Asset and Facilities Management - Management Assignment Help

Assignment Task

SSUD11-109 Property Asset Management
1 IntroductionBond University’s campus encompasses world-class infrastructure and amenities that accommodate students both locally and from across the globe. However, to maintain elite status, the University’s premises and services must be managed accordingly and acknowledge opportunities for sustainable practices and operational advancements. Therefore, to build upon the University’s existing strengths, a fresh outlook on Facilities Asset Management is encouraged to achieve a superior standing. The following report identifies and analyses the asset and facilities management metrics associated with Bond University. While Bond University remains committed to advancing as an innovative and leading independent University, it is important to address the evolving trends and technologies associated with Asset and Facilities Management. Dependable technologies and efficient building performance are key elements that sit at the core of business operations and contribute to academic excellence. Subsequently, in April 2021, global commercial real estate company Jones Lang La Salle (JLL) published 15 strategies for lowering costs and generating new revenues for high performing universities CITATION JLL21 \l 1033 (JLL, 2021). As such, the following report critiques five of the fifteen strategies proposed by JLL and endorses the recommended strategies to be adopted into Bond University’s Asset and Facilities Strategic Management Plan.
2 Meaning of Asset and Facilities ManagementAsset and Facilities Management is a broad label used to describe the systematic approach to operating, maintaining, and cost-effectively upgrading physical assets. To establish a clearer understanding of what Asset and Facilities Management is, the terms ‘asset’ and ‘facilities’ must first be summarised. Hee (2013) describes ‘assets’ as a general term referring to a business resource that has a financial value and can provide some form of benefit (e.g., a financial return or service), and refers to ‘facilities’ as a group of buildings, the site or land on which they are located and the site improvements supporting the buildings” (p, 1). Overall, the principles behind Facilities Asset Management allow for a logical approach towards decision making when considering strategic-planning processes for business assets and facilities CITATION Hee13 \l 1033 (Hee, 2013).
3 Identify Bond University Asset and FacilitiesBond University’s substantial scale and footprint retain an extensive array of assets and facilities that require regular attention and maintenance to optimise the campus’s key resources while minimising operational costs. Bond University’s natural and built form encompasses 15,000 fixed assets across 90,000m2 of gross floor area, whereby Bond University’s Facilities Management oversees the procurement and management of all utilities, infrastructure, and fixed assets. Furthermore, Bond University oversees the procurement of all service contracts surrounding operational and maintenance schedules across the campus.
The following table, seen as Figure 1, identifies Bond University’s assets and facilities across the campus and outlines the equipment within the facilities. Furthermore, Figure 2, recognises and describes the services available at Bond.
Bond University- Assets & Facilities
AcademicAsset/Facilities Equipment
Teaching/ ComputerLabs Computers
Furniture
Projector and speakers
Security systems including ID access
Lecture Theatres Furniture (fixed to floor and mobile furniture)
Microphones, screen, and audio equipment
Suspended/hanging lighting
Camera and recording devise
Seminar Rooms Flat screen TV
Projector
Camera and recording devise & equipment
Furniture
Study Rooms Furniture
Teaching Labs Computers
Furniture
Projector, speakers, cameras & recording devises
Security systems including ID access
Sports Centre Olympic size pool
Gymnasium
Spa
Studio training rooms
Operational Assets Note
HVAC All Bond buildings are equipped with HVAC systems capable of cooling and heating
PHE Plumbing Includes water, stormwater services, irrigation and pool pump/cleaning system
Landscaping Equipment Includes all mowing and gardening equipment and vehicles to transportstaff and landscaping tools and equipment across campus
Figure SEQ Figure \* ARABIC 1. Bond University Assets & Facilities CITATION Bon211 \l 1033 (Bond University, 2021).
Bond Services Note
Food & Beverage Lake side restaurant & Bar
Dons Tavern
Bond Express/convenience store
Papyrus Café- Bond Library
Kinetic- Institute of Health & Sport
Pulse Café- Faculty of Health Science and Medicine building
University Club- Building 6
Medical Medical Clinic- Full time doctors on site.
