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How to select a facility management (FM) 
agency for a large Apartment Complex?
 Our developer – Concorde Group - 
http://www.concordegroup.in 
 Spread across 13 acres (14 lakh square ft super built up 
area), 15 buildings – towers A, B, C, D, E, F, G, H, J, K, L, 
M, N, P, Q – total 976 flats – mix of 3 BHK, 2.5 BHK and 2 
BHK with nearly 5000+ residents 
 Common area operations handed over to Concorde 
Manhattans Owners’ Welfare Association (CMWA) registered 
under the Karnataka Societies Registration Act, 1960 by 
the developer in June 2013
 Encompass multiple operations carried out in common areas on a 
daily basis: 
 House keeping 
 Plumbing 
 Electrical 
 Gardening 
 Clubhouse and amenities (swimming pools, amphitheatre, mini golf course, 
tennis court, basket ball court, volley ball court, kid’s play area, skating 
rink, barbeque area, cycling track, water bodies, gym, steam, sauna, 
multiplex theatre, card room, billiards, table tennis, squash and so on) 
 Water Treatment Plant (WTP), Sewage Treatment Plant (STP), Reverse 
Osmosis (RO) plants 
 Organic waste converter (OWC) 
 Exclude security services and Annual Maintenance Contracts 
(AMC) and on-call agreements with professional vendors – lifts, 
fire systems, diesel generators, motors and pumps, boom barrier, 
CCTV surveillance, waste disposal (dry waste, STP sludge, garden 
waste)
 Finalized byelaws, appointed 2 volunteers from owners as 
election officers, invited nominations, formed a 
Management Committee (MC), elected office bearers, 
registered the society through a lawyer, opened bank 
accounts, appointed external auditor, collected advance 
quarterly maintenance (based on approx: monthly expense 
data from developer) and so on. 
 Invited quotes from different facility management firms – 
scope included validating handover from developer and 
also providing security services along with FM services 
 Conducted multiple deliberations in MC meetings, 
shortlisted a firm after due diligence
 Track record 
 Collected client list from firms (similar size apartments) 
 Visited a few apartments 
 Gathered inputs on their performance – includes any cost 
reduction initiatives from firm, how they handled 
inspections by authorities, reports submitted on a 
regular basis and so on 
 Comparison sheet – cost comparison with similar data 
points for each of the heads
 FM agency deployed full work force 2 weeks prior to 
handover date. 
 Staff received adequate KT during this time period from 
developer 
 Used the time to finalize other agreements like finalizing 
contract for security services, AMCs for lifts and fire 
systems, work orders for supply of water, garbage bags, 
diesel, waste disposal, arrangements with authorized 
service centres for motor and pump repairs, transformers, 
gym equipment repairs and upkeep etc.
 Always select a truly professional firm with good track 
record for handover/takeover activities from developer. 
 Firm should be able to deploy consultants and specialists 
to work as validators on behalf of association at least 1 
month prior to take over date. 
 Firm should be able to prepare snag list wherever noticed 
and liaise with developer on behalf of association to get 
them addressed. 
 Firm should have experts to vet handover documents from 
developer and only on closure of snag lists by developer, 
association should accept them. 
Cost should be of least priority as any omission here leads to 
cascading cost impact in coming years.
 Firm should submit checklist templates and reporting 
formats customized for the complex. 
 All checklists and reporting formats should be vetted by 
association. 
 Firm should document the following: 
 Frequency of cleaning (common areas, lift lobbies, over 
head tanks, STP tanks) 
 Frequency of backwash 
 Firm should be able to monitor and report if other out 
sourced vendors are conforming to agreement terms (AMC, 
on-call etc) 
Recommendation: Recruit a full time Facility Manager in 
association’s pay roll to supervise firm’s activities.
 Firm’s scope should be clearly defined in the agreement: 
 Supply of consumables 
 Supply of tools and tackles 
 Over time charges 
 Reliever charges 
 Paid holidays and weekly offs 
Recommendation: If on actuals, firm should submit all supporting 
documents like bills.
 Selecting a firm marks the starting point in 
facility services. 
