LIFECYCLE COST CONSULTANCY SERVICES
Opex has huge experience of all aspects of lifecycle Cost Consultancy, having been actively involved in this market sector for over 20-years. We have professionally developed models and tools, which add great value to our clients requirements, but can equally undertake more traditional desk-top consultancy commissions. We can work on short or longer terms programmes and can mobilise a variety of teams of specialists to support a client’s specific requirements.
In terms of full site or contract review and potential draw down of funds, we have experienced the full process and are well known by leading funder Technical Advisors (TA) and finance management companies and have given presentations describing our full process and models. These have always been fully excepted by clients and TAs alike.
Opex believe that when reviewing multiple contracts, a good initial project is to undertake a high level review of each contract. This would be based on a review of the contract PA/FMA and the lifecycle cost schedule by an experienced consultant. The legal documents would identify the conditions and possible opportunities associated with the lifecycle and hence allow a strategy position for future management options and the cost schedule will allow the opportunity of establishing benchmarks that can be judged against those known in the particular market sector. When this has been undertaken at portfolio level, then a ranking system can be established based on the client’s priorities, allowing focused and cost effective progression to the next stage.
CONTRACT LIFECYCLE REVIEW
A more detailed review of the lifecycle schedule can be undertaken, looking specifically at the key assets within the Mechanical, Electrical, Fabric and FF&E model sections. This can prove operationally helpful, especially when combined with a review of the PPM regime, performance and outputs.
CONTRACT LIFECYCLE REMODEL
Often clients require a more detailed service and this can involve a combination of; lifecycle asset survey, along with a complete remodel based on the findings. Lifecycle models when created at the tender stage, can be of both good and less good quality, but not with standing this the building or facilities in question will likely be different to that envisaged at the bid stage. In order to bring good management to such models, this full review is often essential. A good time to start such a review can be when approaching 10 years of the operational phase of the contract and this is a good time to consider any ‘surplus’ funds, or over provided capital, should this be available, along with the potential for any defect liability claims.
We initially base our work on a variety of ‘lifecycle’ surveys that we shall undertake covering; M&E, Fabric, Externals and FF&E assets. The survey information when completed will be assessed and provisional costings will be allocated against each asset and then grouped into BCIS asset categories.
LIFECYCLE COST CONSULTANCY MODELS
Opex have a number of different Lifecycle Cost Consultancy models, that in live format are available for clients to then take forward into their operational work and possible revised cost management process. Our latest model is highly developed and we can create a bespoke lifecycle that will be based on the work and inputs as noted above, along with a review and inclusion of the contract lifecycle schedule. The model, that can typically be adapted for education or healthcare projects, will have the following attributes:
- Tier 1 capability – a stand alone model for each of the stated sites.
- Tier 2 capability – a summary that brings each site together into a contract model.
- Tier 3 capability – a summary at portfolio level for the businesses market sector contracts.
Within the models there are a number of tools that are designed with commercial and operational activities in mind and these include;
- Contract, Predicted and Actual lifecycle worksheets.
- Asset replacement deferment reporting.
- Additions and Adjustment modelling capability.
- 5-year plan report generation.
- Year on Year and Cumulative Graphical outputs.
- Indexation based on annual indices.
- Financial summary and Surplus reporting.
LIFECYCLE FUND MANAGEMENT
Opex are able to offer regular lifecycle management services, either on an interim management or consultancy basis. This service would effectively replicate the in-house management role of handing variations, checking the predicted and actual works and liaising with the operational staff.