Psychological Services for Staff & Students- Free counselling
Disability Support
Accommodation Halls of Res: Single & Flats
Single Room- en-suite
Single Room- Premium en-suite
Standard share, Deluxe Share and Premium Share
IT Support IT Service desk provides support for both students and staff
Security 24-hour patrol
Safe Escort
Vehicle Parling Permits
ID Access for buildings
Figure SEQ Figure \* ARABIC 2. Bond University Services. CITATION Bon21 \l 1033 (Bond University, 2021)4 Bond University StakeholdersThere is an abundance of stakeholders in higher education institutions, and universities depend highly on their abilities and relationships. Bond University’s objectives are heavily influenced by the networks, organisations and private people involved with the institution. The relevant stakeholders are made up of internal and external parties. The internal Stakeholders include students, the governing board, and staff, while the external stakeholders include parents, the community, alumni, business partners and customers. Therefore, it is important to acknowledge and respond to various internal and external stakeholders needed to maintain economic stability.  
The following chart, seen as Figure 3, identifies the relevant internal and external stakeholders associated with Bond University. 

Figure SEQ Figure \* ARABIC 3. Internal & External Stakeholders- Bond University
5 Cost Saving & Revenue-generating Strategies5.1 OverviewIn April of 2021, global real estate company JLL released a report outlining fifteen strategies to lower costs and generate new revenues for high performing universities. The following ‘5.2 Cost Saving and Revenue Generating Strategies’ identifies and analyses five strategies recommended for Bond University to consider implementing into the Asset and Facilities Strategic Management Plan.
5.2 Cost Saving and Revenue Generating StrategiesAnalyse Facilities data to identify and drive real-time operational efficiencies- University campuses can contain hidden costs beyond the mortgage or lease charges. Portfolio data analysis, including facilities management and maintenance costs, can help identify inefficiencies and uncover cost-saving opportunities. Internet of Things (IoT) technology can be deployed to monitor space use, temperature, proximity, water level and humidity across the campus’s-built form. With IoT sensors, problems can be fixed before they become severe or critical. Analysing the data from the sensors allows for cross-examinations so, any abnormal consumptions or operating levels can be identified, and the root cause of that inefficiency can be discovered CITATION JLL21 \l 1033 (JLL, 2021).
For Example, if the Basil Seller Theater at Bond University was monitored by IoT technology, the lighting and air conditioning can be triggered when sensors pick up movement heading into the theatre. Accordingly, the air conditioning and lighting can be shut off when the sensors detect that the room is vacant, mitigating unnecessary consumption costs during periods of absence. Subsequently, the technology can turn any building into a ‘smart building’ and ensure operational performance is in line with occupancy to reduce costs and enhance the environment for the end-users.
Consider a Sale/leaseback- In some circumstances, it may be advantageous for universities to sell the property or buildings within the campus and lease it back. This allows large amounts of capital to be deployed where it is most needed. Depending on the university’s location, condition and level of occupancy, investors may be interested in a sale/leaseback acquisition. CITATION JLL21 \l 1033 (JLL, 2021).
So, Bond University has the opportunity to identify areas across campus underutilised by students and faculty and invite external professionals to tenant those areas. Thus, the tenant pays a fixed monthly amount and can utilise research labs, computer labs and collaborate with faculty and students. For example, an external pharmaceutical company may enter into a lease agreement and co-use the facilities within the health and science laboratories. So, in this circumstance, not only can Bond generate new income and provide quality facilities for researchers, but students can interact with practising professionals and collaborate with researchers.
Uncover hidden operations and maintenance costs with a facilities health check- The impacts of deferred maintenance on facilities are unlikely to be visible and are likely to be detrimental. Periotic preventative maintenance can assist in avoiding unpredictable and costly repairs or, worse, replacement costs. Additionally, regular maintenance can keep plant and equipment running more efficiently CITATION JLL21 \l 1033 (JLL, 2021). So, by engaging an external service provider to audit and ‘health check’ equipment, the university can then identify ways to improve performance and save costs in the medium to long term.
