Invitation to tender (ITT) in Facility Management

Unlocking the Potential of Facility Management: An Invitation to Tender Guide

Abstract

This paper is a comprehensive exploration of crafting an Invitation to Tender (ITT) for Facility Management, with a focus on key elements and advantages of integrating relevant information into the ITT process. The paper is organized into distinct sections, covering topics such as required services, the role of the Command Centre, operating structure, building inventory, registry, information system, Help Desk, and more. It delves into quality policies, service provider requirements, procedures for service monitoring and control, Service Level Agreements (SLAs), Key Performance Indicators (KPIs), penalty and incentive systems, responsibility and ownership of information, information and training, risk management, reporting, and feedback information. This paper offers valuable insights into each aspect of the ITT process, making it a valuable resource for creating a robust ITT for Facility Management. This paper is a reasonable resume of the paper: Talamo C., Atta N., Invitations to tender for Facility Management Service, Springer, (2019); please find below in section 9 “References” the link to the original paper.

1 INTRODUCTION

Facility management (FM) is a rapidly growing sector that is expanding its areas of interest within the Real Estate and Construction industry. To help and ensure a correct and innovative approach in line with the progressive requests, several international FM standards have been developed in the last decade, and FM marketplaces are now on the rise in most industrialized countries worldwide.

As a relatively new management discipline, FM requires research and original experimentation in various areas, including organizational models, relationships between key stakeholders, supply chain management, shared references and procedures, new skills, and multidisciplinary training. Typically, FM revolves around information management by managing people, spaces, and infrastructures through vast amounts of data and documents handling.

Considered the amount and continuous collection of new data, sometimes that information may be initially redundant, partially lacking, not updated, or unreliable; therefore, it is fundamental that those data are correctly selected, collected, classified, and organized to generate valuable information.

In a scenario where such service is outsourced, Invitation to Tender (ITT) are critical to ensure fair and open competition for the contract award, allowing the issuing organization to compare different providers and select the one that offers the best value for money. To help with such a task, this paper takes the perspective of the Client when preparing an Invitation to Tender (ITT).

This document, along with its specifications, encompass the Client’s overarching vision for service management over time and serve as a systematic synthesis of its requirements, expectations, quality policies, its relationship with the Service Provider, its role in decision-making and control processes, and its requests regarding information management and knowledge generation. The potential problems during the preparation of the ITT, when combined in various ways, can lead to several consequences during service delivery. They may complicate the relationship between the Client and the Service Provider, impact service quality and Client satisfaction over time, increase nonconformities, result in penalties, and reduce the efficiency and effectiveness of the Service Provider.

2 TENDERING PROCESS AND AGREEMENTS

2.1 THE COMPETITIVE ADVANTAGE

Facility Management (FM) is an emerging discipline of paramount significance for organizations, it addresses crucial issues related to enhancing business value, improving quality and performance, and increasing customer satisfaction in the management of support services with the aim to help an organization’s core business in both the short and long term.

According to Tucker and Smith’s definition, we can refer to FM as a “Fundamental business function that not only impacts revenue and costs but also influences production, the quality of life for employees, health and safety, and the overall work environment”. Such impact is the result of FM wide range of services, that includes but it’s not limited to building maintenance, cleaning, security, and utility supplies, as well as financial management, change management, human resources management, health and safety, and contract management.

FM seeks to achieve strategic integration between core business needs, the existing physical workplace, the activities carried out within it, and the provision of support services. As a result, FM encompasses not only the operational level, introducing a quality-driven approach to the entire system of activities and maintenance interventions, but it also has a strategic dimension responsible for an array of activities, not limited to:

• It enables informed and efficient resource allocation and optimization.
• It leads to high service performance and quality levels.
• It indirectly enhances the productivity of the core business.
• It fosters a reputable corporate image.
• It increases asset and property values.

Furthermore, according to Grimshaw the function of FM within an organization can be articulated in six different functions:

Function
1. Technical Function:	This function pertains to the maintenance of physical infrastructure, equipment, furniture, and other items throughout their life cycle. The goal is to keep them in a state where they can effectively perform their required functions.
2. Economic Function:	The economic function involves financial control to ensure the efficient use of physical resources by monitoring costs. Planning and reviewing expenditures are essential activities for controlling and managing the available budget over time.
3. Strategic Function:	This function is associated with defining strategies, particularly those related to change management. It entails forward planning of physical infrastructure resources to support organizational development and mitigate risks.
4. Social Function:	The social function focuses on user interaction and aims to ensure that the physical infrastructure meets the diverse needs of users.
5. Service Function:	This function is concerned with the design, planning, provision, and monitoring of support services. In particular, it relates to the integrated management of all non-core services.
6. Professional Function:	The professional function is associated with advocacy and social responsibility for people in the workplace.

To successfully achieve these goals, it is essential that the Client has a clear understanding of its Real Estate strategy. This understanding enables the identification, distinction, and definition of primary (core) business and (non-core) support activities.

As a result of this necessity, in the initial survey phase at the strategic level, the Client should perform a set of activities, including but not limited to:

1. Outline its visions, policies, and strategies regarding FM.
2. Identify the necessary FM services to be performed.
3. Specify the Service Level Agreements (SLAs) and Key Performance Indicators (KPIs).
4. Define the available budget for FM services, estimate the associated costs, and allocate the budget to the service activities.
5. Define service delivery strategies, including the identification of potential procurement routes and long-term best-value solutions.

2.2 SERVICE DELIVERY

As widely recognized, there are three approaches to providing FM services, classified by their Source. Between those we identify:

Source
1. In-House:	This involves managing and delivering all required services using an in-house FM organization, meaning internal staff employed by the Client.
2. Outsourcing:	In this approach, all requested services are outsourced through agreements with one or more external Service Providers.
3. Hybrid:	In this scenario, some requested services are provided by an in-house FM organization, while others are outsourced to one or more external Service Providers.

To accurately define the best suitable approach for the organization and the correspondent service delivery strategy within the context of the organization’s business plan, it is essential to initially gather a minimal set of information in line with ISO 41012:2017. This information serves the following purposes:

• Clearly define and articulate the organizational needs, final objectives, and Client’s goals.
• Acquire information about the scope of services and service requirements.
• Understand existing weaknesses and potential opportunities.
• Identify the consequences of these weaknesses or opportunities, along with their extent or criticality.

Contrary to conventional wisdom, outsourcing should not be viewed solely as a cost-saving tactic but should also be considered for the potential value it can bring to a business. Even if that would entail higher costs, it often results in better-performed services, improved Client productivity, and an enhanced corporate image. Several advantages stem from outsourcing at both strategic and operational levels. Specifically, organizations may opt for outsourcing to:

• Elevate the quality and performance of support services, which are handled by highly skilled external Service Providers.
• Realize cost savings related to not employing and training internal resources for support activities.
• Concentrate internal knowledge and resources on the core business.

Fill and Visser concur that the decision to outsource enables organizations to achieve cost reductions, expand their service offerings and expertise, enhance employee productivity and motivation, and improve and enhance their corporate image.

If the result is in favor for an outsourcing strategy, the Client must be capable of clearly, comprehensively, and accurately specifying the scope of services and expressing their needs without ambiguity at the early stages of preparation of the procurement.

This, would allow the organization to reach the utmost potential from the procurement and from the FM related services. In this scenario, an in-house FM-related skills and know-how, becomes fundamental to retrieve and manage the information received by the contractor; it ensures a correct understanding of the main critical issues, enabling them to confidently navigate the entire procurement process and address any ambiguities before finalizing an FM contract.

To assist in this endeavor, the Standards are made to assist Clients in identifying which services should be outsourced and which could be effectively performed by the Client’s internal staff. In particular, according to ISO 41012:2017, the following questions have to first be assessed in order to define the best fitting option:

• Does the Client have the necessary internal resources and tools to meet the requirements for providing services internally?
• Does the reference market offer the full range of services needed by the Client at the required quality levels and specifications?
• Are there qualified market offerings for the required services in the specific region or geographic area where the Client intends to operate?
• In the scenario of in-house service provision, could the Client maintain both an adequate and cost-effective level of internal expertise on support services and a satisfactory primary production capacity simultaneously?
• Are there strategic decisions, or mandatory/predominant political, social, or cultural considerations that will influence the decision-making process?

These considerations play a pivotal role in shaping the outsourcing decision.

2.3 SERVICE PROCUREMENT

The FM service procurement and tendering process involves several primary functions:

1. Obtaining Cost-Effective Procurement: This aims to secure the lowest possible purchase price while ensuring the required quality level of services.

2. Ensuring Reliability of Service Providers: This involves evaluating the performance and quality of service provision to ensure it meets the required standards.

3. Building Long-Term Win-Win Relationships: Establishing enduring, mutually beneficial relationships with key Service Providers can give Clients a competitive advantage.

4. Maintaining Transparency: Transparency in the process minimizes opportunities for illicit influences on procurement decisions.

5. Efficiency: Achieving the above objectives with the least possible expenditure of economic and human resources and within the shortest possible lead time.

