< Previous PROPERTY MANAGEMENT 10 April 2021www.fm-middleeast.com The model that Inspire Integrated has developed for its real-estate service business is built on transparency A s the Dubai-based firm Inspire Integrated has matured and grown over the years in the region, its real-estate service business too has evolved from its core FM services. James Hunt, real estate director at Inspire INSPIRING CONFIDENCE Integrated, says: “Real-estate service is an umbrella term which encompasses the end-to-end life cycle of a property, from strategic reviews to asset, property, financial and facilitates management. “As a business, we are focused on challenging the local norms, and not doing things the old-fashioned way. We believe in working with clients in bringing international best practices to the local commercial market such as [the implementation of ] transparent service charge models, SLAs and output-based service and contracting models.” ICD Brookfi eld Place, Dubai.PROPERTY MANAGEMENT April 2021 11www.fm-middleeast.com Hunt reveals that the firm has been “extremely fortunate” to be partnering with both ICD (Investment Corporation of Dubai) and Brookfield, which, as one of the largest asset owners in the globe, is at the forefront and leading the way when it comes to looking at the end- to-end lifecycle of an asset. He adds: “Working alongside their asset managers, our property management team at ICD Brookfield Place (a four-acre property located in Dubai’s DIFC) are leading the way for the implementation of a number of global programmes, from HSE, security to sustainability-related best practices, to ensuring Brookfield’s portfolio in Dubai is managed to the same standards as those in New York, London or Sydney. The smart use of technology is a thread that runs through Inspire Integrated’s involvement in all of these.” Inspire Integrated embraces the use of new technological innovations in all aspects of its business. It opened its Centre for Inspiration in 2019 – a learning centre to ensure all of its staff are kept up-to-date with evolving best practices and the latest technical enhancements. The firm has been working with various software developers over the last 18 months to provide new mobile apps to allow end users to access all relevant building data live, and for its operational teams to have robust, seamless platforms for managing things like emergency response. Besides embracing technology, Hunt reveals: “One of our key differentiators is our robust financial and contract management [process]; this all starts by collaborating with our clients to understand and scope out their requirements to ensure all service lines are fully captured. This leads to the development of robust RFPs per service line, and a detailed commercially transparent RFP process to select the best service providers to partner with both Inspire Integrated and its specific client.” THE APPROACH So what approach does Inspire Integrated use as opposed to its counterparts? Hunt says that Inspire Integrated, as a portfolio company of Brookfield, understands that both institutional real-estate investors and large global corporate occupiers require robust compliance, transparency and auditable reporting as a minimum requirement from their partners and service providers. This is to ensure and provide stakeholders with assurances that their operations are aligned to their company values and governance standards. As the UAE market continues to evolve, these requirements are becoming more relevant and both institutional owners and occupiers are demanding that these standards be a core principle and part of the culture of the partners they select to deliver services to their assets in the wider GCC region. Hunt adds: “At Inspire Integrated, these corporate standards are ingrained within everything we do and have done since we entered the UAE market in 2007. This robust corporate governance together paired with our knowledge and understanding of the local market for over 14 years, places us in a unique position to understand a client’s requirements and tailor solutions to meet both the end users’ needs and corporate governance, providing a win-win for all parties. “At present, within our property management function our key focus areas include lease audit and administration, robust financial management, client and tenant relationship management, contract, vendor and compliance management, sustainability and environment improvements. As we continue to grow as a business, we shall expand our range of services to meet our clients’ needs and meet the market demands as it rapidly evolves in the UAE and wider GCC regions.” Using ICD