The document provides an executive summary and budget proposal for facilities management at a newly acquired postgraduate college called CME. It aims to reduce costs by at least 10% compared to the previous owner's budget. Key areas for review include cleaning (in-house and other), utilities (gas and electricity), and management office expenditures. Through bundling services, outsourcing cleaning, and reviewing salaries, a total savings of 31.3% can be achieved, exceeding the 10% target reduction. The new budget would allow for expanding student experiences or additional energy saving projects.

1. Liverpool John Moores
Facilities Management
CME Budget Proposal
392106
13
1

2. Executive Summary
CME have newly acquired a building which they wish to use as a postgraduate
collage, student numbers will be small at first until they have built a reputation which
will successfully help them grow. Liverpool John Moores past use for this recently
acquired building was very similar to that which is intended for CME. With this, the
budget from the past owner is going to fairly accurate; however with a decrease in
student numbers the budget will change in some areas but not all. Fortunately CME
are looking for a saving of a least 10%, it will be possible to save more than is
required with just looking at 5 key areas. With the use of process innovation the
budget will be reduced a significant amount when added with the student decrease.
Innovative ideas will include outsourcing, bundling and partnerships if they are
accessible. Along with the budget changing the old maintenance plan for the building
will change. It will not dramatically as key areas such as lifts and generator still need
the same amount of maintenance. Smaller areas such as PAC card access and
lighting will require less maintenance as they will generally be used less.
Key areas which this report is looking at will include gas and electricity (water cannot
be bundled so it will not be included in the utilities bundling), cleaning which as of
this moment is split into in-house and other. They will also be bundled but
outsourced as well. The service provider for both cleaning categories will be
CleaningMaster (www.cleaningmaster.co.uk), a cleaning service which deals with
commercial properties. Finally the management office expenditure will be reviewed,
not as a whole but rather an individual service (Management office salaries).
After reviewing all areas the total savings amounts to £305,465. With the old budget
set at £976,300 the total percentage saved is 31.3%, a total of 21.3% more than was
required. The extra saving could be spent expanding the student experience or
further methods of saving money through energy management projects. The new
budget is set at £670,835.
2

3. Contents
1.
Introduction ........................................................................................................ 4
2.
Management and Delivery of Individual Services ............................................... 4
2.1 Cost Reduction Strategy .................................................................................. 5
2.1A Hard Core Services .................................................................................... 5
2.1B Soft Core Services ..................................................................................... 6
2.1C Service Priorities ........................................................................................ 6
2.1D Swat Analysis ............................................................................................ 8
2.1E Cost Breakup ........................................................................................... 12
2.1F New Budget for Five Areas ....................................................................... 13
2.2 Service Delivery Operations .......................................................................... 15
2.2A Cleaning – Bundled and outsourced......................................................... 15
2.2B Utilities (Electricity and Gas)..................................................................... 16
2.2C Management Office (Salary) .................................................................... 17
2.2D Maintenance Plan ................................................................................... 18
2.3 Innovation and value addition ........................................................................ 19
2.3A Renting .................................................................................................... 19
2.3B Other Innovative Ideas ............................................................................. 20
3.
Budget Proposal ............................................................................................... 21
4.
References ....................................................................................................... 22
3

4. 1. Introduction
CME have just privately acquired a previously owned Liverpool John Moores
Building and plan to offer a high standard of postgraduate education. At present the
core business for CME is postgraduate management research and wishes to be a
research led environment. The space within the building will be used primordially for
independent or small group research and priority uses for the space are:




Break out research/Meeting rooms
Seminar rooms
Open plan learning space
Public Pc Zones
Separate office space for research and technical staff
With the Core business laid out they have set out aims and objectives which they
wish to achieve with a smaller running cost of the building. The aims and objectives
are as follows:




