A Facilities Management Company (FMCO) An Executive Presentation for UAE

1. A Facilities Management Company(FMCO)An Executive Presentation for UAE AdilAbdalla Dubai, 2012

2. What FM? ‘An integrated approach to operating, maintaining, improving and adapting the buildings and infrastructure of an organization in order to create an environment that strongly supports the primary objectives of that organization’ (Adapted from Barrett and Baldry, 2003) ‘The practice of coordinating the physical workplace with the people and work of the organization. It integrates the principles of business administration, architecture and the behavioral and engineering sciences’ (The British Institute of Facilities Management – BIFM) ‘Management of a vital asset – the organization's facilities.’ (The International Facility Management Association – IFMA)

3. Landlord Revenues FM within RE? Regulator Renovation Contracts OPERATIONS Property CRM EXECUTION FM Packages Design Package Construction Package Contracts Facilities Management Handover Project Management Regulator Premises Leasing

4. Facilities Management Strategy Facilities Management Modeling Facilities Management Procurement Facilities Management Operations Value Chain of FM? Strategy & Branding Benchmarking & Standardization Prequalification FM Operations Corporate Quality Manual Service Optimization Award & Mobilization Operations Quality Manual Tendering FM Quality Manual

5. Why FM? Sustainability: The indispensible framework to sustain and maintain the invested assets in the built environment. Convenience: The management of occupied habitats to meet demands and expectations of end-users. Growth: The tools to extend both life cycle and value of the Real Estate products. Integration: The knowledge and professional applications to integrate systems and preferences of Real Estate.

6. Strategy of FM?

7. Administration Strategy Corporate Procurement Biz Development Corporate of FM? Contracts Communications Manuals Customer Care Quality Templates Audit & Improve Records Call Center Service Zones Clients Operation Service Packages Service Managers Service Enabling Teams Leaders

8. How FM? Baselines: Convenient Scope & Specifications of Service Trained Supervisors & Attendants Adequate Pricing against the Service Customer Relation Management Governance & Key Performance Indicators Service Packages: Soft Service Engineering Service Health, Safety and Security Service Space Making Management Commercial Service

9. The Board FMCO Quality Office FMO Strategy & Biz Dev FM Corporate Team? Call Center Managing Director Snr Mgr Property Mgt Snr Mgr Administration Snr Mgr Hard Service Snr Mgr Soft Service Snr Mgr HSSE Service Outsourced Contract Back of House Contract Contract Contract Account Director Staff Account Director Enabling Facilities Account Director Account Director Field Team Field Team Field Team Stores & Workshops Field Team Equipments Subcontractors

10. Account Director (Office 1,000,000 ft2+) Call Center Officer Client Relations Mgr Reception FM Field Team? Receptionists Mgr Soft Service Mgr Engineering Team Leader Housekeeping Supervisor Engineering Operatives Housekeeping Team Leader Engineering Team Leader Others Supervisor BMS Technician Engineering Operatives CLN + LSC + FCD Team LeaderBMS Mgr Security Ops Mgr HSSE Technician BMS Mgr Fit-out Team Leader Security Ops Supervisor Car Parking Guards Security Ops Document Controller Operative Car Parking

11. When FM? During Development Planning: Outline convenience of space descriptions Outline convenience of finishing materials During Design Development: Approve durability and functionality of materials During Construction: Approve Testing & Commissioning Take over premises and O/M manuals Post Construction/Asset Management: Property Management & Operations Operations of FM Service Target

12. 2000 Developer 2005 < Facility Manager Developer Project Manager Roles of FM? Construction Team Development Manager 1990 Project Manager Lease Operations < 1985 Developer Construction Team Tenancy Operations Project Manager Developer Tenant/Client Construction Team Facility Manager Project Manager Lease Operations Facility Manager Construction Team Tenancy Operations Lease Operations Lease Operations Tenant/Client Tenancy Operations Tenancy Operations Tenant/Client Tenant/Client Facility Manager