Brookfield Place as an example, Inspire Integrated’s teams James Hunt, real estate director, Inspire Integrated. AS A BUSINESS, WE ARE FOCUSED ON CHALLENGING THE LOCAL NORMS, AND NOT DOING THINGS THE OLD-FASHIONED WAY. JAMES HUNT, REAL ESTATE DIRECTOR AT INSPIRE INTEGRATED PROPERTY MANAGEMENT 12 April 2021www.fm-middleeast.com have been working in partnership with the owner’s asset manager and various consultants since 2015, to assist in shaping the overall delivery and operational models. A key part of the journey over the last five years has been identifying global best practices, developing these into robust operational models and scopes for each individual services line and via a robust RFP process engaging with various service providers in the market to identify the best fit, and to meet both the client’s and Inspire Integrated’s vision and culture. A testimonial to Inspire Integrated’s approach solidifies its position. Rob Devereux, CEO ICD Brookfield, states: “I have been working closely with the Inspire Integrated team over the last 5 years, their approach has always been and continues to be one of collaboration and partnership, seeking to challenge the norms as we have sought to create places where people and communities truly want to be. “Inspire Integrated’s values and their vision of people and places are very much aligned to that of ICD Brookfield, as we both continue to reimagine service delivery by introducing global best practices and challenging the market to strive for excellence and deliver to these high standards.” This consultative collaboration has ensured that the original vision conceived by both ICD and Brookfield has become reality, delivering placemaking in what is truly a market leading asset, not only in the GCC but globally. From the initial concepts, ICD Brookfield Place has been designed, both physically and operationally to deliver on Brookfield’s placemaking philosophy. To this end, the development has achieved LEED Platinum certification placing it among the top 20 buildings of similar size in the world and the largest such office development in EMEA. COVID COMPLEXITIES Inspire Integrated’s resilient approach was also put to play during the ongoing pandemic. During Covid-19, there were pressures faced by property management firms to reduce service charges. So how did Inspire Integrated adapt during such times and what ought to be the ideal solution? To which, Matthew Littler, property general manager for ICD Brookfield Place at Inspire Integrated, replies: “The service charge model that we have developed and operate at ICD Brookfield Place is transparent. We provide details to the tenants on how their money is being spent. We reconcile and independently audit expenditure each year so there is always a healthy imperative to show value for money. “Our response to Covid-19 is no different; we looked at making the best use of the building’s impressive assets, and enhance capabilities where necessary, such as the introduction of UV irradiation of fresh air intake to the common areas. Another key element of Inspire Integrated’s Covid response has been to ensure that we have maintained flexibility in our service model so that our focus can pivot, and resources can be scaled up or down as circumstances dictate. “To answer ‘what is the ideal solution for property managers?’, you need to first know what your clients and end users need from the place you manage on their behalf, and work back from there on all aspects of individuals’ experience of the property.” According to Littler, the basic questions to ask would include: (1) do the people you serve want to come to that place? (2) have you managed to reassure them sufficiently that they and their colleagues will be safe? (3) have you got the details right?; (4) can you deliver it in line with your values?, (5) and can you communicate effectively? Littler adds: “A key difference in our approach to property management in the region is that we work with the best-in-class services providers. We undertake detailed scoping exercises with our clients, ensuring that both Inspire Integrated and a client’s values meet. We then run robust RFPs to identify the best vendor to provide the required solution. Vendors must meet our technical and governance requirements before financials are ever looked at. “By structuring our contracts based on tangible outputs we can deliver services in the most efficient way while allowing for agility. A great example of this is with our cleaning contractor at ICD Brookfield Place, where with the onset of Covid-19, we collaborated with all stakeholders to quickly adjust specifications to meet client