SUSTAINABLE FACILITIES MANAGEMENT FRAMEWORK FOR ASSESSING PERFORMANCE OF EXISTING OFFICE BUILDINGS DIANA LAI NGIIK CHUI (B.Sc. Building (Hons), NUS) A THESIS SUBMITTED FOR THE DEGREE OF MASTER OF SCIENCE (BUILDING) DEPARTMENT OF BUILDING NATIONAL UNIVERSITY OF SINGAPORE 2012 ___________________________________________________________ DECLARATION _____________________________________________________________________ I hereby declare that this thesis is my original work and it has been written by me in its entirely. I have duly acknowledged all the sources of information which have been used in the thesis. This thesis has also not been submitted for any degree in any university previously. Diana Lai Ngiik Chui 29 August 2012 iii ___________________________________________________________ ACKNOWLEDGEMENTS _____________________________________________________________________ I would like to express my greatest gratitude to the people who made this dissertation possible. First of all, I would like to sincerely thank my supervisor, Dr. Florence Ling Yean Yng, for her guidance, patience, valuable inputs, and her precious time during the whole research process. Her mentorship is great and paramount to the completion of this dissertation. I appreciate all the respondents for their active participation in the exploratory study and survey questionnaires. Their time and efforts in responding to my interviews and surveys made this research possible. I would also like to thank my family members, who gave their full moral supports and encouragement to me during this period. They were willing to listen to me whenever I encountered difficulties. Finally, I would like to thank all others who have in one way or another helped me to make this study possible. iiiii ___________________________________________________________ TABLE OF CONTENTS _____________________________________________________________________ Page DECLARATION i ACKNOWLEDGEMENTS ii TABLE OF CONTENTS iii SUMMARY x LIST OF TABLES xiii LIST OF FIGURES xv LIST OF EQUATIONS xvi ABBREVIATION xvii CHAPTER 1 INTRODUCTION 1.1 Background 1 1.2 Research Problems and Importance of Study 2 1.3 Research Objectives 3 1.4 Research Hypothesis 4 1.5 Research Scope 5 iviii 1.6 Research Methodology 6 1.7 Structure of Dissertation 7 CHAPTER 2 LITERATURE REVIEW OF FACILITIES MANAGEMENT (FM) 2.1 Overview of Chapter 10 2.2 Definitions of Facilities Management (FM) 10 2.3 Drivers for Growth in Facilities Management (FM) 13 2.4 2.3.1 Government Policies 2.3.2 Global Competition 2.3.3 Environmental Awareness 2.3.4 Diversification in Workforce 2.3.5 Outsourcing FM Services The Relationship Between Business and Facilities 16 Management’s (FM) Functions 2.5 Summary of Chapter 18 CHAPTER 3 LITERATURE REVIEW OF SUSTAINABLE DEVELOPMENT AND CONCEPTUAL FRAMEWORK OF SUSTAINABLE FACILITIES MANAGEMENT (SFM) 3.1 Overview of Chapter 19 iv v 3.2 Demands on FM To Deliver Sustainable Built Environment 19 3.3 Sustainable Development 21 3.4 Drivers For The Growth Of Sustainable Facilities Management 24 (SFM) 3.4.1 Awareness on Environmental Issues 3.4.2 Environmental Building Assessment Method For Existing Building 3.4.3 Increased In Existing Building Stock 3.4.4 Advancement In Building Technologies 3.5 3.6 Sustainable Facilities Management Variables 3.5.1 Economic Sustainability 3.5.2 Social Sustainability 3.5.3 Environmental Sustainability Conceptual Framework For Sustainable Facilities Management 29 41 (SFM) 3.7 Summary of Chapter 43 CHAPTER 4 LITERATURE REVIEW ON EXISTING BUILDING PERFORMANCE ASSESSMENT METHODS 4.1 Overview of Chapter 44 4.2 Role of Building Assessment Tools 44 4.3 Current Environmental Building Assessment Methods for 45 viv Existing Buildings 4.3.1 LEED-EB 4.3.2 BREEAM 4.3.3 BEPAC 4.3.4 NABERS 4.3.5 CASBEE 4.3.6 Green Mark for Existing Buildings 4.3.7 HK-BEAM for Existing Buildings 4.4 Singe-Dimensional Versus Multiple-Dimensional Approach 61 4.5 Summary of Chapter 63 CHAPTER 5 RESEARCH METHOD 5.1 Overview of Chapter 64 5.2 Research Design 64 5.3 Data Collection Method 66 5.4 Data Collection Instrument 68 5.4.1 Section A: Building Information 5.4.2 Section B: Performance Measurement 5.4.3 Section C: SFM Practices and Their Importance 5.4.4 Section D: Background information of Respondent and Organisation 5.5 Sampling 76 vii vi 5.6 Data Analysis Methodology 77 5.7 Summary of Chapter 79 CHAPTER 6 CHARACTERISTICS OF SAMPLES 6.1 Overview of Chapter 80 6.2 Exploratory Study 80 6.3 Pilot Study 81 6.4 Survey Questionnaire 82 6.4.1 Characteristics of Respondents 6.5 6.4.2 Characteristics of Office Building Samples 6.4.3 Building Management and Performance Profiles Summary of Chapter 86 CHAPTER 7 RESULTS AND DISCUSSION 7.1 Overview of Chapter 87 7.2 Comparing Building Performance of GM And Non-FM Offices 87 7.3 Correlations between Sustainability Variables and Performance 97 of the Electricity and Water Usage 7.4 Respondents’ Perceptions on the importance variables in viii vii 102 Sustainable Facilities Management 7.4.1 Economic Sustainability 7.4.2 Social Sustainability 7.4.3 Environment Sustainability 7.5 Summary of Chapter 109 CHAPTER 8 PROPOSED SUSTAINABLE FACILITIES MANAGEMENT FRAMEWORK 8.1 Overview of Chapter 112 8.2 Multi-attribute Value Theory (MAVT) for Multiple Criteria 112 Decision Analysis (MCDA) 8.3 Application of Sustainable Facilities Management Indices 124 (SFMIndices) Through A Case Study 8.3.1 Background of Building A 8.3.2 Characteristics of key informants 8.3.3 Evaluating Building A’s SFM Performance 8.3.4 Usefulness of SFM Indices 8.4 Summary of Chapter 133 CHAPTER 9 CONCLUSION AND RECOMMENDATION ixviii 9.1 Summary of Chapter 135 9.2 Validation Of Hypothesis And Main Findings 136 9.3 Contribution to Knowledge 139 9.4 Contribution to Facilities Management Practices 140 9.5 Limitation of Study 141 9.6 Conclusion and Recommendations 142 9.7 Recommendations for Future Work 144 146 BIBLIOGRAPHY APPENDIX 1 : 159 Survey Questionnaire xix ___________________________________________________________ SUMMARY _____________________________________________________________________ Facilities Management (FM) is a profession that is growing rapidly. The term Sustainable FM (SFM) was introduced by several authors to integrate sustainability principles into FM (Hodges, 2005, Nielsen et al., 2009 and Shah, 2007). The InterMinisterial Committee for Sustainable Development (IMCSD) targeted 80% of the buildings in Singapore to obtain at least a Green Mark certification by 2030 (BCA, 2010). A Memorandum of Understanding (MOU) was signed between the Building and Construction Authority (BCA) and International Facility Management Association (IFMA) in 2010 to spearhead the SFM practices in Singapore to deliver a sustainable built environment. This signifies that there is a need to have a framework to guide firms and FM personnel in achieving SFM. The aim of this study is to incorporate sustainable practices into FM to manage an existing building. The specific objectives are to develop a sustainable FM framework for office buildings that incorporates the sustainability principles: economic, social and environmental, to construct an assessment method to evaluate an existing office building and to apply the proposed SFMIndices with a case study. This study focuses on the performance assessment of existing office buildings in Singapore. Existing building assessment methods are reviewed and their strengths and weaknesses are discussed. The variables under the three pillars of sustainability: economic, social and environment were identified through literature review and an exploratory study. The survey research design was adopted and data were collected using self-administered questionnaire sent out via mail. The sample was selected xix using random sampling method and the response rate was 32%. Descriptive and statistical analysis was carried out using SPSS software. Independent sample t-test was used to study if there are significant differences between Green Mark and non-Green Mark certified non-residential buildings. Pearson correlation analysis was adopted to examine the relationships between the independent variables and energy and water consumption. Subsequently, respondents were asked to rate the importance of each variable to achieve SFM using one sample t-test. The results show that GM and non-GM certified buildings adopted significantly different FM practices and policies. There are significant relationships between SFM practices and building performance. Subsequently, the means of the significant important variables were used to construct SFMIndices. The indices ware calculated using Multi-Attribute Value Theory (MAVT). A case study was carried out to illustrate the application of the indices. This study is important because existing building performance can be evaluated using SFMIndices to integrate economic, social and environment aspects. In addition, the proposed SFMIndices can be used as guidelines in implementing SFM and assisting a firm’s decision making in FM. It is suggested that future research be carried out to collect more building samples using SFMIndices and the top 10% performance can then be used as a benchmarking tool. xiixi Keywords: Sustainability, Sustainable facilities management, certification, Multi-Attribute Value Theory, Building performance xii xiii Green Mark ___________________________________________________________ LIST OF TABLES _____________________________________________________________________ Page Table 4.1 Rating scope under Part 1, 2 and 3 in BIU BES 5058 49 Table 4.2 Summary of Criteria for Assessment and Methods for Assessment 60 Table 5.1 7-point Likert Scales for Section B: The extent of FM practices adopted 66 Table 5.2 7-point Likert Scales for Section B: The extent of FM practices adopted 67 Table 5.3 Ratio between car parking spaces to building occupants and coding 73 Table 5.4 Distance to public transport location and coding 73 Table 5.5 Sampling design 75 Table 6.1 Profile of interviewees for exploratory study 79 Table 6.2 Profile of interviewees for pilot study 79 Table 6.3 Summary of survey response rate 80 Table 6.4 Summary of respondent profiles 81 Table 6.5 Summary of building profiles 82 Table 6.6 Summary of FM practices adopted 83 xiii xiv Table 7.1 Summary of GM certification for existing non-residential building 86 Table 7.2 FM Practices practised by office buildings with GM Award 93 Table 7.3 Item 3h: Ratio between car parking spaces to building occupants 94 Table 7.4 Item 3i: Distance to public transport location 94 Table 7.5 Pearson Correlation results 99 Table 7.6 Descriptive statistics and One sample t-test 106 Table 8.1 Scores allocated for types of variables used 113 Table 8.2 MAVT calculations based on maximum scores 121 Table 8.3 Profile of Building Users (Employees) for case study Building A 123 Table 8.4 Profile of Building Users (Employees) for case study Building A 123 Table 8.5 Ratings for Building A 128 Table 9.1 Review of Research Hypotheses 133 xv xiv ___________________________________________________________ LIST OF FIGURES _____________________________________________________________________ Page Figure 3.1 Share of Built Environment in Resource Use 25 Figure 3.2 Share of Built Environment in Pollution Emission 25 Figure 3.3 Energy Consumption by Sectors in 2005 26 Figure 4.1 Classification and rearrangement of assessment items into Q (Building environmental quality and performance) and L (Building environmental loadings) 54 Figure 8.1 Framework for SFMIndices using MAVT 122 xvi xv ___________________________________________________________ LIST OF EQUATIONS _____________________________________________________________________ Page Equation 8.1 MAVT Formula 111 Equation 8.2 Additive Method for MAVT 112 xvii xvi ___________________________________________________________ ABBREVIATION _____________________________________________________________________ Abb. Full Name ACPs AFPM BAMP BAS BCA BEPAC BEPAS BIS BIU BRE BREEAM CBD CMS EDA EMS ESD FM GFA GM GM-EB HK-BEAM IFMA IT KPI LCA LEED LEED-EB MAVT MCDA MTI NABERS PFI RCM SAM SD SFM SFMIndices UNCED UNDPCSD Alternative Compliance Paths Association of Property and Facility Managers Building Asset Management Plan Building Automation System Building and Construction Authority Building Environmental Performance Assessment Criteria Building environmental performance analysis system Building Information System BREEAM In-Use Building Research Establishment BRE Environmental Assessment Method Central Business District Communication Management System Exploratory Data Analysis Energy Management System ecologically sustainable development Facilities Management Gross floor area Green Mark Green Mark For Existing Building Hong Kong Building Environment Assessment Method International Facility Management Association Information