle stress in different ways – some try to minimise it, some are energised by it. People also find different kinds of activities stressful. Logistical planning, writing to a tight deadline, standing up and talking in front of a large group of people, for example – some may be at ease in one of these areas, but find the others nerve-wracking. Moreover, most careers involve a mixture of activities, some of which will be more stressful than others. Stress is, in many ways, one of the most important factors to consider when making career choices. When we discuss employability skills at The Careers Group, we are usually talking about the kind of activities that a specific client has a natural tendency towards and so finds comparatively easy and less stressful. We then use this information to help clients develop their career in a way that will be more rewarding for them.
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registered CPD seminar on energy-efficient lighting solutions are available. i For more information, visit www.waldmann.com
Careers Day 2012 Ultimately, all careers involve a certain amount of stress. If employees begin to complain about overwork, it probably says less about their stress levels and more about the culture they are working in. If people feel their extra work is going unnoticed, they will try to draw attention to it. In the case of teachers, the feedback they get on a daily basis is from their pupils – not necessarily the most appreciative of audiences. If this sense of being undervalued is the cause of discontent, then Wilshaw’s rebuke may well be counterproductive. i For more information on the C2 Career Consultancy, please visit www.bifm.org.uk/careersservice or arrange an appointment by contacting the BIFM’s Careers Service on 020 7863 6060 or email firstname.lastname@example.org Prices start from £49
Two weeks to ThinkFM ThinkFM takes place 18 June 2012 at the Royal College of Physicians in London. The theme is “Ideas for Change: How great facilities management makes the difference.” The sessions on offer include Workplace: Making Spaces Work; People: Inspiring the team; Competitive advantage: Driving
performance and value; and the ThinkFM Lab. Be sure to book your place if you’re planning to attend. i To find out about this great day of learning and debate for facilities management professionals, visit www.thinkfm.com
ThinkFM Waldmann ThinkFM is proud to welcome Waldmann Lighting as a sponsor of the upcoming conference. The organisation is the manufacturer and supplier of energy-efficient office lighting solutions, offering the latest microprism, lamp and LED technology, onboard presence and daylight sensors, connection to building management and lighting control systems. These systems provide reduced energy usage, giving a lower carbon footprint; simple installation and maintenance with reduced life-cycle costs; and a flexible, well lit environment for the user. Luminaires can be installed on the building structure (ceiling/ wall) or installed on to or around the office furniture. A free lighting design service and a RIBA-accredited and BIFM-
The Rising FMs SIG and principal sponsor G4S FM are pleased to announce the 2012 Careers Day event for facilities management. Come along to hear from the Rising FMs SIG, BIFM, Asset Skills and industry professionals about the progress that has been made over the past year in efforts to close the sector skills gap. Attendees can choose between activities. There will be skills workshops running throughout the afternoon, as well as information stands from recruiters, employers and training providers in the main hall. BIFM will be available to give you the best advice on the right qualification for you and there will be a number of BIFM-recognised centres exhibiting, which will discuss their delivery of the BIFM programme. BIFM will also have literature available for all its recognised centres throughout the UK. The day will also include skills workshops presented by Maxwell Stephens and other recruitment consultants. The workshops will cover subjects such as: ● Top tips on what to include in your CV ● Competency-based questions – what they are and how to answer them ● Job hunting advice ● Interview techniques – how to create a great first impression ● How to find the right job for you ● How to identify your key skills. i Register for Careers Day 2012 at www.bifm.org.uk/careersday12
Please send your news items to email@example.com or call 0845 058 1356
Joanna Lloyd-Davies is the lead judge for the FM of the Year Category for the BIFM Awards 2012
GUEST COMMENT BIFM REGIONS
Scotland AGM The Annual General Meeting for the Scotland Region will be held at the world renowned Newsprinters in Eurocentral on 12 June 2012. The AGM, which is sponsored by EDF Energy, will feature a oncein-a-lifetime opportunity to have a look round a multiple-award winning building that is in the Guinness Book of Records as having the world’s largest printing press, as well as using robots to move materials around the site. The event will include a presentation from the facilities manager, on environmental issues and successes, and the client on the site’s journey from opening and its continuous improvement process. i Book your place at www.bifm.org. uk/sagm12. If you have any queries contact Michael Kenny at mkenny@ fesfm.co.uk
WOMEN IN FM SIG