Regarding Sourcing Strategies, as outlined in ISO 6707-2:2017, they can be summarized as follows:

• Sole Source Contract or Non-Competitive Procurement: This involves negotiating with only one source (sole source) and does not include a tendering phase. It is typically used when there is only one viable option for procurement.

• Open Tendering or Competitive Tendering: This method invites tenders through public advertisement, allowing any suitable Service Provider to submit a bid for the required goods or services. On larger projects, open tendering may be extended to a select group of pre-qualified tenderers, creating a shortlist of suitable Service Providers invited to prepare tenders.

• Selective Tendering (Single Stage): Selective tendering is open to a limited number of pre-selected Service Providers who are the only ones invited to submit tenders. This approach is suitable for complex contracts requiring highly experienced Service Providers or when only a few Service Providers are deemed suitable.

• Two-Stage Tendering or Pre-Registered Tendering: In two-stage tendering, the technical and financial proposals are not submitted simultaneously. The first stage involves the Client providing information to Service Providers to help them complete technical documentation, develop proposals, and define a price offer. In the second stage, price negotiations for the contract take place.

These strategies provide flexibility in choosing the most suitable approach for the specific procurement needs of the Client.

2.4 TENDERING DOCUMENTS

In the field of FM tendering, various documents play distinct roles in the procurement process. Here’s an overview of these documents:

1. Request For Information (RFI): An RFI is a document sent to a wide range of potential service providers. Its purpose is to gather information about the supply market, market dynamics, trends, factors driving change, and alternative pricing strategies. RFIs are useful when the Client lacks sufficient understanding to create a detailed RFP or ITT. They help assess the market and identify capable service providers.

2. Expression Of Interest (EOI) and Registration Of Interest (ROI): EOI and ROI are used to estimate the market’s ability to supply or gather additional information before progressing to an ITT. They can be particularly helpful when the supply market is highly dynamic or not well known.

3. Request For Proposal (RFP) and Request For Offer (RFO): RFP is a flexible document soliciting proposals. It’s used when the Client seeks solution-based responses to meet its needs. Service providers are invited to submit proposals on how to achieve the desired result. RFPs are suitable for situations that require technical expertise, specialized capabilities, or when clear solutions or specifications aren’t available in the market.

4. Invitation to Tender (ITT) or Request For Tender (RFT): ITTs are employed when the Client has already identified and specified a solution to a very specific problem. In such cases, the Client cannot accept deviations from its specifications, and service providers are expected to demonstrate how they will meet the specified requirements.

5. Request For Quotation (RFQ): RFQs invite potential service providers to provide price quotes for specific services. They are used when the Client has already clearly defined specifications and criteria and is not looking for alternative or innovative options.

These various tendering documents offer flexibility in how the procurement process is structured, allowing Clients to tailor their approach to their specific needs and the state of the supply market.

2.5 TENDER ASSESSMENT

In the FM service procurement process, several key phases and activities are involved. Here’s an overview of these phases:

1. Definition of Assessment Criteria: The Client should define assessment criteria, prioritize them, and clearly state them in the ITT. This may include allocating weights to different criteria to guide the evaluation process.

2. Negotiation Phase: Following the awarding phase, a negotiation phase commences. This phase involves discussions and negotiations between the Client and the selected Service Provider to finalize the contract terms and conditions.

3. Implementation Phase: The implementation phase focuses on activating the processes and activities required for full service implementation. This phase can be broken down into four main sub-phases, as outlined by ISO 41012:2017:

   • Mobilization Phase: In this sub-phase, the Client collects, organizes, and prepares all necessary resources for the service implementation.

   • Validation Phase: This phase involves activities to confirm the validity of the information provided by the Service Provider.

   • Operational Phase: In this phase, the Service Provider takes full operational control, becoming responsible and accountable for the services’ performance according to the contract’s agreed-upon levels. They continue to deliver services in accordance with the contract terms. Lastly, when needed, they prepare the termination of the contract.

   • Termination Phase: The final sub-phase involves the conclusion of the contract. Both the Client and the Service Provider carry out activities related to contract termination.

It’s important to note that the applicability of these phases and clauses may vary depending on different factors, such as the specific services, demands, needs, requirements, circumstances, and locations. Adherence to the ISO 41012:2017 standard can help ensure a structured and comprehensive approach to FM service procurement and implementation.

2.5.1 ITT WITHIN THE PROCUREMENT PROCESS

The proper writing of an Invitation to Tender (ITT) is a crucial aspect with respect to the whole Procurement Process, both from the Client’s side and from the Service Provider’s side. ITTs often prove to be incomplete and lacking, in terms of contents, in significant parts that can sometimes generate misunderstandings and possible future litigations among the involved parties, as well as economic and operating inefficiencies. One of the developed solutions to avoid misunderstandings are the Q&A where tenderers can formulate questions and address doubts to the client for a better understanfing.

3 PROCESS APPROACH

3.1 REQUIRING SERVICES

The success of an FM service significantly depends on the capabilities of the Client in orienting, monitoring, and controlling the service delivery, as well as in developing and managing a positive relationship with the Service Provider through a shared agreement. Despite the variability of situations, for FM services addressing medium and large Real Estate, it is recommended to prefer a competitive tendering process. Furthermore, for these new experimental services, particular attention should be paid to the ways of stating the requests and the clauses, as well as writing the Invitation to Tender (ITT). This is especially important due to the lack of consolidated experiences and references.

The standard ISO 41001:2018 underscores the benefits of adopting a “process approach” in developing and implementing an FM management system. A “process approach” involves analyzing the system of processes that characterize an organization to gain a general overview of the linkages between various activities, highlighting their combinations and interactions. The process approach methodology refers to the general cycle “Plan-Do-Check-Act” (PDCA) (ISO 9001:2015), which can be applied to FM processes, implementing the following basic interconnected phases:

1. Planning of the FM service: This initial phase consists of several preliminary activities useful for defining the requests and intended outcomes.

2. Service implementation: This phase involves the implementation and control of processes to meet requirements, implement planned actions, coordinate activities, integrate services, and collect information.

3. Service measurement: This phase involves the supervision, analysis, and evaluation of the delivered services.

4. Service improvement: This phase includes detecting nonconformities, developing corrective actions, continuous identification, evaluation, and management of internal and external factors impacting services, and proposing proactive preventative actions.

The process approach allows a focus on the needs and requirements of the demand organization, considering the perspective of the whole life cycle of the FM service, as well as the need to manage and enrich the organization’s knowledge base.

3.2 SOURCING PROCESS

Through a proper definition of the Sourcing Process, the client becomes able to clearly state the basic elements needed for the preparation of an ITT as for any other type of procurement document. This process can be articulated as follows:

Step	Actions
First step	It is fundamental to investigate various basic aspects that are useful to clarify the general goals and policies of the Client. These aspects may concern:
	• The characteristics of the demand organization, its core business, chief activities, mission, vision, current and future policies and strategies.
	• The characteristics of current services, such as the organizational structure for services, service delivery models, existing service contracts, and performance measuring modalities.
	• The characteristics of the Real Estate to be managed, such as sites and locations, functions of the buildings, quantities, features, technical infrastructures, and other infrastructure assets, as well as the age and conditions of the technical elements.
	• The goals, strategies (maintain, enhance, sell), economical expectations (assets value, profitability), and expected investments for the Real Estate.
	• The expectations of users, customers, demand organizations, and other stakeholders with decisive influence on strategic choices.
	• The applicable statutory, local, and national legislative requirements.
	• The risk issues concerning health and safety, security, operations, sustainability, and the environment.
	• The available documents and reliable data about the Real Estate.
	• The buildings registry and, if present, the information system.
Second step	The client is able to formalize its goals, identify its needs, and, in particular, the services to be provided over time. The client can then consider whether to adopt an approach based on an in-house FM organization or on external service providers. About this activity, the Italian standard UNI 11136:2004 suggests developing a “preliminary orienting document” containing a systematic summary of all the outcomes of the analysis and investigations that have been carried out in order to support the subsequent phase of writing of the ITT.
Third step	It concerns the translation of the needs into specific requirements, the identification of the related satisfaction criteria, and the involved services. The activities carried out in this step must be oriented to identify:
	• Service levels, quality, and performance requirements.
	• Services integration needs and inter dependencies between FM activities.
	• Priorities in services implementation.
Fourth step	It aims at defining the specific performance indicators and the information necessary for the calculation of the indicators. In this context, the standard EN 15221-3 defines two basic types of indicators as:
	• Objective (hard) characteristics that can be measured objectively and do not depend on individual interpretation.
	• Subjective (soft) characteristics, which usually consist of the results of surveys. They are measures of customer opinions, perceptions, and feelings, and these indicators may be used to predict customer’s behavior, satisfaction, and perceived values.
Fifth step	It deals with establishing the level of service (SL). The chosen approaches for expressing SLs may be alternatively: A prescriptive approach, not necessarily the best, but based on the client’s reasoning; or, a performance-based approach, where the expected outcomes are specified, integrated by a method statement, and related to KPI’s.
Sixth step	It concerns the exploration of a range of potential delivery options, namely:
	• A fully in-house approach.
	• A fully outsourcing approach.
	• A partially outsourcing approach.
	In order to identify the most appropriate option, the Client should consider and concurrently analyze various issues concerning at least two levels: Its internal organization, and the market offers. In addition to this analysis, before choosing the delivery option, the Client should consider some important financial issues concerning at least:
	• The quantity of assets to be managed.
	• The evaluation of internal direct and indirect costs.
	• Historic costs.
	• Cost indexes or benchmarks for comparisons with similar organizations using the same services.
	• Forms of payment.
Seventh step	It is now possible to reach a decision about in-house or outsourcing approach. Taking a more in deep look into the outsourcing approach, we can identify the main actions that should be performed as:
	• The statement of the most appropriate model for the management of the service.
	• The final specification of the SLs, related to the specific services to be outsourced.
	• The description of the related methods for assessing their fulfillment.
	• The definition of the contents of the contract considering that the clauses should clarify at least some basic topics that includes:
	- Duration of the agreement.
	- Type of services that are allowed or not allowed to be sub-contracted.
	- Distribution of activities between the demand organization and the Service Provider (Command Center).
	- Transfer of assets and personnel.
	- Level of autonomy of the Service Provider.
	- Output requirements (e.g., key performance indicators, service levels).
	- Constraints, information responsibilities, continuous improvement, and innovation.
	- Corporate standards.
	- Applicable legal framework.
	- Communication strategies.
	- Methodology for resolving issues of non-compliance with the conditions of the agreement.
Eight step	It deals with the tendering phase. Sometimes it can be useful to restrict the number of the bids; thus, before requesting offers from potential Service Providers, it is possible to organize a pre-qualification process (PQQ) that aims to identify a selected number of qualified Service Providers.
Ninth step	Preparation of the FM contract.
Tenth step	The service can be implemented. Here the Client may establish a first period of mobilization, which includes the preparation, transition, and mobilization of all resources, systems, data, authorizations, and procedures prior to taking full responsibility.