Technology Key performance indicators Life Cycle Assessment Leadership Leadership in Energy and Environmental Design for existing building Multi Attribute Values Theory Multiple Criteria Decision Analysis Ministry of Trade and Industry National Australian Building Environmental Rating System Private Finance Initiative Reactive-centred Maintenance Strategic asset management Standard deviation Sustainable Facilities Management Sustainable Facilities Management Indices United Nations Conference on Environment and Development United Nations Department for Policy Coordination and Sustainable Development United Nations Division of Sustainable Development United Nations Environment Programme The United States Green Building Council UNDSD UNEP USGBC xvii xviii Abb. Full Name WCED WELS WSHA World Commission on Environment and Development Water Efficiency Labelling Scheme Workplace Safety and Health Act xix viii _____________________________________________________________________ CHAPTER 1: INTRODUCTION _____________________________________________________________________ 1.1 BACKGROUND Facilities management (FM) is an emerging discipline where it is integrated into an organisation’s business function and no longer operate as a separate entity (Alexander, 2003; Langston and Ding, 2001). Before 1980’s, FM was viewed as non-core services and organisations tend to cut cost in FM to maximise their business profits (Nutt, 2004; Duffy, 2000). At present, FM has been gaining emphasis in organisation to deliver values in core business. There is a direct linkage between business and supporting infrastructure to improve business performance (Grimshaw and Cairns, 2000). Jones (2000) suggested effective FM is able to provide long term cost savings and add value to an organisation. The environment where FM operates in is getting more challenging. Factors such as business competitiveness (Alexander, 1993), environmental awareness (Angella and Klassen, 1999), shifting into FM outsourced practices (Atkin and Brooks, 2009), employing technologies such as Building Automation System (BAS) (Teicholz and Ikeda, 1995), increasing aging building (IFMA, 2007), globalisation (Cotts et al., 2010) and financing arrangement such as Private Finance Initiative (PFI) (Jones, 2000) are contributing to the changes in FM’s roles and functions. Nutt (2004) suggested future FM can be moved forward based on four basic resources trails available in an organisation: financial resource trail (business), human resource trail (people), 1 physical resource trail (property), and knowledge resource trail (information). He further suggested that FM should be strategically planned in order to exploit the opportunities available within the four trails (Nutt, 2004). There is an increasing demand on FM profession on their roles and responsibilities to meet organisation needs (Alexander, 1993 and 2003). Alexander (2003) believes FM profession needs to prepare the changes by strengthening FM personnel’s leadership and knowledge in management. He forecasted professional bodies will slowly be positioning FM towards more specific roles and responsibilities in an organisation (Alexander, 2003). Sustainable development was introduced in Brundtland Report where development meets the needs of the present without compromising the ability for future generations to meet their own needs (WCED, 1987, p.43). The sustainable development principles: the triple bottom line (economic, social, environment) were integrated into FM. The term Sustainable Facilities Management (SFM) was introduced by authors such as Hodges (2005), Nielsen et al. (2009) and Shah (2007). The new trend has placed pressure on FM profession to integrate sustainable measures in building operation and maintenance by taking environmental and social issues into the FM practices. 1.2 RESEARCH PROBLEMS AND IMPORTANCE OF STUDY The concept of sustainable development (SD) has driven the development of SFM practices (Elmualim et al., 2010; Shah, 2007). Elmualim et al. (2010) did a survey to find out barriers in achieving SFM practices in buildings. The difficulties faced by 2 facility personnel in implementing SFM included lack of management commitment and expertise in FM (Elmualim et al., 2010). However, there is no study carried out to develop a tool to implement SFM. Elmualim et al.’s (2010) study did not suggest the way to achieve SFM. Thus, there is a need to construct an assessment tool to evaluate current building performance in the sustainability context. It is important to consider sustainability in FM to reduce impacts on environment, offer better quality of life and generate better value for organisation (Shah, 2007). 1.3 RESEARCH OBJECTIVES This study aims to incorporate sustainable practices into FM for existing buildings management. The specific objectives are: 1) to develop a sustainable FM framework for office buildings that incorporates economic, social and environmental sustainability practices; 2) to construct an assessment method to evaluate how suitable an existing office building’s FM is by calculating its SFMIndices; and 3) to demonstrate the application of SFMIndices with a case study. The first objective is important because a framework which comprises FM practices under each category of economic, social and environment is constructed. This framework can be used as a guide in understanding application of sustainability in FM. The second objective is important to develop sustainability indices for facility managers to assess the current performance of an office building. The third objective 3 is crucial to validate the feasibility of the proposed SFMIndices using a case study. The detailed definitions and explanations of economic, social and environmental sustainability are given in section 3.5.1 to section 3.5.3. 1.4 RESEARCH HYPHOTHESES The objectives under section 1.3 can be achieved through investigating if there are any differences in practices between Green Mark (GM) and non Green Mark (non GM) certified existing buildings. This is followed by examining the relationship between the variables in FM and building performance. A framework is proposed based on the findings. The variables in FM which are important in delivering SFM are identified to construct SFMIndices. Subsequently, the research hypotheses are set out below: H1: There are significant differences between building performance of GM-EB and non GM-EB certified buildings. H2: There are significant relationships between FM practices and monthly electricity consumption. H3: There are significant relationships between FM practices and monthly water consumption. 4 H4: There are significantly important variables under economic aspect to deliver FM at lower building maintenance and operation costs. H5: There are significantly important variables under social aspect to deliver FM in meeting organisation’s corporate social responsibility. H6: There are significantly important variables under environmental aspects to deliver FM in meeting environmental responsibility. 1.5 RESEARCH SCOPE This study focuses on office buildings in Singapore. Office building is chosen because the integration of FM into business function, dynamic changing needs, different business climate and objectives are suitable to be explored to study FM’s contribution to business sustainability. The office buildings studied are both GM-EB and non-GMEB in Singapore. Single and multiple tenancy office buildings are studied. Types of FM for office building studied included outsourced and hybrid (combination of inhouse and outsource) because these are the most common FM practised in Singapore. The target respondents for surveys and interviews are those who are currently managing or who has previously managed office buildings in Singapore. The economic, social and environmental variables in Sustainability Facilities Management Indices (SFMIndices) are discussed in Chapter 3. 5 1.6 RESEARCH METHODOLOGY Literature review on FM’s definition and scope were carried out. The relationship between FM and sustainable development are studied. Existing building performance assessment methods were reviewed and their shortfalls were discussed. A combination of qualitative and quantitative research designs was used in this study to meet the research objectives. The purpose of adopting mixed-method techniques was to expand the scope of study (Sandelowski, 2000). In this study, there were qualitative data such as profiles of respondents, background of office building involved. The data collection methods used for this study were survey questionnaires and interviews. The data collection instruments were surveys and face-to-face interviews. The population frame adopted for this study was existing office buildings in Singapore. The sampling frame used included BCA GM-EB list and FM personnel lists from International Facility Management Association (IFMA) Singapore Charter and Association of Property and Facility Managers (AFPM). Existing buildings which were certified GM and higher GM rating can be found in the BCA GM-EB list. The FM personnel were chosen from lists IFMA and AFPM because they are certified with building management. The sampling method adopted was simple random sampling. Simple random sampling provides same probability of individual sample being chosen (Tan, 2008). Data analysis methods used for quantitative analysis were independent one-sample t-test, t-test and Pearson Correlation. A case study was used for qualitative analysis. 6 1.7 STRUCTURE OF DISSERTATION This dissertation consists of nine chapters. Chapter 1 provides a background on how FM has emerged in the past two decades and how it leads to changes in the way FM is viewed. Research problems are identified and importance of study is discussed. Research aim and objectives are identified. There are 6 research hypotheses to be tested. Office buildings with obtained GM-EB or without GM-EB award in Singapore are chosen. Research methodology used is discussed. Chapter 2 reviews the literature on FM. It provides the definitions of GM and drivers for growth in FM. The relationship between business and FM’s functions are reviewed. Chapter 3 discusses the sustainable development concepts and principles. Literature review on the three main pillars of sustainability (economic, social and environment) was undertaken. Research gaps are indentified. The integration of sustainability into FM practices is proposed. Chapter 4 reviews the current performance assessment methods: LEED-EB, BREEAM, BEPAC, NABERS, CASBEE, Green Mark for Existing Buildings and HK-BEAM for Existing Buildings. These existing building assessment methods are critiqued for their relevance in delivering sustainable development. 7 Chapter 5 presents the research method adopted for this study. Survey questionnaire and case study are used for the data collection method. Data collection instruments include survey questions and interviews. The sampling methods are discussed. Descriptive analysis and statistical analysis are discussed under data analysis methodology. Chapter 6 discusses the characteristics of data samples collected in the exploratory study and pilot study. The survey response rate, characteristics of office building samples, building management and performance profiles of the office buildings are presented. Chapter 7 discusses the results analysis. Independent one-sample t-test, Pearson Correlation and t-test are used in the analysis. The differences in means for buildings with GM and without GM certification are studied. The correlations between sustainability variables and performance of electricity and water consumption are examined. Finally, the respondents’ perceptions on the importance of the variables in SFM are carried out and analysed with t-test. Chapter 8 proposes an assessment method for existing building performance using Multiple Criteria Decision Analysis (MCDA). Multi-attribute Value Theory (MAVT) is chosen to calculate the weighted scores for SFM. The application of these indices was presented using a case study on an existing office building. 8 Chapter 9 summarizes the findings and validates the hypothesis. Recommendations are presented for the use of the SFMIndices in office buildings. Limitations are discussed. Finally, conclusion and recommendations are presented. 9 _____________________________________________________________________ CHAPTER 2: LITERATURE REVIEW OF FACILITIES MANAGEMENT (FM) _____________________________________________________________________ 2.1 OVERVIEW OF CHAPTER FM has emerged into a new professional discipline with its own practice codes and standards (Atkin and Brooks, 2009). The demand on FM professional expertise and services has been notably increased (Alexander, 1993). The roles of FM in the built environment have been gaining recognition (Amaratunga, et al., 2000 and 2002; Tay and Ooi, 2001). However, the definition of FM is still under debate. This chapter reviews the definitions of FM and its development. The drivers for growth of FM are discussed. This is followed by a review on the relationship between business and FM functions. 