UNIVERSITY OF NAIROBI DEPARTMENT OF REAL ESTATE AND CONSTRUCTION MANAGEMENT

1. UNIVERSITY OF NAIROBIDEPARTMENT OF REAL ESTATE AND CONSTRUCTION MANAGEMENT BLE 533: MAINTENANCE MANAGEMENT PAUL M.SYAGGA,PhD MARCH 2010

2. COURSE OUTLINE FOR BLE 533: MAINTENANCE MANAGEMENT. 1.Principles of maintenance management • What is maintenance? • Facilities management • Nature and types of maintenance 2.Economics of building maintenance • Determinants of maintenance • Design and maintenance • Life cycle costing • Service life prediction 3.Maintenance management process • Condition assessment for maintenance • Prioritization for maintenance • Resource requirements for maintenance • Execution of maintenance works

3. COURSE OUTLINE FOR BLE 533: MAINTENANCE MANAGEMENT. 4.Building failures diagnosis and avoidance • Causes of defects in buildings • Defects in foundations • Defects in floors and floor finishes • Defects in walls and wall finishes • Defects in roofs and roof coverings • Defects in plumbing and electrical systems • Grounds maintenance 5.Conservation of historical monuments • Need for conservation of monuments • Procedures in conservation of monuments • Laws relating to conservations of monuments in Kenya

4. 1.Principles of maintenance management 1.1.What is maintenance? • The following terms that are often used in property industry in relation maintenance need to be defined to avoid confusion. • Maintenance : refers to work undertaken in order to keep or restore a facility/property to an acceptable standard. • To keep means to maintain to the same or nearly the same physical and functioning level as original. • To restore means to put back to the same or nearly the same original physical and functioning level • Acceptable standard means that physical and functioning level which sustains the utility and value of the utility/property. This is because there is no absolute standard which is satisfactory in all cases all the time. ii. Maintenance management: refers to activities undertaken to make sure that capital investments are protected as well as ensuring acceptable working environment for users, depending on the quality of investment and costs in use. iii. Asset management: refers to the process of creating register of assets,and conserving the assets for the operations of the organisation.Thus creation of data base and property maintenance are components of asset management.

5. 1.Principles of maintenance management contd. iv. Property management: refers to process directed at maintaining the value of property as a resource and includes: • Overseeing physical maintenance • Rental assessment and collection • Enforcement of lease covenants • Advise on whether to maintain,rehabilitate or redevelop v. Conservation: refers to the preservation of facilities including their maintenance so that they may continue serving their useful purpose as well as retaining their historical and cultural features for posterity. vi. Facilities managementy.A new concept in property industry that embraces a wide range of property and user-related functions.It is the active management and co-ordination of non-core building services (buildings,fittings and furniture,plant and equipment,IT,etc) together with associated human resources necessary to assist an organisation achieve its strategic objectives.

6. 1.Principles of maintenance management contd. 1.2.Facilities management • Facility management is an interdisciplinary field primarily devoted to the maintenance and care of commercial or institutional buildings, such as hotels, resorts, schools, office complexes, sports arenas or convention centers. Duties may include the care of air conditioning, electric power, plumbing and lighting systems; cleaning; decoration; groundskeeping and security. Some or all of these duties can be assisted by computer programs. These duties can be thought of as non-core or support services, because they are not the primary business (taken in the broadest sense of the word) of the owner organization • The term facility management is similar to property management although not exactly the same.While both manage the day to day operations of a facility/property such as cleaning, maintenance and security, similar to Janitors, one must not confuse it with such a title. • The property manager has an expanded role which includes leasing and marketing activities whereas the facility manager role focuses on existing tenants who usually are owner occupants. • An important feature of facility management is that it takes account of human needs of its tenants in the use of buildings and other constructed facilities. These softer factors complement the harder factors associated with the maintenance and care of engineering services installations.The term "end-user satisfaction" is often used both as a goal and a measure of performance in facilities management.