4 SERVICES AND STRUCTURES

4.1 REQUIRED SERVICES

After the awarding of the finally selected Service Provider and after the mobilization of the resources for the implementation of the service, in order to pursue the continuous improvement of the FM service, the Client and the Service Provider should share policies and goals as much as possible. It is surely useful for the Client to develop a general introductory overview in order to highlight its actual view related to organization, people, spaces, and infrastructures. This overview should describe aspects such as:

• Core business and primary activities of the Client.
• Current organization and possible future organizational models.
• The current model of service delivery.
• Possible future strategies for the FM service.
• Available data about the Real Estate.
• Presence of procedures within the ISO 9001:2015 compliant Quality Management Systems and a Management Information System (MIS).
• The number of users dealing, both directly and indirectly, with the requested services.
• Main characteristics of the Real Estate.

The ITT should have a first chapter containing a precise list of the requested services, and each service should be described specifying:

• Characteristics related to spaces and infrastructures, assets, and people.
• Quantities related to spaces and infrastructures, assets (number), people (number) dealing with the service.
• SLAs and KPIs assumed as references for monitoring and controlling the quality of the performed service.
• Modalities, roles, and responsibilities for monitoring and controlling the delivery of the service, including the Command Centre.

4.2 COMMAND CENTRE

Once the requested services have been clearly listed, specified, and described, a further fundamental topic that should be examined in-depth and expressed within the ITT, is the model that the Client is intended to assume for the governance of the service.This includes:

• The functions, roles, and responsibilities of the Client and the Service Provider.
• The relationships between the two parties in relation to various functions.
• The responsibilities for decisions.
• The responsibility and the use of the information system, if any.

In order to support this awareness, a deeper level of analysis of the requested services could deal with the specification of each service in relation to the three levels introduced by the standards BS EN 15221-1:2006 and BS EN 15221-5:2011, that is, strategic, tactical, and operational.

As Booty underlines: Ideally, the relationship should start with each organization appointing an informed and empowered point of contact to act as a contract administrator. These two individuals are responsible for making the relationship work, as opposed to the site managers who will oversee the day-to-day running of the function on-site.

In order to define the most appropriate model for the FM service, the Client should perform a preliminary phase of self-analysis aiming at clarifying its approach to the governance of the services. The issues the Client can consider in order to define the possible organizational model for the FM service are various. For instance:

• Organizational chart.
• Client’s previous experiences.
• Client’s current and future propensity to invest in internal resources.
• The Client’s propensity to share decisions and information with the Service Provider.
• Level of knowledge about the buildings to be managed.
• If an information system is already present, what is the kind of IT product.
• The approach of the Client towards the integration of FM services.

Talamo and Bonanomi define the Command Centre (CC) as “An organizational structure, mainly dealing with the strategic and tactical levels, responsible for the planning and coordination of interventions, the monitoring of service delivery, and the management of information flows”.

Basically, a CC deals with three main domains directly related to governance strategies: DECISION, KNOWLEDGE, and CONTROL.

Defining a model of the CC means establishing the tasks within the three domains assigned respectively to the Client and to the Service Provider, considering that the activities of the CC may be carried out in various ways by the different parties involved in the service contract. An information system can represent the core tool for supporting the three domains by providing data useful for making decisions and activating processes, managing the flow of information, supervising performances through the application of KPIs.

A Client has an array of configurations that can implement, from the development through internal resources to the utilization of a third party capabilities. A general overview of some of those configuration could be summarized by:

1. Command Centre internal to the Client: This model is based on the concentration of the Client’s internal resources on the performance of strategic and partially tactical activities dealing with the service delivery during the whole life of the contract.

2. Command Centre internal to the Service Provider: This model is based on the delegation of a large part of tasks, also many dealing with strategic planning, coordination, and management of information flow, to the FM Service Provider. The Client, for the purpose of monitoring and controlling, can obtain periodic reports.

3. Command Centre managed by a third party: A third party may be engaged with the specific commitment of managing information as a service for both the Client and the Service Provider. In this case, the third party must be especially expert in services related to tasks such as inventory, implementation of the registry, managing the Help Desk, transmission and collection of work orders, storage and processing of feedback information, information processing, delivery of reports, information distribution, etc.

4. Command Centre jointly managed by the Client and Service Provider: This is probably the increasingly applied model based on a variable framework of activities carried out by the Client and the FM Service Provider, managing jointly a unique set of procedures and the information system, each one with its own roles and responsibilities.

4.3 OPERATIVE STRUCTURE

As know is understood, the Command Centre deals mainly with strategic and tactical functions and activities, and its composition (roles and skills) may vary in relation to the selected organizational model. For a correct definition there are some topics that have to be addressed, i.e.:

• The minimum requirements for the team, specifying in the ITT, for instance, the skills, the number of years of previous relevant experiences.
• The permanent staff team, hours, and location of requested availability.
• The organization chart of the operative structure.
• The ownership of the tools used by the operative team.
• The relationship with other possible operative teams.

In the case of a Command Centre jointly managed by the Client and Service Provider, it can be useful to create two parallel structures, organized into various levels, where the first team, dependent on the Client and mainly dedicated to the monitoring and control functions, can have various tasks, including but not limited to:

• Monitoring and controlling the achievement of the agreed quality levels of the services in relation to the KPIs.
• Approving the work programs.
• Supervising the execution of works.
• Checking user satisfaction (Questionnaires, interviews, etc.).
• Communicating with the responsible of the Service Provider.
• Collecting feedback information and reporting (This kind of activity can be developed by the Service Provider team or by both teams).
• Communicating with the Command Centre.

The other team, dependent on the Service Provider, focuses mainly on coordination functions and is responsible tasks that have to address as a minimum:

• Scheduling and coordinating all the programmed activities.
• Processing unscheduled activities, identified by the Service Provider or generated by the request of the Client, in order to obtain permission for execution and to add them to the program.
• Periodical review of the program of activities.
• Organization of requested and approved activities.
• Performing activities.
• Supervising activities.
• Collecting feedback information and reporting.
• Communicating with the Command Centre.

4.4 HELP DESK

The Help Desk is an important structure usually present in FM integrated services. This, acts as a sort of communication hub for all issues concerning the FM services, receiving users’ requests and complaints in case of any problems or needs for interventions, activating the Service Provider and the operative teams, supporting the users in their interaction with the Service Provider’s team, and ensuring a better understanding of the delivered services, while tracking the requests as well.

However, it’s essential to underline that the Help Desk should not be considered solely as a function supporting communication with the users, but also as:

• A “collector” of information related to faults.
• An “activator” of unplanned interventions.

For this reason, the Help Desk, seen as a sort of information bypass, should be linked to:

• The registry to identify and localize the space/item.
• A set of criteria and procedures to evaluate if the request is admissible as an ordinary intervention and its level of priority.
• The information system.
• The enabled users.
• The operative structure, to communicate requests for ordinary interventions.
• The Command Centre, to communicate requests for extraordinary interventions.