2.2 DEFINITIONS OF FACILITIES MANAGEMENT (FM) The scope covered under FM included financial management (Atkin and Brooks, 2009), change management (Amaratunga et al., 2001; Grimshaw, 1999), cleaning and catering (Atkin and Brooks, 2009; Tay and Ooi, 2001), operations and maintenance (Barrett and Baldry, 2003; Cotts et al., 2010), resource management (Then, 1999), contract management (Atkin, 2009; Barrett, 2003) and safety and health management. 10 The definition, concepts, approaches and techniques of FM are still under debate (Hamer, 1988). FM’s functions, scope, roles and priorities vary from organisation to organisation due to different business environment, business objectives and organisation cultures and values (Chotipanich, 2004; Alexander, 2003; Atkin and Brooks, 2009). For example, a finding from the project ORBIT-2 is that there are no fixed FM strategies or packages to fit all organisations due to different business needs (Davis et al., 1985). Furthermore, FM should be able to adapt to the changing needs of the organisation over the time. Chotipanich (2004) proposed a framework for FM to position itself in order to provide strategies and solution to fit an organisation’s changing needs. There are various factors that contribute towards different practices in FM. Chotipanich (2004) suggested FM’s roles and functions are influenced by both internal and external factors. Internal factors such as organisation characteristics and type of business sectors impact on how FM can be fitted into the organisation (Alexander, 2003). External factors which include economic, social, environment and government policies have influences on FM roles and functions in delivering the services in organisation (Chotipanich, 2004). Wong (2008) believed cultural issues contribute to the differences in FM practices in a country and an organisation. Also, evolvement of information technology (IT) and intelligent building technologies provide opportunities for FM profession to continue to develop and improve FM practices for buildings (Atkin, et al., 1997; Becker, 1990). In the past, the definition of FM recognizes it as a building management practice to support an organisation’s function by creating an environment that is conducive to 11 carry out its operation (Alexander, 1993). Becker (1987) defined FM as a function that is responsible for coordinating all efforts related to planning, designing and managing buildings and their systems, equipment and furniture to enhance the organisation’s ability to compete successfully in a rapidly changing world (Becker 1987, p.82). Nutt (2004, p.21) defined FM as "the management of infrastructure resources and services to support and sustain the operational strategy of an organisation over time”. It can be observed that the definition of FM is shifting towards embracing people, processes and spaces (Nutt, 2004). The scope of FM is no longer constrained by the physical aspects of buildings but effectiveness of the use of technologies. Price and Akhlaghi (1999) mentioned the new generation of FM is moving towards space creation to support people and different activity levels. Alexander et al. (2004) noticed there are increasingly researches done to focus integrating FM into the core business. Barrett and Baldry (2003, p.14) defined FM as “a strategically integrated approach to maintaining, improving and adapting the buildings and supporting services of an organisation in order to create an environment that strongly supports the primary objectives of that organisation”. FM’s evolvement reflects the interdependence of multiple factors in supporting an organisational goals and objectives. With the emergence of technologies, the definition embraces the technology aspect. IFMA defined FM as "A profession that encompasses multiple disciplines to ensure functionality of the built environment by integrating people, place, processes and technology" (IFMA, 2007). It can be observed that this definition emphasizes the importance of technology, which was lacking previously. 12 Among the many definitions, this study defines FM as “a profession that manages the functionality of built environment by balancing economic, social and environmental aspects through continuous performance evaluation and assistance of green building technologies”. The first part of the definition emphasises on the importance of considering the three sustainability pillars equally. The later part of the definition focuses on how to balance the three principles through building evaluation. Green building technologies are crucial to support the implementation of sustainable FM and constructing building evaluation tools. 2.3 DRIVERS FOR GROWTH IN FACILITIES MANAGEMENT (FM) FM has been gaining more recognition in its roles and function in supporting an organisation’s business objective. The drivers for growth in FM indentified are changes in government policies, increased in global competition, increased environment awareness, diversification in workforce and increased in FM outsourcing practice. The implications of these trends on FM, as suggested by Alexander (2003) are changing FM roles in managing customers and physical assets. 2.3.1 Government Policies One of the drivers for growth in FM is change in government policies in a market economy (Alexander, 2003). For examples, competitive policies, deregulation and privatization and these policies are placing pressure on FM to adapt to business needs in a changing environment (Alexander, 2003). Change in economic policies lead to 13 changes in business approach such as restructuring and decentralization (Becker, 1990). FM has a role to play to support the changing needs of organisations. Hamer (1988) believed that physical assets are the largest sum on the balance sheet. FM can create competitive advantage to an organisation through minimising resource consumption and environmental impact (Alexander, 2003). In addition, high cost of space, as suggested by Becker (1990), is a driver for FM growth to provide effective space planning. Nutt (2000) suggested FM should provide flexibility and strategies in planning to support changing patterns. For example, organisational trends in providing flexible spaces influence the layout of IT and cabling. In addition, virtual workplace has been widely practised and has implications on FM office layout Nutt (2000). 2.3.2 Global Competition Another driver for growth in FM is increased global competition. The trend has placed pressure on FM add value to an organisation’s business (Mole, 1993). FM is able to deliver cost effective operation, deliver quality and provide customer satisfaction (Alexander, 2003). Becker (1990) introduced a term called “elastic organisation” to illustrate the unpredictable business environment. This means FM has to be more flexible to adapt to changes in an organisation. The emphasis on flexibility has restructured FM’s roles in meeting business changing needs. For example, the layout of offices should be flexible to meet storage needs such as increased computer appliances. Also, due to globalisation, working patterns and routines are required to meet the global time zones (Payne, 2000). 14 2.3.3 Environmental Awareness The next driver for FM growth is increased awareness of environmental protection. Environmental issues such as global warming, energy crisis and pollution are increasingly gaining attention of different building professions (Clarke et al., 2002). Increased carbon footprint of buildings due to building activities such as the use of air-conditioning are leading to climate changes (Perry et al., 2008). There is an increased demand on delivering energy efficient buildings which requires effective energy management plans and policies (Clarke et al., 2002; Doukas et al., 2007). Alexander (1997) forecasted there will be a shift from mandatory compliance to voluntary responses. There are increased numbers of companies in adopting more proactive measures towards environmental issues. Angella and Klassen (1999) carried out a study to integrate the environmental issues into FM instead of carrying out environmental study in isolation. This is due to the fact that decision making in FM can potentially help in addressing environmental issues (Angella and Klassen, 1999). 2.3.4 Diversification in Workforce Another factor for driving the growth of FM is increased diversification in workforce from various countries. This demands FM to be flexible enough to fulfill different employees’ expectations. In addition, increasing demands for quality of working life places pressure on FM to deliver comfortable working environment (Alexander, 2003). Increasingly, individual control environment such as personalized ventilation and accessible to daylighting are emphasized to meet users’ demand on quality working environment (Duffy, 2000). This is because physical environment is linked 15 to increased workforce productivity (Tranfield and Akhlaghi, 1995). In addition, space management is increasingly important to fulfill the demand on working solution such as increasing teamwork to meet organisation objectives. International Facility Management Association (IFMA) forecasted the number of aging workforce is increasing and this will impact on FM to deliver the need of the aging workforce (IFMA, 2007). 2.3.5 Outsourcing FM Services Last but not least, the practice of outsourcing FM has driven the growth of FM profession. FM outsourcing has been widely practised in delivering FM services since 1990s. Outsourcing refers to using external service providers to perform core or/and non-core FM functions (Barrett and Baldry, 2003). Dynamic business environment and competition have contributed to the growth in increased practices in outsourcing FM (Barrett and Baldry, 2003). This has placed pressures on organisation to reduce operating costs by procuring external service providers and focusing on core business. Alexander (2003) mentioned outsourced FM is able to increase the flexibility to meet organisation needs. This trend has changed the ways of FM operates in. 2.4 THE RELATIONSHIP BETWEEN BUSINESS AND FACILITIES MANAGEMENT’S (FM) FUNCTIONS FM is often known to deliver non-core services to support an organisation’s core business function (Shah, 2007). However, FM is getting more emphasis in 16 organisations as there is a need to deliver customer satisfaction and best value through enhanced services in FM (Aktin and Brooks, 2009) and improve corporate competitiveness (Alexander, 1992). Grimshaw and Cairns (2000) concluded that the increased organisational needs towards supporting infrastructures contribute to the changes in relationship between business and FM. Integrating FM into business performance has been studied (Alexander, 1996; Krumm et al., 1996; Barrett, 1995; Then, 1999, 2003; Thomson, 1990). Alexander (1996) suggested that FM can be used to gain competitive advantage through delivering facilities that satisfy customer. Effective management of infrastructure resources will help to improve business performance by achieving best value and customer satisfaction (Price and Akhlaghi, 1999). Bröchner and Dettwiler (2004) studied the relationship between FM and organisations by using company growth theories and space theories. Their study concluded that FM is critical to support organisation’s growth through physical supporting facilities (Bröchner and Dettwiler, 2004). FM’s roles and scopes are different even for the same type of business due to different values, objectives and cultures (Lee, 2002; Schindler, 1998). Lee (2002) indicated three important factors which influence FM practices are organisation’s objectives, core business needs, and source of value. There is no standard FM solution for all organisations (Atkin and Brooks, 2000). Thus, FM should be refined to fit organisational needs (Brooks, 2000; Hinks, 2002). There are studies proposed frameworks for linking FM to business. For example, Lee (2002) proposed a value tree model to link FM practices with business environment to achieve advantage competitiveness. In addition, FM can deliver quality work environment and hence increase the productivity of building end users (McGregor and Then, 1999). 