Middle East Energy Client – Utilities

  • Nathan Davies
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The client engaged Barkers to develop a detailed Integrated Facility Management (IFM) Strategy Plan, including a change management process and stakeholder alignment. This would include a roadmap to implement an IFM framework, provide technical insights and suggest Category Management for outsourced contracts. Barkers were tasked with optimisingscopes, outlining value propositions and establishing evaluation criteria and a commercial structure for outsourced work. Barkers aimed to seamlessly integrate all functional areas of Facility Management, ensuring comprehensive coverage and efficient operations.

The client wanted to implement an integrated facilities management strategy. In order to do this, and given the maturity in the region for IFM, Barkers needed to provide a roadmap detailing the clients current situation and where they aspired to be.

The objectives for Barkers was to provide:

  • a comprehensive Integrated Facility Management Strategy along with an implementation plan
  • a comprehensive category management approach and implementation plan including writing the optimisedscope, technical evaluation criteria and commercial structure, benchmark and ‘should cost’ models.
  • a detailed assessment of As-Is structure of the Facility Management Department with a proposed Facility Management strategy following a gap and readiness assessment and benchmarking against peers in the region.
  • provide their technical insights on scope and process optimisationsin FM strategy workshops with relevant stakeholders following readiness assessment of the client.

As an ethical Procurement Consultancy based in the UK our strong experience in the procurement profession also brought valuable insights and connections to complement the client’s social value goals.

After conducting a comprehensive analysis of our client’s facilities management structure and operations, we made a recommendation that implementing a new FM model will lead to significant enhancements in both efficiency and effectiveness. This shift was to enable senior management to dedicate more attention to future challenges and opportunities. By adopting a new FM model, we anticipate improved service quality and a more satisfactory experience for employees.

Facilities management (FM) has significantly evolved in the past two decades. The traditional approach, based on labourlevels and processes, no longer meets the dynamic and flexible requirements of businesses, especially in the energy sector where major shifts have occurred and will continue to occur. FM should not only meet current needs but also proactively support future aims and goals by continuously monitoring the organisation’sdirection and exploring innovative ways to adapt.

We recommended adopting a new model for facilities management (FM) by outsourcing to organisationsspecialisingin professional FM services (as opposed to only carrying out the tasks involved in FM). This approach would allow the client to focus on its core business while receiving proactive support from a leading-edge organisation, especially in areas like cost optimisationand social. The FM providers can also mentor and develop subcontractors through effective supplier relationship management, fostering an ecosystem of growth and development and supporting efficient service delivery.

  • Guidance to help the adoption of a robust Contract Management regime to ensure strict contract compliance and cost management.
  • Guidance to help the introduction of a robust scheme of self and ‘independent’ audit via the intelligent client to ensure performance is strictly managed and delivered in line with the agreed scope.
  • Tender documentation on an output-based specification, with the intention to move to an outcomes-based specification to encourage transparency and innovation with the subcontractors.
  • A clearer robust pricing format model which is simple to use and takes into account potential add-ins or take outs.
  • A category strategy to support the consolidation of spend across all operational and support functions to maximise economies of scale, e.g. multiskilling of staff, compliance.

We are pleased to announce the following results:

  • The client has an agreed FM strategy which the client is implementing.
  • Modernisation of the scope, contract, commercial model and approach to cost management for savings to be achieved.
  • By leveraging key contracts, cost pressures should be mitigated given current inflation levels in the region.

We were fully aware of the vital importance of social value to the client. As a result, we made clear that the ITT should spell that out that importance to potential bidders, and it should be enshrined in the contract. We suggested the following measures should be considered:

  • The FM provider should for its own purposes wish to train its subcontractors staff to be more multi-skilled.
  • The FM provider should sponsor staff to attend ONC/HNC/BTEC courses to up-skill their team. This will make those people much more attractive to the wider job market (enabling them to leave happily should they wish).
  • Skilled staff (electricians, plumbers etc) should be provided with training in general business skills to enable them to set up their own small businesses, (Many skilled technicians are fearful of selfemployment because they aren’t sure how to run a small business. Aspects covered would include costing and quotations, inter-personal skills, planning and accounting and tax etc.)
  • The FM provider needs to demonstrate to local based subcontractors how to grow and be national ones.
  • The FM provider needs to demonstrate to national subcontractors how to be international ones.
  • The FM provider needs to demonstrate to the best subcontractors how to be an IFM.
  • A proportion of any savings should be invested in social value projects. This could include the funding of vocational colleges where locals can learn skills needed by the country generally, especially those where expat personnel are often used.

Barkers: Middle East Energy Client – Utilities Case Study

Author: Nathan Davies
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