At the FM Giants Roundtable hosted on Ain Dubai, Mohamad Abou Laban, CEO at Deyaar Facilities Management joined an exclusive roundtable discussion to discuss various topics and issues affecting the industry, such as contractual gaps, worker wellbeing, working closely with real estate developers, breaking into the hospitality industry, and so much more.
Mohamad Abou Laban with more than twenty years of experience working in the GCC facilities management industry, Mohamad is a top-performing and result-oriented professional. He is customer-focused with proven success in growing territories and opportunities through utilising comprehensive knowledge of products and over-exceeding goals. Mohamad has a proven track record in implementing international best practices, improving safety standards, increasing profitability and driving efficiency. Consistent performer who identifies areas for improvement and implements robust initiatives to reduce cost, increase productivity, and positioning an organisation for long-term growth. He is the winner of CEO of the Year 2021 by CBNME and FM Executive of the Year 2021 by FM ME Awards. Mohamad was also ranked 8th in the Construction Business News ME Power 30 FM list in 2021.
Managing Large Taskforce: The value of employee well-being by the FM Companies and Clients contracting manpower services
For any company the biggest asset is their staff and it is important that we take care of them. With the recent weekend changes, Deyaar FM decided that our white-collar staff will work a 4 and half day week to increase productivity and motivation of staff. We are already noticing a change in the right direction.
Deyaar FM had its staff accommodation previously located in Jebel Ali. Taking into consideration the location of our existing projects, we decided to shift to a new upgraded accommodation in Al Quoz. We were able to reduce the travel time of our staff from an hour to 15 minutes. This had a huge impact on staff productivity.
Such initiatives are necessary as everybody is raising their standards now, and clients also expect FM companies to provide sufficient welfare provisions for their staff. One of our core values is passion and we have adopted that into our business – this means making the staff feel that they are part of a big family so that they deliver services to our Clients with passion.
Expanding into the Hospitality sector: How can the FM Industry break into the hospitality sector? Whether it comes to tech and providing core FM Services
Deyaar FM first entered into the hospitality sector three years ago and now have more than 25 facilities that we provide various services to. The most important point is to understand the challenges each Client is going through and tailor a solution accordingly. The pandemic hit the hospitality sector hard and it accelerated those problems. This is a sector where the preference was to have their own in-house staff which helps them have a better control on the services being offered. Also, this is a sector where the staff are provided continuous training to develop their skills all the time.
Losing a customer in the hospitality sector not only results in loss of revenue on that day but also future business with the same Customer and referrals that he or she may have. The hospitality sector has peak and low seasons of demand, hence by outsourcing, they have the flexibility of having the minimum number of staff during low seasons, ramping up during the peak season and vice versa. In this way, the risk is transferred to the facilities management service provider.
The standards implemented by some of the big FM Companies have helped bridge the gap between a Hotelier’s expectation and what FM Companies can provide. Leading FM companies now have a clear understanding of the service levels required to be successful in this sector. The pandemic has been a driver to this as most hotels had to go into complete or partial lockdown. For Deyaar FM the hospitality sector is extremely important as we look to expand on our credentials by providing tailor made solutions to each and every Client.
Establishing a relationship with developers on projects: How can the FM Industry establish an open line of communication with developers at the beginning of new construction projects
It is important for the developer to engage with facilities management consultants during the development stage and the earlier you reach out, better the benefits they reap. From my knowledge, the bigger developers do engage with FM Consultants on their master plan design review, service charge calculations, the operating model, etc. So, they will look at the design from an operability and maintenance perspective. They can help identify obstacles that may arise when a particular design or system is chosen, make more cost-efficient and practical recommendations aligned with the asset owner’s goals, and preserve its long-term value.
One of the reasons why developers are hesitant to engage FM Consultants at an early stage is that it would incur a cost. However, this could avoid potential risks down the line once the building is operational. This will also help transitioning of management between construction and operational teams and to lay a solid foundation to go with the lifespan of that facility.
Contractual Gaps: What are some of the gaps seen by the FM Industry when it comes to contracts and tendering processes?
Contracts can be very tricky at times. In most cases, we have seen that the contracts are non-negotiable which puts FM Companies in a difficult spot. Despite a proper explanation of risks from the FM service provider, most Clients do not entertain any comments and are reluctant to change the terms. For example, limitation of liability is an issue, most Clients request unlimited liability irrespective of the value of the Contract. From an FM Company perspective, the liability has to be limited to the Contract. Another example is Termination at Convenience. Irrespective of how
good your performance is, this clause can always be applied and the Contract can be terminated which puts the FM Company at risk.
When it comes to Tenders, we have observed for most projects that the submission timelines are very short and it is a race against time for FM Companies. However, once submitted, there is a lot of delay in decision making. Certain tenders have taken six months or more to be finalized. There should be sufficient time given to FM Companies to do a proper evaluation of the facility and prepare the right solution for services to be rendered.
Some clients engage third party consultants for their tender process to ensure the tender process is effective. Most Clients are familiar with the new trends of output driven contracts. However, we quite often see a combination of input and output driven contracts. At the end every Client wants the service provider to be creative and think outside the box and this happens when you have output driven contracts.