Research Center for Construction Innovation in relation to the Advisory services at own risk. Construction Innovation expressly disclaims any responsibility or liability to any person in respect of anything done or omitted to be done by any person in reliance on this report or any information provided. The Cooperative Research Center for Construction Innovation (Construction Innovation) is a national research, development and implementation center focusing on the needs of the real estate, design, construction and facility management sectors.
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Objectives and Scope
Introduction
Services Procurement Research
Deliverables
Maintenance in Iconic / Performing Arts Facilities
Maintenance in Iconic and / or Performing Arts Centre Facilities
Service Procurement Objectives and Strategies
- Outsourcing of Maintenance Services
- Key Success Factors for Procurement of Outsourcing
- An Integrated Performance Framework
Enterprise-level performance requirements reflect the specific needs and expectations of the organization and provide drivers for monitoring enterprise management. Effective transfer of best practice approaches to building maintenance and management from the service provider to the Sydney Opera House staff responsible for the building's operations, enabling proven improvement in service value over the life of the contract. Transparent measurement and evaluation of the Service Provider's contribution to the achievement of business and operational results.
Measuring integrated performance is comprehensive and multi-dimensional, and depends on the correct definition of priorities for weightings based on the importance and selection of KPIs.
Trends and Innovation
- Strategic Outsourcing
- Alliance / Performance Based Contract
- Innovation in Key Performance Indicators (KPIs) /Non-financial Criteria
- Joint Partnerships
- Information Sharing and Communication in Procurement Process
- Data Management and Knowledge Management
The performance requirements for service providers in iconic and/or performing arts centers include special functional requirements. The KPIs on which the Service Providers are measured are often multi-dimensional and include non-financial criteria, e.g. The selection of the type of criteria and the weight given to such criteria are important for determining drivers and priorities and keeping service providers focused on achieving good performance in key areas.
The emerging partnership relationship ensures a closer level of interaction between the client and the service providers and enables the establishment of joint responsibility for strategy, alliance and ensures a better quality of service for all stakeholders. Information sharing and communication seem to have a significant impact on the procurement process and performance. Building Information Modeling (BIM) for FM provides a new approach for facility managers to manage FM data.
Building information modeling for FM enables the modeling of integrated FM information, including the entire life cycle of a building, from concept to demolition. The BIM for FM was developed in the digital modeling theme (report 2005-001-C-4) of the Sydney Opera House FM Exemplar Project. Data Mining Approach for FM (Project 2001-002-B from CRC Construction Innovation) provides a powerful decision support tool to enable identification and analysis of large amounts of FM data and to support strategic FM management.
Knowledge management for FM enables facility managers to capture, share and operate knowledge as well as collaborate to create new knowledge. Knowledge management for FM can be supported by artificial intelligence-related technologies such as knowledge bases and ontologies.
Sydney Opera House Case Study
Facilities Procurement Strategies at Sydney Opera House
- Sydney Opera House: Business Enterprise and Facilities Management
- Service Procurement Strategies and Methods
- Innovation
Maintain and enhance the Sydney Opera House as a cultural landmark, a performing arts center and an architectural masterpiece. Invest in performing arts, cultural activities and audience development by maximizing the business outcomes of Sydney Opera House and leveraging its assets, resources and brand." 3. Since the mid-1990s, Sydney Opera House has sought to develop its commercial activities within the presentation of artists, retail, food and beverage and other areas.
The success of the Sydney Opera House and its many partners is closely linked to the world famous building and therefore to the standard of facility management at the Sydney Opera House. Perhaps more than in many buildings, Facility Management at the Sydney Opera House is seen as a core business function that directly contributes to the visitor experience and thus to the success of the building. In common with many organisations, the Sydney Opera House has gradually increased the range of outsourced maintenance services since the mid-1990s.
Facilities management at the Sydney Opera House is managed by the Facilities Portfolio, which is also responsible for site management. The portfolio is led by a director who intrinsically recognizes the importance that the Sydney Opera House organization places on facility management. In 2005, the Sydney Opera House prepared to tender the building maintenance and cleaning contracts, both of which were nearing their expiry dates.
As the Sydney Opera House organization places increasing emphasis on entrepreneurship, it was appropriate to review the approach to these two contracts, which are crucial to the presentation of the building to its many visitors. The subsequent evaluation process was weighted against non-commercial criteria linked to an understanding of the Sydney Opera House business and a demonstration of how a tenderer would contribute to this.
Procurement Methods and Contract Outcomes
- Analysis of Existing Contract
- Performance Requirements
- Research Survey Results
An understanding of how building maintenance and cleaning impact the experience of the Sydney Opera House for patrons, presenters, visitors and staff. Subsequent interviews gave each applicant an opportunity to present their modus operandi and demonstrate their understanding of the Sydney Opera House enterprise. He hadn't attempted to look at the Sydney Opera House from a defensive or tourist point of view.
Upon completion of the EOI process, the TEC was able to shortlist six (6) companies that have the potential to provide high quality, innovative tenders that would meet the Sydney Opera House's expectations. The workshop agenda focused on a review of the draft RFT documentation with a particular emphasis on understanding the use of BCIs and the importance of appreciating Sydney Opera House's culture and business. For the procurement team, the workshops were a critical stage in enabling and encouraging Tenderers to understand the Sydney Opera House business.