New chair and deputy The Women in FM (WiFM) Special Interest Group (SIG) voted in its new chair, Julie Kortens, and deputy chair, Debra Ward, at its AGM held at Facilities Show. Liz Kentish formally stepped down as the WiFM chair and will continue to work within the institute as she takes on the role of deputy chair of BIFM. The WiFM SIG is one of the most active networking groups in the BIFM which, contrary to its name, is not just restricted to women members. It holds numerous events throughout the year to support, mentor, encourage and educate its members. i Learn more about the Women in FM SIG at www.bifm.org.uk/wifm
BI FM AWA R D S: F M O F T H E Y E A R AWA R D
his award provides a unique opportunity for remarkable FM professionals to showcase their outstanding talents. Is this the route to recognition for you in facilities management? The search is on for leading FM professionals to take part in the annual BIFM Awards giving you the opportunity to demonstrate the key role that FM plays in the success of organisations throughout the UK. The FM of the Year award presents a great opportunity for individuals (and their organisations) to be recognised as being at the forefront of the FM industry, measured against the very best competition. Winning this prestigious award sends a powerful message to the industry, your organisation and your colleagues. This is your opportunity to be involved and gain recognition. The BIFM Awards capture the imagination of the industry and provide inspiration to all. Why should you enter? There are many of you who are ready to win this award and I encourage you to enter: you will receive wide industry acclaim and your employers and colleagues will join in celebrating your success. You will encourage your peers through learning from your behaviours and achievements. Give the FM profession the opportunity to improve from your experiences. The two previous winners are Chris Stoddart from Cushman & Wakefield and Heron Tower in 2011 and Julie Kortens from Channel 4 in 2010. Both Chris and Julie have made outstanding contributions during their careers, as well as to the BIFM promoting and supporting all aspects of our institute. Their reputations have expanded internationally and many FMs have developed professionally from their shared experiences. Without doubt, they are outstanding ambassadors for the FM profession. Entries for BIFM FM of the Year 2012 close on 20 July. Your submission must be of the highest quality (but no longer than 10 A4 pages), and I urge you to ignite our interest and clearly show us why you stand above the crowd. Tell us about your unique qualities and your career objectives. The judges need to see how FM can be delivered creatively to support the client’s everchanging needs. Leveraging FM professionals to optimise property and service solutions is essential in today’s challenging economic climate – we need to see how you pick up the baton, lead from the front, challenge the status quo and focus on the art of the possible. Mediocrity just will not do – we need exceptional solutions and fully documented outcomes. Tell us how you raise standards, think differently and execute efficiently. Why do you think you should win? Tell us why you deserve the highest accolade these BIFM awards can bestow on an individual. Please surprise, inspire and delight us. Be recognised as the best in 2012!
“WINNING THIS PRESTIGIOUS AWARD SENDS A TRULY POWERFUL MESSAGE TO THE INDUSTRY, YOUR BUSINESS AND YOUR COLLEAGUES”
i For questions and more information, contact Joanna Lloyd-Davies at jld@ joannalloyddavies.co.uk, and for information on the BIFM awards, please visit www.bifm.org.uk/bifm/events/ awards
FM WORLD |7 JUNE 2012 |35
BIFM NEWS BIFM.ORG.UK
Night at the museum Over 40 Facilities Management Professionals attended the latest BIFM Lancashire Group Event. On a blazing hot spring day, the BIFM Lancashire Group held its third event of the year at the Imperial War Museum in Salford Quays. The museum, designed by Daniel Libeskind, is characterised by three interlocking shards, with sloping floors and ceilings and has been open since 2002. It receives between 2,000 – 3,000 visitors a day. Hosted by Helen Robbins, operations manager at the museum, the guests held a networking session, before being given a tour of the exhibition space (including a film presentation). They spent the day receiving exclusive access to the museum and experienced how it is run behind the scenes. Of specific interest was the canal cooling system, where the temperatures in the museum are regulated using a ‘free cooling’ system from the adjacent Manchester Ship Canal. In the summer, cooler water from 3-4m below the canal surface travels through a series of plate exchangers to keep the building cool. The event was rounded off by attendees going on to the 29-metre high viewing platform, with stunning views across the quays towards the new BBC Media City development and Old Trafford football ground. Several particularly brave attendees also confirmed they would be back to have a go at the bi-annual zip–wire event, which runs from the platform to the nearby Lowry Bridge. After a summer break, the group’s next session will be in September and held at a Biffa Waste Transfer Station. It will have an environmental theme, with 36| 7 JUNE 2012| FM WORLD
