Benchmarking Questionnaire on Facility Management Costs and Business Practices April 21, 2004
Introduction KPMG has been contracted by Hydro Quebec s Facility Management Division to perform a benchmark study on the management of administrative buildings (both office and industrial facilities). Ultimately, the intent is to draw comparisons with similar organizations throughout North America. We are pleased to invite you to participate in this benchmark study. Our goal is to collect comparative information on various facility management elements, including: financial metrics on the management of your facility management department in 2003; non-financial metrics on the management of your facility management department in 2003; information on your business practices. You can complete this questionnaire and return it by e-mail. Alternately, we can organize a conference call at your convenience to answer the following questions verbally. The results presented to Hydro Quebec s Facility Management Division will be aggregated to preserve the confidentiality of your responses. As a token of appreciation, each organization that participates in this benchmark survey will receive an executive summary of the study results. On behalf of Hydro-Québec and ourselves, we thank you for your cooperation. 2
General Information Organization name: Contact person name: Position: Telephone: E-mail: ORGANIZATIONAL PROFILE Employee information Total number of employees: Number of occupants (including permanent and temporary employees, contract workers and consultants with access to a workstation): Number of occupants used to calculate ratios in this questionnaire, if different from previous response: Information on rentable area (usable office space in addition to its share o f common floor and common building areas ref.: BOMA) Total square meters being managed: o Leased: % M 2 o Owned: % M 2 Square meters by category: o Office space: % M 2 o Others: % M 2 Square meters by location: o Urban centres: % o Regions: % Does your organization s facility management department work in a shared services environment? Yes No Do you rely on external suppliers for your space planning services? Yes No Does your administrative unit have a quality certification? (e.g. ISO, Qualimètre, etc.) If so, please specify Yes No 3
2003 Financial Metrics Occupancy costs per square meter Occupancy costs (sum of A, B, C) $ - $ per M 2 Square meters M 2 The occupancy costs consists of the operating costs, fixed asset costs and general costs. Please provide the cost breakdown. Categories from BOMA A. Operating costs 1 $ % Sanitary management (1) - Interior maintenance and repairs (2) - Exterior maintenance and repairs (3) - Utility costs (4) - Security costs (5) - Building management (6) - Partial operating costs - as per BOMA $0 0.0% Leasing expenses (7) - Total operating costs $0 100.0% What is the proportion of labour expense compared to the total operating costs? 1 Each cost category enclosed in brackets ( ) is explained in the "Definitions" section. B. Fixed asset costs $ % Depreciation - Financial costs - Taxes - Others (please specify) - Total fixed asset costs $0 0.0% C. General costs $ % Information technology (8) - Financial accounting (9) - Environnemental costs (10) - Human resources (11) - Others (please specify) - Total general costs $0 0.0% 4
Occupancy costs per square meter (cont d) Does your organization calculate this metric using a different method? Yes No If so, what metric did you obtain? Occupancy costs (Sum of A, B, C) $ - $ per M 2 Square meters M 2 What are the differentiating factors? Occupancy costs per occupant Occupancy costs (Sum of A, B, C) $ - $ per occupant Number of occupants Occupants Space planning costs per occupant Space planning costs (D) $ - $ per occupant Number of occupants Occupants Space planning costs (D) No. of resources Internal External $ % Planning: corporate objectives, annual program, three-year plans, etc. - Coordination: project management, identification and accountability of stakeholders Design: proposals, preliminary and implemation plans - Implementation: layout and moving costs as well as major renovation and construction costs Furniture: management and maintenance - Others: signs, name plates, etc. - Total space planning costs $0 0.0% - - 5
Non-financial Metrics for 2003 Square meters per occupant Rentable area 1 in both rented and owned buildings = M 2 = - M 2 /occupant Number of occupants Occupants Vacancy rate Vacant rentable area 1 M 2 x 100 - % Rentable area 1 in both rented and owned M 2 buildings Occupant churn rate Number of occupants relocated in the year x 100 0 % Number of occupants Workstation utilization rate Workstations used x 100 0 % Total workstations available for use 1 Usable office space in addition to its share of common floor and common building areas ref.: BOMA 6