Considering all these tactical functions, in the ITT, the Client should clearly specify some basic aspects connected with the Help Desk, including:

1. The structure that shall be in charge of managing the Help Desk.

2. The operating modalities. The Client should specify:

   • The expected operational hours of the service, days, and months.
   • The modalities of request.
   • The enabled users.

3. The activities of the Help Desk. The Client should list the required activities, such as:

   • Requests for clarification on the procedures for sending and formalizing intervention orders.
   • Reception, evaluation, and sorting of requests for ordinary interventions.
   • Reception, evaluation, and sorting of requests for extraordinary interventions to be considered by the Command Centre.
   • Activation of inspections after a call.
   • Input of the requests into the information system.
   • Requests relating to the status of the reports and any subsequent consequent action.
   • Management of reminders.
   • Management of complaints.
   • Periodic compilation of reports to provide information about the interventions, requested and in progress, the timing of the actions undertaken, the results obtained, etc.

4. The levels of priority for evaluating interventions to be activated and the response time, defining for instance what is considered as:

   • Emergency.
   • Urgent.
   • Interventions that can be programmed at a short, medium, or long period, as they do not deal with critical situations.

5. The SLAs and KPIs assumed for orienting and controlling the service of the Help Desk.

6. The number and the skills of the Help Desk personnel.

5 MANAGEMENT OF INFORMATION

5.1 MANAGEMENT AND QUALITY

Seen the relevance and the role played by the information in the facility management processes, and the competitive edge that comes with the correct wrangling of it, the management of information is a key subject for the quality of the FM service in all phases. Indeed, in each phase there are some specific requirements needed to be addressed, i.e.:

• In the very early steps of the tendering phase, information is fundamental for the development of the contents of the ITT.
• In the mobilization phase, information is central for the definition and planning of the inventory activities, for the creation/updating of the real estate registry, for the in-depth definition of the technical contents of the contract.
• In the delivery phase, the management of feedback information is fundamental for the activities of monitoring and control of compliance and the quality of the services through the application of KPIs and SLAs.
• In the whole life cycle of the building, the continuous collection of feedback information, chronologically ordered, about features, location, and frequency of anomalies, degradations, failures, and pathologies is the necessary condition for a progressive growth and improvement of knowledge and for the statistical prediction of the behaviors of the technical elements.
• In the closing phase, information is necessary for the final assessment and for highlighting criticalities and aspects to be considered and improved in the next ITT.

Seen the relevance and the role played by the information, the client must address some specifications within the ITT; those needs to consider at a minimum: The modalities of data acquisition, the organization of information, and the expected level of knowledge to be reached; and thereafter the Client should draw a specific pattern of all the sources of information.

In this matter, some standards have been defining the importance of this subject, i.e., the standard BS 8587:2012 underlines that primarily: “The organization should determine the extent and nature of its process for managing facility-related information and, in particular, the relationship with existing processes including those for facilities management”.

In this regard, the standard suggests that a plan for information management could be a very useful support tool for the subsequent tender procedures, it states that “A plan for facility information management should be prepared and kept up-to-date. This plan should include a definition of the information management process, the functions or activities within it, the information flows between functions or activities, and the controls that have to be applied”.

In light of the above, in the writing of the ITT, the Client should consider various interconnected key topics addressed by the subject of information, namely:

• Inventory.
• Registry.
• Information system.
• Management of the information flows.
• Document management.
• Responsibilities and ownership of information.
• Feedback information.

5.2 INVENTORY

The inventory may be defined as a process based on a plurality of activities and procedures carried out to obtain information about the dimensional and physical characteristics of a real estate. The inventory may be interpreted as a continuous process of retrieval, selection, validation, acquisition, collection, and updating of data. These data, organized according to specific goals, create a base of information necessary for planning, managing, and checking the provision of facility management services.

Covering such an important role, before writing the ITT, the Client should clarify its expectations about the inventory process. According to some standards, it is suggested to consider some basic steps as part of the information management process; those are:

• Identification of appropriate data.
• Classification.
• Validation in terms of accuracy and reliability.
• Revision.

Considering the key topic “inventory,” two main broad cases can occur.

1. CASE 1: ALREADY DEVELOPED THE INVENTORY
   • The Client, with the support of its own organization or previous providers, has already developed the inventory, and now a base of organized information is available. Starting from this situation, the ITT could contain indications about the modalities for allowing the Service Provider to view the available information during the tendering phase and the categories of information already collected. This must be clearly expressed within the ITT if:
     • The inventory has already been completed.
     • The inventory has been started, and the Provider is to continue procedures established by the Client itself.
     • The inventory has been started, and the Provider is to continue procedures that will be established together.
     • The inventory has been started, and the Provider is to coordinate/supervise the activities of inventory performed by a third party.
2. CASE 2: INVENTORY HAS NOT BEEN PERFORMED
   • The inventory has not been performed yet. In this case:
     • The Client can require the Service Provider to develop the inventory according to rules and a program established by the Client itself.
     • The Client can require the Service Provider to propose a set of rules and a program for the development of the inventory.
     • The Client can require the Service Provider to coordinate and/or supervise a third party in charge of developing the inventory.

In any case, the Client should clarify its expectations in relation to the accuracy of data and information and the gradualism in the acquisition of information.

5.3 REGISTRY

The modalities of collection and organization of information during the delivery of an FM service depend on a structure that can be defined as a “registry system.” A registry system can be considered as a framework of criteria useful for the classification and coding of spatial and technical elements. Once the assets have been classified and coded, thus identified in an unambiguous way, it is possible to allocate the information.

A registry system is usually based on a breakdown structure, consisting of the representation of the building as a hierarchical open structure, a tree structure that, starting from a level of maximum aggregation (real estate, compound, or building), that can be organized in underlying layers, each one having a lower degree of complexity, up to the simplest elements, not further decomposable. This kind of structure allows the allocation, aggregation, and summarization of information at different levels.

Here is an underdeveloped example of Registry system only in including Facade and hydraulic system.

A registry can be considered as a database containing the information necessary to describe the buildings by recording data related to characteristics such as quantities, location, functions, technical configurations, etc. This growth should be possible both vertically, by inserting additional levels of detail, and horizontally, meaning having the possibility to add new categories and/or types of items.

The ITT should clearly and precisely specify the expectations related to the registry.

1. CASE 1: A REGISTRY ALREADY EXISTS.
   • In this situation, the Client could alternatively:
     • Request the Provider to compile the registry according to rules established by the Client itself.
     • Request the Provider to compile the registry according to rules established by an information system.
     • Request the Provider to analyze the existing registry to propose the acquisition of an information system.
     • Request the Provider to coordinate and/or supervise a third party in charge of compiling the registry.
2. CASE 2: A REGISTRY DOESN’T EXIST.
   • In this situation, the Client could alternatively:
     • Request the Provider to develop the registry according to rules established by the Client itself.
     • Request the Provider to propose the rules (the registry system) and the tools (e.g., a possible information system) for the development of the registry.
     • Request the Provider to analyze the Client’s needs for a registry to guide the choice of the Client for the acquisition of an information system.
     • Request the Provider to coordinate and/or supervise a third party in charge of developing and/or compiling the registry.

In any case, the Client should clarify (within the ITT or in annexes or also during the mobilization phase) its expectations in relation to the gradualism in the growth of information. Moreover, within the ITT, it is important to clarify three further aspects, including: the relationship between the inventory and the implementation of the registry, the goals of implementation, and the relationship between the registry and the possible information system.

5.4 INFORMATION SYSTEM

An information system is an essential support for collecting, retrieving, and processing a large amount of information that is constantly growing, enhancing knowledge. Information systems may assume various configurations, all sharing some basic features that must be considered by the Client when writing an ITT.

First of all, assuming the indications of the Italian standard UNI 10951:2001, in general, an information system for the management of real estate can be considered as a decisional and operational support tool, consisting of DATABASES, PROCEDURES, and FUNCTIONS aiming to collect, store, process, use, and update the information necessary for the setting, implementation, and management of services.

• The database can be considered as the core of the information system. It is usually organized according to specific rules and according to a coding system aimed at identifying the level of aggregation of the analyzed item.
• An information system aims to collect and manage information, allocated to specific levels of the hierarchy, necessary for the description of buildings in relation to various aspects, including identification, localization, functions, users, technical elements, and more.

Regarding the management of the information system, several different cases may occur. Some of these can be briefly summarized as follows.