A Unique experience of postgraduate education
Bring the building back to a “good condition” and address maintenance
issues
A highly functional and safe workplace with fully managed risks within
the building
Provision of a modern buildings and current technologies for the use of
staff and students
Maximise efficiency of the buildings through sustainable innovations
Through effective management of the previous year’s budget this report will aim to
save at least 10% off of total facilities management and operation expenditure.
2. Management and Delivery of Individual Services
Individual businesses all have different core business and along with it the
requirements of the building. Some need flexibility within the work space whilst
others just need storage space. However equally important to every business is its
noncore services and how they aid the core business objectives. With CME
acquiring the building some of the services will change, this will be due to a footfall
decrease and differences in core objectives. This report is going to divide the
services into their proper groupings. Five of the services are going to be manipulated
to find savings and will be provided with a swat analysis.
4

5. 2.1 Cost Reduction Strategy
Noncore services vital to the functional operation of a business can be split into hard
or soft core services, both being important to the core business, however hard core
services are related to the physical building, i.e. window maintenance and security
cameras etc. whilst soft core services are related to the general running of the
building, i.e. cleaning and management etc.
For the building Aldham Robarts a list of the services will be provided below using
the old budget.
2.1A Hard Core Services
The individual services have been split up from their main expenditure category in
order to organise the services within hard-core services.
5

6. 2.1B Soft Core Services
Once again the services have been split up from their main expenditure category
and placed into a soft core table.
2.1C Service Priorities
With all services broken into their hard or soft categories, the top five areas which
will be reviewed can now be easier identified along. The services will also be
categorised by price to determine the best service to manipulate with consideration
6

7. to innovation such as outsourcing, bundling or partnerships. The top five services will
then have an associated swot analysis to highlight strengths and weaknesses within
the noncore service.
Service Priorities in Order of Price
Cleaning (In-House)
General Maintenance (Contract- Integrated Building
Management)
Security (Contract)
Gas
Electricity
Management Office (Including Salary Recharge)
General ( Uncommitted Expenditure)
Cleaning (Other: Waste
disposal/Cleaning/Sanitary/Mats)
General (Other Committed Expenditure)
Water
Telephone (Building Related)
Telephone (Management Office Related)
Professional Fees
£236,000
£124,000
£117,000
£108,000
£90,000
£90,000
£69,500
£56,500
£40,300
£22,000
£15,000
£5,000
£3,000
After looking at the services, the top 5 which will be manipulated are:




Cleaning (In House)
Cleaning (Other)
Gas
Electricity
Management Office
The main influence in the decision is the student footfall decrease. The footfall
decrease in these five areas will have the biggest impact; from this it seemed
adequate to review these areas. Along with the saving through the footfall decrease
an additional saving can be had through innovative ideas.
The top five services will be criticised in their function within the working environment
to determine key areas which may pose a potential threat.
7

8. 2.1D Swat Analysis
Each chosen service is listed below with the appropriate swat analysis
demonstrating their strengths, weaknesses, opportunity’s and threats. A short
paragraph with highlights will follow each table.
Cleaning (In- House)
Strength




Clean workplace.
Hygienic.
No mice.
Less allergens in the air.
Opportunity
 Future advertising with photos will
show a clean environment.
 A clean environment will help
increase student reviews of their
experience through national student
survey.
Weakness
 Costly Wages and cleaning
products.
 Shifts around hours when there
are no students will increase heating and
lighting bills.
 Large amounts of waste from
cleaning products.
Threats
 Staff leaving.
 New staff needs training.
 Students may treat environment
different from that at home.
It is evident that cleaning is an essential noncore service for the proper function of
the core business. In a building that usually houses hundreds of students
concentrating on an important theory or research piece, any distractions from
unclean areas would be unacceptable. In a newly opening postgraduate collage it is
also important to ensure reviews and possible advertising of the experience are at a
high level, the first impression of the collage can be ruined by an untidy environment.
Although there is a large amount space, the cost of the noncore service is very steep.
It warrants looking for some process innovation within the area.
8