17 Alexander (2003) predicted that FM will be the core of the business. He mentioned facilities managers roles will slowly move into business planning and FM profession needs to prepare themselves with business skills such as marketing and contract management (Alexander, 2003). Thus, FM plays a very important role in delivering business sustainability. From the literature review, several knowledge gaps in FM services are identified. Shah (2007) pointed out that FM can be used as a management tool to help organisation to achieve business sustainability and thus there is a potential to integrate sustainable principles in business through FM. Previous studies such as Aktin and Brooks (2009), Bröchner and Dettwiler (2004) and McGregor and Then (1999) did not integrate sustainable principles into business through FM. 2.5 SUMMARY OF CHAPTER This chapter discussed how the definition of FM evolved in the past decades. A definition of FM as “a profession that manages the functionality of built environment by balancing economic, social and environmental aspects through continuous performance evaluation and assistance of green building technologies” was adopted in this study. FM has been growing rapidly and the drivers for growth in this profession were reviewed. The drivers included government policies in a market economy, global competition in business, increased in environmental awareness, diversification in workforce and FM outsourced practices. The relationship between business and FM functions was discussed. It is concluded that FM delivers customer satisfaction and competitive edge to organisations through supporting business functions and facilities. 18 _____________________________________________________________________ CHAPTER 3: LITERATURE REVIEW OF SUSTAINABLE DEVELOPMENT AND CONCEPTUAL FRAMEWORK OF SUSTAINABLE FACILITIES MANAGEMENT (SFM) _____________________________________________________________________ 3.1 OVERVIEW OF CHAPTER This chapter reviews the literature on sustainability. The principles of sustainable development are discussed and the variables under the three main sustainability pillars are presented. This is allowed by a discussion of the conceptual framework which integrates sustainability and FM. The framework is used to develop the Sustainability Facilities Management Indices (SFMIndices). 3.2 DEMANDS ON FM TO DELIVER SUSTAINABLE BUILT ENVIRONMENT The demand on adaptable office buildings to meet the changing needs of organisations has increased (Alexander, 2003; Amaratunga et al., 2000; Nutt, 2000). Arge (2004) suggested that adaptability is linked to environmental issues. He proposed FM has a role in reducing the cost of rebuilding by offering flexible FM solution to organisation when there is changing function on physical facilities (Arge, 2004). Cotts et al. (2010) believe by incorporating sustainability into operations will help to reduce operating cost. There is an increased demand from employees and 19 customers in providing sustainable built environment (Cotts et al., 2010). This drives FM to deliver more sustainable solutions in physical facilities (Cotts et al. 2010). The clients are increasingly demanding on sustainable solutions or services on facilities by setting sustainable development policies and guidelines (Arge, 2004). For example, FM providers or service suppliers are selected based on a set of sustainability criteria (Alexander et al., 2004). The trend demands FM to apply sustainability principles in their management and services to meet clients’ changing demand on FM. Alexander et al. (2004) foresee legislation in FM to deliver sustainable built environment will be more defined and stringent in future, especially on environmental issues. There are studies carried out to incorporate sustainable development principles into FM. Barton et al.’s (2002) study showed that there are direct correlations between ecologically sustainable development (ESD) and strategic asset management (SAM). Barton et al. (2002) proposed a model using life cycle assessment (LCA) approach to integrate environmental component into SAM and formulated a decision framework for FM to achieve value added services to companies. Alexander et al. (2004) foresee the potential of FM to contribute to sustainable development. At present, there are many competing approaches to understand and evaluate sustainable development (Alexander et al., 2004). Thus, Alexander et al. (2004) suggested that new tools are needed to help FM to develop in sustainable ways because sustainable development is a complex concept. The literature review suggests that there is a need to expand FM functions by considering sustainability issues. 20 3.3 SUSTAINABLE DEVELOPMENT Sustainable development was first defined in Brundtland Report (1987), where “development meets the needs of the present without compromising the ability for future generations to meet their own needs” (WCED, 1987, p.43). Agenda 21 action plan was announced at United Nations Conference on Environment and Development (UNCED) which held in Rio de Janerio, Brazil in 1992 (UNDSD, 1992). The principles of sustainable development in Brundtland Report 1987 were developed in Agenda 21 by using indicators to assess sustainability (UNDPCSD, 1995 and 1999). Spangenberg et al. (2002) critiqued that the indicators stipulated in Agenda 21 are causes-damages-solutions nature and this may not be effective to achieve sustainable development. Mitchell (1996) and Alexander et al. (2004) also commented that the indicators in sustainable development are too broad to be applied into a specific sector. The application of sustainable development principles is well defined in PICABUE model to create sustainability indicators. “PICABUE” derives its name from the seven principal steps proposed by Mitchell et al. (1995): 1. Principles and definitions of sustainable development and the objectives of the program in which indicators are developed must be agreed upon by stakeholders; 2. Issues of concern must be identified and selected; 3. Construct and/or select indicators of issues of concern; 4. Augment indicators developed for step 3 by the principles of sustainable development identified in step 1; 21 5. Address Boundary issues to modify indicators from step 4; 6. Develop Uncertainty indicators from step 4 augmented indicators; 7. Evaluate and review final sustainability indicators" (Devuyst et al., 2001, p.263). PICABUE can be used as a sustainable methodological framework to develop sustainable development indicators (Mitchell et al., 1995). The four analytical dimensions are: futurity, equity, public participations and environment. The futurity, also known as inter-generational equity, as defined in Brundtland Commission in 1987 where “development which meets the needs of the present, without compromising the ability of future generations to meet their own needs” (WCED, 1987). Futurity principle can be applied in energy demand. There is increased demand in energy usage and future generations will face energy crisis if no measures are taken to meet the energy demand (Mitchell et al., 1995). Equity principle (intra-generation equity) refers to the resources available on planet today should be distributed equitably among the industrialized countries and developing countries (Fuller, 2005). Fuller (2005) suggested this can be achieved through sharing or transferring of green building technologies by industrialized countries to developing countries. The environment principle entails the importance of protecting and preserving the ecosystem from human activities (Dresner, 2008). Public participation principle involves was added at the 1992 Rio Earth Summit (Fuller, 2005). Participation by members and public of interests can be included in decision making process (Dresner, 2008). The PICABUE concept is not adopted in this study because this study defines SFM in the context of economic, social and environmental so the variables are measureable. 22 Komiyama and Takeuchi (2006) suggested a new way to view sustainable development concept at three levels of system: global, social and human which involves a more holistic view to identify current problems in sustainability (a transdisciplinary approach). Global system encompasses ecosystem for human to sustain their life and activities while social system provides a base to fulfill human existence through politics, economic and technology and human system consists of health, safety and security (Komiyama and Takeuchi, 2006). The main purpose of sustainability is to preserve and improve these three systems and this can be achieved using the main indicators in economic, social and environment (Komiyama and Takeuchi, 2006). The purpose of introducing sustainable concept which touches on development principles is to understand the principles and apply them in existing facilities management. Sustainable concept on development principles could be applied on construction works in existing building such as refurbishment, renovation and alteration and addition (A&A). Hodges (2005), Nielsen et al. (2009) and Shah (2007) integrated sustainability principles into FM. The practice of Sustainable Facilities Management (SFM) is growing rapidly (Elmualim et al., 2010). SFM is defined as “a holistic approach which includes consideration not only of core business and support functions, but also relations with the local and global society as well as the climate and the ecosystem” (Nielsen and Galamba, 2010, p.3). The drivers for growth of SFM practice are reviewed under section 3.4. 23 3.4 DRIVERS FOR THE GROWTH OF SUSTAINABLE FACILITIES MANAGEMENT (SFM) Increased awareness on environmental issues, introduction of building certified scheme for existing buildings, increasing aging buildings and emerging building technologies are identified as the drivers for SFM to develop and evolve. 3.4.1 Awareness on Environmental Issues Buildings have significant impacts on environment, economic and social issues. United Nations Environment Programme (UNEP, 2006) reported that building sector consumes 40% of global total energy used and contributes 40% of global total carbon emissions (see Figures 3.1 and 3.2). This is due to a building consumes huge amount of materials, resources and energy; meanwhile generate air, water and soil pollution over its life cycle time (Tucker et al., 2003). Global warming is a major environmental concern due to large energy consumption and greenhouse gas emissions by buildings. Price et al. (1998) studied the main drivers of increased energy demand in buildings were due to urbanization and industrialization. The increased in commercial floor space contributes to larger energy consumption in buildings Price et al. (1998). In addition, pollution from existing buildings causes environmental concerns. In Singapore, buildings sector is the second largest consumer of electricity after industrial sector in year 2005 and consumes more than 30% of the total end-use electricity (MTI, 2007) (see Figure 3.3). Some researchers found out there is a 24 unidirectional causality relationship between electricity consumption and economic growth (Altinay and Karagol, 2005; Shiu and Lam, 2004; Masih Abul and Masih, 1998). Building sector is a key energy consumer and waste generator in Singapore. The major expenditure of energy is when buildings are in operation with air conditioning constituting about 60% of total building energy consumption (National Climate Change Strategy, 2005). Thus, existing buildings hold the key to unlock the potential in energy reduction and carbon emission. FM can help in reducing the environmental impact and improving energy efficiency of existing buildings through energy retrofitting such as using energy efficient technologies in existing buildings. Figure 3.1: Share of Built Environment in Resource Use (Source: UNEP, 2006) Figure 3.2: Share of Built Environment in Pollution Emission (Source: UNEP, 2006) 25 Figure 3.3: Energy Consumption by Sectors in 2005 (Source: MTI, 2007) 3.4.2 Environmental Building Assessment Method for Existing Building Environmental building assessment methods for new buildings have been introduced since 1990’s such as Leadership in Energy and Environmental Design (LEED) in the United States, BRE Environmental Assessment Method (BREEAM) in United Kingdom and Green Mark Ratings Scheme in Singapore. Recently, building certified scheme for existing building is introduced in some countries to assess performance of existing buildings over time. In the United States, LEED for Existing Building: Operations and Maintenance was launched in 2009 to certify existing buildings with best practices in achieving energy saving, natural resources and better indoor environment quality (USGBC, 2011). In the United Kingdom, BRE Environmental Assessment Method (BREEAM) for existing building such as BREEAM In-Use was 26 developed in 2009 to for existing building’s asset management and building management performance assessment (BREEAM, 2009). Building Environmental Performance Assessment Criteria (BEPAC) was introduced in 1993 for new and existing buildings in Canada. In Australia, National Australian Building Environmental Rating System (NABERS) was introduced in Australia to assess environmental performance of existing building using a rating system (NABERS, 2010). There are building assessment schemes for existing building in Asia countries such as Hong Kong Building Environmental Assessment Method (HK-BEAM) Existing Building, Building and Construction Authority (BCA) Green Mark for NonResidential Existing Buildings in Singapore and Comprehensive Assessment System for Built Environment Efficiency (CASBEE) in Japan. FM personnel are urged to manage existing buildings by taking environmental aspect into consideration to meet the requirements in legislation with the increased numbers in environmental assessment schemes. 