1. CASE 1: An information system has been acquired by the Client and used during the previous service contract; now the Client intends to maintain and implement it in the subsequent service contract.
   • In this situation, the Client could alternatively:
     • Request the Provider just to use the existing information system.
     • Request the Provider to use and expand over time the existing information system.
     • Request the Provider just to implement over time the functionalities of the information system.
2. CASE 2: An information system has been provided and used during the former service contract by the previous Provider. Now the Client is the owner of the database, constituting the registry, and intends to maintain and implement it.
   • In this situation, the Client could alternatively:
     • Request the Provider to acquire and use the same information system in order to continue the compilation of the registry over time and the collection of information.
     • Request the Provider to propose a new information system, different from the previous one, appropriate to incorporate the existing registry.
3. CASE 3: The information system is already present and managed by an IT department/division of the Client or by another Provider, and the intention is to continue this model.
   • In this case, the Client should specify the roles, responsibilities, the expected and permitted tasks and restrictions, and, if necessary, the requirements of the tenderer.
4. CASE 4: An information system, considered as a unique platform, has never been adopted, but a number of various applications are present within the demand organization.
   • In this situation, the Client could alternatively:
     • Request the Provider to analyze the various applications in order to propose a unique information system, able to satisfy all the needs connected with the FM services, and to incorporate all the functions carried out by the existing software that will be substituted.
     • Request the Provider to analyze the various applications in order to propose an interface interconnecting the existing software and maintaining their functions.
     • Request the Provider to analyze the various applications in order to propose an information system able to interconnect the existing software and maintain their functions.
5. CASE 5: An information system has never been adopted.
   • In this situation, the Client could alternatively:
     • Request the Provider just to analyze its needs in-depth in relation to the characteristics of the Real Estate and the FM services, to define the requirements of the information system and the modalities of its development.
     • Request the Provider to propose an information system.
     • Request the Provider to adopt and use a specific information system for the delivery of the FM services.
     • Request the Provider to adopt an information system for the delivery of the FM services without any kind of direct use by the demand organization.

5.4.1 THE INFORMATION FLOW

During the service delivery phase, a large amount of information is generated, collected, shared, and exchanged between the different operators and actors. Considered the constant exchange of information and the vast amount of it, it becomes fundamental to create a system capable to retrace back to the source every data available.

The goal of such complicated task, is to avoid losing information useful for increasing knowledge over time and for monitoring the performances of the assets and of the Providers. In order to draw these processes, a useful tool could be the Design Structure Matrix (DSM). This is a square grid representing how each element in the overall system relates to every other element.

5.5 DOCUMENT MANAGEMENT

Documents are fundamental for the quality and the success of the processes, and at the same time, they represent a very important source of information, useful both in the pre-tendering phase and during the phase of FM service delivery. Hernad and Gaya underline the importance of designing and implementing a suitable Document Management System (DMS), very useful for supporting the Quality Management Systems and propose a methodology for its implementation. In the absence of a DMS, it often happens that onerous and time-consuming activities of survey are undertaken to search for data without knowing that they are already present within the documents. Besides, during the provision of the service, new documents may be generated or the existing ones may be updated without any unified criteria and shared rules.

5.6 RESPONSIBILITY AND IP

The information used and shared during the whole ITT are commonly under confidentiality clauses aiming at protecting the Client, specifying that information is to be used only during the period of the contract and solely for the purpose of the agreed services, and that access shall not be granted to third parties except upon prior and documented consent of the Client.

According to the standard ISO 41001:2018, some key functions can be identified and attributed to specific responsible persons, basically in charge of:

• Creating and updating documented information.
• Controlling documented information.
• Protecting information.
• Retention, disposal, and destruction decisions.

5.7 FEEDBACK DATA

The standard BS EN 15331:2011 highlights how it is difficult to predict with any degree of precision the service life of building components, the future costs, and the performance of the assets over time if there is no availability and analysis of feedback data obtained from the activities developed during the service period. Furthermore, it is highlighted that those are fundamental for developing a historical and statistical basis for the control and the possible review of the results of the services, as well as for the development of benchmarks.

According to the common understanding, the role of feedback data have been defined as:

“Feedback data is essential for all maintenance plans. The technical and financial information acquired through experience (details on failures, type and frequency, costs and methods of intervention) leads to increasingly reliable forecasts”.

Maintenance reports shall contain feedback data in a form appropriate for subsequent processing. This processing is intended to obtain continuous improvement of maintenance plans by means of the analyses of:

• Defects and abnormalities.
• Useful life, reliability, and availability of critical systems and MTBF/MRT of components, through an analysis of the mode and frequency of item failures.
• The effectiveness of corrections made.

6 SERVICE MONITORING

6.1 PROCEDURES

The monitoring and control of the performance and quality of services provided represent a fundamental module within the management of FM services. This allows to measure the effectiveness of the service provision as well as the related efficiency-adding value, contributing to the organizational success of the Client.

In particular, the measurement of the performance and quality of a service has different purposes, mainly related to the some broad goals, i.e.:

• Assessing and controlling the achievement of agreed goals and objectives related to the performance of the service provision.
• Assessing and controlling the conformity to regulations and standards as agreed in the FM contract.
• Monitoring and controlling the organizational management.
• Evaluating, controlling, and improving FM methodologies, processes, and procedures at the operational, tactical, and strategic levels.
• Comparing and assessing the actual measured performance provided by Service Provider/s with the agreed reference performance values (internal benchmarking and evaluation) in order to understand if the agreed Client requirements have been met, identify potential areas of concern, and accordingly improve the organizational performance.
• Comparing and assessing the measured performance with the performance of other organizations operating in the same sector.
• Assessing the effectiveness and the efficiency of the current resource allocation plan and, if needed, defining improvement actions aimed at establishing an efficient and effective distribution of resources, favoring areas of greatest need or interest according to the Client’s strategy and goals.
• Exploiting the results of the performance and quality measurement, and of the subsequent benchmarking activities, in order to continuously measure and monitor changes over time, gain useful insights from the detected information, support and guide the FM decision-making, and formulate innovative strategies aimed at improving performance.

The performance measurement is defined as “A process of assessing progress towards achieving predetermined goals, including information on the efficiency by which resources are transformed into goods and services, the quality of those outputs and outcomes, and the effectiveness of organizational operations in terms of their specific contributions to organizational objectives”.

Hence, the process of service monitoring and control is a process to assess the progress of the service provision with respect to predetermined goals namely the service levels stated in the ITT and agreed in the FM contract (SLAs) in relation to:

• Efficiency by which resources are transformed into goods and services, thus the assessment of the effectiveness and efficiency of the resources prioritization as well as the allocation of (human, time, economic) resources to the different activities constituting the whole service provision.
• Quality of outputs and outcomes, thus the assessment of the service performance and quality to understand if the expected and agreed outcomes have been achieved and delivered by the Service Provider/s.
• Effectiveness of organizational operations with respect to the achievement of organizational objectives, thus the monitoring and the assessment of the effectiveness of the organizational strategy and plan of the Client with respect to the attainment of the overall strategic goals and objectives in a logic of continuous improvement.

In particular, the measurement, the monitoring, and the evaluation of the service performance are executed through a performance assessment process that has to be comprehensively described and specified in the ITT by the Client with:

• Definition of the service levels concerning service performance and quality (SLAs).
• Selection of methods and metrics to measure the service performance and quality.
• Validation by the Client of the measured values by performing a comparison with the service levels agreed in the FM contract.
• Internal benchmarking and external benchmarking depending on the goals of the organization in order to gain a comprehensive overview of the service provision’s progress.
• Reporting of the achieved service performance and quality by the Service Provider.

If the FM contract includes a system of penalties and incentives related to the non-achievement and/or over-achievement of agreed service performance by the Service Provider, it must be stated in the ITT the analysis of possible detected gaps between agreed and performed services or possible detected non-conformities, along with the elaboration of corrective actions to adjust the future service provision in accordance with the agreed terms of the FM contract.

The expected service levels (that have to be clearly stated in the ITT and then in the contract documentation) can consider both quantitative and qualitative standards. Indeed, there are two main categories of methods and metrics to measure and assess the effectiveness of a service with respect to the Client’s requests can be diversified within two types:

• Objective, as SLA and KPI systems.
• Subjective, which evaluate the service quality through customer satisfaction.

6.2 SLA AND KPI

The setting of SLAs is crucial, not only for the Client, who can gain the needed awareness to establish related metrics (KPIs) to monitor and control the Service Provider and the service performance during the delivery phase, but it is also a fundamental information tool for potential Service Providers who want to respond to the ITT. They will be able to clearly understand service requirements and accordingly align their methods for service planning and delivery with the Client’s strategy and objectives. In particular, among all benefits, the outcome of a detailed description allows to:

• Clearly stating the service level expectations.
• Clearly identifying customer expectations.
• Enhancing control over costs related to the delivered services.
• Improving understanding of customer needs.
• Establishing a mechanism to assess and improve customer satisfaction.
• Providing a context for measuring performance.
• Establishing accountability by clearly identifying roles and responsibilities.
• Reducing the time to adequately resolve conflicts.
• Improving long-term relationships.
• Improving the effectiveness and efficiency of FM operations.
• Improving consistency in service delivery and in evaluating value.
• Establishing a baseline for continuous improvement.

Referring to a single service level, it has to be:

1. Measurable: A service level must be quantifiable and easy to monitor.
2. Specific and unambiguous: The Client must be sure that each service level concerns a single specific segment of the service.
3. Achievable: The Client should formulate realistic service levels with respect to the available resources.

Moreover, the SLA documentation must be able to clearly:

• Define the extent of the scope of the FM services to be provided.
• Identify and define the relevant boundary conditions and the key parameters of each service to be provided.
• Define the level of service in terms of performance to be reached by the Service Provider.
• Define measurement methods.
• Define and describe specific processes to implement for solving possible performance non-compliance.

