Achieving Cost Optimization through Facility Management Services

Authored by Rushabh Vora, Co-Founder and Director, SILA  Walk into any new commercial or residential complex today and you will be greeted by a plethora of amenities on offer for its users and residents. With increasing amenities, there comes an added onus of ensuring regular upkeep and timely maintenance in addition to routine activities like housekeeping, security, engineering & waste management. In such projects, employing single-service providers for above activities have some inherent disadvantages of operational inefficiency, greater monitoring needs & higher risks in delinquency situations Not surprisingly, many of the new & existing realty projects are exploring ways to optimize the management of these facilities more effectively with the aim of realizing cost-efficiencies while ensuring only passive involvement of key members. Facility Management Services might just be the right solution for such nuanced requirements Firms offering these services handle the all aspects of planning, risk control and operational management of all facilities within the premises. For both residential & commercial complexes, the scope of services managed include indoor & outdoor Cleaning services, security management, mechanical/electrical/plumbing services, repair & civil works & also in some cases, tenant management which is a boon for residents renting out their properties. Additionally, based on the needs, many firms offer services like reporting & accounting services which are also value add for commercial properties While the current adoption rate of facility management services is still low, the growing millennial demography are embracing these concepts and are actively preferring housing projects employing such services while making investment decisions. This rising preference has developed from the fact that most of this demography are employed at companies who have their premises in well-managed office complexes & business hubs. Even corporates prefer such properties to setup base as it significantly reduces their manpower costs which would otherwise be needed for visitor management while also promoting better employee well-being With increasing focus on reducing energy costs and thereby carbon footprint, many firms are positioning themselves as smart solution providers by using machine learning technologies to optimize a facilities’ cooling needs to bring about as much as a 30% reduction in energy costs. These savings are directly realized by the owners/residents of such complexes in terms of reduced monthly maintenance costs while also fulfilling social responsibilities Apart from the enhanced quality and peace of mind offered by such facility management services, the associated operational costs optimization that it brings along is a major consideration factor in favour of adopting them. Due to the economy of scale, such firms can build their own network of suppliers and hence are able to significantly bring down their operational costs, which in turn gets passed on to their clients. In addition, by having well laid down practices governing operations and cost & quality control, there is an implicit commitment towards standardized delivery of services as per the client’s service & budget requirements. Cost-effectiveness, sustained quality standards, flexibility in integration of services on offer & complete peace of mind are just some of the benefits arising out of the adoption of Facility Management Services. What is the most tangible benefit, however, is better living and working.