Facility Management mainly focus on how to deliver best value for their occupant in-order to enhance the organizational performance. Procurement of facility management can be done two way based on the control of the process of facility management and ownership of the assets. Those are in-house facility management and out-sourced facility management.
Out-sourced facility management mean handing over complete administration and decision-making responsibility to a third party or involvement of an external party to the management role of facilities. Nowadays outsourcing has been used worldwide as one of tools of the strategic company management. By choosing out-sourcing facility management, organization can be gained following benefits.
• Reduce and control operating cost
• Improve company focus
• Gain access to world class capabilities
• Free internal resources for other purposes
• Insufficient resources are available internally
• Share risk with a partner company
• Reduced turnaround time
However FM out-sourcing can be done through the single/package services and bundle services based on the scope of the services. Single/package services refer conducting separate contract for each service line. For an instance, carry out separate contract for housekeeping, waste management, security or catering. Bundle services mean one supplier will manage two or more services for a client also services can be bundled in to either Hard FM or Soft FM cluster depending on what services are required. However there are three popular modules are available to out-source the facility management based on the contractual type. Those are Managing Agent, Managing Contractor, and Total Facilities Management. Managing Agent can be identified as appointing a specialist (individual or corporate entity) to act as the organization representative to operate and manage the organization’s facility management services. Managing contractor can be defined as appointing a primary service provider as managing contractor (separate organization or a person) to perform Facilities Management services under a contractual relationship. Total Facilities Management can be identified as appointing a single service provider to carry out all the Facilities Management service in the organization.