These features must be guaranteed regardless of the approach followed, whether it’s a prescriptive approach or a performance-based approach. The KPIs—that can be grouped into economic, technical, and organizational indicators—are aimed at measuring any quantitative aspect or characteristic related to activities, events, or resources, according to a given formula.

The Client, during the process of KPIs definition, must consider that in order to use the set of KPIs as an informative tool to support the FM decision-making process, each KPI must be thought of as a means for measuring and evaluating key performance parameters that are—directly or indirectly—related to the SLAs agreed upon in the FM contract. The standard BS EN 15341:2017 also states that KPIs should be used to:

• Measure the current status of services.
• Compare by means of internal and external benchmarks.
• Diagnose through analyses of possible detected strengths and weaknesses.
• Update objectives and define further targets to be reached.
• Identify and plan possible improvement actions.
• Share the results of the assessment process in order to inform and motivate stakeholders.
• Monitor progress and measure possible changes over time.

Furthermore, for an ease of understanding, Lavy defined 4 borad categories of KPIs:

1. Financial indicators: These indicators are related to the costs and expenditures associated with operation and maintenance (O&M).
2. Physical indicators: These indicators are related to the physical conditions of the building and its components, systems, and plants.
3. Functional indicators: These indicators concern the functions that technological and environmental units of the building must perform and guarantee.
4. Survey-based indicators: These indicators are estimated by analyzing survey-based data. This category involves qualitative indicators based on users’ opinions collected through surveys.

Recognizing the importance of the insertion within the ITT, by the Client, of a specific chapter concerning the SLA and KPI system, there can be different situation about the contents of this chapter:

1. Case 1: SLAs and KPIs defined by the Client and stated in the ITT. In this first case, the Client is aware of the importance of defining both SLAs and KPIs in the ITT in order to have higher control over time of the service performance and quality and of the Service Provider/s.
2. Case 2: SLAs defined by the Client and stated in the ITT, plus Client request in the ITT concerning KPIs jointly defined with the Service Provider during the Negotiation Phase. In this second case, the Client is aware of the importance of defining both SLAs and KPIs with respect to the function of monitoring and control of service performance and of the Service Provider throughout the whole service delivery phase.
3. Case 3: SLAs defined by the Client and stated in the ITT and absence of KPIs specification or request in the ITT. In this case, the Client is not aware of the importance of KPIs within the processes of monitoring and control of the performance of each provided service and of the Service Provider/s. This situation is clearly disadvantageous for the Client, who unknowingly is giving the Service Provider the opportunity to select, at its convenience, the set of KPIs through which its work will be monitored and controlled throughout the entire service delivery phase.
4. Case 4: Absence of any reference to SLAs and KPIs in the ITT. This is absolutely the case to avoid because it leaves many gray areas that could cause delays in the negotiation phase and, if the issue remains undefined in the contract documentation, it may cause even worse criticalities during the service delivery phase. Therefore, this could undermine the effectiveness and efficiency of the whole service, as well as it could open the door to long and counterproductive disputes.

6.3 REPORTING

Reporting is a crucial function within a service provision. Among all activities, it is fundamental to:

• Assess the performance of services and of the Service Provider/s by summarizing and providing a synthetic graphic representation of the actual state of the service provision.
• Initiate the assessment regarding the remuneration process.
• Provide the Client with a picture of the service provision.
• Assess and improve the current FM strategy.
• Assess and improve the current plans and programs of activities.
• Update the existing knowledge base.
• Create a data history useful for different purposes at the strategic, tactical, and operational levels.

In order to properly deal with the reporting function in the ITT, the Client should clarify requirements and criteria for the reporting of performance, frequencies, and schedules of reporting, procedures for the drafting of reports, structure, and contents of the reports, and methods of delivery.

In particular, according to the standard ISO 41012:2017, the report drafted by the Service Provider should include at least the following information:

• Status and condition of the involved building assets.
• Summary of the service performance of the last period.
• Survey of the achieved results.
• Reference to the report of the previous period for comparisons.
• Differences from the expected conditions and results (e.g., changes in the conditions of assets, unsatisfactory and/or non-compliant service levels) and related implemented or proposed corrective actions.
• Evidence of events and circumstances affecting the performance of services.
• Future expected changes, their effects and impacts, and proposals of suggested measures.

It is possible to articulate these contents according to the level of observation and analysis, distinguishing between strategic and operational levels. In particular, at the strategic level, the reports to the Client may involve information related to management and operational costs, profitability of Real Estate assets per unit area, effectiveness of benchmarks, fulfillment of quality requirements, space occupancy and utilization, results of customer satisfaction surveys, compliance survey, maintenance strategies, energy consumptions, etc.

At the operational level, the reports to the Client mainly refer to the assessment and evaluation of the planning of services activities, involving information related to operating costs, measurement of the service results in relation to the SLA&KPI system, operations and maintenance data, service requests, or complaints received by the users, etc.

6.4 PENALTY AND INCENTIVES

The SLA&KPI system can be associated with a system of penalties and/or a system of incentives. The Client can decide to structure the payment arrangement by assigning (monetary) penalties or incentives to the Service Provider in relation to the achieved KPI targets, thus the satisfaction of the agreed performance levels (SLAs). A minimum set of useful information that has to be mentioned in the ITT include at minimum:

• Definition, for each SLA (thus for each KPI), of the associated financial penalties.
• Identification and definition, for each service, of possible faults.
• Definition of criteria and methods to compute, communicate, and pay penalties or bonuses.
• A list of SLAs for which non-achievement of the agreed performance level may lead to the termination of the contract.

7 SERVICE QUALITY

7.1 SERVICE PROVIDERS

The Client can set, and list in the ITT, some requirements for tenderers or selection criteria. These are requirements that potential Service Providers must satisfy preliminarily to be allowed to participate in the tendering process and respond to the ITT. In particular, the definition in the ITT by the Client of requirements for the tenderers can be useful to:

• Ensure that the Client receives offers only from Service Providers able to meet the Client’s needs, providing appropriate services at the required quality and performance level.
• Avoid the review of a copious number of unsuitable offers.
• Allow potential Service Providers to self-evaluate their suitability to respond to the ITT and consequently decide whether to propose an offer or not.
• Update a list of potential Service Providers which will prove/have proven to have satisfying qualifications, financial capacity, skills, management, and operational experience, etc., to deliver the needed FM services.

In particular, the Client can specify in the ITT the requirements for Service Providers, articulating them into: Legal and Regulatory capacity; Economic and Financial capacity; and Technical and Professional capacity.

Some examples of requirements related to the Legal and Regulatory capacity concern:

• Compliance with any and all State and Local laws.
• Registration with the national chamber of commerce.

As regards the Economic and Financial capacity:

• The average annual turnover.
• Statements from banks or evidence of professional risk indemnity insurance.

Some examples can be the followings:

• Possession of a document of enrollment in the relevant professional register.
• Demonstrable extensive and continuous work experience in the FM sector for at least no. XX years.
• Performance of at least x no.
• XX contracts in the past no.
• XX years.
• Possession of a relevant valid certification of the quality management system of the tenderer.
• Possession of a relevant valid certification of an environmental management system of the tenderer.
• Proposal of a suitable team of key experts.

7.2 QUALITY POLICIES

The topic of Quality Policies with respect to the content of an ITT involves a reflection about the quality strategies of the demand organization. According to the goals, objectives, and available resources (e.g., know-how, people, capital, funds, etc.) of the Client, the quality strategies can range from a simple framework of quality control procedures to a complete Quality Management System (QMS) and quality improvement programs. According to the standard BS EN ISO 9001:2015, the implementation of a Quality Management System (QMS) represents “A strategic decision for an organization that can help to improve its overall performance and provide a sound basis for sustainable development initiatives” (BS EN ISO 9001:2015).

In particular, a QMS can represent an effective method that supports an organization to:

• Meet regulatory requirements.
• Improve the effectiveness and efficiency of the organization, both at the strategic and operative levels, on a continuous basis.
• Increase economic efficiency.
• Enhance the quality of FM service over time.

A QMS represents a significant instrument for the realization of a quality strategy. Indeed, it is a structured and systematic system that outlines and describes processes, procedures, and responsibilities for achieving pre-established quality policies.

There are two main broad cases within the demand organization. In particular:

1. CASE 1 - THE CLIENT HAS ALREADY IMPLEMENTED QUALITY POLICIES

In this first case, the Client has already defined and implemented quality policies. Therefore, it should clearly request the Service Provider to adapt and align with them. In this case, the Client should specify and describe exactly the nature and extent of its quality approach, policy, strategy, and reference standards, to which the Service Provider must align and respect during the entire service delivery phase. The Client could specify that the Service Provider must: - Respect the quality policies and standards defined in the ITT during the whole service provision. - Hold and maintain a valid accreditation or certification (e.g., ISO 9001, ISO 14001, etc.) by a qualified third-party certification body during the whole service provision. - Make clear in the tender how it will maintain a satisfactory level of Quality, as well as Health and Safety and Environmental Management, in compliance with the policies—and related requirements and specifications—stated in the ITT. - Draft a Quality Assurance Plan.

