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Introduction to Built Asset Management
Provides a multidisciplinary introduction to building maintenance management and execution, covering a wide range of current technical and management issues
The maintenance and upgrading of existing buildings is no longer viewed as separate from the operational phase of the completed building. Maintenance and management are now regarded as fundamental parts of a building's life cycle, forming a significant percentage of the construction industry's total output. As higher education programmes in the UK and elsewhere continue to place greater emphasis on the longer-term view of construction projects, students and instructors require a thorough and up-to-date textbook that emphasises the comprehensive nature of building maintenance.
Introduction to Built Asset Management is a systematic introduction to both the technology and management issues central to building maintenance and refurbishment. Covering the entire life cycle of built assets, the textbook reviews the role of framework agreements, describes key performance indicators, discusses recent advancements in the procurement of maintenance activities and more. Detailed yet accessible chapters include illustrative examples, seminar questions and self-assessment tasks that enable students to measure their progress as they work through the material. Designed to meet the needs of today's learners, this much-needed textbook:
Introduction to Built Asset Management is ideally suited for courses in construction, construction management, building surveying and facilities management with modules in built asset management and maintenance.
Anthony Higham is a Senior Lecturer at the University of Salford, where he has delivered a range of quantity surveying modules. A Chartered Building Engineer and Chartered Construction Manager, Anthony was heavily involved in the financial and project management of major planned maintenance schemes for a range of corporate clients before moving into academia in 2006.
Jason Challender is Director of Estates and Facilities at the University of Salford, UK, a member of its Senior Leadership Team, and responsible for overseeing a large department of approximately 350 estates and construction related staff. He is a Fellow and Board Director of the Royal Institution of Chartered Surveyors.
Greg Watts is a Chartered Quantity Surveyor and Director of the Quantity Surveying Programme at the University of Salford. Before becoming a lecturer, Greg worked in the construction industry up to the level of Senior Quantity Surveyor, for various companies, on a range of multi-million pound projects.
List of Figures ix
List of Tables xi
Foreword xiii
Acknowledgement xv
1 Introduction 1
1.1 Introduction to the Book 1
1.2 The Main Areas and Themes Covered in the Book 1
1.3 Research Sources 7
2 Surveying Existing Buildings 9
2.1 Introduction 9
2.2 A Background to Conducting Building Surveys 10
2.3 The Process of Undertaking Building Survey 11
2.4 Challenges and Obstacles When Undertaking Building Surveys 17
2.5 The Importance of Building Investigations 19
2.6 Managing the Remedial Work Process 21
2.7 Summary 23
3 Common Maintenance Issues and Managing Defects 25
3.1 Introduction 25
3.2 Exploring the Pathology of Building Maintenance Issues 26
3.3 Context to the Discussion on Building Defects 27
3.4 The Importance of Understanding the Nature and Effect of Agents That Can Lead to Building Defects 31
3.5 Dilemmas Associated with Repair or Renewal Decisions 33
3.6 Managing the Remedial Works Process to Address Maintenance Issues and Defects 35
3.7 Measures to Mitigate and Prevent Defects 37
3.8 Summary 39
Reference 41
4 Maintenance Management and Performance Measurement as Part of Private Financing Initiative (PFI) Schemes 43
4.1 Introduction 43
4.2 Definitions and Concepts of Facilities Management 44
4.3 Background to the Discussion on Performance Measurement (PM) of Facilities Management and Maintenance in the Healthcare Sector 45
4.4 The Advantages and Disadvantages of PFI Ventures in a Facilities Management Context 53
4.5 Quality Improvements in Maintenance Management Brought about through Performance Measurement 53
4.6 Financial and Non-financial Measurements 55
4.7 Performance Management 56