requirements with the rapid implementation of pre-mop systems and the implementation of environmentally friendly hand sanitisers throughout the building.” Littler says that the firm’s “open book” approach to managing service charges is the natural outcome of the consultancy work it did with the client to help draft their standard lease in a form acceptable to international real-estate investors and corporate clients. He concludes: “Getting the details right, quickly and sustainably speaks to what we stand for.” Matt hew Litt ler, property general manager for ICD Brookfi eld Place, Inspire Integrated. THE SERVICE CHARGE MODEL THAT WE HAVE DEVELOPED AND OPERATE AT ICD BROOKFIELD PLACE IS TRANSPARENT. WE PROVIDE DETAILS TO THE TENANTS ON HOW THEIR MONEY IS BEING SPENT. MATTHEW LITTLER, PROPERTY GENERAL MANAGER FOR ICD BROOKFIELD PLACE AT INSPIRE INTEGRATED BRANDVIEW www.fm-middleeast.com14 April 2021 The facilities management (FM) market in the UAE is considered as one of the key sectors that benefited from increased local economic activities during pre-pandemic days. Large-scale construction projects and vibrant tourism and hospitality activities, to name a few, were all pushing the local FM business upward. During and post-Covid-19, the industry’s ascent is expected to remain unstoppable on the back of the Emirates’ heightened economic diversification efforts. A market research report released by P&S Intelligence1 predicts a compound annual growth rate of 9.3% for the country’s FM industry from 2020 to 2030. The study suggests that its market value will reach $34,959.4m by 2030, citing the rising tourism- and construction-related undertakings as the primary growth drivers. The property category, which mainly consists of residential, commercial, and industrial segments, has the highest share in the country’s FM market by service, it adds. It is against this backdrop that ServeU Essentials is celebrating its first year since being rebranded from its former ServeU Home Services identity, which initially focused on maintenance of mechanical, electrical and plumbing infrastructures. ServeU Essentials represents the residential FM services of ServeU, a subsidiary of Union Properties and an FM service provider in the UAE. According to Lucy Jones, head of the department at ServeU Essentials, the rebranding marks the expansion of ServeU’s boutique offerings to cover consumer-driven maintenance, cleaning, landscaping, renovation, and smart homes not only for the residential market but also for small businesses and retail outlets. Moving into 2021, ServeU FM FIRM SERVEU GROWS IN SYNC WITH THE UAE, MARKS FIRST YEAR OF SERVEU ESSENTIALS REBRANDING GROWTH ESSENTIALS AS A NEW BRAND IDENTITY, SERVEU ESSENTIALS STRONGLY DEMONSTRATES SERVEU’S OVERALL OBJECTIVE TO GET ON TO THE DIGITAL TRANSFORMATION BANDWAGON IN THE HOPES OF HELPING FAST-TRACK THE UAE’S ADOPTION OF DIGITAL TECHNOLOGIES. Lucy Jones, head of the department, ServeU Essentials.BRANDVIEW www.fm-middleeast.comApril 2021 15 Essentials are entering into the Abu Dhabi market as part of its ongoing move to increase its footprint in the UAE. “As a new brand identity, ServeU Essentials strongly demonstrates ServeU’s overall objective to get on to the digital transformation bandwagon in the hopes of helping fast-track the UAE’s adoption of digital technologies. In fact, ServeU Essentials has made several milestones ever since the rebranding move was formalised a year ago such as the beta stage of a fully automated mobile application designed to eliminate human intervention and digitalise customer service. This end-to-end app is integrated with customer self-service functionality aimed at enhancing customer experience and transforming brand-customer interactions,” said Jones, an accomplished FM leader with over 20 years of experience in the industry. ServeU’s digital channel boasts of modern features to ensure an end-to-end fully automated customer interaction platform with zero human intervention. The app’s self-service functionality reflects the company’s strategy to move away from the typical voice call customer service through its online store component. With a built-in artificial intelligence (AI) in the backend system, the app gives customers an option to have real-time access to essential FM solutions and avail of services and products from its online store. At checkout, the app will automatically book an appointment with one of ServeU’s technicians. Through its interactive and a straightforward user interface, the app looks to replicate the traditional mode of customer care experience with minimal inputs. Its other features include contactless payment, real-time