7. 1.Principles of maintenance management contd. • The discipline of facility management and the role of facility managers in particular are evolving to the extent that many managers have to operate at two levels: strategic-tactical and operational. In the former case, owners need to be informed about the potential impact of their decisions on the provision of space and services. In the latter, it is the role of a facility manager to ensure proper operation of all aspects of a building to create an optimal environment for the occupants to function. • This is accomplished by managing some of the following activities. i)Environmental Health and Safety: Building Cleanliness;Waste Removal;Occupational Health and Safety;Hazardous Material compliance,etc. ii)Mechanical Systems Maintenance including preventive and predictive maintenance of: • HVAC/R (Heating, Ventilating, Air conditioning and Refrigeration) to regulate Indoor Air Quality and Temperature Control; and Elevator Maintenance

8. 1.Principles of maintenance management contd. iii)Power Systems maintenance including • Normal power such as Electrical Substations and Switchgear • Emergency power systems such as Uninterruptible power supply (UPS) systems, and Standby generators iv)Building Systems including Building Automation Systems (BAS),Building Monitoring systems (monitoring capabilities only) and Security and Locks. v)Life/Safety Systems that include Sprinkler systems,Smoke/fire detection systems,Fire Extinguishers; Signage and Evacuation Plans. vi)Space Management including Office Space Layout and Furniture Placement and Systems • In summary typical functions of Facilities Management which can either be outsourced or carried out by a combinationcan of in-house and outsourcing can be summed up as • Facility acquisition whether through development,purchase or lease • Strategic facility space planning,particularly space allocation for people and equipment • Support services such a office administration • Facility operations and maintenance,in particular to achieve equipment availability as well as ,health and safety of users.Thus maintenance though would seem as merely one of the activities of facilities management,it is indeed a major and critical activity performed during the operational phase of a building’s life cycle, which normally extends over many decades. References • International Facility Management Association • British Institute of Facilities Management • Journal of Facilities Management

9. 1.Principles of maintenance management contd. 1.3.Nature and types of maintenance 1.3.1.Purpose of maintenance: primary purpose of maintenance is to preserve, keep or restore a facility/property to its initial state to the extent practicable or to an acceptable standard so that: • It remains in a state that is neither dangerous nor injurious to the health of the occupants i.e. it must maintain health and safety standards for public health • It continues to provide functional utility for which it was intended: as a factory, mosque, hospital, state house, etc) • It retains the value of investment as a capital asset thus continuing to provide adequate return on investment • It presents good appearance: preserving the character of the neighbourhood and enhancing the self-esteem of both owner and occupants, i.e. the way we look is not very different from what we are.

10. 1.Principles of maintenance management contd. 1.3.2.Maintenace activities There are basically three activities that constitute maintenance works namely: • Servicing:day to day routine chores that maintain cleanliness and order • Rectification: making good faults arising from design, unsuitable materials or poor construction • Replacement: restoring some worn out materials or components due to wear and tear or incorrect use • A fourth type of activity often confused with maintenance are any works of a capital nature carried out to improve on the original design or as major overhaul to the original design and specification such as modifications,alterations,renovations,which are improvements to a facility,rather than maintenance.Such works add more than retain the original design.

11. 1.Principles of maintenance management contd. 1.3.3.Types of maintenance The three maintenance activities usually categorised by the manner in which the works are executed namely: • Planned preventive maintenance: work organised and carried out with forethought and intended to reduce the probability of failure or performance degradation namely: • Scheduled maintenance at pre-determined intervals • Condition-based maintenance based on continuous monitoring • Running maintenance carried out when machine is in service • Preventive shut-down maintenance, when factory closes down for maintenance ii. Planned corrective maintenance:work organised and carried out after a failure has occurred i.e. advance provision is made in form of labour and spares so that work is carried out through: • Corrective shut-down maintenance carried out after failure but for which expenditure provision had been made • Emergency corrective maintenance to avoid serious consequences. • Unplanned/emergency/breakdown maintenance: ad-hoc maintenance as a result of unseen or damage due to external sources. It may also described as “wait and see “ maintenance