2. CASE 2 - THE CLIENT REQUESTS A PROPOSAL OF QUALITY POLICIES

In this second case, the Client does not specify the quality policies within the ITT but it requests potential Service Providers to develop proposals in this regard. Indeed, the Client describes—in the ITT—only the basic principles on which the quality policies must be founded, and it specifies the related overall quality objectives and goals to be achieved by the Service Provider. In order to obtain proposals consistent with its requests and with the service specifications stated in the ITT, the Client should: - List the documentation that tenderers have to produce. - Clearly assign roles, functions, and responsibilities to both the Service Provider and the Client itself related to the development and management of the QMS. - Request the proposal, development, and implementation of quality improvement strategies along the whole duration of the FM services delivery phase.

7.3 RISK MANAGEMENT

According to the standards ISO 31000:2018 and ISO Guide 73:2009, the management of risks is “An iterative process made up of several coordinated activities aimed at identifying, assessing, preventing, mitigating, and managing any potential risk, supporting organizations in making informed decisions and setting proper strategies to reach the desirable goals”.

According to the standard ISO 31000:2018, the principles of risk management represent guidance to reach effective and efficient risk management. The principles explain the main characteristics of the risk management process, which aims to create and protect the value of an organization.

In particular, these features of risk management address the need to be:

• Integrated (risk management must be an integral part of the organizational activities).
• Structured and comprehensive (the management of risks needs a structured and comprehensive approach).
• Customized (the risk management framework and process must be customized according to the specific context of the organization).
• Inclusive (an informed risk management requires the involvement of all the stakeholders and their knowledge and perceptions).
• Dynamic (the risks change as the context of an organization changes, therefore the risk management must be dynamic since the internal and external context of organizations is dynamic too).
• Best available information (historical and current data and information are the fundamental input of the risk management. Moreover, the process is based on the timely sharing of clear and reliable information with relevant stakeholders).
• Human and cultural factors (risk management is considerably influenced by human behavior and culture).
• Continual improvement (experiences and the growing of the knowledge base continuously improve the risk management practice).

The framework is made up of several processes, namely: Integration, design, implementation, evaluation, and improvement. These, in order to be implemented require at the core leadership and commitment, resulting in this wayt o what was defined by (ISO 31000:2018):

• LEADERSHIP AND COMMITMENT: At a strategic level, an organization should make sure that risk management is integrated into all organizational activities, as well as aligned with its objectives and business strategies, and that the risk management framework remains always adequate to the specific context of the organization.

• INTEGRATION: The process of integrating risk management into an organization is dynamic and iterative, and it must be tailored to the needs and culture of the organization. One of the main obstacles to an effective and efficient implementation of the risk management process derives from focusing the attention only on the operational level.

• DESIGN: The designing of the framework for managing risks involves different steps, namely:

  1. Analysis of the specific context of the organization, both internal and external.
  2. Articulation of the risk management commitment.
  3. Definition and attribution of roles, authorities, responsibilities, and accountabilities.
  4. Allocation of resources.
  5. Definition of the approach to Communication and Consultation.

• IMPLEMENTATION: The risk management framework can be implemented by the organization through the development of a plan, including the allocation of available resources to activities and the timetable of the activities.

• EVALUATION: The evaluation of the appropriateness and the effectiveness of the risk management framework should be performed periodically through the predefined procedures for performance monitoring and control (e.g., a system of indicators, etc.). Thus, the risk management performance, as well as its suitability with respect to the objectives of the organization, should be regularly measured.

• IMPROVEMENT: The risk management framework should be regularly adjusted according to both the results of the evaluation process and the possible changes in the internal and external context. Moreover, the improvement opportunities that can be revealed by the results of the risk management framework evaluation should be exploited by defining, planning, and implementing improvement actions.

As regards the Risk Management Process, according to the standard ISO 31000:2018, it is an iterative process that can be applied to the strategic, tactical, and operational levels, and it should be customized by the organization according to its strategies in order to achieve its objectives.

The risk management process involves several sub-processes, according to the ISO 31000:2018:

• COMMUNICATION AND CONSULTATION: Communication and Consultation represent a fundamental tool for:

  • Associating and combining different competences, experiences, and knowledge related to multiple disciplines along the whole process of risk management.
  • Enabling to take into account different views and opinions within the identification of risk sources, the definition of risk criteria, the assessment and treatment of risks.

• DEFINITION OF THE SCOPE, CONTEXT, AND CRITERIA: This step has three main purposes:

  • Definition of the scope.
  • Establishment of the internal and external context.
  • Definition of the risk criteria.

• RISK ASSESSMENT: Below, the sequential steps of the process of risk assessment are described in detail. In particular:

  1. Risk identification - Aimed at finding, recognizing, and describing risks that can affect the achievement of one or more objectives by the organization.
  2. Risk analysis - Understanding the nature, features, and characteristics of risks.
  3. Risk evaluation - Includes the comparison of the results of the risk analysis through the application of the pre-established risk criteria in order to understand if and what further actions are needed.

• RISK TREATMENT: The main aim of the risk treatment is to select and implement options for treating risks. This process encompasses two main steps:

  1. Formulation and selection of risk treatment options. These can be several, by way of example: eliminating the source of risk; changing the probability that the risk will occur; reducing the magnitude of the consequences; sharing the risk with another party.

  2. Elaboration and implementation of risk treatment plans. The risk treatment plans aim to specify how the selected treatment forms will be implemented, including information useful to understand:

     • Through what actions the treatment will be implemented.
     • What schedule (program) of the actions to be undertaken.
     • Who is/are the person/s responsible for approving and implementing the plan and program.
     • What are the required resources and contingencies.
     • What methods, tools, and criteria for measuring performance.
     • The required reporting and monitoring.

• MONITORING AND REVIEWING: Continuous monitoring and periodic reviewing are fundamental functions with respect to the improvement of the effectiveness and quality of the whole risk management process. Monitoring and review involve the collection of information, the analysis of collected information, the revealing of indicators, trends, and/or patterns, and other relevant information and insights useful to improve the whole process and the provision of feedback to the appropriate stakeholders. These activities must be performed along the entire process, at each step of the path, ensuring that the relevant feedback is received by the right interlocutor in order to improve decision-making and implement improvement actions.

• RECORDING AND REPORTING: The process of risk management should be properly recorded and reported by the organization in order to:

  • Properly communicate and inform the various interested levels of the organization about the outcomes of the risk management process, specifying the implemented activities and related outcomes.
  • Provide appropriate feedback information to optimize decision-making processes at different levels.
  • Improve the risk management plan and program.
  • Support the relationship and the communication with the involved stakeholders.

In order to reach these goals, the organization should preliminary define, among others:

• Frequencies and schedules of reporting.
• Costs and needed resources for reporting.
• Methods and tools for reporting.
• Criteria to identify what information is relevant to report and at which level of the organization it has to be reported, with respect to the objectives of the organization and related decision-making processes.

These areas, are mainly related to specific risks, i.e.:

• Environmental protection
• Health and Safety
• Emergency management
• Information security
• Financial and legal risks
• Supply Chain - Reputation risks
• Occupational Wellness
• Service performance and service delivery issues

For each of these thematic areas (if relevant with respect to the organization objectives and context), the Client should describe in the ITT its approaches and strategies as well as processes, procedures, and tools to implement them.

7.4 INFORMATION AND TRAINING

Information and training in the context of FM service outsourcing represent a fundamental function with respect to the effectiveness and success of the FM service provision. In particular, the development and implementation of an Information and Communication Plan and a Training Plan allow for:

• Supporting information sharing between the Client and the Service Provider.
• Sharing the Client’s strategies, policies, processes, and procedures with external staff at the strategic, tactical, and operational levels.
• Providing external personnel with the required training and educational support to continually enhance their skills, competences, know-how, and knowledge base.
• Ensuring that external stakeholders are aware and conscious of their specific roles, responsibilities, and requirements.
• Mitigating the risks due to a lack of knowledge and/or skills.
• Gaining feedback and/or suggestions about several addressed fields of interest related to the FM service provision.

8 SCENARIOS OF INNOVATION

8.1 SUSTAINABLE PROCUREMENT

The ISO 20400:2017 standard is the world’s first international standard focused on Sustainable Procurement. Sustainability is widely acknowledged as a critical aspect of the everyday operations of all organizations. Throughout their lifecycles, organizations often engage in procurement processes to acquire products and services, including FM services, from external providers. These providers can have a significant impact on an organization’s overall performance.

Implementing Sustainable Procurement means ensuring that both the Client and external Service Providers adhere to ethical behavior and follow fair operating practices, as well as act responsibly in various areas, such as compliance with legislation, organizational management, risk management, social and environmental impacts, and working conditions. This approach offers several benefits, including but not limited to:

• Prevention of economic and reputational damages.
• Legal compliance throughout the entire supply chain.
• Improved employee well-being.
• Increased productivity.
• Enhanced economic value creation.
• Improved communication between the demand organization and providers.
• Greater transparency in information management practices.
• Facilitation and promotion of innovation.