9. Cleaning (Other)
Strength
 Cleaning entrance ways through
uses of mats.
 Fresh toilets stocked with general
requirements.
 Good supply of janitorial supplies
reduced waiting times for deliveries.
 Waste or dangerous chemicals
disposed of correctly and in a timely
manner.
Opportunity
 Reduced footfall will reduce the
whole cost of the service.
 Possible advertising about CME
events on the floor mats.
 With proper waste, Postgraduates
can research even more dangerous
chemicals.
Weakness
 Expensive for the service.
 Time consuming checking all
toilets for each requirement (Toilet paper,
hand wash, bins).
 Floor mats may not require
changing so often, just part of a routine.
Threats
 Cost of waste disposal may
increase.
 Price of toiletries may increase.
 Price of the general noncore
service may increase as CME grows.
Along with the other cleaning category, it is just as important. Fresh mats at entrance
ways aid a clean environment and free from footprints. There is also an element of
risk without the service as a student may slip without the use of the mat. The other
side of this service which may go unseen are the proper disposal of waste, fully
stocked toilets and janitorial supplies. All three equally important, but will carry on
unnoticed until the noncore service is unfulfilled.
Gas
Strength
 Warm during winter months.
 Hot water to wash hands.
 Warm environment will increase
productivity.
Opportunity
 Money saving systems with
technological advances.
 Decreasing gas prices.
 Change gas supplier every two
years to receive better rates.
Weakness
 Costly gas bills.
 Building could end up too warm.
 Maintenance required at least
yearly.
Threats
 Increasing gas prices.
 Extra expense through heating
being left on for 24 hour service or
cleaners.
 Costly boiler replacement after its
life span.
Gas as a utility is generally not required but the outputs it produces are, a warm
working environment with running hot water for washing hands are both products
from the use of gas. Both of which can help utilise the work efficiency within the
9

10. building. As with all utilities you can renew the contract every few years to receive a
introductory rate and with such a large gas bill the savings will be in the thousands.
However unit prices of gas can and do increase all the time, this can be due to
increasing tax, planned developments or technically difficulties at the source. For the
best savings a scheme which holds gas prices for a set period would be best suited.
Electricity
Strength
 Artificial lighting were needed.
 Use of technology, i.e. computers,
projectors and research equipment.
 Other amenities available; kettle,
mobile charging, microwave and fridges
etc.
Opportunity
 Decreasing electric bills.
 Technology will always improve
decreasing price for electrical products.
 Possible for students to bring own
equipment for use within the building.
Weakness
 Costly electricity bills.
 Use of electrical products
becomes norm, inherent dependence on
electrical resources.
 Light bulbs require changing
yearly and some may be inaccessible
without a ladder or cherry picker.
Threats
 Rising electric bills.
 Power grid outage renders the
building useless.
 Electrical fire may be a danger.
Electricity is the second most expensive utility but just like gas it is required,
possibly even more than gas. Electricity doesn’t just help the working environment
but the equipment that can be used within the building. This can include an extensive
computer network system with servers and client computers, printers and research
equipment required for the fulfilment of the individual modules. As with gas the
individual price of each unit used can also increase, but once again new contracts
with the option to hold the price will save a large amount. The use of electricity also
makes the experience of the collage better, the ability to bring in your own equipment
for research will increase the freedom and flexibility of the building.
10

11. Management Office
Strength
 Administration work can be
finished without other staff helping,
including registration and coursework
submission.
 Queries can be answered in a
reasonable time.
 CME will generally be more
organised.
Opportunity
 Chance to hire staff to higher
positions from within the company first,
keeping the work culture.
 Administration apprenticeships
can be available for students fresh out of
school or college.
Weakness
 Expensive salary for each
member of staff.
 Staff moral needs to be kept high
to keep work efficiency high.
 Workloads during peak times will
increase.
Threats
 Staff may leave.
 New staff may need new training.
 Workload in general will increase
as CME grows.
Although not a facilities management operation, the building or the collage could not
run without a management office. Dealing with details such as student registration,
open days and any enquiries or problems the service is an integral service to the
student experience.
11

