When managing facility management (FM) services—whether through outsourcing or insourcing—having a clear Scope of Work in facility management is crucial. The SOW is a detailed document that lays out all necessary tasks, roles, and processes needed to manage operations effectively. A well-defined SOW ensures that everything is done according to plan and helps avoid any miscommunication.
Key Components of a Facility Management Scope of Work
- Assets Inventory: List all assets precisely, including locations, buildings, equipment, and other inventory items. Keeping this list up-to-date is vital for effective management.
- Risk Assessment: Conduct a thorough risk assessment, including a Business Impact Assessment (BIA). This step identifies potential risks and how they could impact facility operations.
- Service Matrix – SLA: The Service Level Agreement (SLA) should specify expected service levels for different building types. Tailor the SLA to ensure that each facility’s specific needs are met.
- Performance Management – KPIs: Set up a performance management system with clear Key Performance Indicators (KPIs). These metrics help monitor and control the quality of services provided.
- Processes, Procedures, and Policies: Standardize processes for all activities, such as scheduled maintenance and on-request services. This includes setting up control mechanisms supported by IT systems.
- Roles and Responsibilities: Clearly define the roles and responsibilities of everyone involved in managing facility services. This ensures accountability and smooth operations.
- Price/Cost Structure: Develop a pricing model that links payments to performance. Options include open book with a fixed margin, fixed prices per operation or man/hour, and performance-based incentives.
- Budget Information: Outline detailed budget plans that cover investments, repairs, replacements, and all related FM services. Align these plans with the overall FM strategy.
Customizing Services to Building Classifications
Different buildings have different needs. The SOW should account for this by tailoring service levels to each building classification and usage. For instance, a Critical building requires quick intervention and high levels of preventive maintenance, while a Very Low Impact facility may need less frequent attention.
Processes and Procedures
Standardize processes across similar activities to keep operations smooth and consistent. For example, the same process can be used for both preventive maintenance and scheduled cleaning. Control mechanisms based on KPIs should be in place to ensure that all work meets the required standards.
Cost and Pricing Structure
Your pricing structure should be linked to performance. Common methods include:
- Open Book with Fixed Margin: Transparent costs with a fixed margin added.
- Fixed Price per Operation: A set price for each task, covering all aspects of the service.
- Fixed Price per Man/Hour: Charges based on time spent, adjusted for the qualification level, with separate charges for materials.
Incentive methods can further align the interests of both parties:
- Performance-Related Pricing: Full payment for 100% performance, with reductions for lower performance levels.
- Penalties and Commissions: Penalties for underperformance, commissions for exceeding expectations.
- Profit Sharing: Savings generated by the service provider are shared with the client, reflecting in the profit fee for the period.
A well-defined SOW is the backbone of effective facility management. It ensures all aspects of FM services are covered, promoting efficient operations and reducing the risk of unmet expectations.