expert guest speakers. Full details will follow in due course, through its LinkedIn page and Twitter (@ BIFM_Lancs). i Learn more about all BIFM Groups at www.bifm.org.uk/groups
New chair for the East The East Region is delighted to announce the election of Tim Jonck from CBRE, as the new chairman of the region. Following a call for new committee members for the region, an Annual General Meeting was held on Tuesday 22 May 2012 as part of the event World Class Mail, held at the Chelmsford Mail Centre in Essex. Grant Cutts from the mail centre presented some facts and figures regarding the size of the Royal Mail operation within the UK and the Anglia Region. Following this, Annie Knell (Everywoman in transport and logistics, green champion of the year in 2011), who presented on the fundamentals of the World Class Mail (WCM) system developed by Professor Yamashina from Kyoto University, following extensive research and consultancy mainly in Japanese industry. Delegates were then taken on a tour of the mail centre to see for themselves the automated machines available for letter sorting and the end-to-end process of handling the sheer volumes of mail encountered on a daily basis. Jonck said of his appointment: “I’m proud to be given such a great opportunity to take the region into a new phase following on from the work carried out by the outgoing chairman Rob Greenfield and, prior to that, Stuart Harris.” i Learn more about all BIFM Groups at www.bifm.org.uk/groups and more about training at www.bifm-training.com/
BIFM TRAINING EVERYONE HATES HAVING TO DELIVER PRESENTATIONS... DON’T THEY? elieve it or not, some people actually enjoy delivering presentations! The reason is because they know how to do it, enjoy it, and get it right. Having to stand up and speak in front of other people can be absolutely terrifying and has been known to bring even the most experienced facilities managers close to the edge. The feeling of all eyes in the room looking at you and the only sound being your voice can be overwhelming and if you’ve ever watched a particularly bad presentation on TV show ‘Dragons Den’, where they get so nervous they’re unable to remember their names, you get the idea. The thing is, these days almost every FM professional at some stage in their career will have to deliver a presentation, whether informally in a team meeting or project briefing or formally in a client presentation, training session or sales pitch. It is therefore essential to have the skills and confidence to deliver the message professionally. There is a real risk that, unless you’ve taken the time to learn the basics, you could have your very own ‘Dragons Den’ moment. We’ve all experienced that feeling when we watch somebody delivering a presentation and think: “I could never be as natural as that” or “I’d be so nervous if that was me”. Well, here’s a little secret: they used to feel exactly the same as you! The only difference is that they have taken the time to learn a few simple skills and then practiced, practiced, practiced... The skills really are simple and extremely easy to learn. Our expert trainer Beth Goodyear has developed a one-day course packed full of all the basic skills needed to deliver great presentations, and will share with you tips and advice that you will be able to start making use of immediately. Just think, if the next time you stand up to deliver a presentation you feel confident and totally prepared rather than anxious and scared, you might actually turn into one of those people who enjoy delivering presentations! The course is lively and informal with group exercises and discussions.
i Beth Goodyear is a FM professional with over 15 years of experience in operational and strategic FM. She currently holds the position of members’ representative for BIFM. For further information or to book a place on the course contact BIFM Training on 020 7404 440, email firstname.lastname@example.org or visit www.bifmtraining.com
Send details of your event to editorial@fm–world.co.uk or call 020 7880 6229
NATIONAL BIFM EVENTS
18 June ThinkFM 2012 ThinkFM will be a day of learning, debate interaction and networking, with site visits. The theme is ‘Ideas for Change’. Venue: Royal College of Physicians, London Contact: email@example.com or call 08701 632 804
13 June BIFM/Advanced Workplace Associated A seminar with an opportunity to hear leading–edge thinking and learn about the ambitious project to relocate a large part of the BBC to Salford Quays. Venue: Media City, Salford Contact: firstname.lastname@example.org or call 07872 829743
12 July 2012 BIFM Annual General Meeting (AGM) 2012 Further details at www.bifm.org. uk/AGM2012 and the presentations will be available from 13 July. Venue: Redactive Publishing (publishers of FM World), 17 Britton Street, London, EC1M 5TP Contact: sharon.mckenzie@bifm. org.uk or call 0845 058 1356. Visit www.surveymonkey.com/s/BIFM_ AGM12 to register
6 September Chester River Boat Social Tickets cost £30 per person, which includes entry into the charity raffle, with proceeds going to Macmillan Cancer Support. Barbecue buffet, live entertainment and a cash bar. Venue: Boarding at The Boating Station, Souter Lane, Chester Contact: Steve Roots or Claire Bradbury email@example.com or call 07872 829743