Subsequently, it is recommended that Bond engages an external facilities health check expert to conduct an in-depth review of the campus facilities, whereby an unbiased, custom report can be produced. The report will identify any statutory standards not being met and evaluate strategies to rectify the issues. Additionally, the custom report will recommend and prioritise any findings by anticipated return on investment. In succession, the health check will provide financial value by mitigating breakdowns, identifying uneconomical facilities to be replaced, and assist the longevity of existing facilities.
Create an Energy Partnership- By creating an energy partnership, universities can reduce their electricity costs while minimizing their carbon footprint. Typically, the energy provider will fund the installation of the solar panels and other solar technologies in exchange for a long-term power purchase agreement (PPA). In the private sector, the energy providers generally maintain the solar equipment while selling the power back to the university (at a discounted price to that of coal-fired power) CITATION JLL21 \l 1033 (JLL, 2021). Overall, the institution benefits from improved energy efficiency and energy cost savings.
Bond University’s campus contains approximately 30,200m2 of roof space (Nearmap, 2021). So, Bond is in a great position to enter into a solar power purchase agreement and earn substantial savings in electricity charges. Additionally, some renewable energy providers, such as Solar Bay, offer a roof rental, payable to the property owner. As such, a fixed monthly amount is to be paid to Bond University for the panels occupying roof space, and a discounted electricity rate is provided for the university’s energy consumption. CITATION Sol21 \l 1033 (Solar Bay, 2021). Bond requires no upfront capital to commission the solar panels and endures no ongoing maintenance costs. Therefore, the agreement generates instant energy savings while providing a new source of income through roof rental.
Revitalise Underutilised Land Through Ground Leases- Older underutilised buildings or vacant sections of land can be transformed into ‘ground lease” like that of a leasehold position. A ground lease allows the university to designate unused land to a developer and generate long-term rental income. Generally, ground leases allow the landowner or landlord to assume the improvements and the end of the lease term CITATION JLL21 \l 1033 (JLL, 2021). Additionally, the developer typically pays for the design and construction costs as well as the operating and maintenance costs.
Bond has various opportunities to offer ground leases to developers. Whether it be the land free from improvements on the southwest side of the campus, or the land adjacent to the AFL field, there are vast opportunities to secure long term rental incomes. For example, Bond can offer a long-term lease over the land adjacent to the AFL field for residential development. There are no upfront capital costs required from Bond, and the university can assume the improvement at the end of the lease term for student accommodation. Overall, a ground lease similar to the example proposed represents a logical and desirable form of land use.
6 Asset and Facilities Maintenance Plan
An asset and facilities maintenance plan for Bond University delineated for improved maintenance of building assets, delivered efficiently and effectively, will reduce long-term expenses. An Asset and facilities maintenance plan is designed to extend the life of an asset and reduce unforeseen breakdowns by implementing proper maintenance strategies. Improvements, innovations, and initiatives aim to add value to the life cycle of an asset. Operational and maintenance activities are fundamental for managing the buildings and facilities, which is considered an investment rather than a liability. Undertaking these activities is a significant annual investment that directly influences buildings and facilities' potential to reach their intended service life. The ongoing development of asset knowledge through asset inspections, improved maintenance activities, subsequent defect monitoring and repairs are developing sustainable intervention levels for renewals and replacement of buildings and facilities assets CITATION NC19 \l 3081 (NC, 2019).
The Strategic Maintenance Plan applies to the maintenance of physical assets. Every asset is to be identified and given a unique number to keep records of maintainable items. The strategic plan only applies to those assets for which the Directorate Facilities Management (DFM) has been assigned responsibility. The maintenance plan will outline different types of maintenance required for each asset. Below are examples of different maintenance elements to be carried out.
Reactive/Emergency maintenance- Reactive/Emergency maintenance on the University’s property assets is the responsibility of DFM and is provided through a combination of in-house staff and contractors. DFM addresses maintenance problems arising from building plant and equipment and the functioning of campus-wide services such as power, water, gas, fire, sewer, and stormwater. The forecast expenditure for reactive/emergency maintenance has been derived from historical data and expert opinion. DFM regularly reviews the maintenance needs and expenditure of the University’s property assets to achieve a more strategic and life cycle cost approach.

