Facilities Manager's Desk Reference -- Copyright -- Contents -- List of Abbreviations -- Introduction -- 1 History of Facilities Management -- 1.1 Origins of facilities management -- 1.2 A brief history of FM -- 1960s era -- 1970s era -- 1980s era -- 1990s era -- 2000s era -- 2010s era -- 1.3 Growth of the FM profession -- International Facility Management Association (IFMA) -- FM in the UK -- Association of Facilities Managers (AFM) -- Institute of Facilities Management (IFM) -- British Institute of Facilities Management ( BIFM) -- Facilities Management Association ( FMA) -- EuroFM -- Global FM -- Asset Skills -- 1.4 Defining FM -- International Facility Management Association (IFMA) -- Association of Facilities Managers (AFM) -- Strathclyde Centre for Facilities Management (CFM) -- Chartered Institute of Building (CIOB) -- Royal Institution of Chartered Surveyors (RICS) -- British Institute of Facilities Management (BIFM) -- Broad definition -- Professional management -- A supporting role -- Control of non-core activities -- A business enabler -- 1.5 Development of FM -- Market size -- Measurement of FM market -- Market growth -- 1.6 Trends -- 1.7 FM standard -- 2 Key Drivers of FM -- 2.1 The business organisation -- 2.2 Demand and supply -- 2.3 Roles of FM -- 2.4 Drivers of FM -- 2.5 Champion of end-user -- 2.6 Flexibility in office space -- 2.7 A recruitment differentiator -- 2.8 Scope of services -- 2.9 Impact of work space on productivity -- 2.10 The virtual office -- 2.11 Technology systems integration -- 2.12 Building designs -- 2.13 Financial performance -- 2.14 Ownership of the property -- 2.15 Value added -- 2.16 Service Profit Chain -- 2.17 FM's contribution -- 2.18 Performance measurement -- 2.19 Performance Indicators -- 2.20 Benchmarking -- 2.21 Future trends -- 3 Activities in FM -- 3.1 Introduction.

3.2 Facilitation of services and information -- 3.3 Management functions -- 3.4 Premises and building management -- 3.5 Business support services -- 3.6 Scope and extent of FM activities and services -- 4 Delivering FM - FM Strategy -- 4.1 Introduction -- 4.2 Business strategy -- 4.3 Identifying the needs -- 4.4 Benefits of a strategic approach -- 4.5 Strategic analysis -- 4.6 Determining factors -- 4.7 Premises policy -- 4.8 Facilities audit -- 4.9 Audit process -- 4.10 Awareness -- 4.11 Space audit -- 4.12 Audit stage 1 - fact finding -- 4.13 Audit stage 2 - further investigation -- 4.14 Audit benefits -- 4.15 Developing Solutions -- 4.16 Strategy implementation -- 4.17 FM strategy models -- 4.18 In-house or self-perform -- 4.19 Single or packaged services -- 4.20 'Bundled' services -- 4.21 Total or integrated facilities management -- 4.22 Managing agent -- 4.23 Private Finance Initiative (PFI) -- 4.24 Corporate PFI -- 4.25 Special purpose vehicles (SPVs) -- 5 Outsourcing -- 5.1 Introduction -- 5.2 Multi-service contracts -- 5.3 Best Value (BV) -- 5.4 Longer contracts -- 5.5 Integrated FM solutions -- 5.6 Benefit analysis -- 5.7 Intelligent client -- 5.8 FM outsourcing models -- 5.9 Selection process -- What are the corporate objectives? -- What are the implications? -- What are the risks? -- The service specification -- What are the contractual issues? -- What are the considerations concerning potential suppliers? -- Quality assurance -- Are there any particular tendering considerations? -- 6 Financial Management -- 6.1 Introduction -- 6.2 Financial systems and process -- 6.3 The finance department -- 6.4 Financial controls -- 6.5 Financial statements -- 6.6 Finance and the FM -- 6.7 Sources of funding -- 6.8 Use of funding -- 6.9 Fixed assets -- 6.10 Working capital -- 6.11 Investments -- 6.12 The balance sheet -- 6.13 The profit and loss account.