21 June FM beyond our borders BIFM Home Counties are crossing our borders to visit the South Region. Presentations and discussions on FM in Europe. “What’s different and what’s the same” Speakers to include FM from Spain and Euro FM Chairman. Hosted by Ordnance Survey FM team at new HQ in Southampton Venue: Ordnance Survey, Adanac Park, Southampton Contact: firstname.lastname@example.org or call 07799 033 341 SOUTH REGION 14 June South Region golf day A joint event with the Home Counties Region. Venue: Sandford Springs Golf Club, Kingsclere near Basingstoke. Contact: email@example.com or call 07961–684579 SCOTTISH REGION
MIDLANDS REGION LONDON REGION 14 June Lone Workers discussion Loneworker specialists Sonim Technologies will look at some of the key risks facing lone workers, examine what employers can do, including the technologies available, and talk through some practical examples and case studies of how organisations look after their lone workers. Venue: Workplace Law Executive Centre, 13 Clerkenwell Road, London Contact: Cathy Hayward cathy. hayward@magentaassociates. co.uk 28 June Quizcrawl A joint event with the Home Counties Region. Venue: Based around ﬁve pubs in Clerkenwell. Organised by Risings, London region and International SIG, and sponsored by SpacePod. Contact: bernardcrouch@ btinternet.com or call 07782–287074 19 July Annual Summer Boat Party Tickets are £25 per person, including a hot and cold buffet, ﬁrst drink, charity raffle and a cash bar available. Venue: HMS Belfast, Morgan’s Lane, Tooley Street, London. Contact: Please email cathy. hayward@magentaassociates. co.uk to book your place. www.fm-world.co.uk
14 June BIFM Midlands region golf qualiﬁer 2012 This event is the regional qualiﬁer for the 2012 BIFM Golf Final to be held on Thursday 13 September 2012 at the Marriott Dalmahoy Golf & Country Club, Nr Edinburgh. The top four highest individual members scorers will go forward to the National Finals to represent the region as a team. Venue: Hellidon Lakes Golf & Country Club, Northamptonshire. Contact: sarah.hodge@fmguru. co.uk 07841 370 033 or 01908 282 915 26 June BIFM presentation: ‘Spoiled for Choice – Why facilities management fails to leverage technology’ Hosted by Graham Perry, associate consultant, The FM Guru Venue: The 31st Facilities Management Forum, Heythrop Park, Oxfordshire Contact: firstname.lastname@example.org or call 01234 222 421 HOME COUNTIES REGION 14 June BMG Home Counties and South Region golf qualiﬁer £65 per person, to include 27 holes of golf, breakfast, lunch, evening meal and prizes. Venue: Sandford Springs Golf Club, Kingsclere near Basingstoke Contact: csorbie@temco–services. co.uk or call 07908–711964
12 June AGM and Newsprinters tour Home to the world’s largest printing press, it will be the venue for the AGM for the Scottish region. Venue: Newsprinters, Motherwell Contact: email@example.com or call 07920 136 784 SOUTH–WEST REGION 15 June QTD – Managing the Catering Operation Sponsored by BaxterStorey, the day includes various talks on food trends, retail principles and contract catering, as well as workshops and debates. Venue: Bristol Hilton Hotel Woodlands Lane Bradley Stoke Contact: gareth.andrews@gmacl. co.uk or call 07540 079978 6 July South West Region golf day An annual event for individuals or groups of up to four. Venue: Orchardleigh Golf Club. Frome Somerset Contact: gareth.andrews@gmacl. co.uk or call 07540 079978 INDUSTRY EVENTS 25–26 June 31st Facilities management forum Venue: Heythrop Park, Oxfordshire Contact: Mick Bush at firstname.lastname@example.org or call 01992 374100
28 June World FM Day 2012 This annual event aims to raise the FM profession’s proﬁle around the world. Venue: Worldwide Contact: Visit www.globalfm.org for more details – and keep an eye on the FM World twitter feed (@FM_World) throughout the day to keep up with our FM marathon – 10 buildings in 10 hours. 10–11 October The FM Event Formerly Total Workplace Management. Venue: London’s Olympia Contact: www.thefmevent.com for more details – for exhibiting opportunities, contact Fergus Bird on 020 7921 8860 email@example.com BIFM SIG EVENTS 5 July People Management SIG – Leadership Networking event, discussing potential career paths, along the theme of leadership. Venue: Chiswell Street, London Contact: Simon Aspinall at firstname.lastname@example.org or 0113 242 8055 12 July Rising FMs SIG – Careers Day A chance to hear from Rising FMs SIG, BIFM, Asset Skills and industry professionals about the progress that has been made to close the ‘skills gap’ Venue: University College London Contact: Samantha Bowman on email@example.com or 07853 882257 INTERNATIONAL EVENTS 25–27 July World Workplace Asia 2012 Conference & Expo The conference discusses strategies to address current and future global workplace issues. Venue: Raffles City Convention Centre, Singapore Contact: Samantha Bowman on firstname.lastname@example.org or 07853 882257 5–7 September IFMA Foundation Workplace Strategy Summit An exploration into new ways of thinking about effective workplaces. Venue: Cornell University, Ithaca, NY, USA Contact: Visit www. ifmafoundation.org/summit/ FM WORLD |7 JUNE 2012 |37
FM PEOPLE MOVERS & SHAKERS
NAME: Trevor Dornan JOB TITLE: Facilities manager ORGANISATION: East Belfast Mission JOB DESCRIPTION: To maintain, organise and oversee the maintenance of buildings, plant and engineering services of all equipment within East Belfast Mission premises throughout Northern Ireland.