Information on Business Practices 1. Maintenance of the facility management assets A. What proportion of your maintenance and operating fees is paid to internal and external suppliers (subcontractors, outsourcing partners)? External % Internal % 100% B. What type of maintenance and operating tasks do you outsource for your facility management assets? C. What percentage of your maintenance budget is allocated to preventive and corrective tasks? Preventive % Corrective % 100% 2. Space planning A. The North American facility management market focuses more and more on workstations that are planned in a homogenous manner (identical workstations, modular furniture, cubicles, etc.). Do you apply this practice in your organization? Yes No If so, in which proportion (% of workstations)? % 7
B. Does your organization apply the principle of occupational centres? This practice aims at grouping business units within the same division in close proximity to facilitate personnel movement in the case of divisional reorganizations and serves to significantly reduce moving costs. Yes No C. What is the average space allocated to each workstation in your organization? M 2 Workstation M 2 /Workstation 3. What orientations and principles underlie your facility management strategy? (Location, building categories, ownership vs. leasing, average leasing term, etc.)? 4A. How many leases does your organization manage? 4B. Number of employees assigned to lease management (negotiation, analysis, renewal, etc.) 5. Number of employees assigned to lease payment? 6A. How many municipal tax accounts does your organization manage? 6B. Number of employees assigned to tax accounts payment? 7. Chargeback of facility management costs A. Are facility management costs billed to internal clients? Yes No Explanations: Comments Do you have comments on this questionnaire or the information being benchmarked? We thank your for your cooperation. You will receive the executive summary of this study results shortly. 8
Definitions (1) Sanitary management costs (2) Interior maintenance and repairs expenses (3) Exterior maintenance and repairs expenses Includes salaries and benefits of employees and supervisory staff as well as the costs of contracted work, equipment and supplies, waste removal and recycling efforts dedicated to maintaining interior sanitation and cleanliness. Any preventive and corrective maintenance as well as equipment replacement costs. This category focuses on electrical and HVAC (heating, ventilation, air conditioning) systems, plumbing, fire protection, structure, roofing, building envelope, elevators and other building components. It includes salaries and benefits of employees and supervisory staff as well as maintenance contracts, equipment, supplies and parts, maintenance vehicles, and environment-related costs. Encompasses snow removal and landscaping expenses as well as the costs associated with the preventive and corrective maintenance or the replacement of equipment outside the buildings (e.g. in free parking facilities). This category includes salaries and benefits of employees and supervisory staff as well as maintenance and services contract, equipment, supplies and parts costs. (4) Utility costs Purchase costs of energy destined for heating, air conditioning, lighting and building services: electricity, gas, fuel oil, chilled water and steam. Also includes water and sewage costs. (5) Security costs Expenses to protect any building and its occupants through the maintenance and operations of burglar alarm, surveillance, fire alarm and access control systems. This category includes salaries and benefits of employees and supervisory staff as well as maintenance and service contracts, equipment, supplies and parts costs. (6) Building management expenses Expenses directly related to building management. Includes salaries and benefits of managers, secretaries and assistant building managers, professional or management fees, training, IT and general office costs as well as travel expenditures. (7) Leasing expenses Leasing expenses and other costs excluded from leases. (8) IT expenses Expenses including office automation, software development, systems support and maintenance as well as telecommunications costs. (9) Financial accounting Expenses related to financial planning and control activities such as budget management, financial analyses, costing, internal and external billing, financial statements, business plans and operating reports. (10) Environmental costs Costs related, among others, to implementation and maintenance of environmental management systems, (e.g. ISO 14001), internal and external audits, environmental inspections, management reviews and monitoring activities. (11) Human resources Expenses related to recruitment and staffing, compensation program management, social benefits, industrial relations, training and development, etc. 9