Facilities Management in Government. 9 th October
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1 Facilities Management in Government 9 th October
2 Introduction John Samuel Pr Eng; Pr CPM; AFP; C Eng; BSc Eng (Civil); GDE; MBA; MSAICE; MICE; MASCE (life); MSAFMAAssociations
3 Discussion topics Why Facilities Management Facilities Management in Government Facilities Management Trends and Options
4 Why Facilities Management
5 Why Facilities Management The unintended consequence of constructing more and more new infrastructure, without addressing the condition of the existing infrastructure, in the attempt to address imbalances in access to services, is widening the gap in infrastructure maintenance. Generally the poorest municipalities have acquired, relative to their ability to look after it, the most infrastructure, while lacking the resources to maintain the new and existing infrastructure adequately. Bloemhof: kill 3 and hospitalise >60 Grahamstown: no water for >3 weeks; sewerage spills Delmas: Cholera twice in 10 years Duvha Power station: Turbine and now a boiler 600 MW Gauteng water crisis: 2 weeks and counting The most common causes of the failure of electricity reticulation systems are faulty operating procedures, lack of planned maintenance, damage (e.g. to underground cables) during construction nearby, overloading, and equipment ageing.
6 Facilities Management For want of a nail the shoe was lost. For want of a shoe the horse was lost. For want of a horse the rider was lost. For want of a rider the battle was lost. For want of a battle the kingdom was lost. And all for the want of a horseshoe nail. Strategy Doing the Right thing Management Doing the thing right MANAGEMENT FUNCTIONS: The 4 basic management functions that make up the management process are: PLANNING ORGANIZING INFLUENCING CONTROLLING Doing the thing Right
7 A story no breakfast
8 A story no breakfast
9 FM Success: It all works
10 FM Success: It all works
11 FM Failure one component JHB water crisis: Northern suburbs affected As officials work to restore supply, more taps in Northern Johannesburg are running dry.
12 Facilities Management In Governement
13 FM In Government Legislation OHSAct PFMA GIAMA You can acquire (free) a criminal record for doing nothing How ABSA spent R30 million in scaffolding materials in Pretoria a risk issue
14 GIAMA Government Immovable Asset Management Act - GIAMA Only covers IMMOVABLE ASSETS Talks of the Custodian and User Custodian KZN Premier who delegates KZN Provincial Public Works User Any Department using an immovable asset
15 GIAMA - Custodian On behalf of the State, Custodian for all provincial immovable assets (offices, hospitals, schools, clinics, Game Parks, workshops, roads, legislature, provincial houses) Allocates immovable assets to Users Is the User for unallocated Assets Responsible for the preservation of State immovable asset value Receives a copy of the User U-AMP Completes the C-AMP plan
16 GIAMA - User Uses any provincial immovable asset to fulfil its mandate Responsible for preserving the value of State Immovable Assets (the act of preserving) Asset register of immovable and moveable assets Plans, funds and implements maintenance Completes and submits an annual U-AMP
17 User Must: 1. Give effect to its user immovable asset management plan; 2. Conduct immovable asset management consistent with GIAMA 3. Conduct immovable asset management consistent its U-AMP 4. Annually revise its U-AMP after its budget has been finalised by Treasury; 5. Annually incorporate the revised U-AMP into its strategic plan; 6. Submit the revised and amended U-AMP to the Custodian as prescribed 17
18 User Must: 7. Conduct a joint immovable asset planning process with the Custodian; 8. Submit a U-AMP to Treasury; 9. Submit a copy of the U-AMP to the Custodian 10. Establish a performance measurement system as prescribed; 11. Execute a performance measurement system as prescribed; 12. Surrender surplus immovable assets 13. Amend its U-AMP in accordance with the prescribed process 18
19 U-AMP 1. Management plan for (each and the total of) all immovable assets to be used or intended to be used 2. Strategic Needs Assessment What is required 3. Acquisition Plan 4. Operations Plan (for each and the total of all immovable assets). The operations plan will include an allowance for operations, reactive maintenance, planned or programmed maintenance, refurbishment plan, resourcing, procurement, timeline and budgets. 5. Surrender Plan for assets that are not efficiently being used or not supporting the User s delivery of services. 19
20 U-AMP 6. Treasury sets the submission date for Original to Treasury; 7. Custodian sets the submission date for copy to Custodian; 8. Part of the User Strategic Plan to Treasury; 9. Principal immovable asset strategic planning instrument; 10. Guides and informs the User all immovable asset management decisions; 11. Binds the User in the exercise of its executive authority; 20
21 GIAMA PPP and FM Institution is the Custodian and User Private Party generates the plans What does the Private Party provide4 Tirasano Monthly report August 2014.pdf
22 Facilities Management Trends and Options
23 FM Options Fully in-house Contract out functional services Contract out to an integrated Service Provider PPP Control you keep the issue management structure risk transfer
24 FM Trends
25 FM Involvement In-house Plan, execute and report hard and soft services Asset planning, planned maintenance, budgeting, balancing budget against work holding on to the budget budget cuts Staff salaries fixed cost Staff Management Lots of lower level staff Higher level skills scarcity Consumable losses Performance management of staff
26 FM Functional contracts The FM client for contracts Contract interface with Departmental staff Multiple contracts (Hard FM, Soft FM) Expensive ongoing contract procurement FM is the single point co-ordinator Functional contract management is done by FM Largish contract management staff Little to no risk transfer All planning and reporting by FM
27 FM Integrated contract The FM client for single contract Contract interface with Departmental staff Single contract (Hard FM, Soft FM) One contract procurement every 3 to 5 years FM has a single point co-ordinator in contract Functional contract management is done by Contractor Small contract management staff Some risk transfer Short term planning and reporting by Contractor
28 FM PPP The FM client for single contract Contract interface with Departmental staff Construction, Hard FM, Soft FM One contract procurement 25 years FM has a single point co-ordinator in contract Functional contract management is done by Contractor Very small contract management staff significant risk transfer All planning and reporting by Contractor
29 THANK YOU
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