How did you get into facilities management and what attracted you to the industry? Working as an electrician, I moved into a local council maintenance department in 1981. I moved up the food chain from assistant foreman in 1984, foreman in 1994, then finally multi-trades foreman in 1997. Being lead hand on building upgrade projects developed my skill set, which allowed me to move into a facilities team as assistant manager with the local hospice, in 2000. I moved into the local childrenâ€™s hospice as facilities officer in 2001 and became facilities manager in 2006. This was my first real position in facilities management. It was in this role that I had a clear perspective onto how good FM could make a big difference in other peoplesâ€™ lives. For me, this is the reason why I will stay within the industry. I take every opportunity I can to make the field attractive to young people starting out in the world of work.
for knee problems (I was advised by an experienced colleague on site one day to get a suit job before I was 40 â€“ old sparks creak).
What has been your biggest career challenge? Some challenges come up again and again. Facilities managers today labour under an increasing weight of regulations, which are often updated, and inspected on. Also, as in many industries, we are always trying to source staff with the right skill set.
Which FM myth would you put an end to? We do not have telepathic powers or a crystal ball.
What do you think youâ€™d be doing if you hadnâ€™t got in to FM? Installing electrical systems and attending a clinic
If you could give away one of your responsibilities to an unsuspecting colleague, what would it be? It would have to be transport reduction projects, such as trying to get someone to use a bike to work or car share. Iâ€™m looking for a target at the minute. Which single piece of advice would you give to a young facilities manager starting out? I would urge starters to keep good paperwork and to make clear notes. Also, it helps to always keep up on FM issues and join specific groups. If you could change one thing about the industry, what would it be? Have it set out at school level as a career path.
How do you think facilities management has changed in the last five years? The biggest change I have seen is the professional development of the FM post. Whatâ€™s been your career high-point to date? Seeing the development of apprentice schemes.
Help us shape the next 125 years. -RKQVRQ&RQWUROVZDVIRXQGHGPRUHWKDQ\HDUVDJRIROORZLQJ3URIHVVRU:DUUHQ-RKQVRQpVLQYHQWLRQRIWKHĂžUVW HOHFWULFURRPWKHUPRVWDWLQ7KHEXLOGLQJHIĂžFLHQF\LQGXVWU\KDVFRPHDORQJZD\VLQFHWKHQDQGVRKDYHZH
Johnson Controls Global WorkPlace Solutions is a leading provider of facilities and commercial real estate management for many of the worldâ€™s largest companies. Our employees across the world have delivered more than $3 billion in savings for our customers over the last 10 years.
38|â€‚7 JUNE 2012|â€‚FM WORLD
We have opportunities in South Africa for facilities management and workplace professionals looking to develop their careers. If you would like to help us deliver innovative solutions and high-value support to our global clients please visit our website www.johnsoncontrols.com/careers to view current opportunities and register for future alerts. Our Level 3 Value-Adding Supplier BBBEE status demonstrates our commitment to the socio-economic transformation of South Africa.