 Periodic checks on performance are a must 
to ensure resident satisfaction!
Better Apartment Management Conference - Selecting an Facility Management Agency by Concorde Manhattans Apartments

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Better Apartment Management Conference - Selecting an Facility Management Agency by Concorde Manhattans Apartments

  • 1. How to select a facility management (FM) agency for a large Apartment Complex?
  • 2.  Our developer – Concorde Group - http://www.concordegroup.in  Spread across 13 acres (14 lakh square ft super built up area), 15 buildings – towers A, B, C, D, E, F, G, H, J, K, L, M, N, P, Q – total 976 flats – mix of 3 BHK, 2.5 BHK and 2 BHK with nearly 5000+ residents  Common area operations handed over to Concorde Manhattans Owners’ Welfare Association (CMWA) registered under the Karnataka Societies Registration Act, 1960 by the developer in June 2013
  • 3.  Encompass multiple operations carried out in common areas on a daily basis:  House keeping  Plumbing  Electrical  Gardening  Clubhouse and amenities (swimming pools, amphitheatre, mini golf course, tennis court, basket ball court, volley ball court, kid’s play area, skating rink, barbeque area, cycling track, water bodies, gym, steam, sauna, multiplex theatre, card room, billiards, table tennis, squash and so on)  Water Treatment Plant (WTP), Sewage Treatment Plant (STP), Reverse Osmosis (RO) plants  Organic waste converter (OWC)  Exclude security services and Annual Maintenance Contracts (AMC) and on-call agreements with professional vendors – lifts, fire systems, diesel generators, motors and pumps, boom barrier, CCTV surveillance, waste disposal (dry waste, STP sludge, garden waste)
  • 4.  Finalized byelaws, appointed 2 volunteers from owners as election officers, invited nominations, formed a Management Committee (MC), elected office bearers, registered the society through a lawyer, opened bank accounts, appointed external auditor, collected advance quarterly maintenance (based on approx: monthly expense data from developer) and so on.  Invited quotes from different facility management firms – scope included validating handover from developer and also providing security services along with FM services  Conducted multiple deliberations in MC meetings, shortlisted a firm after due diligence
  • 5.  Track record  Collected client list from firms (similar size apartments)  Visited a few apartments  Gathered inputs on their performance – includes any cost reduction initiatives from firm, how they handled inspections by authorities, reports submitted on a regular basis and so on  Comparison sheet – cost comparison with similar data points for each of the heads
  • 6.  FM agency deployed full work force 2 weeks prior to handover date.  Staff received adequate KT during this time period from developer  Used the time to finalize other agreements like finalizing contract for security services, AMCs for lifts and fire systems, work orders for supply of water, garbage bags, diesel, waste disposal, arrangements with authorized service centres for motor and pump repairs, transformers, gym equipment repairs and upkeep etc.
  • 7.  Always select a truly professional firm with good track record for handover/takeover activities from developer.  Firm should be able to deploy consultants and specialists to work as validators on behalf of association at least 1 month prior to take over date.  Firm should be able to prepare snag list wherever noticed and liaise with developer on behalf of association to get them addressed.  Firm should have experts to vet handover documents from developer and only on closure of snag lists by developer, association should accept them. Cost should be of least priority as any omission here leads to cascading cost impact in coming years.
  • 8.  Firm should submit checklist templates and reporting formats customized for the complex.  All checklists and reporting formats should be vetted by association.  Firm should document the following:  Frequency of cleaning (common areas, lift lobbies, over head tanks, STP tanks)  Frequency of backwash  Firm should be able to monitor and report if other out sourced vendors are conforming to agreement terms (AMC, on-call etc) Recommendation: Recruit a full time Facility Manager in association’s pay roll to supervise firm’s activities.
  • 9.  Firm’s scope should be clearly defined in the agreement:  Supply of consumables  Supply of tools and tackles  Over time charges  Reliever charges  Paid holidays and weekly offs Recommendation: If on actuals, firm should submit all supporting documents like bills.
  • 10.  Selecting a firm marks the starting point in facility services.  Periodic checks on performance are a must to ensure resident satisfaction!