3.4.3 Increase in Existing Building Stock There is increased numbers of existing building stock (Alexander, 1998; Shah, 2007). Inefficiencies in managing aging buildings will lead to higher energy costs (Holness, 2008). In the United States, 90% of current housing stock was built before 1990 and more than 70% of commercial buildings were constructed before 1980. In the United Kingdom, 70% of the current buildings that will be used in 2050 have already been built (IME, 2009). The existing building stock in Singapore stands at 210 million m2 floor area and is still increasing (BCA, 2010b). In view of increasing building stock in Singapore, it is envisaged that more and more construction works would involve 27 refurbishment, retrofitting and renovation of existing buildings. Wood (2006) mentioned that existing buildings have potential to contribute to sustainability through lower ‘embodied energy’. There are many opportunities to achieve energy savings in existing building stock through energy retrofitting (Sussman, 2007) and buildings refurbishment (Mickaitytė et al., 2008). 3.4.4 Advancement In Building Technologies The advancement in building technologies has changed the ways on how FM operates in. Building technologies such as Building Automation System (BAS), information technology (IT), Energy Management System (EMS), Communication Management System (CMS) and Building Information System (BIS) are increasingly adopted in buildings (Kua and Lee, 2001; Wong et al., 2005). Alexander (2003) anticipated the emergence of ‘intelligent users’ where knowledge is acquired in integrating building technologies into building functions in providing optimum building environment. Thus, there is a need to change the ways how the building is managed. There is an increased demand on qualified FM profession to manage intelligent buildings. 3.4.5 Gaps in Knowledge to deliver SFM Nielsen’s et al. (2009) and Shah’s (2007) studies were focused on environmental aspect. Ayres et al. (2007) studied only the economic aspects of FM. Labuschagne et al. (2005) investigated social aspect of FM. The gap in knowledge is that these studies did not take a balanced and holistic approach to integrate economic, social and environmental aspects in managing building facilities. A holistic approach is 28 important because sustainability is a dynamic and multi-dimensional issue. In addition, no index has been developed for assessing existing buildings on the extent to which the FM carried out is sustainable. An index is important because it can be used to evaluate and compare a building’s performance against an industry standard. As such, the fieldwork was carried out to fill the gap in knowledge. 3.5 SUSTAINABLE FACILITIES MANAGEMENT VARIABLES The variables under each economic sustainability, social sustainability and environmental sustainability principle are reviewed. Macro-sustainable development issues (organisational practices) are focused in this study instead of micro-sustainable development issues (individual actions). Shmeleva and Rodríguez-Labajosb (2009) pointed out that assessment at macro-level is suitable for dynamic and multidimensional nature of sustainability issues. They proposed the use of multi-criteria decision method to assess sustainability at the macro level (Shmeleva and RodríguezLabajosb, 2009). 3.5.1 Economic Sustainability Economic sustainability defined in Global Reporting Initiatives as “an organisation’s impacts on the economic circumstances of its stakeholders and on economic systems at the local, national and global levels (GRI, 2002). In this study, direct economic impact at the local level is studied. This is because this study focuses on 29 organisational level. Thus, the internal economic contributions to economic system are measured. Labuschagne et al. (2005) mentioned external economic contributions are allocated to social sustainability. Variables studied are organisational annual turnover, green investment in facilities, and operation and maintenance cost. 3.5.1.1 Organisational annual turnover Economic efficiency has been used by several authors to describe sustainable economic system for goods and services provision (Bishop, 1993; Bruce et al., 1996; Ayres et al., 2007, Stayins et al., 2003). Bishop (1993, p.69) defined economic efficiency as “under the Pareto criterion, a change in the allocation of inputs (natural resources, labors and capital) or outputs (intermediate products and final goods and services) can be said to make society better off if it leaves at least one person better off without making someone else worse off”. This links back to the intergenerational equity under sustainability principles (Stayins et al., 2003). The interrelationship between facilities decisions and organisation’s business strategies has impacts on financial return (McGregor and Then, 1999). Efficiency in using business resources to deliver goods and services define how successful a business can be measured (McGregor and Then, 1999). 3.5.1.2 Investment in facilities Kibert (2003) proposed green buildings should be viewed as a whole package where not only design of the green buildings is crucial; its operation, renovation and disposal are crucial to deliver sustainable built environment. North (1997) found the trend of 30 green investment funds for facilities has become new businesses direction where emphasis in environment provides business opportunities. Some authors found green investment in existing facilities delivers a better building performance (Alexander, 1992; Darnall, 2000; Notrh, 1997; Ries et al., 2006). Wood (2006) suggested in his study on sustainability where investment in existing buildings have potential in helping in resource conservation. Green and Turrell (2005) carried out a study on how investment in schools building impacts on pupil’s performance. Green and Turrell (2005) found that pupils’ achievements, motivation and behaviour have improved after government’s investment in green facilities (Green and Turrell, 2005). Investment in renovation and refurbishment for green technologies is found to be beneficial to organisational returns and corporate social responsibility (Hassanien and Losekoot, 2002; Keeping and Shiers, 1996). 3.5.1.3 Operation and maintenance cost Capital Theory has been used to understand sustainable development to develop indicators of sustainability in economic activities (Adam, 1977; Stern, 1997; Victor, 1991). Under Capital Theory, Fixed Capital (Spengler, 1977), Human Capital (Adam, 1987), Natural Capital (Pearce and Atkinson, 1993) and Social Capital (Colemn, 1988) are examples of theories that related back to stock of capital. Under Neoclassical school of thought of Capital theory, maintenance of the natural capital stock is a condition for sustainable development (Victor, 1991). Victor (1991) explained that neoclassical indicators of sustainable development are measured using the value of resources in money terms such as production costs and resources prices. However, Pearce and Atkinson (1993) critiqued that Capital Theory is a weak measurement for 31 sustainable development. As explained by Faucheux et al. (1997), this is due to natural resources are depletable and irreversible. Keynesian school of thought measures capital by incorporating the price elements which complements the shortfalls in neoclassical capital theory (Victor, 1991). Capital utilization theory is used to support the economic theory under this study. Operating and maintenance cost are the indicators in the economic model under capital utilization theory (Licandro and Puch, 2000). Operations of facilities in terms of resource capital consumption such as energy linked directly to economic model. (Licandro and Puch, 2000). Bitros (1976) studied the relationship between income and expenditures where expenditures in capital for maintenance and repair will directly impact on the gross investment of an organisation. Maintenance cost optimization is able to help in delivering economic value to organisation (Dekker, 1996). Miles and David (1996) carried out a study on benefits of “green refurbishment” of existing commercial buildings in the United Kingdom and concluded that green buildings generate lower operation costs after refurbishment. 3.5.2 Social Sustainability Social sustainability performance can be measured using internal human resources and external dimension or known as macro-social performance (Labuschagne et al., 2005). In this study, both variables in internal and external social sustainability are studied. Variables for organisation’s social responsibility towards employees such as absenteeism, productivity level, and staff recruitment and retention are investigated. 32 Corporate social responsibilities to external population are studied. The variables included preservation and conservation of existing building and safety management. 3.5.2.1 Absenteeism People management in an organisation is crucial to achieve sustainable competitive advantage (McLennan, 2000; Pieffer, 1995). Working environment is important to ensure workers’ performance in their work (Pieffer, 1995). Absenteeism among employees due to poor working environment leads to direct and indirect costs to organisation (Duffy and Price, 2000). Rose (1999) and Willard (2002) found that workers’ well being and motivation level are correlated to the quality of physical facilities. Atkin and Brooks (2009) also concluded that stresses at work causes absenteeism in workers. They further explained that the employees’ satisfaction on working environment is directly related to absenteeism (Atkin and Brooks, 2009). 3.5.2.2 Productivity level Grimshaw (1999) linked FM back to the mainstream social and organisational disciplines using Social Theory. He stated that behaviour of social system is affected by individual behaviour in the system under Social Theory (Grimshaw, 1999). He suggested that users’ productivity at workplace is largely affected by the physical facilities (Grimshaw, 1999). He further commented that space for social interaction among the users is provided by physical facilities. In addition, Brochner and Dettwiler (2004) incorporated theories of company growth to theories of space use and relocation. As the company grows, the demands for space will be different at each 33 growth stage (Brochner and Dettwiler, 2004). Thus, theories based on stages of company development are linked to architectural theories where physical facilities need to be flexible to accommodate the changing needs of an organisation (Brochner and Dettwiler, 2004). 3.5.2.3 Staff recruitment and retention Bradfird (2000) used organisational theory to describe FM roles in a business. Becker (1990) found that employees considered physical environment as one of the factors in their job selection. Staff recruitment and staff retention are crucial in retaining organisational economic competitiveness (Bradfird, 2000). In healthcare service industry, staff recruitment and retention is utmost important due to the risks of exposing to different illness and diseases. This is due to skilled and knowledge needed in the industry (Hayhurst et al., 2005). There are many studies carried out to examine the relationship between facilities provided under healthcare service industry and staff recruitment and retention (Berry et al., 2004; Coile, 2002; Hayhurst et al., 2005; Tai and Robinson, 1998). Berry et al. (2004) studied on how optimal facilities design can benefits employees and employers. Lower turnover rates in staff recruitment and retention will help to reduce economic and social costs (Hayhurst et al., 2005). Earle (2003) believed that workplace environment improves organisation’s competitive advantage through corporate identity. He linked physical environment and organisational culture to study their interrelationship and found that staff satisfaction level is higher and better communication and teamwork in the organizations studied. 