13. Value of FM? 1:5:20 Theory: Respectively; costs of EPC and FM during the Life Cycle of a Building 4:3:2 Role: Respectively; costs of Manpower, Consumables and Management to provide the FM Service Service Packages: Tier One, Tier Two, and Tier Three ROI Framework: Invoicing Cycle of 90:120 days Recovery of Invested Capital in 3:5 years Conservative Profitability 20%

14. +15% (GCC $ 900 Billions by 2030) 21st Century Operating Margin Single Bundle Service Providers IFM Companies Immature Market Mature Market +/- 0% Time 1990th 2010th Conventional & Basic FM Environmental & Advanced FM Futuristic & Innovative FM Future of FM? Engineering Housekeeping Security Green Bldg Energy Control Business Support Sustainability Intelligent Bldg Carbon Control Habitat Urban Metropolitan Facilities Mgt Community Mgt Town Mgt Business Driven Socially Driven Politically Driven

15. FM in UAE? FM Contractors: Serco, Emril, Emcor, Dalkia, Imdad, Serve U, FarnekAvireal, Idama, Obron, and Drake & Scull Industry: Regulated by Local Authorities (RERA & EDD) 10-15 Cos. provide Professional FM Service Many Cos. provide independent bundles Market: MENA Leader of $8 billion; with 11% growth Estimated market value by 2045 at $700 billion Resources: The only MENA FM Consultant operate in UAE Most MENA FM Professionals work in UAE. MEFMA had been launched in UAE FM Consultants: Reliance FM, Mace Macro

16. Soft Packages Engineering Packages HSSE Packages Tier One Tier Three Landscape & Gardens BMS Management Health Management Common Packages of FM? Housekeeping Service Engineering Management Safety Management Reception & Front Office Plant Management Environmental Management Tier Two Façade Cleaning ICT Management Security Management Specialized Cleaning AV Systems Service Pest Control Service Look & Feel Look Feel

17. FM in UAE; BD Business Development? Service Packages: Residential sector needs Basic Tier-1 Commercial sector needs the common Tier-2 High-End & Public needs Tier-3 Independent Permits for Security Services Target Clients: Generally; Government and Public Sector Corporates and Foreign-owned facilities Educational & Healthcare facilities Residential free-hold properties

18. Corporate Quality Manual FM Quality Manual (FM Baselines) FM Ops Manual (FM Operations) FM Quality Manuals? Strategy Procurement Management Specifications The Brand KPIs, Efficiency & Technical Audit Method Statement Obligations Management & Supervision Deliverables Feasibility Measures Corporate Performance

19. FM in UAE; SWOT? Strengths: Hands-on-the-trade with appropriate skills Chances to attract professionals within UAE Strong networking within UAE Weaknesses: Mature market, with defined pros & cons Opportunities: Acute demand for reasonable service Growing demand for quality and auditability Diversify markets, Clients and Soft Resources Threats: High competition on Rates

20. Landlord FM Client Interfacing? CR Mgt Operations Planning Clients Quality Manual Satisfaction FM Provider KPIs Call Center Operations CAX

21. FM in UAE; Business Plan ? Corporate Targets: To be among Top Ten FM Co. within 5 years To be among Top Ten Market Leader in I-FM To evolve into T-FM by 2020 To develop a parallel FM Training Service Commercial Targets: To serve 30 million ft2 within 5 years To be main service provider for the Government Financial Targets: To turn from Debt into Profit in 2 years Growth rate will be directed by the Board

22. Budgeting of FM?

23. FM in UAE; Next Steps?

24. Corporate Planning Proposal Corporate Formation Sustainable Contracts & Projects Corporate Expansion Corporate Planning FM in UAE; Timeline ? Resources Planning Y3 Y1M1 Y1M2 Y1M2 Y1 M4-6 Y1 M6-12 Y2 Implementations Sign Off AOA Sign Off CONT-1 Sign Off FMCO Mobilize Phase-1 Realization Phase Four Projects Operations & Development Phase-2 Identification Phase-3 Verification & Improvement