Our client has operations throughout the country and employs circa 15,000 people in the UK . They are active in more than 200 countries globally, and are one of the world’s largest producers of energy-efficient, resource-saving technologies.

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The project objective was to identify the best value procurement strategy for a UK office and manufacturing portfolio. The strategy considered a range of options ranging from in-house management to full TFM. 

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The project was sponsored by the Real Estate department who wanted to know which sourcing model they should use for FM. As part of this process they wanted to know how the in-house FM team compared with best practice and the value for money that FM offers. We used our standard consultancy approach to understand needs of business and how the current FM provision is meeting that need.

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We found: 

• Cost particularly related to OH&P is too high and that a competitive re-tender should realise 8-12% savings 

• Over £1m of investment into health and safety systems, Help Desk and other management systems was required which could be provided at significantly less cost by an outsourced management solution. 

• Service delivery appear to be driven by the capabilities of the local site management with common systems not enforced. The Contractual approach between the in-house team and the core business was too adversarial to gain maximum benefit from in-house teams and too weak to manage an external contract effectively.

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It was recommended that a total facilities management contract was procured to provide the facilities services in over 346,000 sq metres of the UK portfolio. 

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All recommendations were accepted and we supported the procurement process including, defining the service specification, managing the tender process, evaluating tender returns and working with the expert client team to select a national supplier. We provided the catalyst for change by providing an independent view that analysed the strengths and weaknesses of the current service.

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By implementing our recommendations:

• the client’s requirement to invest in FM systems (of £1m) was provided “free” by the new supplier 

• the ongoing annual costs reduced by 16%. 

• The systems and management information was more consistent and available across the portfolio. 

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