12. 2.Economic of maintenance . 2.1.Determinants of maintenance • While there may be no absolute standard for all facilities all the time largely on account of economic and social considerations, there ,however, some standards are universally applicable such as structural stability or public health concerns.Thus what is injurious or dangerous to the safety and health of occupants/users of a building or facility should not be in doubt. • However,considerations for upholding investment value, preserving character of the neighbourhood or enhancing esteem of owners and occupants, could perhaps be subject to varying interpretations. • Therefore the determinants of maintenance standards or factors which influence decisions on how to maintain a facility, are complex and sometimes conflicting, and in particular they include the following: • Design factors(acts of omission/commission during design and construction) • Statutory requirements • User requiremets/Type of user • Value considerations • Budgetary constraints

13. 2.Economics of maintenance contd. 2.1.2.Influence of design on maintenance • Any building/facility is designed to satisfy the functional requirements for utility, aesthetics, and user-friendliness. • However, the need for maintenance arises either from normal wear and tear or defects of omissions/commissions during design, choice of construction materials/components, construction phase, and the use/abuse during occupation. • Informed design should draw a balance between functional requirements and the overall financial commitments(initial and maintenance costs) throughout the life cyle of the building/facility. • There exists an inverse relationship between initial costs(purchase/construction) and future maintenance costs, so that a reduction in future maintenance costs may be obtained by increasing initial costs and vice-versa. • The problem is to determine the optimal model for the inter-relationship of initial and future costs of a development project at the design stage. A technique often used in this determination is called life-cyle costing. • See figure on “Effects of early design decisions on building life-cycle costs” in Syagga and Aligula(1999) page 50.

14. 2.Economics of maintenance contd. 2.1.2.Statutory requirements Some legislation may prescribe standards of safety or hygiene to achieved in the management of assets notably, lifts and fire equipment, preservation of monuments or structural safety of buildings. For example: • Antiquities and Monuments Act(1983) prescribe that no person is allowed to destroy, alter or deface monuments or do any work that would impair the preservation of monuments, nor extend or modify the external of the monument. • Public Health Act requires that buildings are constructed and maintained in such a manner that they are neither injurious nor dangerous to health of dwellers; nor dilapidated/ defective as to be unsafe. • Registered Lands Act(1963)(section55), states that “to keep a building in repair”,shall in the absence of express provision to the contrary mean “in such a state of repairs in which a prudent owner might reasonably be expected to keep his property due allowance being made for age, character and locality of the building at the commencement of the lease” • Other pieces of legislation that make reference to property maintenance include Occupational Safety and Health Act(2007),Local Government Act(Revised 1998),Sectional Properties Act(1987),laws relating to landlords and tenants,etc .

15. 2.Economics of maintenance contd.. 2.1.3. Basic user requirements • These include the provision of shelter from weather and provision of acceptable indoor environmental conditions. These may be realized through the three levels of care: basic level, intermediate, and intensive/highest level of care. • However, sometimes user requirements go beyond what was originally designed, in which case they call for improvements rather than maintenance, as for instance, new facilities are added. • User requirements will also depend on the type of facility and status symbol, such that maintaining a classroom is relatively less demanding than maintaining a hospital ward, a presidential suite in a hotel or the state house grounds.Similarly,maintenance level of a life support equipment is certainly higher than any other equipment in a hospital. The concept of duty of care: • Like a hospital patient a building or other facility requires varying levels of attention through out its economic life, notably • basic care: cleaning/servicing, • intermediate level of care:inspections and repairs, and • intensive care:replacements/renewals of components. • The needs can be determined at the design stage,then subsequently monitored and re-appraised regularly when the building is in use, and appropriate level of attention given so that the building can continue to fulfill its functions. • The concept of duty of care marries in well with planned preventive maintenance • See figure on “Levels of maintenance in the context of duty of care”