3.5.2.4 Customer satisfaction 34 Organisation has been paying attention in delivering customer or end user satisfaction. Delivering customer satisfied products or services have become one of the business strategies (Dube et al., 1994; Greenwell et al., 2002). Hinks and McNay (1999) attested customer satisfaction is one of the key performance indicators for FM. Customer satisfaction is defined by Day (1984) as customers’ decision to choose the services or final products where in their perception (judgment) that performance exceeds expectation. Customer satisfaction has been used as an indicator for business performance to strategically position a company’s management of customer services to meet customers’ needs (Dube et al., 1994; Willard, 2002). Hallowell (1996) proved that customer satisfaction has a positive correlation with profitability of an organisation. Greenwell et al. (2002) found that there is a relationship between physical environment and customers’ behavior. He further explained that customer satisfaction depends on the physical facilities, final core products and good service personnel (Greenwell et al., 2002). 3.5.2.5 Preservation and conservation of existing building Existing buildings stock should be evaluated in terms of their functions and values delivered by physical buildings (Ravetz, 2008). Ravetz (2008) further commented that existing building stock helps in retaining cultural identity. He proposed that this can be done through preserving heritage of the existing buildings (Ravetz, 2008). Jones et al. (2008) stressed the importance of conserving community resources and heritages to ensure society continue to grow without forgetting the root of community identity. 35 Conservation Management Plan (CMP), as mentioned by Pearson and Sullivan (1995) is a management strategy to preserve the heritage values of the physical buildings. 3.5.2.6 Safety management Cotts et al. (2010) mentioned that public health and safety is important in FM. Cotts et al. (2010) listed out several safety issues to be concerned in FM such as fire safety, life safety and environmental safety. Kleindorfer et al. (2005) suggested that health and safety management should be integrated into green design and operations to achieve sustainability and they should not be treated separately in the management of the facilities. With the 911 incident in year 2001, awareness in security and terrorism attack issues has been increased. Then et al. (2005) emphasizes risk management, crisis management and business continuity management (BCM) should be integrated in FM to ensure health and safety of public and occupants. He further suggested that terrorism preparedness, recover and response plan should be implemented in this new security environment (Then et al., 2005). 3.5.3 Environmental Sustainability Environment sustainability depends on economic and social sustainability. (Baumal, 1977) suggested that Production Theory should be used to assess environmental quality while maximise production economic. Social Environment Theory was used to link human decision and social behaviours on environment (Irwin, 1978). Miles (1987) commented that environmental quality is driven by social responsibility and environmental decisions. Angell and Klassen (1999) proposed that environmental 36 aspect should be integrated into mainstream of FM instead of viewing environment issues as a separate matter. They suggested that through supply chain management, product and process technology and operation tactics, environment issues can be managed under FM (Angell and Klassen, 1999). The variables studied included energy and water management, procurement policies, waste management, indoor environment quality and transportation access within a building. 3.5.3.1 Energy and water management The main concern in environmental issues is resource management for energy and water in buildings (Then, 1999). Barrett and Baldry (2003) suggested that building appraisal should take into account of energy performance information such as electricity bills. The purpose is to track the records and identify the trends of energy consumption and thus energy management can be improved (Barrett and Baldry, 2003, Sawyer et al., 2008). In addition, water consumption management is crucial to achieve environmental sustainability. According to the report in United Nations Environmental Program (UNEP), buildings consume 20% of the existing water resources (UNEP, 2009). Water management is one of the key issues in resilience building management (Folke et al., 2002). Folke et al. (2002) suggested that lower water usage can be achieved through installing water efficiency devices, water treatment and low-flow plumbing fixtures. 37 3.5.3.2 Procurement policies Barrett and Baldry (2003) forecasted that there will be a change in the procurement criterion where best value is emphasized over the lowest cost procurement policy. Supply chain management has been related to purchasing, sourcing and supply activities management (Seuring and Müller, 2008). Seuring and Müller (2008) linked the triple bottom line of sustainability into supply chain management through purchasing sustainable products. Sustainable products are known as products that aim to improve social and environmental quality (Bowen et al., 2001). Sarkis (2003) proposed a framework using analytic hierarchy process (AHP) to integrate green building products into supply chain management. 3.5.3.3 Waste management Waste management is important to reduce impacts on environment (Erdogan and Baris, 2007). In addition, waste management aims to decrease the costs of disposal and potential health issues on human (Lasten, 2007). Reduce, reuse and recycle are the strategies that are commonly practised in waste management (Erdogan and Baris, 2007). Reduce means reduction in waste generated (Lausten, 2007). Lausten (2007) identified energy and water consumption as the two major contributors to the environment degradation. The costs of reuse are always compared with the costs of the production and storage cost (Lausten, 2007). However, in the long run, waste reuse strategy can generate more savings in the life cycle cost (Lausten, 2007). Waste recycling is the most commonly adopted approach in waste management (Erdogan and Baris, 2007). Recycling of waste can reduce environmental costs and raw 38 materials consumption (Kaseva and Gupta, 1996). Erdogan and Baris (2007) suggested that efforts in waste management should involve not only management staff but also stakeholders who have direct concern with the environmental issues. 3.5.3.4 Indoor environmental quality Indoor environmental quality aims to examine occupants’ acceptance and satisfaction level in areas such as thermal comfort, indoor air quality (IAQ), visual comfort, noise level and space allocation (Wong et al., 2008). Browning and Romm (1995) commented that human health and productivity can be achieved through a conducive interior environment quality. Sick building symptoms can be reduced by addressing IAQ problems in building (Reynolds et al., 2001). Cheong and Chong (2001) highlighted on the importance of thermal comfort to maintain a thermally comfortable indoor air quality. Cheong and Chong (2001) developed a framework to combine thermal comfort parameters into IAQ audit for buildings in Singapore. On the other hand, Sekhar et al. (2003) created a multi-disciplinary model to integrate IAQ element into energy auditing process. An Indoor Pollutant Standard Index (IPSI) was developed by Sekhar et al. (2003) to assess buildings’ IAQ and energy in hot and humid countries. In Singapore, Sekhar et al. (2005) developed a Single Coil Twin Fan (SCTF) air conditioning system to provide optimum indoor environmental quality. SCTF enhances ventilation circulation and delivers occupants’ cooling needs (Sekhar et al., 2005). 39 Wong et al. (2008) proposed an indoor environment quality assessment framework using multivariate logistic regression model. They further commented that subjective and qualitative feedback can be translated into quantitative assessment under the model to assess occupants’ acceptance and satisfaction level on a building’s performance (Wong et al., 2008). 3.5.3.5 Transportation Access One of the intelligent building technologies is building transportation (Ting and Chan, 1999; Wong et al., 2005). Fergusan (1990) carried out a study on the measures on how to manage transportation systems within and off the buildings. He further suggested that transportation demand management (TDM) enable effective on-site employee transportation management and car parking provisions (Fergusan, 1990). Murray et al. (1998) mentioned accessibility to public transport increase the chance of people using public transport and reduce carbon dioxide emission from vehicles. Disabled people’s access needs within a building is getting more attention (Imrie and Kumar, 1998; Petrie et al., 2006). This is due to the public policies in built environment development and regulation (Imrie and Kumar, 1998). Accessibility of disabled people in a building improves quality of life and opportunities of using facilities (Roy, 1997). In Singapore, Building Construction and Authority (BCA) takes effort in providing facilities that are accessibility to disabled people such as the implementation of the Code on Barrier-Free Accessibility in Buildings 1990 and Free Accessibility (BFA) Upgrading Programme (2007-2011) (BCA, 2010). 40 3.6 CONCEPTUAL FRAMEWORK FOR SUSTAINABLE FACILITIES MANAGEMENT (SFM) Wood (2006) studied on the role of existing buildings in the sustainability agenda and found that existing buildings do not stand alone but interact with physical infrastructure, cultural and heritage in the society. He further suggested that existing buildings can be improved to avoid constructing new buildings where more resources will be consumed if building new (Wood, 2006). Sunikka (2003) mentioned that sustainability potential lies in management systems of the existing building stock. Hong et al., (2006) and Mickaitytė et al. (2008) suggested that building refurbishment is able to reduce the energy consumption and create a better living. There are several studies linked sustainability principles into FM practices. Shah (2007) proposed a framework of implementation of green FM management through building automation system. Sobotka and Wyatt (1998) proposed strategies in ecorenovation for existing buildings. Their study has two limitations where social aspect did not taken into account and did not address the issues of the energy embodiment in renovation. Häkkinen and Nuutinen (2007) linked sustainable construction into life cycle facilities management. However, their study did not take into account the different business goals and trade-offs in organisations. Changing environment should be considered in the life cycle approach (Wyatt et al., 2000). Mickaitytė et al. (2008) proposed green refurbishment to achieve sustainable built environment. Epstein (2009) and Folke et al. (2002) mentioned that the three sustainability bottom lines (economic, social and environment) should be viewed in an integrated ways. The 41 three aspects are inter-linked and impact on each other. Thus, economic, social and environment should be integrated in the sustainability framework (Folke et al., 2002). FM has been used as a business case for sustainability. There are studies carried out on using sustainability as a business case to achieve competitive advantage (Epstein and Roy, 2003, Paumgartten, 2003). There are mixed findings in using business case for sustainability. Holliday et al. (2002) mentioned being sustainable by taking care of social and environmental aspect could not make a company more profitable. He explained that there are too many variables in contributing towards company’s profitability and there is no evident to prove the direction of causality (Holliday et al, 2002). However, business case for sustainability offers bundle of opportunities for companies to be innovative to offer sustainable solutions (Holliday et al., 2002). Sustainable approach will directly and indirectly create values to the company. In the past, companies focused on getting ISO 14000 Environmental management, ISO 19000 Quality Management, but now the importance of social is also emphasized. Companies realized social aspects also need to be taken care of. Some authors ascertain the relationship between business and sustainability can be linked by physical facilities (Epstein and Roy, 2003; Paumgartten, 2003). Companies may use FM as a platform to perform sustainable business strategies. FM is able to enhance business sustainable performance such as lower operating cost, resource allocation, eco-efficient operation and more productive workers (Willard, 2002). 