12. 2.1E Cost Breakup
The present use of the building warrants such large amount of space and currently
the building houses 697 students at any one time. There are 8 study rooms, 3
seminar rooms and 475 computers/laptops (Fig 1,2,3). Spaces have also been
added to allow students to work without computers or laptops. With the space for
students and the staff meeting rooms the total capacity at any one time is around
727 people.
Fig 1.
Fig 2.
Fig 3.
12

13. A cost breakdown for each service can be found by dividing the cost either by floor,
m2 or student footfall. Each service will be calculated in different ways, this is to
generate an accurate estimate according to their use and dispersion of cost. With the
individual costs they can be multiplied back up to their respective amounts for the
new budget.
Below is a breakdown of how best to calculate the new cost over the changes: Cleaning (In-house) - Will be calculated by per floor
 Cleaning (Other) - Will be calculated per student
 Gas and Electricity - Will be calculated per floor
 Management office will assume the average salary for office staff to be
£21,000
(£86,100 total).
Below are the calculations.
Per Floor Calculations:Cleaning (In-House) =£236,000/4
=£59,000 per floor
Electricity
=£90,000/4
=£22,500 per floor
Gas
=£108,000/4
=£27,000 per floor
Per Student Calculations:Cleaning (Other)
=£56,000/727
=£77 per student
2.1F New Budget for Five Areas
With the costs broken down into their respective cost per unit, however before we
multiply back up to the requirements of CME a space per student has to be found to
judge the floor requirements.
Space per student =5,300m2/727
=7.3m2
Currently Liverpool John Moores are offering 7.3m2 per student. This level of space
is adequate but not at a high standard. From benchmarking other higher education
buildings HEFCE (2011) found that the average amount of space offered to students
was 8.8m2, down from that of 2009 but still higher than what was previously offered
in Aldham Robarts.
13

14. With each student using 7.3m2 the gross floor space for 200 students is 1460m2.
Each floor only amounts to 1325m2, with this there are two options at this point.
Offer less space per student and only use 1 floor or offer more space spread over
two floors. For the purpose of CME it is advised to use two floors. Spread over the
two floors the total space adds to 2650m2 and 13.25m2 per student. According to
HEFCE (2011) this amount is in the high range which can be a beneficial feature of
CME that they can offer to postgraduate students.
The 5 services can now be multiplied back up to their adequate amounts to estimate
the new budget:
Cleaning (In-House)
= £59,000 * 2
=£118,000

Cleaning (Other)
=£77 * 200
=£15,400

Electricity
=£22,500 * 2
=£45,000

Gas
=£27,000 * 2
=£54,000

Management Office
=£21,525 * 3
=£64,575
Currently these prices are just an estimate of the saving with the decrease in student
footfall; however further saving will be had through partnerships, outsourcing and
bundling. Cleaning (In-house) and cleaning (Other) will be bundled and outsourced
to a reputable service provider. Electricity and gas (Utilities) will be bundled together
to achieve the best price per Kwh. Management office will have a re-evaluation of
the workload to assess the requirement of the number of staff. A General rule of
saving through outsourcing is that it can save 10%, this is because their core
business will be that service and economies of scale can be applied, however with
outsourcing comes the uncertainty of the level of performance you will receive.
A new budget proposal will be included in chapter 4, but the revised costs of the 5
areas are below.

