Why Facilities Management Cuts Costs in Construction Sector

Facilities management (FM) in construction ensures the efficient operation and maintenance of buildings and infrastructure after they are constructed. 

It encompasses building systems, energy use and maintenance activities. Facilities managers are tasked with improving operational efficiency, ensuring safety, and reducing the environmental footprint of buildings. 

The use of smart technologies, IoT, and automation are transforming FM, by offering real-time insights into building performance and maintenance needs. 

Effective facilities management supports long-term building sustainability and occupant satisfaction.

FM plays a crucial role in reducing operational costs throughout the lifecycle of construction projects. By integrating FM expertise early and consistently, construction firms can achieve significant savings, while maintaining quality and functionality. 

This approach extends from initial design through ongoing operations, impacting various aspects of project management and building maintenance.

Facilities management’s role in construction design 

FM professionals bring valuable insights to the design phase of construction projects. Their input helps prevent future maintenance issues and optimises operational efficiency. 

This proactive approach can lead to substantial cost savings over a building's lifespan. By considering maintenance requirements, energy efficiency, and space utilisation during design, FM experts help create buildings that are less expensive to operate and maintain.

The involvement of FM in design often results in more practical layouts, easier-to-maintain systems, and better integration of building services. This foresight can prevent costly retrofits and modifications later in the building's life. FM professionals can advise on material selection, equipment placement, and system design to ensure long-term cost-effectiveness.

Real estate management: a key area for cost control

FM teams contribute to cost reduction through effective real estate management. This encompasses both hard FM tasks like plumbing and HVAC maintenance, as well as soft FM tasks such as security and grounds-keeping. 

By coordinating these elements efficiently, FM professionals can streamline operations and reduce overall expenses.

Effective real estate management also extends to lease negotiations and space utilisation. By analysing occupancy patterns and operational needs, FM teams can help organisations make informed decisions about leasing or purchasing property. This strategic approach to real estate can lead to significant cost savings over time.

Furthermore, efficient space utilisation can reduce overhead costs associated with unused or underutilised areas. By ensuring that spaces are used effectively, organisations can avoid unnecessary expenses related to additional leases or renovations.

Asset management: Tracking for efficiency

Asset management is a core FM function that directly impacts operational costs in construction projects. This involves tracking property, managing preventive maintenance, and optimising asset lifecycles. Implementing robust asset management systems can extend equipment life and reduce unexpected breakdowns, leading to lower maintenance costs and improved operational efficiency.

FM professionals use specialised software to track assets, schedule maintenance, and analyse performance data. This technology-driven approach enables more efficient resource allocation and helps identify cost-saving opportunities. 

By predicting maintenance needs and optimising replacement schedules, FM teams can avoid costly emergency repairs while extending the life of building systems.

Effective asset management also involves regular audits of equipment and systems to ensure they are functioning as intended. This proactive stance prevents minor issues from escalating into significant problems that could disrupt operations or incur high repair costs.

Change management: Adapting for cost savings

Change management is another area where FM expertise contributes to cost reduction. FM managers oversee the process of modifying spaces or equipment to serve new functions. This adaptability can lead to cost savings by extending the useful life of existing assets and avoiding unnecessary new construction or purchases.

FM professionals are skilled at repurposing spaces and equipment to meet changing organisational needs. This flexibility can result in significant cost savings compared to acquiring new facilities or equipment. By efficiently managing change, FM teams help organisations adapt to new requirements without incurring excessive expenses.

Moreover, effective change management includes assessing the impact of modifications on overall operational efficiency.

By ensuring that changes align with organisational goals, FM professionals help minimise disruptions while maximising value from existing resources.

Sustainable practices are also integral to FM's role in cost reduction. By implementing energy-efficient systems and promoting resource conservation, FM teams can significantly lower operational expenses over time. This focus on sustainability not only reduces costs but also aligns with increasingly stringent environmental regulations and corporate social responsibility goals.

The integration of FM throughout the construction process represents a shift towards more holistic, lifecycle-oriented project management. This approach not only reduces immediate costs but also ensures long-term operational efficiency and sustainability. As construction firms face increasing pressure to deliver projects on time and under budget, the role of FM in cost reduction becomes more critical.

By leveraging their expertise in design, real estate management, asset tracking, and change management, FM professionals are helping the construction industry build more efficiently and economically. 

This comprehensive approach to cost management is becoming increasingly important as buildings become more complex and operational efficiency gains greater focus in the industry.

CBRE Group is an American commercial real estate services and investment firm, and is the world's largest commercial real estate services and investment firm. 

“Facilities management is a complex discipline with four major cost inputs,” says Matt Werner, who at the time of writing was Global President, Enterprise Facilities Management, Global Workplace Solutions for CBRE. Earlier this month he joined Google, as VP Real Estate & Workplace Services, where he leads real estate teams globally on capital projects, development, transactions and asset management

He adds: “One of these is managing energy costs, and this will be a critical component of facilities management over the coming years, including utilities for the facilities themselves and the fuel required to mobilise necessary components, equipment and personnel."
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