Call Adam Potter on 020 7880 8543 or email email@example.com For full media information take a look at www.fm-world.co.uk/mediapack
FM innovations ▼ Survey reveals recycling behaviour A survey of facilities managers by lamp recycling specialist Recolight and FM World has found signiﬁcant differences in attitudes to and awareness about lamp recycling. Although recycling is high on the agenda, lamp recycling is still relatively unexplored by facilities managers in the UK. Commissioned by Recolight and carried out in FM World, the research also explored legislation awareness. The research found that 30 per cent of FM companies regularly collect large quantities of lamps, but 42 per cent were paying for lamp recycling, when they do not necessarily need to. It also found that only 50 per cent of respondents were aware that LEDs were in-scope of the WEEE Regulations. Well done to survey winners Ian Day, Toby Reeve and Claire Roberts who each receive an iPod Nano.
▲ CCM is in the news
▲ Sonim phones are fit for purpose
Contract Cleaning and Maintenance (London), the fast-growing independent cleaning contractor is now in the news – literally, working for the Incisive Media organisation. CCM provides Incisive with daily office, carpet and window cleaning; washroom services, pest control and periodic deep cleans. CCM has worked to reduce the chemicals that are used on site and has provided the janitors with the latest Ionators’, which kill 99.9 per cent of harmful bacteria with ionised tap water. CCM are expanding their use of techwnology and have equipped all area managers with iPads containing Cleanlink, a monitoring and reporting system, which provides contract information, reports service levels and assists with management functions. T: 07917 456401 E: firstname.lastname@example.org W: www ccml.biz
Employees in the facilities sector work in demanding, often risky environments and sometimes on their own. As a result, Sonim Technologies, the leading provider of ultra-rugged, water-submersible mobile phones designed for workers in challenging environments, is running a one-minute survey to better understand how the FM sector views and uses rugged communication devices. Visit www. surveymonkey.com/s/SonimMay2012 or click on the link on the FM World homepage to take part. As a thank-you, you will be entered into a prize draw to win a case of champagne with runners-up prizes of one half-case and six separate bottles of ﬁzz. All respondents will also have the option to receive a copy of the free White Paper Protect Critical Assets with Ultra Rugged, Team Intelligent Devices for Security and Facilities Management. W: www.sonimtech.com
▼ Wilson Vale works with leading venue Niche caterer, Wilson Vale, has gained a catering contract with Condover Hall in Shrewsbury, Shropshire, one of the most important Elizabethan houses in the Midlands. The hall has recently undergone a multimillion pound refurbishment programme to turn it into a stunning residential activity centre with facilities ranging from archery and abseiling to a laser maze, all-weather sports pitches, an in-door pool and a secret garden. Although primarily used as a children’s activity centre, the hall is also used for conferences and meetings. Under a one-year contract, Wilson Vale took over the previously in-house operated service on 16 April. A team of 20 caters for up to 500 children and 80 staff each day.
▲ Take control with just one Clik A new business management tool is now available from specialist software developer, Clik, to help facilities managers service clients more efficiently. Clik Service v4 provides a complete overview of every aspect of your business. It gives instant access to information from initial sales enquiries to ﬁnal invoices, tracking customer contact, jobs, contracts, purchases and equipment. It’s designed to increase productivity and improve customer service – providing everything in one handy package. Clik Service is well-established and used by hundreds of facilities managers across the UK. This new version includes a host of new features to improve business efficiency, including a project function, Google Maps and a scheduling tool. Clik Service v4 is intuitive to use and integrates with leading applications. W: www.cliksoftware.com www.fm-world.co.uk
▲ Green wall for Olympics Warrington based liquid waterprooﬁng specialist, Kemper System has helped to camouﬂage some of the electrical infrastructure at the London 2012 Olympics complex with its Kemperol V210 waterprooﬁng membrane. The wet-on-wet system has been used as the waterprooﬁng membrane for a green wall constructed by specialist contractor, Tiga Europe, adjacent to the pedestrian entrance by the Olympic Velodrome. The green wall hides one of four electrical ‘head houses’ put in place to enable access to underground cabling. Following installation of the Kemperol waterprooﬁng membrane, Tiga Europe constructed a facia onto the wall to create a slope, and 6m sedum blankets were used to cover this and create the green wall. FM WORLD |7 JUNE 2012 |39
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Call Carly Gregory on 020 7324 2755 or email email@example.com For full media information take a look at www.fm-world.co.uk/mediapack
Value Retail is the only company that specialises exclusively in the development and operation of luxury outlet shopping Villages. We provide our guests with an outlet shopping experience unrivalled anywhere in the world. We are looking for an experienced and commercially driven Operations Manager with well rounded Facilities Management and hospitality experience to both compliment and enhance the existing skills of the Village Operations Team. This exciting opportunity is a reﬂection of the growth and unprecedented success experienced to date. Building & Plant Maintenance, as well as Corporate Governance play an integral part to this role; you will have extensive experience in both these areas, as a prerequisite. The successful candidate will ideally be BIFM qualiﬁed and have previous experience of managing a portfolio of Fabric related work. If you are an experienced Operations Manager, used to consistently delivering to high expectations within a fast paced setting, then we eagerly await your application. In return Value Retail will offer an excellent remuneration and beneﬁts package and the chance to join a leading market leader within the Retail industry.