Cleaning (In house and Other) Bundled and Outsourced
£118,000 + £15,400 = £133,400 (Footfall decrease)
£133,400 – £5,000 = £128,400 (Bundled reduction)
£128,400 – 10%
= £115,560 (Outsourced reduction)
Cleaning total = £115,560 (£176,940 saving)

Utilities (Electricity and Gas) Bundled
£45,000 + £54,000 = £99,000 (Electricity and Gas)
£99,000 - £8,000 = £91,000 (Bundled discount/ new contract discount)
Utilities total = £91,000 (£107,000 saving)
14

15. 
Management Office
£86,100 - £21,525 (3 management staff)
Management office total = £64,575 (£21,525 saving)
New Expenditure = £271,135
Total Savings = £305,465
2.2 Service Delivery Operations
With changing services, the delivery of operations will change in some ways. One
way which will not change however will be the opening times of the two floors which
will remain open. Currently one floor operates for 24 hours while the others are open
8:45-11pm (Fig 4.)
Fig.4
The new opening times will stay similar but over the two bottom floors with the
ground floor being used for 24 hour service.
2.2A Cleaning – Bundled and outsourced
With both categories of cleaning bundled and outsourced the responsibility of the
service has shifted from the facilities manager or management to the service
provider. This will free up time which can be used in other areas as well as reducing
cost and adding value with no extra cost. When it comes to the procurement method
there are multiple methods however for the benefit of CME and work culture a
partnership would be best suited. This would guarantee a long term contract (usually
more than 5 years) with a service provide however as Lehtonen (2004)
demonstrated it can be hard to find a good partner due to different expectations from
15

16. each other. Once found however certain agreements need to be included in the
contract. These can be included in the request for proposal BIFM (2009). An agreed
level of service and standards with a method of cost plus reimbursement will ensure
a “good” level of cleaning. Petrick (2002) designed a model for measuring perceived
service value and found five value features; quality, monetary price, reputation,
emotional responses and behavioural price. These five features can be used along
with performance tools such as:



Key Performance Indicators
Post Occupancy Evaluation
Conditional Audit’s
Monthly performance reports
With these different evaluation tools the performance of the outsourced service can
be reviewed continuously throughout the agreement.
The hours for cleaning can hopefully stay as they currently are, these hours will
include 6-9 in the morning and 5-7 in the evening. This will help ease congestion
within the building while still maintaining a clean working environment. From looking
around for cleaning service providers that are local and deal with commercial
property only one has shown potential. www.cleaningmaster.co.uk is the best option
for the area of Liverpool. They have plenty of testimonies demonstrating their
competence and even offer a service without contracts showing their confidence in
their quality of work.
2.2B Utilities (Electricity and Gas)
With both electricity and gas bundled together the responsibility of managing
both aspects will be easier. Just like outsourcing there will be an element of freed up
time. However bundling does not provide such a large amount savings, the benefits
are lessened hassle and increased competitiveness within the service provider
sector, each business will offer different incentives to encourage new clients to their
business. The majority of the saving is through closing two floors. Energy
consumption from computers, lighting and air conditioning over only two floors will be
at least halved from that of the last year’s budget. It would be advised to keep the
contracts short so newer contracts with better incentives can be sought, once the
rate per unit increases (usually after an introductory period) there will be other offers
as business compete. Other ways to save money in this area are to use 3 new
features which are usually available:
Paperless bills will save a small amount due to the company not
needing to send any post with monthly bills, everything is sent
electronically.
16

17. 

Electric smart and gas smart systems both remove the need for an
engineer. Older systems require someone to visit the premise to read
the usage dials. Everything is sent electronically.
Economy 7 will be the most advantageous for CME. Rates for energy
usage will vary from day and night under this system. Running the 24
hour service will be remarkably cheaper than a standard contract.
Although these 3 areas won’t save as much as outsourcing they will save a small
amount, there will also be an option to view any bills online through the smart system.
2.2C Management Office (Salary)
Management office includes a vast amount services within its category, ranging from
Pac system access cards to management office salaries. With salaries being the
main bulk of the expenditure it was more efficient to concentrate on this one area
rather than the other areas in this category. Currently the salaries are being paid to
4 employees at £21,525pa (an assumption from an average administration salary).
This amount would be inefficient when dealing with the reduced students, a
reduction of one member of staff will still keep an adequate flow of work whilst still
saving money. The work shifts for the employees will be an average 9-5 shift with
one
employee
staying
till
11
to
close
the
upper
floor.
17

