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Introduction to EstatesMaster
Facilities Benchmarking and Cost Prediction Model
A presentation to Breakfast Briefing:‘State-of-the-art Benchmarking and Cost Management of Facilities in Large Estates’
by
Prof. Bernard Williams FRICS
IFPI Ltd 14th June 2013
ContentsContents
• What is EstatesMaster ?• Modules• What is it used for?• Who uses it?• How does it work?• The data – sources and application• Levels of access • Accuracy• International application
What is EstatesWhat is EstatesMasterMaster??
• intelligent decision-making tool• web-enabled • uses current cost and performance data • predicts the costs of facilities services
without measured estimating• can be applied to single buildings or whole
estates of up to 10,000 buildings.
Current modulesCurrent modulesWeb-enabled• Maintenance • Cleaning• Security• Energy/CO²• Distribution• Stationery• Service charge
Excel (pending web-enablement)• Archiving• Catering• Reprographics
Excel (in development)• Grounds maintenance• Water consumption• Space use
What is it used for?What is it used for?
•Cost benchmarking•Performance level benchmarking•Facilities strategy•Due diligence on bids•Preparing to outsource•Cost management to best performance targets•Negotiating contract extensions at benchmarked prices
Who uses it?Who uses it?
• Estate owners• Service Providers• Managing Agents• Educationalists
Challenges to financial benchmarkingChallenges to financial benchmarking
• Allocation of expenditure – where and what for?
• Every building is different!• Good comparable data• Exact match of buildings and
performance• Exact match of resource drivers
International challengesInternational challenges
• Understanding the local labour market• Cross-border cultural differences• Language barriers
EstatesEstatesMasterMaster model model – – the principlesthe principles
Unit cost - per sq m / per capita etc.
BusinessDrivers
OutputPerformance
FunctionalRequirements
FacilitiesPolicy
1.Service LevelDrivers - Quality
Staff
Equipment
QualityControl
Specificationof Works
2.
Consumables
Service LevelDrivers -Local Factors
Specificationof Regime
Frequency
Time of Day
3.OperationalDrivers
Access
Design
Occupation
Problems ofOperation
4. 5.
How Much /How Many
QuantitativeDrivers
Volume
Areas
Head-count
Economic Drivers
6.
Macro-
Micro-
£
7.
TotalCosts
Problem of identifying Problem of identifying scopescope of activities of activities
Site A Site B Site C Site D Site E Site F
Occupiable areasSpecial areasToilets and washroomsFurniture and equipmentPest controlGeneral wasteSecure waste
Cost / £ m² GIA pa 15 9 9 12 7 8
Ext.WallsWindows
Cleaning scope and cost differentials - same service levels and drivers
ActivityIncluded / excluded from budget
How does it work ? – granular benchmarksHow does it work ? – granular benchmarks
• EstatesMaster benchmarks the scope items in each generic cost centre.
• The known cost range for each scope item has been assessed and the cost drivers identified and weighted.
• The program’s questionnaires address the key cost drivers for each scope item
• The benchmark within the range for each scope item is calculated from the answers given to the questions
• The values of scope items for each generic cost centre (Cleaning, Maintenance etc.)
How does it work ? – granular benchmarksHow does it work ? – granular benchmarks
E.g.•Say Window Cleaning has a normal cost range of £0- £3.00 per sq. m GIA (£0- £ 0.27 per sq.ft.GIA).
•The cost drivers are:– Window/floor area ratio– Standards of cleanliness achieved – and for how long– Local factors affecting condition– Accessibility– Design of windows– Market rates for window cleaners– Competitive basis of any overarching managing
contract
How does it work ? – granular benchmarksHow does it work ? – granular benchmarks
• Depending on the answers to the questions the program will select a figure somewhere between the known min/max in £/sq.m or sq.ft GIA i.e. from:
£0 - £3.00 per sq. mor£0- £ 0.27 per sq.ft
• The result will be added to the results of all the other scope items in Cleaning to give a benchmark for the Cleaning Cost Centre
• All the ranges used in the program relate to best performance
EstatesMaster Results GraphicEstatesMaster Results Graphic
Granular analysis – E.g. SecurityGranular analysis – E.g. Security
Where does the data come from?Where does the data come from?
• Consultancy benchmarking studies• EstatesMaster surveys• Due diligence for service providers
How is the data used?How is the data used?
• The raw data is not accessed directly by the program.
• A model for each facilities service module with reference to the identified best-performance.
• A good comparable would be the reference to tendered prices by Quantity Surveyors in construction cost planning.
