10
ANALYSIS
Landlords are under more
pressure than ever to
demonstrate that the service
charge provides value for
money and this is leading many
to reappraise their facilities
management set-up
TFM or not TFM?
Jeremy Waud Phillip Osborne
I
ncentive Facilities Management hosted a round table at Capital concerns about the depth of the FM market and the ability of providers
& Counties’ Covent Garden offices, attended by a cross-section to offer all services to a similar standard. “Our experience to date
of landlords, managing agents and tenants’ representatives. The suggests that most of these firms have come from one heritage and
panel was asked what way is the market heading – total facilities that tends to be where their strength is. And the other things that
management, single service provision or in-house? they’ve bought in don’t tend to work.”
Catherine Lambert, head of shopping centre management at John Michell, head of shopping centre management at King Sturge
Jones Lang LaSalle, expressed doubts about the practicalities of finds himself in a similar position. “We too have inherited a couple of
implementing total facilities management in the current market. “I big assets within the last year with TFM models in place. We have then
would say that the market is starting to move away from that,” she unpicked those contracts and we’ve found a lot of over manning, a lot
said. “We are moving to single service suppliers, primarily because we of management fees on management fees and we just didn’t find it
haven’t been able to find a supplier, or enough of them I should say, was particularly cost-efficient or transparent.”
that is capable of doing security, cleaning and M&E as one package However he didn’t rule it out totally: “If you had a really complicated
across the portfolio. asset with lots of different contracts to manage; and if you could get it
“We have a restricted market and if you can’t tender, you can’t right, then I think would be an interesting model. But I’m not convinced
show the best value for your services to the tenants. So I don’t think at the moment.”
you could say the market was mature enough to offer us what we And John Prestwich, head of retail asset management at Cushman
needed.” & Wakefield, can see some positives for a shopping centre manager. “If
But Andrew Thomson, UK operations director at Hammerson is you’re going to be able to delegate some of the service management
less willing to write off the total facilities management approach. “We responsibilities away from centre management onto an FM provider,
run a small number of large assets and we run a single supplier model, then it frees the centre manager up to perhaps perform some of
generally.” he explained. “But we’ve recently inherited Silverburn which the other duties,” he said. “Perhaps working closer with the tenants,
is on a TFM model. In the short term, my view is I’m going to look at working on marketing and working on activities that otherwise you
it, integrate it, because I have that opportunity and from the auditing wouldn’t be able to do.”
work we’ve done, it doesn’t look particularly broken.” So what of the supplier’s view? Incentive FM’s managing director
But he added: “I would concur that proving best value to the Jeremy Waud conceded: “I think the lack of supply and people who can
retailer could prove quite a challenge.” demonstrate competence is an issue. I personally think it’s a perfectly
In terms of the wider market, Thompson shares Lambert’s good model but I do think it’s a fair point - if an engineer is playing at
SHOPPING CENTRE March 2010
www.shopping-centre.co.uk
10-11-SCMar10-Profile.indd 10 16/3/10 14:32:39
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