Why a Current State Analysis is Essential When Scoping FM Contracts
We were engaged to support our client with an early-stage strategic procurement of building and facilities services:
- Facilities Management
- Cleaning and Hygiene
- Grounds and Gardens
- Pest Control
Our client’s purpose was to maintain properties that create exceptional workplace experiences whilst achieving legislative and regulatory compliance, business continuity and mitigating exposure to health and safety. A key priority for us was to assess their risk, safety and cost expectations, whilst improving contract maturity and reducing the administrative burden associated with managing contractor performance.
Operating a large infrastructure site 24 hours per day in a high-risk environment, site safety and business continuity were critical in contributing to our client's vision for zero injuries. Our client was motivated to revise the scope of facilities services to align with future demand for maintaining buildings and grounds. The breadth of services was broad but current service specifications were limited, leaving space for ambiguity and potential disagreement, eroding performance management capabilities. Developing a new scope of services presented an opportunity to incorporate environmental, risk management and innovation strategies as tools for continuous improvement.
A two-phase approach was adopted to understand the client’s business and translate their unique requirements into fit-for-purpose contracts. The Phase 1 Current State Analysis of existing contracts combined with a physical inspection of multiple operational sites was critical in identifying challenges, opportunities and risks. Phase 2 delivered an independent Statement of Requirement for each of the four services, supported by a detailed Pricing Schedule for the future tendering process.
A Current State Assessment reviewed existing service specifications for each service categoryto identify opportunities and risks in relation to:
- Scope inclusions/exclusions
- Service levels/standards
- Service frequency and tolerance
- Compliance to Australian Standards
- Pricing structure
A physical inspection of the terminalsand offsite properties identified:
- Topography of the land, weather hazards
- Site impediments e.g. access/egress
- Effectiveness of current inclusions/exclusions
- Service frequencies
- Business or site-specific requirements
- Personnel, licenses,security, WHS and environmental needs
- Channels, systems and processes
A Statement of Requirement (SOR) was developed for each service category: Facilities Management, Cleaning & Hygiene, Pest Control and Grounds & Gardens. Each SOR specified the general service requirements, transition services, scheduled and unscheduled services, WHS and contract management provisions.
The SOR structure was designed with Schedules referencing key services and reporting requirements as a quick reference guide. General services specified relevant statutory and regulatory compliance requirements, client policies, procedures and standard operating procedures and mandatory risk management processes.
Transition services mandated the preparation of a planned preventative maintenance schedule, asset register and risk register. In addition to prescribing service specifications and frequencies, purchasing approval, delegated authorities, response and rectification timeframes, and a governance framework clarifying reporting and contract meeting content/cadence.
Transparency and accountability were key levers to enable best practice and ensure vertical, horizontal and external stakeholder alignment on the service objectives.
1. The Strategy: Operationalising Best Practice Facilities Management
- Align KPIs with Performance Objectives: Integrated outcome metrics that motivate the right behaviours and transfering quality, safety and risk management accountabilities to vendors.
- Continuous Auditing: Mandated continuous monitoring and updating of asset registers for accurate site data and documentation.
- Clear Accountability: Established direct lines of communication between facility contractors, safety officers, and site leadership for full transparency of operations.
2. Implementation and Protocols
- Dynamic Risk Assessments: Required facility contractors to perform real-time risk assessments before executing work.
- Unified Reporting: Mandated that services and onsite observations are logged in monthly reporting with oversight of expenditure, forecasts and site safety.
- Competency Assurance: Enforced strict certification and competency verifications for all vendor personnel accessing the site.
3. The Result: A Relationship Built on Trust
- Bridging Safety Gaps: Eliminated the disparity in safety standards between internal employees and external contractors.
- Proactive Management: Fostered a future-focused culture where vendors proactively manage the built environment and grounds rather than reacting to failures.
- Sustainable Welfare: Maintained continuous, uninterrupted 24-hour production without compromising the physical wellbeing of the workforce.