18. 2.2D Maintenance Plan
Mon Tue Wed Thur Fri
CCTV
PAC
Tue
Wed
Thur
Fri
CCTV
PAC
CCTV
PAC
CCTV
CCTV
CAR
PARK
BARRIER
AIR
CON
January
Sat Sun Mon
CAR
PARK
BARRIER
Feburary
HIGH
LEVEL
LIGHT
S
March
CCTV
PAC
April
CCTV
PAC
CCTV
PAC
CAR
PARK
BARRIER
CCTV
CAR
PARK
BARRIER
CAR
PARK
BARRIER
CAR
PARK
BARRIER
December
CCTV
CAR
PARK
BARRIER
November
CCTV
PAC
CAR
PARK
BARRIER
Thur
Fri
DEL
DEL
Tue
INTER
COM
SYS
Wed
TREND
FIRE
FIRE
ALARM ALARM
TREND
TREND
DEL
INTER
COM
SYS
TREND
TREND
Thur
LIFTS
INTER
COM
SYS
DEL
FIRE
FIRE
DWS
ALARM ALARM
ATRIUM
HIGH
LEVEL
LIGHTS
CCTV
PAC
CCTV
PAC
CCTV
PAC
CCTV
CCTV
FIRE
FIRE
BOILER MINOR SERVICE
DWS
ALARM ALARM
HIGH
HIGH
LEVEL
LEVEL
LIGHTSD LIGHTS
CCTV
DWS
BOILER
INSP
HIGH
LEVEL
LIGHTS
DEL
DEL
DWS
FIRE
FIRE
ALARM ALARM
LIFTS
TREND
DOMESTIC WATER SYSTEM
STAND BY GENERATOR SERVICE
UPS SERVICE
AIRCONDITIONING SYSTEM
STAND BY GENERATOR INSPECTION
UPS INSPECTION
CAR PARK BARRIER SENSOR
ELECTRICITY DISTRIBUTION LAYOUT
BUILDING MANAGMENET SYSTEM
EMERGENCY LIGHTS
TREND
LIFTS
DWS
SGS
MAJOR
TREND
DWS
TREND
DEL
TREND
TREND
LIFTS
LIFTS
INTER
COME
SYS
INTER
COME
SYS
TREND
TREND
LIFTS
TREND
Key
DWS
SGS SERVICE
UPS SERVICE
AIR CON
SGS INSP
UPS INSP
LOW TRACKER
DEL
TREND
EMG LIGHTS
TREND
LIFTS
LIFTS
BOILER
INSP
ATRIUM ATRIUM
HIGH
HIGH
LEVEL
LEVEL
LIGHTS
LIGHTS
SGS
MINOR
HIGH
LEVEL
LIGHTSD
Sat Sun Mon
INTER
COM
SYS
DWS
DWS
ANNUAL
CHLORINATION
LOW TRACKER
CCTV
PAC
Wed
DWS
CCTV
AIR
CON
September
Tue
SGS
MINOR
July
August
Mon
BOILER
MINOR
SERVICE DWS
June
October
Sun
HIGH
LEVEL
LIGHTS
May
AIR
CON
CCTV
PAC
Sat
18
TREND
LIFTS

19. There are multiple ways of dealing with breakdowns and repairs; one method called
reactive simply deals with problems as they arise. A lot less work over a period of
time but it can and will be more expensive, for CME this method is not advised. The
other Method is a preventive method, a full maintenance plan with periodic services
for machinery and electronics helps prevent problems arising in the future. The old
maintenance plan has been changed in line with the recent changes to the services.
The main changes are Pac, intercom systems and high level lights. This is due to the
fall in footfall and a decrease in the usage in these areas. Also High level lights only
need to be changed on two floors, it has been reduced accordingly. Changes are
highlighted in red for further viewing.
2.3 Innovation and value addition
With the current savings over the required 10% there is an opportunity to spend a
small sum of money to either add value to CME and the student experience or to add
an extra income through renting the extra space. It would also be advisable to join a
benchmarking consortium; groups of higher education are already sharing statistics
and figures of their campus, which in the long term help each other.
2.3A Renting
The space available to rent amounts to 2650m2 over two floors, comparables on the
market within the city centre are achieving between £107/m2 and £141/m2. With
adjustments to bring the comparables to a similar size style and condition a price of
£115/m2 will be achievable. At a price of £115/m2 an annual income will be around
£304,750 before tax and service charges.