Preventative Maintenance - Preventative maintenance is the maintenance of equipment, facilities, and infrastructure to keep it in a satisfactory operating condition by systematic inspection, detection, and correction of failures before they occur or develop into major defects. DFM ensures that equipment, facilities, and infrastructure are serviced and maintained according to the recommended manufacturer specifications by using in-house staff and contractors.
Deferred and Backlog Maintenance- Deferred and backlog maintenance is carried out whenever possible, considering budgetary constraints and prioritising other statutory maintenance and compliance needs CITATION CQU20 \l 1033 (CQU, 2020).
To help prioritize a level of urgency a grading system based upon the importance and function of an asset is used by the following:
Criticality of Assets
Utilisation
Functionality
6.1 Criticality of AssetsCriticality analysis involves prioritising maintenance activities and keeping assets current and updated. The combined relationship measures the probability of failure and the consequence of an asset failure.
Response Parameters Action
Priority 1- Upon receipt of notification, within two hours. Priority 1 classification of areas of attention: Burst water pipes, Energy outages, Essential air-conditioning, and essential ventilation. Failure of low temperatures freezers/fridges. Gas leaks. Passengers trapped in lifts, fires, broken glass, blocked sewage, toilets, soil lines, electrical faults, Cold room failures.
Priority 2- Upon receipt of notification,within one business day of notification. Classification for areas of attention: Blocked storm water drains, broken doors, major roof leaks, broken glass, broken locks, broken doors, air-conditioning failures, water leaks, no water, emergency and exit lighting failures.
Priority 3- Upon receipt of notification,within three business days weeks. Classification for areas of attention: Flickering lamps failed hot water systems, minor roof leaks, security lighting, faulty toilets, stair lighting.
Priority 4- Upon receipt of notification, within two weeks. Classification for areas of attention: Dripping taps, failed lamps, torn carpet, pipe work insulation, non-essential air-conditioning, pest problems, external and internal painting, non-dangerous electrical faults.
Priority 5- Upon receipt of notification,works to be programmed. Classification for areas of attention: Resurfacing benchtops, repairs to caulking, inter and external painting, road resurfacing, kerb and channel repairs.
Figure SEQ Figure \* ARABIC 4. Criticality of Assets CITATION CQU20 \l 1033 (CQU, 2020)6.2 UtilisationAn asset must be utilised effectively and deliver the required level of service to provide the maximum return on funds invested. Underutilised assets can reduce capacity and represent a lack of demand for the service the asset provides. When prioritising the level of use required for each asset, a grading scale is applied- see Figure 5.  
Classification Description
Over Utilised Asset is used beyond intended capacity
Continuous Asset is in continuous or constant use
High Asset is used for more than desired or specified intension
Standard Asset is used within intended operating capacity
Under Utilised Asset does not utilize intended capabilities
Figure SEQ Figure \* ARABIC 5. Utilisation.
6.3 Functionality
To deliver the nominated service potential for an asset, a functionality rating is assigned based on an assessment of the suitability of the element or facility. The functionality rating is a measure of the building’s adaptability, efficiency of space and utility usage, and the expenditure required to refurbish the facility for its new intended use.
Conditional Status General Description
Not functional Facility is very inefficient in the use of utilities, has a spatial efficiency of less than 40% or requires more than 80% of estimated asset value to refurbish.
Low functionality Facility has a spatial efficiency between 40% and 50% and requires between 50% and 80% of estimated asset value to refurbish.
Fair functionality Facility has a spatial efficiency between 50% and 65%. Has accessible service paths although services are out of date and requires between 25% and 50% of estimated asset value to refurbish.
Functional Spatial efficiency is between 65% and 75%, services are reasonably up to date and have spare capacity, requires less than 25% of estimated asset value to refurbish.
Very Functional Spatial efficiency is over 75%, building layout is very flexible and can be adapted with minimal effort, requires less than 5% of estimated asset value to refurbish.
Figure SEQ Figure \* ARABIC 6. Functional Rating CITATION CQU20 \l 1033 (CQU, 2020).