42 3.7 SUMMARY OF CHAPTER Clients and customers are increasingly interest to deliver sustainable built environment. The principles in sustainable development were reviewed. The new term, SFM was mentioned by several authors to apply the sustainable development principles into FM. The drivers for SFM were reviewed and it was found that increased awareness environmental issues, increased numbers in environmental building assessment methods for existing building, increased in existing building stock and advancement in building technologies are the factors that drive the growth of SFM. SFM variables under economic, social and environment were reviewed. For economic sustainability, the variables studied include organisation annual turnover, investment in facilities and operation and maintenance cost. Variables such as absenteeism, productivity level and staff recruitment and retention, customer satisfaction, preservation and conservation of existing building and safety management were reviewed under social sustainability. Under environment sustainability, variables reviewed were energy and water management, procurement policies, waste management, indoor environmental quality and transportation access. Finally, a conceptual framework for SFM was formulated based on the literature review. 43 _____________________________________________________________________ CHAPTER 4: LITERATURE REVIEW ON EXISTING BUILDING PERFORMANCE ASSESSMENT METHODS _____________________________________________________________________ 4.1 OVERVIEW OF CHAPTER This chapter discusses the importance of building performance assessment to assess an existing building. This is followed by the reviews on the different building performance assessment tools to evaluate performance in existing buildings. Environmental building assessment methods developed in various countries are discussed in this chapter. Each building performance assessment method is critiqued on their application to deliver sustainability in existing buildings. 4.2 ROLES OF BUILDING ASSESSMENT TOOLS Sustainable building solutions are gaining attention in organisations (Haapio and Viitaniemi, 2008; Thomas and David, 2006). This trend provides challenges in building assessment tools to assess a building as an integrated entity (Thomas and David, 2006). Ding (2008) suggested that building assessment tools such as rating system are crucial to provide a framework to assess a building from pre-design to post-construction stage. A building’s performance can be benchmarked against the building standards and similar building groups (Cole, 1999). Through benchmarking, a building’s owner can improve existing building using criterion provided in the 44 building assessment framework (Cole, 1999; Ding, 2008). Organisations can prioritise their goals to improve building sustainability through the assessment results (Ding, 2008). Raar (2002) noted that firms are increasingly motivated to provide a separate environment or building performance report to fulfill social responsibility. There are existing performance indices help in evaluate firms’ performance in the sustainability views such as world index Dow Jones Sustainability Index (DSJI). DSJI which was launched in 1999 has been widely adopted by firms to report Corporate Social Responsibility (CSR). DSJI focuses on asset and monetary term is used to measure a firm’s performance. Complications in applying DSJI are the main barrier in adopting the index for the firms (Ricart et al., 2005). The main barriers are the use of complicated Laspeyres formula in calculating DSJI and the need of expertise’ inputs for the index (Ricart et al., 2005). 4.3 CURRENT BUILDING ASSESSMENT METHODS FOR EXISTING BUILDINGS Under this section, most commonly used environmental building assessment methods to evaluate existing buildings’ performance are discussed together with their application. Critiques on each assessment schemes are carried out based on the principles in sustainability. BRE Environmental Assessment Method (BREEAM) was the first building assessment scheme developed to assess a design and construction of a building 45 (BREEAM, 2009). Thereafter, different environmental assessment schemes were developed to meet different needs in different countries. There are increased numbers of environmental building assessment rating schemes to assess existing buildings instead of newly developed buildings. This is due to the increased in existing building stock (Sussman, 2007). There are Leadership in Energy and Environmental Design for existing building (LEED-EB) in the United States, BRE Environmental Assessment Method (BREEAM) in the United Kingdom, Building Environmental Performance Assessment Criteria (BEPAC) in Canada, National Australian Building Environmental Rating System (NABERS) in Australia, Green Mark Scheme for Existing Building in Singapore and Hong Kong Building Environmental Assessment Method (HK-BEAM) in Hong Kong. It can be observed that the current building assessment is moving towards to compulsory instead of voluntary (Gibberd, 2001). 4.3.1 Leadership in Energy and Environmental Design for Existing Building (LEED-EB) LEED-EB was the first environment assessment rating system initiated for existing buildings by The United States Green Building Council (USGBC) in October 2004. LEED-EB is a rating system which aims to improve building performance at the same time reduce overall operating costs and improve building occupants’ productivity (LEED-EB, 2009). The types of existing buildings which are qualified to be rated under LEED-EB for its operations and maintenance are public or private commercial buildings, institutional buildings, and high rise residential. The USGBC has incorporated Alternative Compliance Paths (ACPs) under LEED for projects outside the United States (USGBC, 2009). This shows the importance of rating system to be 46 able to adapt the needs of different countries across the borders. The credits under the rating system are judged based on seven areas: sustainable sites, water efficiency, energy and atmosphere, material and resources, indoor environmental quality, innovation in operations, and regional priority. LEED-EB is critiqued against the three main sustainability pillars below: 4.3.1.1 Economic Under the category of ‘sustainable sites’, there is no direct measurement on economic value of the existing building. The credits are dedicated to pest management, heat island and pollution reduction, which are mainly focused on environmental issues. Under ‘water efficiency’ category, credits provided for water performance measurement and water efficient landscaping which are related to economic measurement for sustainability. In addition, energy optimization under ‘energy and atmosphere’ category is measured in economic term. Under category of ‘innovation in operations’, the credits are given to the efforts in documenting sustainable building cost impacts. 4.3.1.2 Social Under ‘indoor environmental quality’ category, credits relating to social aspects are mainly awarded to indoor air quality best management practices, occupant comfort such as thermal and day lighting provided. 47 4.3.1.3 Environment The environmental aspects are evaluated under all the categories. Under the category of ‘sustainable sites’, the credits are awarded to heat island and pollution reduction, commuting transportation and site protection. Cooling tower water management under ‘water efficiency’ category is credited for environment friendly management. Under the category of ‘energy and atmosphere’, the credits are awarded to building commissioning, performance measurement on building automation system and emission reduction management, which are related to environmental aspects. Solid waste management is credited under category of ‘material and resources’. Under the category of ‘indoor environmental quality’, the credits are given to green cleaning such as purchasing of sustainable cleaning products, sustainable cleaning equipment, indoor chemical and pollutant source control and indoor integrated pest management. 4.3.1.3 Critique of LEED-EB The main weakness of While LEED-EB is that it focuses more on environmental issues, placing minimum weight on economic and social sustainability. Economic aspects like investment in green building technologies and an organisation’s financial performance are not evaluated. Hoffman and Henn (2008) mentioned budget for green facilities investment is an important factor to drive the success of a green building. Social aspects like occupants’ performance in terms of productivity level, retention and recruitment are considered in the assessment framework. Building performance are assessed based on credits given. However, there is no weightage used in LEED- 48 EB and this leads to the problem of assessing the importance of each individual element. 4.3.2 Building Research Establishment Environmental Assessment Method InUse (BREEAM) Building Research Establishment or BRE Environmental Assessment Method (BREEAM) was an independent rating system established in UK in 1990. BREEAM established a new scheme for existing buildings assessment called BREEAM In-Use (BIU) in 2009 to help building managers to reduce the operational costs and improve existing buildings’ performance in terms of environmental aspect (BREEAM, 2009). This aims to reduce carbon footprint of existing building stock (BREEAM, 2009). BIU Certification Scheme is divided into three parts. The first two parts are designed for commercial, industrial, retail and institutional buildings whereas part three of the scheme is meant for offices. BIU evaluates on energy and greenhouse gas emissions, water, waste, air quality, noise, lighting, property protection and fire protection. BRE environmental and sustainability standard, BES 5058, is designed to use to assess the key performance indicators (KPI) for three parts. They are asset performance, building management performance and organisational effectiveness (BREEAM, 2009). The variables under each category are weighted on their importance and percentage scores are obtained to calculate the rating. Table 4.1 shows the summary of BIU BES 5058 standards. Critiques on BIU certification scheme are presented below. 49 Table 4.1: Rating scope under Part 1, 2 and 3 in BIU BES 5058 Part 1 Asset – the inherent performance characteristics of the building based on its built form, construction and services Part 2 Building management – the management policies, procedures and practices related to the operation of the building; the consumption of key resources such as energy, water and other consumables; and environmental impacts such as carbon and waste generation Part 3 Organisational effectiveness – the understanding and implementation of management policies, procedures and practices; staff engagement; and delivery of key outputs. Note: The criteria for Part 3 is based on office buildings only, other building types can be assessed but will be indicative only. Source: BRE Environmental and Sustainability Standard (BES 5058: Issue 1.2) 4.3.2.1 Economic The economic aspects being evaluated under BIU included maintenance and refurbishment policies that are adding value to the existing building asset. Under part 3 of the standard, ‘organisational effectiveness’ provides the assessment on stakeholder engagement in producing sustainable building. 4.3.2.2 Social Social aspect is covered under the category of ‘health and wellbeing’ under rating scope parts 1, 2 and 3. Lighting, indoor air quality, thermal comfort, acoustic performance, volatile organic compound, occupant satisfaction surveys, staff feedback and management training are included under the weighting scores. 50 4.3.2.3 Environment The environment issues such as energy, water, materials and waste management, pollution management, transportation, purchasing policies, land-use control, fire protection and environmental responsibility manual are included in parts 1 to 3. 4.3.2.4 Critique of BREEAM In-Use Economic aspect such as stakeholder engagement in providing building funds for sustainability is covered under BIU. Public participation is emphasized under the category of ‘health and well-being’ and this reflects that social aspect of sustainability is covered under the scheme. The certification scheme focuses mainly on environmental policies and pollution reduction of buildings and construction sites. However, there is a lack of assessment on the social issues such as productivity level of occupants in the facility. Copper (1999) commented that BREEAM method has major focus on ‘environment’ while minimum emphasis on ‘futurity’ and ‘equity’ when evaluated against PICABUE principles. BIU separates the rating scores into asset, building management and organisational effectiveness and it is noted that the variables under each category are repetitive. This may defeat the integrated approach in evaluating a building. As mentioned by Morrison-Saunders and Therivel (2006), the three main pillars of economic, social and environment are inter-related and should not be evaluated separately. Gibson (2006) commented that sustainability is an integrative concept and thus the three sustainability pillars should be integrated in the decision making process. 