resource tracking, live chat with the helpdesk, and much more. The app is just one of ServeU’s numerous technology investments. Jones said upgrading the helpdesk system with an omnichannel approach is also an initiative designed to let customers interact with the helpdesk team from multiple channels such as voice calls, email, live chat, WhatsApp chat, and social media messaging. All interactions are handled by a centralised helpdesk system, which is integrated with back- office systems such as computer-aided facility management (CAFM), ERP, and mobile applications. Building on the success of its mobile app and upgraded helpdesk system, ServeU is set to launch its Smart Home services in Q2 of 2021. Jones shared that these achievements reflect the company’s commitment to incorporate the best of innovation into its business processes, with a primary focus on building a human-less interaction for B2C customers. With more than 40 years of experience in the region, ServeU also counts sustainability as one of the driving forces of the company’s major endeavors. By switching its entire fleet of over 4,000 staff transport buses to biofuel to reduce its carbon footprint in 2020, the company has proved that it is determined to implement green building practices. Its reaffirmed sustainability commitment comes on the heels of the unveiling of the Dubai 2040 Urban Master Plan, described as Dubai’s comprehensive sustainable urban development strategy. The master plan is expected to usher in immense growth opportunities for the local FM community. ServeU customers have benefited and will continue to benefit from the company’s investments aimed at sustaining innovation of delivering excellent service and a customer experience that exceeds expectations. The revamped entity, ServeU Essentials, was launched with this vision in mind: ‘Enhancing your Living Experience’. It operates on ServeU’s core value of ‘We Listen’ by simplifying business processes and operations, with competitive service rates and value-added FM solutions. Throughout the first year of its operations, ServeU Essentials has been extending continuous promotions and offers. According to Jones, since the launch of ServeU Essentials, ServeU has observed that the customer retention rate has remained constant at 93%. This can largely be attributed to ServeU’s all-encompassing digital transformation efforts. ServeU Essentials is striving to lead the FM B2C industry in terms of social media presence, with more than 27,000 Facebook followers to date. Jones concludes: “With the UAE’s FM industry being projected to remain in an upward trajectory, ServeU will grow alongside it – serving in whatever way it can – to ensure the highest customer experience and satisfaction while, at the same time, being in consonance with the UAE’s key digital transformation and sustainability programs.” References: 1• https://www.prnewswire.com/news-releases/ demand-for-facility-management-services- set-to-boom-in-uae-in-future-says-ps- intelligence-301219699.html ServeU is set to launch its Smart Home services in Q2.. COVER STORY www.fm-middleeast.com16 April 2021 EXPERTS AT AG FACILITIES REVEAL A GAMUT OF PROCESS CHECKLISTS AND TECHNICAL QUAGMIRE IN SERVICING THE OIL & GAS SECTOR – A TASK ONLY ESTABLISHED FM FIRMS DARE TO UNDERTAKE COVER STORY F acilities management is not a one-size-fits- all discipline. It might appear to have the same set of requirements across various industries to the unqualified eye, but that cannot be further from the truth. Specific requirements vary across different sectors. The requirements of a commercial space are very different than those of a healthcare sector. This is particularly true for the Oil & Gas sector. Mohamed Adil Haneef, the COO at AG Facilities, reveals that managing the sensitive Oil & Gas sector is complex because “it places a very high weightage on process adherence”. AG Facilities has also observed that this complexity has been increasing in recent years. The growing needs for serviceability of facilities are imposing new challenging requirements to the facility management departments. Haneef lists the reason for this trend as follows: (1) The complexity of maintained systems is growing due to the development of micro- electromechanical technology. This is leading to an increase in electronic devices in industrial equipment. AG Facilities recruits personnel having relevant exposure in the Oil & Gas sector, subsequently providing them a high level of sector-specific training for the delivery of professional services. Furthermore, the staff undergoes PTW (permit to work) training, the necessary examination, medical check-ups, and