Comparable 1 – Achieving £141/m2
£25,508pa
188m2
http://www.rightmove.co.uk/commercial-property-to-let/property20707854.html

Comparable 2 – Achieving £118/m2
£16,577pa
140m2
http://www.rightmove.co.uk/commercial-property-to-let/property21017445.html

Comparable 3 – Achieving £107/m2
£66,660pa
618m2
http://www.rightmove.co.uk/commercial-property-to-let/property32184739.html
19

20. Current service charges in Liverpool One are reaching as high as £40/m2 around
Liverpool One (2012), this is too high for our purpose but £30/m2 would be
achievable. A total of £106,000pa for the service charge, this amount would be used
to help pay the maintenance of the upper two floors however the rent received could
be used for the betterment of CME. The tenants may also require a written document
of all the service charge costs as stated by RICS (2007).
If rented out however there needs to be a exit route within the leasing. CME is likely
to grow as a collage and so will eventually require all 4 floors. There are multiple
routes which can help end leasing of the space. The extra space could be licensed
out to businesses, unlike that of leasing, licensed agreement have no business
protection through the 1954 landlord and tenant act. More difficult options can
include landlord operated break clauses within the leasing contract. This can be
defined by a time period but must be activated by the landlord in writing. Both “loop
holes” however will reduce the achievable rent and make the space less marketable
to cliental.
2.3B Other Innovative Ideas
Not only can the space be rented out but it could used to better the experience for
the student, not through more research space but through catering. The upper most
floor can still be rented out, but with the third floor it could be leased to a catering
provider. Not unlike the star buck which is currently being built in the Byrom Steet
campus of Liverpool John Moores campus.
Other higher education campuses have opted into energy management project and
as described by UNESCO (1998) the project seeks advice and examples of good
energy use and management outside the higher education sector. An overall 10% of
utilities spend can be saved through energy saving commitment. One institution was
able to save £200,000pa on energy bills alone. If CME were able to invest in such
systems used by these institutions the benefits would outweigh the cost. As
sustainability and an efficient building are both an aim of CME it would be wise to
invest an amount of the saving within this area.
Another aim of CME is to improve the physical condition of the building, with the
savings there is scope to fulfil this. The total savings amounts to over £300,000 and
could be used entirely for improvements or can be split between improving the
energy efficiency.
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21. 3. Budget Proposal
The new budget displayed below with the changes to the utilities, cleaning and
management office salaries.
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22. 4. References
BIFM, 2009. FM Procurment. London: BIFM Guides.
HEFCE, 2011. Performance in Higher Education Estates, London: Higher Education Funding Council
for England.
LEHTONEN, O., 2004. European Journal of Teacher Education. Developing teachers expertise through
collaboration, 27(1).
ONE, L., 2012. Liverpool One Offices. [Online]
Available at:
http://www.liverpooloneoffices.com/brochures/Liverpool%20ONE%20Offices%20Service%20Charge
s%20Brochure.pdf
[Accessed 18th January 2013].
PETRICK, J., 2002. Development of Multi-Dimensional Scale for Measuring the Perceived Value of a
Service. Journal of Leisure Research, 34(2), pp. 119-134.
RICS, 2007. Service Charges in Commercial Property. London: RICS Books.
SERVICE, C. H. E. M., 1998. Benchmarking in Higher Education, Paris: Unesco.
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