The alignment between FREM innovations- managing a building (services) performance, and the needs and wants in the Built Environment yield sound economic and social benefits. The aim to develop FREM concepts in such a way that it supports the management in the earliest phases of the design process, allows smarter designs. The FREM approach leads to an optimal result for companies, owners, tenants and users regarding many things that concern modern business life.
Best FREM practices seek to optimize the necessary fit between the demand and supply side of the business on different scale levels.
FM and CREM together makes FREM. Facilities Management (FM) stands for the integration of processes within an organization to maintain and develop the agreed services which support and improve the effectiveness of its primary activities. [Corporate] Real Estate Management (CREM) stands for the management of the real estate portfolio of a corporation by aligning the portfolio and services to the needs of the core business, in order to obtain maximum added value for the business and to contribute optimally to the overall performance of the organization.
Constructing or refurbishing a facility based simply on how many square feet the operation needs is not how to perceive modern ways of managing the building. Successful development and management of the facilities and real estate involves deftly understanding of the importance of the building’s environment. It’s a complex equation but rather a must-have in order to be competitive on the marketplace.
Often, construction trades win business by providing what seems to be the lowest cost during the bid stage. In many instances, finite budgets drive the selection of lowest-cost proposals. What need to be realized, in certain cases, is that savings up front can easily come back to bite the budget down the road. In fact, a facility’s construction budget accounts for only about ten percent of its total lifetime costs. Operation accounts for the other percentages. In these cases, the up-front savings on materials end up burdening throughout the life of the building. Lower-quality products create energy inefficiencies followed by maintenance and complete replacement. Once understood the importance of building performance over the lifetime of ownership, the next step is understanding what decisions related to the building make the biggest impact on cost performances.
Factors that affect the opportunity to realize the building optimization for instance is when taking in consideration the energy management strategy. Next to that conducting a sustainable policy as for instance product lifetimes and building materials, maintenance requirements, adaptable design, retrofitting and so forth have substantial impact. Not just on how to drive costs but also taking into account environmental aspects.
From an overall view on things FREM focuses on strategic, tactical and operational choices regarding products and services, business processes, staff, structure, shared values, management style but also on location, m2 - total and per unit, spatial lay out, interior design, technical services, use of space etc.
It is the value-added management coming from FREM that focuses on a strategic alignment between FREM and the core business, stakeholder management and relationship management as part of implementing planning in practice. Alignment implies moving in the same direction, supporting a common purpose, being synchronized in timing and direction, and being appropriate for that purpose.
FREM intervenes in the physical environment (on different scale levels: portfolio, building, space), facilities services, the interface with core business, the supply chain, the internal processes, strategic advice and planning. Subsequently it has its effect on policy making regarding energy efficiency, lifecycle management, sustainability issues, operations and maintenance optimization, environmental impacts.
Group-FSA on FREM
Introducing Group-FSA being a globally oriented project management organization to coordinate this developing concept FREM - Facilities and Real Estate Management.
At this point the FREM concept is about to reach maturity stage amongst the facilities and real estate professional disciplines and working areas. Group-FSA as an internationally operating company aims to develop the FREM concept globally, enhancing the profession’s insight, knowledge, techniques, and ways of working. Consequently Group-FSA works to enable networking and collaboration within the Built Environment.
FREM on GREEN
In relation to environmental ‘green’ issues, FREM within the Built Environment focuses on green building trends, design approaches and challenges, building influence on people and so on. Topics like ‘how to operate green buildings in a sustainable and energy efficient way’, ‘climate change adaptation of buildings’, different approaches to sustainable design, ‘sustainable buildings- beyond energy performance’, ‘making today’s buildings fit for tomorrow’s climate’, are shown on the agenda.
The building sector is one of the most resource consuming sectors worldwide, accounting for approximately half of all extracted materials, half of total energy consumption, one third of water consumption and one third of waste generation. The building sector therefore defines a big part in policies for circular economy; a regenerative economic system in which resource and energy consumption are minimised. Set sustainability goals within this framework of a circular economy, determine an illuminated approach to life cycle assessment.