safety inductions for relevant compliances. (2) The impact of the hidden costs of maintenance on competitiveness and survivability in industry and services is becoming more and more relevant. The ratio between hidden costs affecting the operations-related performances (e.g., safe production, safe equipment use, production quality, scheduling reliability, etc.) and directly budgeted costs (e.g., personnel and spare parts costs, third parties and service-related contracts costs, etc.) is increasing at a fast rate. It is mandatory for staff to obtain LOA (Letter of Assistance) for CICPA (Critical Infrastructure & Coastal Protection Authority) pass for personnel and vehicles. CICPA pass can be applied only for those holding valid residence visa and work permit from Abu Dhabi. All vehicles also need to have CICPA pass and follow the requisite HSE procedure. Vehicles need to undergo a host of augmentations when entering sensitive areas depending on the type of hazard in the specific NO SMANO SMACOVER STORY www.fm-middleeast.comApril 2021 17 COVER STORY location. It is required to have spark arrestor, automatic shut off valve, battery isolation switch, reverse horn, roll over protection, IVMS (In Vehicle Monitoring System); in some cases, they are also fitted with oxygen cylinders. Additionally, food, accommodation, PPE (Personal Protective Equipment), transport & welfare measures are to be provided as per Oil & Gas guidelines. (3) Lastly, the Oil & Gas sector has critical hazards which require highly competent companies to work safely. The HSE requirements include the adaptation of various risk management methods, approval of employee accommodation facility, medical screening of all employees, mandatory training requirements on identified topics, additional safety devices on equipment and vehicles, robust monitoring mechanism, specific PPE, specific emergency response plans, stringent auditing mechanism, among a host of other compliances and process adherences. AG Facilities caters to a host of industries and has a varied portfolio of blue-chip clients. Currently, the Oil & Gas sector comprises 20% of that. ADNOC Group Companies, EPPCO and other Oil & Gas entities are some of the firm’s key clients in the sector. Talking a bit about the process and criteria to win an Oil & Gas project, Nilanjan Sen, head, TFM, Abu Dhabi, AG Facilities, says: “FM contracts usually cover the standard two stage bidding – the technical and commercial components. The technical bid covers the scope, specifications, HSEQ requirements and a questionnaire classifying score for each area. Commercial bids on the other hand are opened after the technical bids are reviewed and finalised.” However, in the O&G sector, this is preceded by stringent pre- qualification criteria such as: (a) Licensing: An Abu Dhabi-registered company (if bidding for Abu Dhabi- based Oil & Gas FM contracts) with CICPA and VAT registrations. Oil & Gas related activity needs to be in the trade license; (b) Work Experience: A strict evaluation is conducted on the company’s work history in the sector and demonstrated excellence in completing similar projects; (c) Financial assessment: This assay continues with a review of the company’s financial data for the past four years. Gross profit, cashflow issues, loan capital vs share capital, net worth, dependence on individual clients are some of the aspects which are placed under the microscope during this stage; (d) ICV rating: A high credit is placed on the ICV (In- Country Value) score. Mohamed Sarbudeen – head, projects, AG Facilities, adds: “The ICV ratings of our suppliers also affect our ratings, and therefore, we ensure rigorous assessment in selecting our vendors. “This thorough appraisal is only a pre-qualifier and is followed by an intense technical evaluation during the bid stage.” ALL FEATALL FEAT COVER STORY www.fm-middleeast.com18 April 2021 CRISIS MANAGEMENT HAS BEEN CRUCIAL THROUGHOUT THE PANDEMIC. ITS IMPORTANCE AND IMPLEMENTATION WILL BE FREQUENTLY TESTED IN THE MONTHS, AND PERHAPS YEARS, TO COME. MOHAMED ADIL HANEEF, COO, AG FACILITIES PRACTICE MAKES AN FM FIRM PERFECT AG Facilities is one of the integral contractors in the Oil & Gas sector and provides a wide area of services for its business partners. AG Facilities and its subsidiaries have over 40 years of experience along with technically qualified manpower, proprietary CAFM systems, technical employee development centres, integrated facility management services, centralised stores, and a centralised corporate procurement process. This facilitates leveraging of economy of scale and enables the firm to provide a higher quality of