This document discusses how to calculate a bid price for facility management services using Al Shirawi's methodology. It involves dividing the required resources by 1 minus the total of overhead as a percentage of expected revenue, budgeted gross margin percentage, and time factor percentage. An example is provided for a 200 unit apartment building where the calculated bid price is Dhs. 257,143, which is an almost 30% increase over the market price of Dhs. 200,000 per annum. The conclusion emphasizes that changing circumstances requires changing one's thinking and actions.
1. AM’s Pre Bid Homework People> Processes> Technology
2. Clauses 41, in the Association Constitution states that the Association Manager shall be responsible for: negotiating, supervising and recommending the entry into contracts, including Supply Agreements ……………on behalf of the Owners Association, and presenting recommendations to the Owners Association; supervising the performance of contractors and suppliers to the Owners Association; for every and all technical and management matter and financial report related to common area services. Clause 42 states “The Association Manager shall be responsible any errors or negligence by him, and for the damages resulting there from. “ Responsibility!!!
3. Can we quote on a per unit basis?? Shall we quote on a square foot basis? % of FM cost? Or is there a better way? Homework
4. Asset Registers Chillers AHUs FCUs MDBs SMDBs Pumps Sanitary ware Generators Light fittings The Al Shirawi FM Way
5. Numbers? Square Foot basis? Quality and spec? Service Level Agreements? Soft Services
11. What did we not look at? Customer’s expectations Community Harmony Association Board Involvement Previous vendor’s experience
12. Senior Management Involvement Finance Department interaction Collections Bank accounts set up Bank accounts monitoring Bank Reconciliation Legal Department Authorities (Police, RERA, DM) Familiar with the law Quality, Health and Safety Association’s expectations
16. 200 apartment building Market Price = Dhs. 1000 per apartment per annum Price to customer = Dhs. 1000 x 200 = Dhs. 200,000 per annum
17. overhead, rev + margin Resources = Resident Manager Dhs. 144,000 per annum Overhead? – Dhs. 1,200,000 per annum Expected Revenue? – Dhs. 5,000,000 per annum Budgeted Gross Margin? – 15%
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19. Senior Management Involvement ( upto 2%) Finance Department interaction (upto 1%) Collections Bank accounts set up Bank accounts monitoring Bank Reconciliation Legal Department (upto 1%) Authorities (Police, RERA, DM) Familiar with the law Quality, Health and Safety (upto 1%) Time Factor
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21. Conclusion “You are the embodiment of the information you choose to accept and act upon. To change your circumstances you need to change your thinking and subsequent actions” – Adlin Sinclair, British Businessman