Berkeley makes crucial prediction about the future of IFM contracts
For some assets it makes better business sense to award single service contracts instead of bundled ones, says Berkeley’s Latheesh K.
Around five years back a growing number of local developers, asset and property managers caught on with global FM trends by tendering work using the integrated facilities management model.
The IFM or total facilities management trend, however, seems to be giving way in favour of single service contracts according to Berkeley’s director of soft services Latheesh K.
In an interview with fmME Latheesh talks about the changing trend. “IFM contracts helps the client as they have just one point of contact and one contract for all services. But from my expertise, especially from a soft services point of view, the IFM concept may work well for low-rise or medium-rise buildings. In this scenario you have a single FM manager with different services. But in shopping malls or leisure areas, for instance, staff is mostly engaged outdoors or they have to face customers. So that’s a bit of a challenge.”
He cites two of Berkeley’s clients — Dnata and Emirates Airlines — both of which have maintained single service contracts for facilities management and operation of its facilities. In case of the latter, Berkeley has been providing soft services for the airline for 33 years.
It makes better business sense for large scale assets, “especially in the commercial sector”, to engage with different service providers working in siloes. “This mitigates the risk of error or in case a single company going under. Companies that have tried the IFM concept are slowly but surely making a return to offering single service contracts,” he adds.