Practices and performance of outsourced operation and maintenance in commercial buildings

Abstract

There has been an increasing trend in the outsourcing of operation and maintenance (O&M)services for buildings in Hong Kong. Engaging a ‘specialist’ to do the job should, in theory, yield better services to end-users at lower costs but the contrary has been noted in various cases. There are, as yet, little in-depth investigations reported in the published literature about what would make an outsourcing O&M contract a success or failure. This paper reports the preliminary findings of an ongoing research, which attempts to: identify the factors that determine contract performance and cost, formulate guidelines to help building owners decide whether to outsource O&M services, and highlight issues that require attention in outsourcing. A key part of the research is a survey, which has recently been completed. It involved face-to-face interviews with building owners, building management companies and O&M contractors. The survey result reveals the practices in the industry, including the outsourcing arrangements, scope of work, cost, and contract work management and supervision. The paper summarizes the key survey findings and conclusions drawn from preliminary analysis of the results.