To apply please forward an up-to-date CV for consideration to HrdepartmentBV@valueretail.com
www.valueretail.com Value Retail strip.indd 1 40| 7 JUNE 2012| FM WORLD
FM New appoints 070612a.indd Sec1:40
12/4/12 15:45:39 jobs.fm-world.co.uk
Offices in: Abu Dhabi, Auckland, Berlin, Düsseldorf, Frankfurt, London, Manchester, Melbourne, Moscow, Singapore.
Southern FM opportunities Operations Manager | London c.£60,000 + package
Business Development Manager (Soft FM) | Hertfordshire £55,000 + package
Take the lead on the delivery of a TFM contract for a large corporate account with a UK and Ireland remit. As you oversee a large workforce, you will call on your experience of managing a P&L account of £10-15million. You will drive ﬁnancial performance, strengthen the client relationship and client satisfaction and handle training and development of the workforce. Experience of delivering TFM solutions to corporate accounts across multiple sites including critical 24/7 environments and a mechanical engineering background is essential. Ref: 1133300
Our client is an established FM service provider that is strong in the hard services sector. Due to ongoing requests for soft service solutions, it urgently requires a BDM with a soft/cleaning FM background. You must have a track record in a similar role for another TFM provider and be able to open doors, build pipeline, put bids together, price work and present to the client. It is an all encompassing business development role and you will be rewarded accordingly. Ref: 1092800
Technical Services Manager | Kent £50,000 + car
Assistant Facilities Manager | Central London £30,000 - £35,000
This reputable FM provider is looking for a proven Technical Operations Manager to run a data centre. You will handle the day-to-day delivery of all the engineering services for this critical site. You will also be responsible for a team of engineers and work closely with the engineering supervisor so excellent people management skills are paramount for this role. You will be the engineering expert for this contract and will also be responsible for three other sites in the surrounding area. Ref: 1125900
Join a leading managing agent on a large prestigious residential estate in Central London. You will provide FM support across the estate, conduct site inspections, monitor service delivery, foster tenant relationships and ensure health & safety compliance. Suitable individuals will have experience of working in a FM role dealing with high proﬁle properties for a managing agent. Residential experience is preferred and NEBOSH certiﬁcation is essential. The role requires a ﬂexible, client facing individual with up-to-date knowledge of health and safety legislation. Ref: 1133700
To apply for any of these roles please email your CV in conﬁdence to firstname.lastname@example.org or call +44 (0)207 478 2500 to speak with Claudio Rojas or Ryan Coombs.
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Contact the sales team on 0207 324 2755 | www.fmworld.co.uk/jobs
FM New appoints 070612a.indd Sec1:41
FM WORLD |7 JUNE 2012 |41
FINAL WORD NOTES FROM AROUND THE WORLD OF FM
Ahead of next issue's 'Rising Stars of FM' report, here's FM World photographer Akin Falope caught, for once, on the other side of the camera, on the Heron Tower's 29th ﬂoor
THE SAME BEANS OF LIGHT People invent strange appliances es all the time. But an LED lamp that hat releases the scent of coffee when en in use takes the biscuit, so to speak. k. Spanish designer Raúl Laurí has as created the lamp called ‘Decafe’ from composite bio-degradable material, rial, which is a nose-tingling combination tion of coffee grounds and natural glue. e. The internal LED bulb providess enough heat to release the scent of your favourite hot beverage, whenever never it’s switched on. Another nifty feature is that the intensity of the light changes depending on the tilt of the base – it switches itself off when placed upside-down. All very impressive. All very odd. It's hard not to applaud the imaginative tive use of sustainable materials. But how w long is it before our keyboards emit the scent of freshly baked bread as we ell type, or our telephones begin to smell like prawn toast when they ring? Truly the stuff of nightmares. But seriously, what about the colleague sitting across from you who doesn’t like coffee? This lamp brings to light an interesting question of ‘smell boundaries’ – after all, the airspace in communal areas is singularly tricky to police. It all seems to hinge on what shared facilities FMs provide for a workforce. It's surely only reasonable to ban hot foods in an open-plan office if there is a good enough place to sit and guzzle down your chicken jalfrezi. We’d be interested to know your policy on ‘smells’ in the office, and hear about any particularly piquant olfactory offenders. Is smell the poor relation of the five senses when it comes to managing the workplace?