Sustainable procurement practices enable organizations to enhance their decision-making by harmonizing their needs with sustainability concerns, which may include societal and environmental needs, product sustainability, economic considerations, and more. Consequently, the ISO 20400 standard provides guidance on integrating sustainability into procurement processes, assisting organizations in developing and implementing sustainability practices and policies across their entire supply chains.

The key steps of a procurement process, beginning with the initial stage, are:

1. PLANNING: During this phase, organizations plan the essential elements of sustainable procurement, which include:

• Assessment of sustainability risks and opportunities.
• Analysis of the entire lifecycle costs of goods and services.
• Evaluation of the organization’s specific needs for services or goods.
• Market analysis to outline the capabilities of the supply side concerning the Client’s needs.
• Development of a sourcing strategy.

At this stage, the Client should prepare a document within the ITT that includes the following:

• Key findings regarding sustainability needs, objectives, risks, and opportunities.
• Actions necessary to manage significant sustainability risks and opportunities.
• An explanation of how the sourcing approach aligns with sustainability objectives.
• Details about sustainability requirements and how they are incorporated into the specification.
• How sustainability aspects are integrated into the contract draft.
• The weight assigned to sustainability in the evaluation criteria.
• Expected sustainability benefits, including potential lifecycle savings.

2. INTEGRATING SUSTAINABILITY REQUIREMENTS INTO THE SPECIFICATIONS: This step aims to define sustainability requirements and incorporate them into the specifications, including:

• Definition of sustainable procurement criteria.
• Selection of the types of requirements.
• Definition of appropriate evaluation procedures for assessing the satisfaction of sustainability requirements.

3. SELECTING PROVIDERS: During this phase, the Client should perform and implement processes and activities aimed at assessing the Service Providers. This includes:

• Prequalification of Service Providers.
• Management of the tendering process.

4. MANAGING THE CONTRACT: The management of the contract by the Client involves several activities, including:

• Implementation of the contract.
• Establishment of a contract management plan.
• Monitoring and control of performance and management of relationships.

5. REVIEWING AND LEARNING FROM THE CONTRACT: These activities are crucial for the Client to ensure that:

• Lessons learned during the contract period are consistently shared within the demand organization, enriching the existing knowledge base.
• The process of continual improvement is ongoing to achieve better sustainability performance over time.

Moreover, once the contract is concluded, the Client should summarize the lessons learned in a document, which should include:

• Information concerning the management of occurred sustainability risks and opportunities.
• Information regarding the achievement of sustainability objectives.
• An overview of sustainability performance.
• An analysis of key success criteria.
• Key lessons for future contracts.

This document, which compiles lessons learned from each concluded contract, should serve as a valuable information source for defining the sourcing strategy for the next procurement process.

8.2 BIM FOR FM

Building Information Modeling (BIM) can be considered one of the most promising technologies for the Architecture, Engineering, Construction, and Facilities Management (AEC/FM) sector.

According to the National Building Information Model Standard Project Committee, “Building Information Modeling (BIM) is a digital representation of the physical and functional characteristics of a facility. A BIM is a shared knowledge resource for information about a facility, forming a reliable basis for decisions throughout its life cycle, defined as existing from earliest conception to demolition.”

While BIM is primarily used to streamline the design, engineering, and construction of new buildings (Kensek 2015), its value concerning the management phase of both new and existing buildings is widely recognized in the literature.

From the main pillars, the following potentialities and related advantages can be highlighted:

• Availability of a unified and reliable information base useful for analyzing the building in the management phase concerning characteristics, properties, features, and history of building components.
• Building (and associated data) visualization.
• A life-cycle approach that can be roughly divided into four broad phases: Plan and Design, Construction and Commission, Management phase (involving Operation, Maintenance, and Renewal/Revitalization), and Decommission and Disposal.
• Analysis of scenarios.
• Information interoperability, defined as a characteristic of a computer system to work with other computer systems in either implementation or access without any restrictions.

Despite the recognized benefits of BIM adoption and integration within FM processes, applications are still at an early stage and limited to experimental scales. Key challenges that need to be addressed include:

• Bringing together different stakeholders from various phases and sections of the fragmented AEC-FM industry, which is not easily achievable for Real Estate owners and Facility managers.
• The need for Real Estate owners and Facility managers to invest in BIM.
• The meaningful integration of BIM in FM, which requires conditions such as alignment with the organizational objectives of the Client, readiness for change, and solving interoperability issues related to data sharing and transfer.

Despite these challenges and open issues, the potential of BIM in improving the management of information related to the provision of FM services is widely recognized. It remains the subject of continuous analysis and research aiming to validate and standardize such integration and related practices.

8.3 BIG DATA AND IOT

Since the fundamental and strategic role of knowledge bases managed through information systems is being increasingly recognized by various industry players, the application of such information technology within FM practices is gaining increasing attention. In fact, the advent of new Information and Communication Technologies (ICTs), including the IoT, makes it possible to collect information on actual conditions, current operational status, and the performance of the building and its components in real-time from sensors and intelligent devices installed within the buildings. This achievement results in greater awareness and a better understanding of the building itself and the performance of services delivered by and to it. Thanks to this dynamic information base, appropriate strategies, such as maintenance strategies, can be put in place, aiming for a significant reduction in management costs and performance improvements.

In this scenario the concept of Big Data becomes increasingly important. This can be defined as data characterized by high volume, variety, velocity, variability, and value. These characteristics require innovative and sustainable forms of information processing to increase and enrich knowledge bases and, consequently, optimize decision-making processes.

Within this scenario, a role of great importance is therefore covered by devices and sensors. Those devices are not only capable of detecting a parameter but also of generating a digital signal and transmitting it to a local computing unit for processing or sending it to a remote system via a network to be aggregated and processed along with other data from different sources.

At the present time, it is already possible, by means of sensor systems, RFID (Radio-Frequency Identification) tags, and other IoT devices, to collect data concerning different aspects of the built environment. This opens up new possibilities for monitoring the environmental units of buildings where by analyzing and interpreting the curves of values of the parameters detected by IoT devices and sensors, facility managers have the possibility to outline patterns and identify trends in the operation of the building and its parts, as well as in the performance of the FM services provided by and to the building.

This additional information base can support FM-related decision-making processes where the analysis of the detected Big Data represents an advanced supporting information tool aimed, for instance, at calibrating future choices and investments. This can be useful for multiple purposes; inlcuding:

• Real-time detection of any interruptions in service delivery or failures of critical equipment or systems (fault detection analysis).
• Moving from calendar-based maintenance to more advanced maintenance strategies, such as real-time condition-based maintenance and predictive maintenance.
• Making the supply chain management for maintenance activities more efficient.

The application and integration of IoT within maintenance management allow the definition of new strategies useful to contain costs, reduce the waste of resources, and limit downtimes of systems. These benefits are achievable thanks to the continuous and dynamic monitoring of the building, attainable by employing a distributed system of sensors and IoT devices connected to an Information Platform.

From a strategic point of view, the Client, by integrating ICTs within its FM practice, can outline current and future trends supporting decision-making processes at strategic, tactical, and operational levels.

Indeed, the new possible cloud-based services need to be properly discussed in the ITT by the Client in order to clearly state the related objectives and requests and to avoid grey areas freely interpretable by potential Service Providers. Therefore, the Client should clearly state, in the ITT, its requests, including the specification of the requested sub-roles of the IoT Provider and the related functions to guarantee during the service delivery. Moreover, the Client should allocate to each sub-role the related authorities and responsibilities, as well as the available dedicated resources. With regard to the implementation of an IoT Platform, the Client should include in the ITT—at least—the following contents and requests:

• The Client should express its expectations.
• The Client should specify who will be the buyer of the platform and if the platform will be selected in the tendering phase or in the mobilization phase.
• The Client should specify the roles and responsibilities of the IoT Provider within the FM service provision. In particular, it has to state if the IoT Provider will:
  • Only deliver the technological infrastructure.
  • Deliver and maintain.
  • Deliver, maintain, and continuously manage the information platform and the involved data and information.
  • Deliver, maintain, and continuously manage the information platform and the involved data and information and manage the interface with other existing/new systems.

However, while ICTs integration opens up to innovations in the field of FM, it may also give rise to risks (e.g., social and legal, environmental, health and safety, security, etc.) related to transformations in service delivery. Therefore, in relation to the drafting of ITTs, the Client should be aware of the changes in working methods and their implications and effects on FM service delivery. In particular, the Client should therefore perform a risk assessment to determine the practical implications of managing innovation and transformation in service delivery against the anticipated benefits; and in a second place, has to be aware of some (economic and social) implications which may negatively affect the quality of the FM service provision if not properly analyzed and included as requests, requirements, and/or specifications in the ITT.

9 REFERENCES

Talamo C., Bonanomi M., Knowledge management and information tools for building maintenance and facility management, Springer, (2015)

Talamo C., Atta N., Invitations to tender for Facility Management Service, Springer, (2019)