Some organisations benchmarked by the authors of Some organisations benchmarked by the authors of EstatesEstatesMasterMaster
• BAT• British Telecom• Bank of America• Bank of England• BSRIA Benchmarking Group• Dept. of Trade & Industry• Dept. of Educ. &
Employment• Dept. of Health & Soc.
Security• Min.of Agriculture Food
&Fish• Govt. Comm. Bureau• Min. of Defence• Salamon Smith Barney• Financial Services Authority• National Air Traffic Service
• The Barbican• Welsh Development
Agency• IBM• Sun Alliance• WH Smith• GSK• Superdrug• Home Office• Gilead • London Borough of
Southwark• Zurich Insurance• BAE• British Airways• Kings College London
……and some more - by no means and some more - by no means exhaustiveexhaustive
• Rolls Royce• Astra Zeneca• Royal Bank of Scotland• Becta• Berwins• Birmingham & Solihull
NHS• BP• Chase Manhattan Bank• College of West Anglia• Corporation of London• Cabinet Office• Barnet Hospital• Kodak• Irish Estates
• Kent CC• One-2-One• Powergen• Rothschilds• Royal Mail• Post office counters• Royal Navy• Schroders• Simmons & Simmons• Shell• St.Bartholemews
Hospital • Wessex water• DEFRA• Bath College of HE
EstatesEstatesMasterMaster building data entry building data entry
EstatesMaster Buildingcode
Building name
Category No.of storeys
(av)
GIA m² Av. W idth m
Average storey ht.
mANS-AA-001 AA-001 WSI 1 9963 3 5ANS-AA-001#2 AA-001 OA 1 431 12 3ANS-AA-002 AA-002 WSI 2 8186 30 5ANS-AA-002#2 AA-002 OA 2 484 12 3ANS-AA-003 AA-003 WSI 2 5998 30 5ANS-AA-003#2 AA-003 OA 2 472 12 3ANS-AA-004 AA-004 WSI 1 10778 30 5ANS-AA-005 AA-005 WHG 1 4520 15 5ANS-AA-006 AA-006 WHG 1 1527 15 5ANS-AA-006#2 AA-006 OA 1 485 12 3ANS-AA-007 AA-007 WSI 1 3526 30 5ANS-AA-007#2 AA-007 WHG 2 1618 15 5ANS-AA-008 AA-008 WSI 1 14018 30 5ANS-AA-008#2 AA-008 OB 1 612 10 3ANS-AA-010 AA-010 WHG 1 262 15 5
3 Levels of application3 Levels of application
• Free - +/- 35%• Level 1 - +/- 25%• Level 2 - +/- 12.5%• Level 3 - +/- 5%
3 Levels of application3 Levels of application
• Why and where are the differences?.......
• ……more questions asked about the cost drivers at Levels 2 and 3.
Identifying the scopeIdentifying the scope
Questions – Answers and HelptextQuestions – Answers and Helptext
Answer for Categories Answer for Categories
Answer for Individual BuildingsAnswer for Individual Buildings
Levels 2 & 3 – Question Levels 2 & 3 – Question NavigationNavigation
Level 3 QuestionsLevel 3 Questions
• Actual Costs?• Scope?• Quality per scope item?• Detailed resource drivers per
scope item?
Level 3 Results – 8,000 Level 3 Results – 8,000 buildingsbuildings
Benchmark analysisBenchmark analysis
Cost ManagementCost Management
Cost ManagementCost Management
Group Overview Cost Summary:Group Overview Cost Summary:Actuals v BenchmarkActuals v Benchmark
Current international coverage - Current international coverage - EstatesEstatesMasterMaster
• UK• Canada• USA• France• Germany• Italy• Spain• Eire
• Netherlands• Finland
In development• Australia• New Zealand• Nigeria • Philippines
User CommendationUser Commendation
• We took our time deciding whether or not to use this tool but now we have it and are deriving benefit, we’re pleased we adopted it.
• Large estate owners are highly likely to benefit from software such as this….
• …. it really does make it very simple to derive meaningful benchmarks, control costs and performance across significant and diverse property portfolios.
Application OptionsApplication Options
• Licence only• Licence with permanent call-off
consultancy• Licence with introductory call-off
consultancy
EstatesEstatesMasterMaster Web-site Web-sitewww.estatesmaster.comwww.estatesmaster.com
ThankyouThankyou for your interestfor your interest
• Malcolm and Jenny are sitting at the back
• Please ask either of them if you would like a demo now….
• …or leave your business card for a separate visit.
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