MANAGE TIES FACILIT AND A
SAVE THE PLANET
A FASHION FOR SLOGANS We've not exactly experienced a rush from readers with F FM-relevant t-shirt designs (see our last edition), but we we'd already had this one made up. Anyway, it's jubilee week so the use of a crown is kind of relevant. The design was inspired by Pepsico's Jason Gurd, who wa was gushing in his enthusiasm for the potential of the ssector at last month's Facilities Show, suggesting indeed tthat FM was one of the rare career choices in which th the possibility of saving the planet was part of the day jjob. (It is, however, the one and only time the overused 'keep calm' slogan will appear in our pages.)
PLASTIC PEOPLE OF THE UNIVERSE Staff at CAD Management (CADM) have found an innovative way to demonstrate the company’s Accordant Locator software, presented recently at the CoreNet Global Summit in San Diego, California. Instead of a tedious Powerpoint demonstration or M lengthy sales pitch, the CADM team recreated the Yee Man building in Hong Kong – with 9,000 Lego® bricks. According to the company'ss ttrade d shows h Alan Rose, “When we’ve been tto in the past, Corporate Real Estate (CRE) software has
always been demonstrated working on ofﬁces far from the exhibition. So we de decided to take ours with us!” Starting with a sta standard Accordant Locator ﬂoorplan in AutoC AutoCAD, Rose and his team worked up a 3D design to create a computer m model – as well as providing a bill of m materials for ordering the Le Lego. I Included on the model are 80 Lego®-people, some of which bear a resemblance to CADM staff and assoc associates. b The Yee Man building follows in a long line of unusual uses for the v venerable plastic brick, h as a Volvo V l XC60, XC60 a Tyrannosaurus T such Rex, and an air-conditioning unit. Long live Lego®!
IN THE NEXT ISSUE OUT 21 JUNE
THE RISING STARS OF FM – SPECIAL REPORT ON THE YOUNG FMS SHAPING THE SECTOR'S FUTURE /// CASE STUDY – MEDIA CITY UK /// REPORT – EURO FM CONFERENCE /// LEGAL UPDATE – CORPORATE MANSLAUGHTER /// BS EN 15221 SERIES -7 GUIDE TO BENCHMARKING /// /// THE LATEST NEWS, ANALYSIS AND COMMENT
42| 7 JUNE 2012| FM WORLD
Ideas for Change How great facilities management makes the difference )TMD3GD1NX@K"NKKDFDNE/GXRHBH@MR+NMCNM ThinkFM works on a â€˜Hubâ€™ concept. You select your own agenda based on your learning needs and interests from sessions which run concurrently through the day, on topics including: q1DETQAHRGLDMSq("3q%,B@RDRSTCHDRq!(,q$LOKNXLDMSK@Vq"NKK@ANQ@SHNMq/QNBTQDLDMS q6NQJOK@BDLNAHKHSXq"TRSNLDQRDQUHBDq/%(///q.TSRNTQBHMFq2NBH@KLDCH@q$EjBHDMBX q2@EDSXq(MSDQM@SHNM@K%,q"#,BNLOKH@MBDq.OONQSTMHSXBTKSTQDq"@QDDQCDUDKNOLDMS 6DG@UD@FQD@SKHMDTONEDWODQSROD@JDQRHMBKTCHMF1TAX,B&QDFNQ 2LHSG"!$EQNL,(3($&QNTO/+",@QJ!DV ,!$EQNLSGD&NUDQMLDMS(MCTRSQX!(,6NQJHMF&QNTO.KHUDQ)NMDREQNL"G@XNQ@ #@UHC2G@QOEQNL6NQJOK@BD+@V@MCL@MXLNQD
www.thinkfm.com The conference for facilities management professionals 3NRONMRNQ3GHMJ%,BNMS@BSMDHK DUDQHSSAHEL NQF TJNQB@KK Brought to you by
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