Experts: expectations to be more realistic in 2012

FM experts said that understanding of the industry would improve in the next year.

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Things will improve in the industry as the industry matures, said experts at fmME’s recent round table meeting.

Client expectations were one of the biggest challenges faced over the last year, but FMs expressed confidence that things would become better from 2012 onwards. One of the biggest groans revolved around demands from clients to slash service costs.

“Many [interim owners associations] want to cut the service cost straight away or may not have funds to pay straight away. It’s about encouraging a certain level of understanding. We are finding that IOAs who’ve been around for a little longer are looking for longer term contracts and more value for their services,” said Khidmah’s senior services manager, Ryan Darnell.
 

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Ben Churchill, managing director, Emrill, supported this, saying the layout of contracts was evolving and improving daily. FMs were increasingly seeing service base contracts that carried KPIs that incentivised rather than penalised – something they were glad to see.
 

“18 months ago, contracts were very input spec based. We’re now seeing contracts are a lot more more sophisticated and there has been a move towards more value added type contracts.
 

“There is maturation in the client base understanding quality service and what it brings in terms of value. There is also a tie in between construction quality and maintenance quality and how much a property can yield in the rental market. It’s interesting that developers see the value in that, and so are willing to now work with FM companies to ensure their reputations are maintained.”

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