16. 2.Economics of maintenance contd.. 2.1.4.Value considerations • Properties that are tradeable in the market require some minimum level of maintenance for them to attract market value. • The optimum level of expenditure on maintenance should be that which gives maximum return, i.e. point at which marginal increase in maintenance expenditure equals marginal value(dv/dm=1). • For properties which do not trade in the market the marginal value is synonymous with utility/functional value. The appearance of a building must be acceptable in terms of culture,religion,defence or status. • The way things look is not irrelevant to the way things work: how they look is how they should look. The concept of obsolescence. • Abuildingor other facility has three types of life:the physical life; the functional life; and the economic life that need to be preserved so as to avoid negative/reducing effect called depreciation. • Depreciation on physical life of a building arising from wear and tear or physical impact is called physical depreciation • Depreciation on the functional life of a building, arising from errors/omissions in design(room sizes,ceiling heights,facilities/amenities) is called functional obsolescence., and is regarde as curable obsolescence.Works carried out to achieve desired standards are called improvements or rehabilitation. • The depreciation/loss in value arising from conditions external to facility that affect its character/degree of utilisation, hence less demand (presence of a nuisance,outmigration,economic downturn)is called economic obsolesence, and regarded as incurable obsolescence. It cannot be corrected through maintenance,except by demolition or change of user. • Obsolescence sometimes in depreciation when it precipitates physical deteroriation because when demand falls property gets neglected and suffers severe physical deteroriation leading to demolition

17. 2.Economics of maintenance contd.. The present value concept: • Economic obsolescence is incurable,but physical and functional obsolescence can be cured through maintenance and rehabilitation, respectively.Rehabilitation involves conversion and modernisation beyond the routine maintenance. • However,with time it may be necessary to consider whether to continue to maintain,rehabilitate or demolish a building or facility. The decision is normally made in favour of higher present value of proposed development. • The comparison is made between modernisation and replacement with a new facility on the same site, with both values being discounted to the present value. • Present Value,Y is denoted by Y=1/(1+i)^n, where”I” represents the interest/discount rate, and “n” represents period by which the rehabilitation/redevelopment will be realised/mature.

18. 2.Economics of maintenance contd.. 2.1.5.Budgetary constraints • In industry,the responsibility of maintenance is to ensure that the facilities/equipment used in production are operating at the required level of productive efficiency and are available when required. • Thus inadequate maintenance would not only lead to costly repairs but to lost production as well. • Optimum equipment availability is achieved when the total sum of maintenance costs(preventive + corrective) is at minimum. • When less preventive maintenance is applied breakdown maintenance increases and equipment availability reduces.It is therefore possible to reduce breakdown costs and increase equipment availability by increasing preventive maintenance upto a point when the sum of the two is at minimum, and that becomes the optimal point. • Thus equipment availability(operating level of efficiency when required) may determine how much maintenance is necessary and what to spend on the same, this being where the total sum of the two is at minimum.

19. 2.Economics of maintenance contd.. 2.2.Life cycle costing • Life cycle costing is a tool to be used in the decision-making process, the objective being to ensure the best value for money over the economic lifespan of the asset with the time value of money being taken into account. • It is comparative evaluation of time-phased costs(total/whole life costs) and revenues attributable to a project/asset/component over a specified project life.The total /whole life cycle cost of the asset is the sum of initial acquisition costs and subsequent running costs of an asset over its operating life. • It is also known as whole life-cycle costing,cost-in use,engineering economics,cost-benefit study or terotechnology. • The process contains parallel and inter-related phases namely: • Establish the objective and justification for the project • Identify the life-cycle/total/whole costs likely to occur in the life of the project • Formulate assumptions to be employed in the analysis(lifespan,discount rates,frequency/incidence of life costs,etc • Rank the alternative cost scenario using any comparative methods of analysis including NPV,IRR, Annual Equivalent(AE),Payback period,etc. • Subject the results to further sensitivity analysis to the various cost factors so as to rationalise acceptable alternative • See Fig on Key Decisions in the Whole Life-cycle costing Process of a building facility.

20. 2.Economics of maintenance contd.. 2.3.Service life prediction 2.3.1.Need for service life prediction • The need for “Sustainable Construction” necessarily imposes inherent requirements for specified levels of durability of building materials and components and it is understood that these can only be entrenched within the construction sector through standardization. • Standards for service life prediction are needed to support application of the performance approach: an organised procedure within which it is possible to state the desired attributes of a material,component or system in order to satisfy the requirements of the user without regard to the specific means employed in achieving the results. • Standards,including practices and guidelines for predicting service life would support the performance approach by facilitating evaluation of long-term performance(durability performance) of both new and traditional materials and components in their intended service environments.

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