Information & Communication Technology (ICT) is software that controls, maintains, and enables proactive investment planning for assets. The communication technology software optimises performance requirements for ICT assets to ensure the performance and functions operate in accordance with customer and community expectations. ICT focuses more on the delivery for the end-user’s capability and utility rather than on traditional hardware deployment. The objectives of the ICT asset management procedure are to ensure:
All ICT assets are identified and documented throughout their ICT asset lifecycle;
All ICT assets are maintained and renewed according to defined asset specifications and expected life;
All ICT assets are risk managed throughout their lifecycle;
ICT asset owners are identified and are aware of their responsibilities;
replacement of ICT assets are planned well in advance;
Roles and responsibilities are clearly defined within the asset management lifecycle CITATION Dep21 \l 3081 (DOE, 2021).
7 Guidelines for Procurement Decisions
A procurement for services is required to ensure Bond University operates to a specified standard. Implementing a standard of performance indicators and performance measures allows for better decision-making for building management. As such, indicators and measures create guidelines for services needed to follow principles that involve consideration of social and environmental aspects of performance and financial performance assessments. Procurement covers the entire process of acquiring goods and services from external parties. The procurement lifecycle begins from concept to the end of the asset’s useful life, or end of the supply service contract shall be undertaken following the steps defined in Figure 7.

Figure SEQ Figure \* ARABIC 7. Procurement Process for Decisions
Planning the Purchase
When planning the purchase, it is standard practice that procurement occurs by way of quotation or tender, whereby a value or monetary range is set out. The value ranges set at Bond University are as follows;$50,000 or below- Bidding or tender is not required, and staff are to validate expenses if they are reasonable.
$5,000 - $50,000- Sourcing at least two oral quotations is required. The quotation is to be approved by Bond University Asset and Facilities Management team.
$50.000-$200,000- A minimum of five written quotations are to be obtained. The quotations must be reviewed ad approved by two staff members from Bond University Asset and Facilities Management team.
$200,000 Plus- Quotation by tender and competitive bidding is to take place. The tender approving committee/AFM team must approve and review the most appropriate company to undertake work. (Week6 Slides, N/A).
Specifying the Requirements
All purchases or pending services must be defined before proceeding, so that prospective suppliers can offer to provide the goods or services requested by Bond University. As such, Bond University’s Asset and Facilities Management team shall provide a specification of the item required by way of functionality, performance technicality. Therefore, the duty to be performed and the physical performance excepted can be specified against the technical characteristics of the goods or service before selecting a supplier CITATION DUA14 \l 1033 (DUA, 2014).
Selecting a Supplier
The following ‘options chart’, seen in Figure 8, is to be followed to assist in sourcing a supplier for a particular purchase of goods or services. In this instance, prices and other associated elements must be evaluated to identify the best value for the goods or services required. 

Figure SEQ Figure \* ARABIC 8. Options Chart for Selecting a Supplier.
Option 1- Contracted suppliers have been through the process that meets the value-based and non-price attributes required
Oprion2- Preferred suppliers are those used regularly and are known to satisfy Bond University’s price, quality, and customer service standards.
Option 3- This option refers to the use of Government or other purchasing scheme contracts facilitated by the Asset and Facilities Management team.
Option 4- This option refers to the active suppliers outside of Bond University’s listed suppliers. Therefore, this option can be utilised when or if a supplier from the first three options cannot be found.
Option 5- Only to be used if options 1 to 4 are unable to be utilised. Any new supplier engaged is to be registered through Bond University’s procurement team CITATION DUA14 \l 1033 (DUA, 2014).
Establishing a Contract
For every purchase made by Bond University, a contract shall be established either through a purchase order agreement or a formal contract. Formal contracts shall be endorsed by Bond University’s solicitors and drafted by the university and not the supplier. 
Reviewing Performance 
Bond University shall periodically review all aspects of supplier performance and provide feedback. Any review should be tailored to each specific supplier’s circumstance while including an audit on the performance and effectiveness of the supplier. In addition, the supplier review and feedback ought to be reported back to the relevant stakeholders CITATION DUA14 \l 1033 (DUA, 2014).