During the tender period, two site visits were held to enable Tenderers to familiarize themselves with the premises of the Sydney Opera House. The survey of participants enables an assessment to be made of the effectiveness of the procurement process in obtaining tenders that are consistent with Sydney Opera House's goals and objectives. From figure 5 it can be seen that Tenderers recognized that an understanding of the Sydney Opera House business was important and TEC members confirm that the tenders demonstrated this understanding.
Figures 3-7 show that the innovative use of workshops was appreciated by participants and increased business understanding of the Sydney Opera House. The workshops were less successful in explaining the culture of the Sydney Opera House and the BCI concept, possibly due to the degree of subjectivity.
Summary
Decision-making Framework and Guidelines for Selection of Appropriate FM Procurement
- Summary of Findings
- Existing Research
- Decision-making Strategies and Guidelines for Procurement of FM Services
- Corporate Strategy
- Asset Strategy
- Asset Knowledge
- Asset Monitoring
- Asset Management and Operational Level
- Planning for Capital Investment
- Intervention Decisions
- Managing Strategic Management of Long Term Assets
- Summary
The bibliography below indicates the range of articles read during the preparation of this report. The focus of these issues is found in Sections 1 and 2 of the FMA's Facilities Management Contracting Guidelines (2003). As an iconic building, the Sydney Opera House is fully integrated into the company as a feature of the patron's performance experience and an incentive for repeat business.
What are the goals to be achieved through the effective management of the asset base and its service. As leased venues the Sydney Opera House has only limited control and influence over these venues and they are not included in the FM Exemplar research. It has recently been observed that in a successful organization "the control system is built on the belief that people at all levels will make the right decisions if they are provided with the right information" (Samson, 2003).
As with the Building Condition Index (including BPI and BFI) adopted by the Sydney Opera House, the performance of assets and services must be measured and monitored. For example, tetrotechnology is concerned with “pursuing the optimal technical and economic cost of owning or leasing a facility throughout its life from conception to purchase to operation and finally disposal” (FMA, 2001). For the provision of assets and services subject to a 'business case' consideration, the most beneficial mode of procurement must be evident.
It is likely that decisions will depend on the criticality of the service to the organization and the distribution of risk as much as cost effectiveness. How should assets be classified in the building information models (BIM) to optimize total preventive maintenance.
Conclusions and Future Development
Conclusions
Future Work
Edquist, C (1997) Systems of Innovation Approaches – Their Emergence and Characteristics, i Edquist, C (red.), Systems of Innovation: Technologies, Institutions and Organisations, London: Pinter, pp.1-35. Facilities Management Action Agenda (2005) Håndtering af det byggede miljø, Commonwealth of Australia, Australian Government, Department of Industry, Tourism and Resources, Canberra. 1998) Performance Based Contracting, the Problems Facing Operators and Suppliers, International Conference on Development in Mass Transit Systems, 20-23 April 1998, Conference Publication No.543, IEE, pp.217-221. Kim Wan Siu, G, Bridge, A og Skitmore, M (2001) Assesing the Service Quality of Building Maintenance Providers: Mechanical and Engineering Services, Construction Management and Economics, Vol.19, pp.719-726.
Lavy, S, Shohet, I (2004) Integrated Maintenance Management of Hospital Buildings: A Case Study, Construction Management and Economics, Vol.22, pp22-34. Pongoeng, J og Liston, J (2003) Contractor Ability: A View from the Thai Construction Industry, Construction Management & Economics, Vol.21, pp.267-282. Sydney Opera House (2005) Sydney Opera House Building Presentation Index (BPI) og Building Fabric Index (BFI) - Funktionel specifikation for softwareudvikling, Sydney Opera House Trust.
Sydney Opera House (2004) Building Maintenance Contract, Sydney Opera House Trust Sydney Opera House (1999) Cleaning Maintenance Contract, Sydney Opera House Trust. Shohet, I (2003) Evaluation Methodology for Maintenance Priority Setting in Hospitals, Construction Management and Economics, Vol.21, pp.681-692. Shohet, I, Lavy-Leibovich and Bar-on, D (2003) Integrated maintenance monitoring of hospital buildings, construction management and economics, Vol.21, pp.219-228.
Tsang, A, Jardine, A and Kolodny, H (1999) Maintenance performance measurement: an integrated approach, International Journal of Operations & Production Management, Vol.19, No.7, pp.691-715. Vining, A and Globerman, S (1999) A conceptual framework for understanding the outsourcing decision, European Management Journal, Vol.17, No.6, pp.645-654.
Appendix A - Procurement Questionnaire for Contractors
In your assessment, that part of the tender documentation you submitted was written specifically for the Sydney Opera House rather than generic corporate material. Did you spend more or less time preparing the tender than for a typical tender of similar value. Which of the following aspects of this tender were an improvement over other tenders you have experienced?
Appendix B - Procurement Questionnaire for Tender Evaluation Committee
Which of the following best describes the efforts involved in understanding quality issues in tender submissions? In a similar process, how would you change the weightings of the criteria, specifically between commercial and non-commercial components. Which of the following aspects of this process was an improvement on other processes you experienced?
