Fadi Khawand January 19, 2021

Facilities Management in PPP & BOT

We have seen a major transformation in Facilities Management scope in Qatar with the recent surge in PPP & BOT projects. As we continuously engage the RFP deliverables of such projects, we realize that the FM scope of works has taken a much larger shape covering the oversight of design, infrastructural, construction and civil works responsibilities as well as cost responsibilities post DLP periods and through the concession period of 20+ years. These type of projects encompass greater source of revenues at a much higher risk.

To further expand on the above mentioned, we need to greatly acknowledge that the game as we know it, has a new patch.. what is considered core functions, O&M, TFM & IFM is now “basics” in delivering a successful PPP / BOT concession requirements. The importance and complexity of this new patch reflects the need for FM professionals to align expectations with the parenting investment partners on such projects.

FM organizations need to be vigilant in agreeing the FM consortium terms with the parenting investment. The investor aim is to minimize the investment risk by pushing for a “step down” which means transferring the risk from the investment to the operating model / contractor’s (ie. FM) post DLP periods.

FM governance need to be cautious and at the same token, comfortable with the risk associated in delivering such projects expanding up to 20+ years in concessions. FM professionals need the know-how in developing proper Asset Life Cycle Sinking Funds modules, (LCSF), asset replacement strategies as well as work closely with the design and construction teams on project delivery and scope… FM professionals need to expand there knowledge base in providing a competitive costing OPEX / CAPEX synchronized with the LCSF module.

The technical and commercial proposals you use to submit represents a lesser value to the RFP requisites associated with PPP / BOT projects. All services are required to be tailored and descriptive as authenticated by the RFP. It is critical to align your foretasted costing modules to meet the concession period reaching 20+ years. Get familiar with the new risk you are about to ink as you embark and take a new step in innovative territories. Consider the deployment of a militant performance management regimes with an effort to provide consistency in service delivery and to mitigate the intensified unavailability and Performance failures as described or required.

In Summary, our industry is surely getting finessed to take the shape of an umbrella smothering each and every service and sector from the design approval stage, infrastructure and construction clearance stages to the operational phases, mistakes could be fatal. I guess it is fair to say…

with great powers reside greater responsibilities.

Are we ready?!