8 Statutory Compliance Obligations8.1 Federal Compliance ObligationsBond University’s buildings and associated infrastructure must be maintained to the highest and best standards available while complying with statutory obligations. In an environment where costs are increasing, and more stringent legislations arise, managing these tasks can be quite onerous. As such, prioritised maintenance funding is an adequate methodology to assist budgets and constraints associated with competing maintenance demands.
Due to the ramifications of building failures, devastating fires, and other building-related accidents, business and facilities managers bear greater pressure to focus on their facilities safety and statutory compliance CITATION Hee13 \l 1033 (Hee, 2013). The following metrics are to be prioritised accordingly in order of hierarchy when budgeting and commencing preventative maintenance:
Statutory compliance;Workplace health and safety (WH&S);Risk Management;Asset Life Cycles;Impact on teaching programs;Property loss and damage;Public appearance CITATION The09 \l 1033 (The University Of Queensland, 2009).
Bond University must adhere to the following statutory requirements that support the delivery of high-quality education and ensure the protection of all students enrolled at providers Australian universities.
Environmental Protection Act- The Environmental Protection Act ensures that the waste systems for water, air and noise are maintained within the prescribed parameters. Additionally, Bond must complete an asbestos register and asbestos plan for any containment or removal of existing asbestos.
Occupational Health and Safety Act (2000)- The act requires Bond to maintain the air conditioning for occupant comfort while preventing additional health risks associated with airborne contaminants. Also, the maintenance of lifts, fire safety systems and emergency lighting fall under the Occupational Health and Safety Act (2000).
National Plumbing and Drainage Code & Plumbing and Drainage Regulations (2003)- The code and regulation identifies the maintenance and operating requirements to be followed for plumbing and drainage systems across the campus.
Electrical (Consumer Act 2004) & (Regulations 2006)- The act and regulation prescribe the maintenance and operation of all electrical systems across the campus CITATION CQU20 \l 1033 (CQU, 2020).
9 Post Occupancy Evaluation
Post-occupancy evaluation (POE) refers to a building's assessment after construction once the building has been occupied for an extended period. The process involves evaluating the buildings use through productivity and analysis of the building's structure after extended periods of use—this assist in identifying the maintenance costs and increase the functionality of the building. The evaluation can also recognise any additional operational processes which can provide better service to the client's requirements.
POE has multiple stakeholders which include:
Project design team
Builders
Maintenance team
Cleaners
Building Occupants
9.1 Risk ManagementRisk Management is the coordinated activity directed towards realising potential opportunities while managing adverse effects to improve the achievement of the University's objectives.
Managing risk:
Is a logical and systematic process when making decisions to improve the effectiveness and efficiency of performance.
Is used to identify and prepare for what might happen. This involves taking action to avoid or reduce the unwanted exposure of the University.
Encourages the University to manage proactively rather than reactively.
Means identifying opportunities to improve performance.
Takes action to avoid or reduce the chances of something going wrong.
Risk Management focuses on identifying, evaluating, controlling, and 'managing' risks. Therefore, allowing the University to seek and take advantage of opportunities that achieve improved outcomes and outputs by ensuring that any risk taken is based on informed decision-making, realistic and measurable objectives, and sound analysis of possible outcomes CITATION CQU20 \l 1033 (CQU, 2020). The process is an advantageous strategy and can be applied at all levels within the institution.
10 ConclusionOverall, the report uncovers the identification and relevance of Bond University’s Asset and Facilities Management. As it stands, Bond University contains over 15,000 fixed assets across 90,000m2 of gross floor area, further acknowledging the relevance for commissioning a stringent Asset and Facilities Strategic Management Plan. Moreover, the report critiques JLL’s recent report on ‘15 strategies for lowering costs and generating new revenues for high performing universities” and sets forth the recommended strategies to apply to Bond University’s Asset and Facilities Strategic Management Plan.
It is revealed that the university holds many essential statutory obligations on a federal level, whereby facilities managers continue to bear greater pressure to focus on the safety and statutory compliance of their facilities. In conclusion, the report uncovers that a fresh outlook on Facilities Asset Management is encouraged to achieve a superior standing while remaining innovative and ensuring the end-users are privileged with a superior academic environment.  
 

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