6.14 Cash flow statement -- 6.15 Performance measurement -- 6.16 Profitability -- 6.17 Liquidity -- 6.18 Liquidity issues -- 6.19 Annual reports of accounts -- 6.20 Recent developments in financial accounting -- IFRS and FM -- 6.21 Budgets -- 6.22 Roles of budgets -- 6.23 Budget design -- 6.24 Capital or revenue -- 6.25 Property costs -- 6.26 Budget variances -- 6.27 Cost data -- 6.28 Cost accounting -- Overhead costs -- Impact of costing methods selected -- 6.29 Cost centres -- 6.30 Cash flow -- Cash flow forecasting -- Elements of the cash budget -- Corrective action -- Using cash forecasts -- Cash management options -- 6.31 Tax -- 6.32 Value Added Tax (VAT) -- VAT on rent, leases and service charges -- 6.33 Landfill Tax -- 6.34 Climate Change Levy -- 6.35 Business rates -- 6.36 Stamp duty -- 6.37 Income Taxes -- Capital Gains Tax -- Inheritance Tax -- 6.38 Corporation Tax -- Taxable profits -- Capital allowances -- 6.39 Tax status of construction workers -- 6.40 Depreciation -- 6.41 Financial business cases -- Examples -- 6.42 Investment appraisal methods -- 6.43 Cost benefit analysis -- Costs -- Benefits -- 6.44 Payback period -- 6.45 Discounted cash flow (DCF) -- 6.46 Net present value (NPV) -- 6.47 Internal rate of return (IRR) -- 6.48 Preparing a financial proposal -- 6.49 Submission -- 6.50 Building life cycle costs -- 6.51 Life cycle costing methodology -- 6.52 Evaluating life cycle costs -- 6.53 Sinking funds -- 6.54 The impact of inflation -- Building cost data -- 7 Property and Estates Management -- 7.1 Introduction -- 7.2 Property industry -- 7.3 Market influences -- 7.4 The cyclical nature of the market -- 7.5 A property portfolio -- 7.6 The investment market -- The 'prime' investment market -- The secondary investment market -- Speculative/tertiary investments -- Global property market -- 7.7 Property investors -- Private sector.

Public sector and quasi public bodies -- 7.8 Property management -- 7.9 Property professionals and specialists -- Architects -- Building surveyors -- Engineers -- Financial advisers -- Quantity Surveyors -- Lawyers and solicitors -- Building contractors -- The planning authority -- The client (or FM) -- Others -- 7.10 Developing a property strategy -- 7.11 Property and asset registers -- 7.12 Dilapidations -- Out of repair -- Procedure -- Quantifying the claim -- The diminution in value -- Dilapidations and good estate management practice -- 7.13 Vacant Property -- 8 Property Legislation and Leases -- 8.1 Ownership and tenure -- Freehold -- Leasehold -- Licences -- Examples of typical licence agreements -- 8.2 The Estate Agents Act 1979 -- Contract letters -- 8.3 The Property Misdescriptions Act 1991 -- 8.4 Defective Premises Act -- 8.5 Occupiers Liability Act -- Occupiers and trespassers -- 8.6 Energy Performance of Buildings (Certificates & Inspections) (EPC) -- 8.7 Health and Safety Legislation -- 8.8 Boundaries and Party Walls -- 8.9 Landlord and tenant legislation -- 8.10 The contents and terms of a commercial lease -- Introductory -- Definitions -- Interpretation -- Demise -- Yielding and paying -- 8.11 Tenant's covenants -- 8.12 Landlord's covenants -- 8.13 Schedules -- 8.14 Trigger notices -- 8.15 Time limits -- 8.16 User -- 8.17 Alienation or assignment -- 8.18 Arbitration -- 8.19 Additional covenants -- 8.20 Lease renewals -- 8.21 Security of tenure -- 8.22 The machinery for termination - Sections 24-28 -- 8.23 Landlord's grounds for opposing a new tenancy - Section 30 -- 8.24 The new tenancy -- 8.25 Section 32 Rule -- Exceptions to the Section 32 Rule -- 8.26 Market forces and lease renewal -- Compensation for termination of the lease -- Compensation on quitting -- 8.27 Repairs -- 9 Developing New Buildings -- 9.1 The development process.

Stage 1 - Feasibility -- Stage 2 - Pre-production -- Stage 3 - Production -- 9.2 Planning legislation -- Administering the system -- 9.3 The Town and Country Planning Act -- 9.4 Planning permission -- Making a planning application -- Processing a planning application -- Determination of the application -- Outline planning permission -- Planning appeals -- Delegated legislation -- 9.5 The Town and Country Planning Use Classes Order 2005 -- 9.6 Planning policy guidance notes -- 9.7 Development plans -- 9.8 Planning agreements -- 9.9 Breach of planning control -- Enforcement notice -- Breach of condition notice -- Planning contravention notice -- Certificate of lawfulness -- 9.10 Users pre-1964 -- 9.11 Listed buildings -- 9.12 Conservation areas -- 9.13 Building design -- 9.14 Types and uses -- 9.15 Drivers of building design -- 9.16 Sustainable construction -- 9.17 Passivhaus -- 9.18 Intelligent buildings -- 9.19 Building Information Modelling (BIM) -- 9.20 Structure and its effect on building use -- 9.21 Planning grids and the use of space -- 9.22 Developers' fit-out -- Shell and core -- Category A fit-out -- Shell-and-core completion -- Category B fit-out -- 9.23 Measuring building efficiency -- 9.24 Building efficiency -- 9.25 Layout impact -- 9.26 Building performance -- Physical performance -- Functional performance -- Financial performance -- 9.27 Design Quality Indicator (DQI) -- 9.28 Commercial building materials -- 9.29 Building Regulations -- Enforcement -- Obtaining approval -- 9.30 Approved Documents -- 10 Project Management -- 10.1 Introduction -- 10.2 Project management process -- 10.3 Fundamentals of project management -- 10.4 Project manager (PM) role -- 10.5 Responsibilities -- 10.6 Project briefs -- 10.7 TOR -- 10.8 Project programmes -- 10.9 Project timescales -- 10.10 Quality plan -- 10.11 FADE project methodology -- 10.12 PRINCE.

10.13 Project planning.