service at standard costs. Sarbudeen says: “Our presence in the Dhafra region over the years has led to the implementation of a robust supply chain for effective and efficient delivery of services. Our service lines include engineering procurement & construction works for major civil, mechanical, electrical & instrumentation, HVAC, and fit-outs projects in the Oil & Gas sector. We also undertake shutdown maintenance/plant turnaround jobs and refurbishment works with ADNOC Group Companies. "Additionally, we are also subcontractors to a host of EPC companies. This array of services provides us with a holistic 360-degree view of the sector and enables us to apply best practices of different service lines to the project at hand. “These best practices have been acknowledged and recognised by our clients as well. Our HSE excellence has been rewarded by Abu Dhabi ports for TFM services in Zayed and Mina ports, Abu Dhabi; by ADNOC Sour Gas for VSD chiller maintenance; and by Borouge for O&M at ADNOC Refinery. Borouge has also conferred us with individual HSE awards for landfill capping activities at BeAAT (Central Environment Protection Facility).” CHALLENGES AMONGST COVID Servicing the Oil & Gas sector comes with its own set of challenges. It is common to have contracts with a stringent set of KPIs. Sarbudeen says: “These can be overcome by leveraging on our highly trained professionals and economy of scale. But in some cases, things get beyond our scope of control. During peak Covid months of Apr-May 2020, AG Facilities was tasked with a major shutdown project including residual engineering with a tight deadline. This was worsened by the global lockdown. Materials and spare COVER STORY www.fm-middleeast.comApril 2021 19 THE ICV RATINGS OF OUR SUPPLIERS ALSO AFFECT OUR RATINGS, AND THEREFORE, WE ENSURE RIGOROUS ASSESSMENT IN SELECTING OUR VENDORS. MOHAMED SARBUDEEN – HEAD, PROJECTS, AG FACILITIES parts were needed from European countries which were facing a lockdown of their own. Logistics services were impacted. To mitigate the situation, we had to charter a flight and airlift the required materials to our site. This led to financial and time escalations, but it enabled us to deliver the installation and perform commissioning within the stipulated time frame. This entire task was in adherence to all Covid-19 precautions as prescribed by MOH. “The situation was further complicated by the Covid-19 pandemic regulations. The project execution required technical back up of OEMs from European countries, and so, air travel coupled by quarantine regulations had to be managed. Movement of materials was another challenge due to lockdowns. The current work force had to be managed with a testing regime and Covid/quarantine requirements.” Haneef adds: “As with many companies we were taken aback by how quickly Covid-19 spread. Our focus has always been limited to making the supply chain as lean as possible by employing techniques to reduce lead time, levelling flow, using pull systems and a host of initiatives from our process improvement planning team. But Covid 19 changed things. After taking stock of our warehouses nationwide, our available transport resources, and distributed workforce, we were able to successfully adjust operations to continue delivering TFM solutions in this difficult time. “Crisis management has been crucial throughout the pandemic. Its importance and implementation will be frequently tested in the months, and perhaps years, to come. Business continuity planning, investment in IT infrastructure, and flexibility in workspace provision will impact future facilities management services.” AG FACILITIES AND ABU DHABI Abu Dhabi’s 2030 Integrated Strategy identifies five fundamental ongoing shifts in world energy markets as the impetus for its strategic pivot. They include (1) rise in the world’s oil demand, projected to rise by 10 million barrels a day by 2040; (2) projected 60% increase in global petrochemical demand between 2016 and 2040; (3) changing sources of demand growth, with non-OECD (Organisation for Economic Co-operation and Development) and Asia Pacific markets displacing OECD economies as primary energy demand drivers; (4) ongoing increase in world natural gas demand, expected to increase 45% by 2040; and (5) increased digitalisation, allowing for upstream and downstream efficiency gains between 5% and 10%.1 In addition, Haneef adds, in mid- 2018, ADNOC unveiled plans to invest $45bn (AED165bn) alongside partners, over the next five years in its downstream business with the aim of becoming a leading downstream player. It will build an integrated refining and petrochemicals complex Next >