4.8 The Challenges for Performance Measurement 56
4.9 Payment Mechanisms as Part of PFI Contracts 59
4.10 Performance Monitoring Tools 60
4.11 The Importance of the Helpdesk for the Success of Maintenance and Facilities Management Services in PFI Initiatives 68
4.12 The Performance Monitoring Process 68
4.13 Key Issues Arising for Performance Management as Part of a Maintenance Management and FM Tool on PFI Schemes 72
4.14 Conclusions and Reflections 72
Acknowledgement 73
References 73
Further Reading 80
5 Procurement and Contracting for Maintenance and Refurbishment Works 87
5.1 Introduction 87
5.2 Rationale for Procurement of Maintenance Interventions 87
5.3 The Procurement Process 88
5.4 Project Initiation 90
5.5 Procurement Strategy 92
5.6 Client Brief 93
5.7 Procurement Route 94
5.7.1 Categorisation of Procurement Routes and Pricing Mechanisms 94
5.7.2 Pricing Mechanism 97
5.7.3 Procurement Routes 100
5.8 Contract Arrangements 109
5.8.1 The Joint Contracts Tribunal (JCT) Suite of Contracts 110
5.8.2 The New Engineering Contract (NEC) Suite of Contracts 111
5.8.3 The ACA PPC 2000 Form of Contract 115
5.9 Summary 120
References 120
6 Financial Management: Capital Costs 123
6.1 Introduction 123
6.2 Project Appraisal and Developing the Business Case 124
6.2.1 Optional Appraisal 126
6.3 Order of Cost Estimate 127
6.3.1 Developing the Order of Cost Estimate 127
6.3.2 Developing the Order of Cost Estimate Using the Functional Unit Method 129
6.3.3 Developing the Order of Cost Estimate Using the Floor Area Method 130
6.3.4 Developing the Order of Cost Estimate Using the Elemental Method 134
6.4 Cost Planning 137
6.4.1 Preparing the Cost Plan 140
6.4.2 Formal Cost Plan 1 147
6.4.3 Formal Cost Plan 2 155
6.4.4 Formal Cost Plan 3 157
6.5 Summary 158
References 159
7 Financial Management: Life Cycle Costing 161
7.1 Introduction 161
7.2 Forecasting Financial Impacts of Building Maintenance 162
7.3 Defining Life Cycle Costing 165
7.4 Challenges Associated with Life Cycle Prediction 167
7.4.1 Benefits of LCC 170
7.5 Undertaking Life Cycle Costing 170
7.5.1 Time Value of Money 170
7.5.2 Determining the Time Period of Appraisal 181
7.5.3 Component Life Considerations 185
7.5.4 Discount Rate, Interest Rate and Inflation 186
7.5.5 Building In-Use Considerations 189
7.5.6 Life Cycle Costing - Applications through the Building Life Cycle 190
7.5.7 Developing a Life Cycle Cost Plan 191
7.6 Example Life Cycle Cost Models 194
7.7 Summary 197
References 198
8 Sustainable Maintenance Management 201
8.1 Introduction 201
8.2 Sustainable Maintenance Management 201
8.3 Circular Economy 203
8.4 Carbon Neutrality 204
8.5 Retrofitting 207
8.6 BREEAM 210
8.7 Corporate Social Responsibility 212
8.8 Sustainable Development Goals 214
8.9 Conclusion 216
Reference 216
9 Risk Management 217
9.1 Introduction 217
9.2 What Is Risk? 217
9.3 The Nature of Risk 219
9.4 Risk in the Built Environment 220
9.5 Risk in Asset Management and Maintenance 224
9.6 What Is Risk Management? 224
9.7 The Nature of Risk Management 228
9.8 Risk Management in Asset Management and Maintenance 228
9.9 How Is Risk Classified? 232
9.10 Risk Events in Building Maintenance and Asset Management 233
9.11 The Consequences of Risk Events 235
9.12 Proactive and Reactive Risk Management 237
9.13 Procurement Risk 238
9.14 Why Risk Events Still Happen 239
9.15 Conclusion 240
References 240
10 Managing the Maintenance Process 243
10.1 Introduction 243
10.2 How to Manage Building Maintenance 243
10.3 Planning for Building Maintenance 244
10.4 Proactive Maintenance 244
10.5 Reactive Maintenance 245
10.6 Maintenance Schedules and Budgets 246
10.7 The Importance of a Programme 246
10.8 Site and Task Constraints 248
10.9 Health and Safety of Building Maintenance 249
10.9.1 Having Thorough Supply Chain Selection Methods in Place 250
10.9.2 Operating a Permit to Work System 250
10.9.3 Ensuring Inspections Are Carried Out for All Required Works 250
10.9.4 Ensuring the Risks Are Fully Understood 250
10.9.5 Being Up-to-Date with the Latest Guidance and Legislation 250
10.9.6 Having an Up to Date Training Matrix 251
10.10 Common Difficulties Encountered during Maintenance Works 251
10.11 Soft Landings 252
10.12 Operation and Maintenance Manuals 253
10.13 Building Information Modelling 254
10.14 Conclusion 255
11 Conclusion 257
About the Authors 261
Index 263
