FM-8 Costs, Accounts and Financial Elements

Business needs:

Identification of product usage from design and construction
will enable immediate establishment of the supply chain in FM.

Integration of financial information will enable the importance
of the role of FM to be highlighted.

Monitoring and tracking of financial information will enable
better budget control in FM.

Information available for decision support in contract and
purchase management will be enhanced.

Total cost of replacement. Factors affecting the ability to get
components into or out of the building and fixed into place. Building will
normally be expected to outlast the equipment contained within it.

Lifecycle information enables preplanning to occur. Knowing
that the probability of failure of a component is increasing allows planning
for its replacement to be carried out. This planning also includes for planning
of activities that are related to replacement of the component (e.g. crane hire
for lifting components to high places), taking carpet out might also involve
(or present the opportunity for) amendment to voice and data cabling.

Lifecycle considerations allow for development of better
strategies in maintenance, operation and refurbishment. For instance, design
would include for strategies that enable replacement of e.g. boilers.

Enables benchmarking of lifecycle costs against other projects
that have known lifecycle cost data.

Enables the ability to improve budgeting e.g. budgets can be
set up in the knowledge that next year, 150 new fan coil units have to be
purchased. It also allows the budget development cycle to be extended based on
forward knowledge of work needing to be done. For instance, instead of doing
annual budget, a rolling 3 or 5 year budget might be developed which would lead
to improve forward planning of resources.

Data collection of maintenance activities would fulfill a
significant number of requirements to implement "physics of failure" for
building subsystems.

Total lifecycle - Historical data, replacement trends, and
performance of certain types of equipment.

Life Cycle of facilities would allow for cost data to be shared
on facilities. Total lease vs. upgrade costs of a facility and various
subsystems will allow a user to determine projected and future costs.

Solution:

Extends capabilities in Shared Facilities Elements, Shared Management Elements, Facilities Management Domain and Cost Resource schemata.Process model will be tightly bound to developments in the IAI Reference Process Model.

Scope of work:

In Scope:

Lifecycle Operations.
- Handoff of life cycle cost information including need to
  capture 'physics of failure' information such as Mean Time Between Failure
  (MTBF) and Mean Time To Repair (MTTR).
  - Identification of costs in use of facilities including
    space, energy and others as appropriate.
  - Financial performance of assets including
    depreciation.
  - Improved identification of costs of work orders.

Provision of cost information from FM contractors or internal
FM operators to the designated client to enable cost control of FM
operations.

Provision of FM cost information to general (corporate)
financial management.

Identification and provision of key performance indicators for
FM.

Out-of scope:

Initial planning considerations of site selection and acquisition, building assessment and purchase, rent and lease management, the procurement process (other than information concerning cost returned by the procurement process).

Project team
*Project leader*	Chapter	Roles	Contact email
David Horner	NA	G	david.h.horner@erdc.usace.army.mil
*Technical leader*	Chapter	Roles	Contact email
Jeffrey Wix	UK	I MSG	jeffrey.wix@jwix.co.uk


*Participants*	Chapter	Roles	Contact email

Supporting Activities

BRE: Framework Project and work within the Whole Life Costing Centre.

Project addresses

Project web site:
Project FTP site:
Project email:

Remarks

THIS PROJECT HAS BEEN INTEGRATED INTO IFC2x2 (Release May 2003)

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FM-8 Costs, Accounts and Financial Elements

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