Within the life cycle framework, prioritizing sustainability issues can stage the impact of a building performance and therewith measure the influencing effect on environmental matters. Indicators concern possibly: ‘greenhouse gas emissions throughout the building’s life cycle’, ‘resource efficient and circular material life cycles’, ‘efficient use of water resources’, ‘healthy and comfortable spaces’, ‘adaptation and resilience to climate change’, ‘life cycle costs and values’.
Within the Built Environment at a variety of stages different parties are involved with the development and implementation of policies and measures that have impact on life cycle and circular economy. Parties like: building developers and investors, design teams (architects, engineers, quantity surveyors) construction companies and contractors, facilities-, real estate-, asset managers and building occupants (households or organizations). From a conceptual point of view FREM evidently contributes to almost all aspects within this framework.
Research and practice of sustainable facilities and real estate management is rapidly evolving with the increasing interest in the discourse of sustainable development. The scale of growth in the built environment and the consequential growth of the FREM sector is anticipated to be enormous. With the pressing sustainability agenda, the impact of the built environment, including the contribution that the construction industry makes, is vast.
The concept of sustainable FREM has developed in parallel with the overarching concept of sustainable development and the growing appreciation of the scale of predicted climate change. The case for change has been successfully made and the need to balance the three strands of sustainable development - social, economic and environmental - is apparent. It is both fortuitous and timely that the FM profession has grasped the agenda for change and is developing practical sustainability goals within this rapidly evolving profession. FREM is at the forefront of organisational behavioural change and in a position to influence the business, government and public services. The need for sustainable FREM is therefore growing and the need to develop new ways of working to meet sustainability criteria is of increasing importance.
Starting from FREM knowledge it is possible to create long‐lasting value to the organization by developing, implementing and maintaining sustainable FREM practices. The benefits of sustainability and green building practices in FREM are well established. Reduction in energy consumption, productivity increases, waste reduction, and many other beneficial effects of sustainability can be quantified and presented to an organization’s leadership in order to defend sustainable practices and their positive effect on the bottom line. Many of the positive economic effects do not show up immediately, however. It is necessary to take a long‐term view of most sustainable practices and carefully evaluate green alternatives to traditional construction, operating and maintenance methodologies. Once the life‐cycle cost (LCC) and total cost of ownership (TCO) are taken into account, an organization can develop a much clearer picture of the benefits of sustainable practices. FREM is in a unique position to view the entire process. FREM therefore becomes the proponent of sustainable and green practices.
FREM on GREEN – Conference Ankara, Turkey, March 28th, 2018
Currently it is clear, there is an upward trend towards environmental sustainability. In the Built Environment it relates mainly to the achievement of energy efficiency and to the emission reduction throughout the whole life cycle of a building, i.e. in the course of its implementation, use and liquidation.
Sustainable buildings use less energy and materials, and are healthier and more comfortable spaces for occupants. Along with lower environmental impact, sustainable buildings are relatively low cost to run and in the long term, more valuable properties. To move away from the linear economic model of ‘take, make, and waste’ and towards resource efficiency, the world needs a sustainable built environment. By organizing a conference within this outline Group-FSA and Baskent University encourage life cycle thinking at a whole building level and support users all the way to look at design stage through to operation and the occupation of a building.
The main objective of this conference is to promote a more efficient use of resources. To help bringing resource efficiency gains, designers, manufacturers, contractors, authorities and users need useable and reliable information enabling them to make knowledgeable decisions.
Buildings that are designed and constructed to reduce life-cycle environmental impacts deliver direct economic benefits such as lower operational and maintenance costs, slower depreciation and a higher asset value. In addition, there are also positive social impacts like improved health and productivity. As awareness amongst designers, suppliers and manufacturers grows, costs fall as the supply chain adapts to new requirements and practices.
By the organization of this conference, the knowledge and networking provided will give participants the possibility to benefit learning from competitive advantages that is known from environmental performance. For instance: manufacturers of (construction) products will provide product information that can be used for building assessment in a way, resulting in cost savings; builders, FREM managers and users will elaborate on both product and building level, when incorporating sustainability aspects; developers, consultants and lecturers will show comparison of performance of projects. All well-compiled information for the attendees to be able to improve the allocation of knowledge and to integrate environmental risk into their professional actions.