Capital projects vary in scope, complexity, risk, value and duration.
Often, they are carefully planned in advance. Such projects could call for embedding energy saving measures into a building, life cycle replacement which is related to maintaining the functionality of a building or the enhancement of any aspect of it, refurbishing offices or relocating whole businesses’ workplaces smoothly.
Occasionally other projects are in response to an immediate and often unexpected need, such as emergency building repairs or compliance requirements.
Capital projects can fall into three categories - small, core or complex.
A capital projects team will be in charge of complex higher risk and value projects which require numerous varying Professional Services & Contractors.
They also manage smaller projects which would require technical FM people and FM operators. FM projects delivered by FM operators are usually lower in risk and value.
There are advantages of getting the company that already provides FM to also deliver capital projects. Here are four of those interlocking benefits.
1. Flexibility and greater response
Having a service partner that can react quickly and provide flexible responses to changes in real estate strategies & customer needs is a great advantage. It would mean a reduction in the time taken to adjust project scope & costs, providing certainty and transparency. It would also improve efficiency by reducing governance and ensure faster resolution times.
2. Greater transparency and control of costs
Having an FM provider deliver capital projects means the costs of the project are much more upfront. Data is up to date and timely, which means project costs are able to be tracked and reported in a precise way. This will lead to overall significant reductions in project costs.
3. Global consistency
A capital projects team that is a part of a facilities services team means a more consistent approach to project initiation, delivery, tracking and reporting with streamlined models across a client’s global portfolio. This means high quality standards, shared best practice, a globally aligned delivery model and management information.
4. Managing and reducing risk
Using an FM provider to deliver capital projects means there will be greater management of risk and a reduction of it. This would mean a safe working environment ensuring all commercial, health and safety requirements are met. Risk management is carefully planned so that all projects happen in close cooperation with the client and the FM team to minimize downtime and negative impacts on workplace productivity.
About the author
ISS Global Head of Capital Projects