51 4.3.3 Building environmental performance assessment criteria (BEPAC) Building environmental performance assessment criteria (BEPAC) is developed in Canada in 1993 for environmental performance evaluation for both new and existing commercial buildings. BEPAC comprises a comprehensive set of environmental assessment in five areas: ozone layer protection, environmental impacts of energy use, indoor environmental quality, resource conservation and site and transportation (BEPAC, 1993). BEPAC’s principles are based on the design and management of the building which evaluated in two stages: first stage is for base building and second stage is for tenancy of the buildings on how the building is used and managed (BEPAC, 1993). Critique of BEPAC BEPAC focuses only on environmental performance evaluation through environment modelling for buildings (BEPAC, 1993). The economic and social aspects are excluded under BEPAC rating system. Shi and Xie (2009) commented that BEPAC might need to consider adding in economic and social issues in the evaluation framework to meet the current needs in the evaluation tools. 4.3.4 National Australian Built Environment Rating System (NABERS) In Australia, two green building rating tools are commonly used: National Australian Built Environment Rating System (NABERS) and Green Star (NABERS, 2010). Green Star environmental rating tool was developed in 2004 to evaluate new 52 building’s design. NABERS was launched in 1996 in Australia. NABERS is a performance-based rating system for existing buildings during its operational life (NABERS, 2010). It has a separate rating system for different types of buildings which includes office building, office tenancy, hotels, shopping centres and homes. NABERS for offices measures environmental performance of existing buildings according to four key impact categories: energy use and greenhouse emissions, water use, waste and indoor environment. NABERS is able to provide an indication for comparison with other building of same type on how does the operation of building impacts on the environment (NABERS, 2010). 4.3.4.1 Economic Under NABERS Energy, energy cost is evaluated based on a scale of five where one star being the least favourable. Water usage performance is measured under the category of ‘water’ based on 6-points rating where 6 stars is considered as market leading performance. 4.3.4.2 Social Occupant satisfaction on thermal comfort, acoustic, indoor air quality, cleaning of systems, lighting and office layout are assessed through surveys under the category of ‘indoor environment’. 53 4.3.4.3 Environment Pollution reduction is assessed under the category of ‘energy’ whereas water efficiency equipment implementation is rated under the category of ‘water’. Performance in materials recycling under the category of ‘waste’ is assessed. 4.3.4.4 Critique of NABERS The meaning of each rating score is defined for each assessment variable. However, the variables under each category are not comprehensive to cover the three sustainability pillars. For instance, green procurement is not covered under environmental aspect. In addition, there is a lack of assessment in terms of management commitment such as stakeholders’ participation. Besides, building occupants’ performances such as productivity level are not assessed under the rating scheme. 4.3.5 Comprehensive Assessment System for Built Environment Efficiency (CASBEE) CASBEE was launched in Japan in 2004 by Japan Sustainable Building Consortium (CASBEE, 2007). CASBEE has four basic assessment tools: CASBEE for Pre-design (CASBEE-PD), CASBEE for New Construction (CASBEE-NC), CASBEE for Existing Building (CASBEE-EB) and CASBEE for Renovation (CASBEE-RN) to be applied in each life stages (CASBEE, 2007). Weightings are used in CASBEE and applied at the individual credit level. It applies eco-efficiency life cycle concept into 54 the assessment framework and use Building Environmental Efficiency (BEE) as an indicator to achieve high quality of building with lower environmental load (CASBEE, 2007). The weighting scores can be improved by using more measures for an environmental issue. This can use to adapt the different needs of an organisation (Saunders, 2008). The categories analysed under CASBEE are energy efficiency, resource efficiency, local environment and indoor environment. CASBEE-EB and CASBEE-RN are critiqued on their relevance to sustainability. Figure 4.1: Classification and rearrangement of assessment items into Q (Building environmental quality and performance) and L (Building environmental loadings) Source: CASBEE, 2007 4.3.5.1 Economic Energy and water usage are not translated into monetary value. 4.3.5.2 Social The social issues considered under CASBEE are related to indoor environment performance such as thermal, acoustic, daylighting, air quality, space functionality, durability such as earthquake resistance and flexibility and adaptability of spatial 55 usage. These variables are rearranged into Building environmental quality and performance (Q) and acted as the numerator of BEE. 4.3.5.3 Environment Landscape preservation, pollution reduction and resources and materials usage are assessed under CASBEE. These variables are rearranged into Building environmental loadings (L) and operated as the denominator of BEE. 4.3.5.4 Critique of CASBEE CASBEE does not include economic aspect into the assessment. Social and environment issues are included in the calculation of BEE where a higher Q value is desirable to obtain better assessment classification whereby ‘S’ is the excellent grade and ‘C’ is poor. Saunders (2008) commented that it is not possible to calculate the value of individual variable under each category because the value is dependent on the final score. Also, comparison with other category groups is not possible as the weighting score is incomparable (Sunders, 2008). 4.3.6 Green Mark for Existing Buildings (GM-EB) In Singapore, Building Construction and Authority (BCA) developed a Green Mark Scheme for existing buildings (GM-EB) in 2009 which covered commercial buildings, residential, and schools (BCA, 2009). The areas of assessment under GMEB are energy efficiency, water efficiency, environmental protection, indoor 56 environmental quality, and other green features and innovation. In 2008, Singapore Government imposed a legislation on existing buildings with existing gross floor area (GFA) more than 2000m2 to achieve minimum environmental sustainability standard (BCA, 2008). Under Building Control (Environmental Sustainability) Regulations 2008, existing buildings with GFA more than 2000m2 which undergo major retrofitting required to obtain Green Mark Certified level. There are four green mark awards rating under GM-EB scheme: Green Mark Platinum (90 points and above), Green Mark Gold Plus (85 to 90 points), Green Mark Gold (75 to 85 points) and Green Mark Certified (50 to 75 points). Cash incentives for upgrading and retrofitting are provided for existing buildings that obtained awards under GM-EB (BCA, 2009). BCA GM for non-residential existing buildings is critiqued on its relevance to sustainability. 4.3.6.1 Economic The energy efficiency is translated into energy saving and points are given for saving more than 10% over the past 3 years from own Energy Efficiency Index. The control of water usage through monitoring is rewarded with points. Post occupancy evaluation includes evaluation of cost effectiveness of the energy and water facilities. 4.3.6.2 Social Social issues are assessed under post occupancy evaluation, indoor environmental quality and sustainable operation and management categories. Occupant’s satisfaction is evaluated through surveys. Indoor air quality performance, lighting quality, thermal 57 comfort and noise level are assessed under indoor environmental quality category. Under category of sustainable operation and management, public can participate through green guidelines displayed and this effort is awarded with points. 4.3.6.3 Environment Environmental related issues such as waste management, greenery, public transport accessibility, renewable energy application and water efficiency fittings are assessed and points are awarded. 4.3.6.4 Critique of GM-EB The three main pillars under sustainability are covered under GM-EB assessment scheme. Sustainable operation and management which are focused on building management plan is assessed. The guidelines assist FM personnel in planning and implementing building management system. However, GM-EB does not adopt weighting system and comparison cannot be carried out with other similar buildings. 4.3.7 HK-BEAM for Existing Buildings The Hong Kong Building Environmental Assessment Method (HK-BEAM) was established in HK-BEAM for existing air-conditioned office buildings (Version 2/99R) assesses operation, maintenance and management of existing buildings (HKBEAM, 1999). Under HK-BEAM for existing office buildings, a range of 58 environmental issues are rated based on a set of good practices criteria. The performance rating scheme is divided into three categories: global issues and use of resources, building and local issues and indoor issues. There is an additional under category innovations and enhancements which provide flexibility of the application of the assessment criteria. 4.3.7.1 Economic Annual energy and water usage are assessed and different credits are available for different types of building such as commercial and residential building. 4.3.7.2 Social Indoor environmental quality assessment includes safety, hygiene, indoor air quality and ventilation, lighting, acoustics and noise and building amenities. These variables are assessed based on standards such as ASHARE. Credits are given to protection effort in cultural heritage elements in building. HK-BEAM considers additional issues such as safety and hygiene in the building. This is due to the severe acute respiratory syndrome (SARS) outbreak in 2003. 4.3.7.3 Environment Energy efficient systems and equipment and water conservation efforts are awarded with credits. Site aspects which include location and site management are assessed. Car parking provision and public transport accessibility are assessed. This might be 59 due to the land scarcity issues in Hong Kong and local transport is important to be considered in the assessment. 4.3.7.4 Critique of HK-BEAM for Existing Building HK-BEAM for Existing Building rating scheme focuses mainly on social and environmental issues and pays minimal attention to economic assessment. The scope of social aspects covered under the scheme is broader compared to other schemes discussed previously. This might be due to the land scarcity and population congestion issues in Hong Kong. Table 4.2 Summary of Criteria for Assessment and Methods for Assessment Criteria for Assessment Methods for Assessment Leadership in Based on seven areas: Credits are given based on a Energy and rating system. • sustainable sites Environmental • water efficiency Design for • energy and atmosphere Existing • material and resources Building • indoor environmental (LEED-EB) quality • innovation in operations regional priority Building BREEAM In-Use evaluates on: The variables under each Research • energy and greenhouse gas category are weighted on their Establishment importance and percentage emissions Environmental scores are obtained to calculate • water Assessment the rating. • waste Method In- Use • air quality (BREEAM) • noise • lighting • property protection • fire protection Building Environmental assessment BEPAC’s principles are based environmental focuses in five areas: on the design and management performance of the building which evaluated • ozone layer protection assessment in two stages: first stage is for • environmental impacts of criteria base building and second stage energy use (BEPAC) is for tenancy of the buildings on • indoor environmental 60 Criteria for Assessment quality • resource conservation • site and transportation National Environmental performance of Australian Built existing buildings is evaluated Environment based on four key impact Rating System categories: (NABERS) • energy use • greenhouse emissions • water use • waste and indoor environment Comprehensive The categories analysed under Assessment CASBEE are: System for Built • energy efficiency Environment • resource efficiency Efficiency • local environment (CASBEE) • indoor environment. Green Mark for The areas of assessment are: Existing • energy efficiency Buildings (GM- • water efficiency EB) • environmental protection • indoor environmental quality • other green features and innovation. 4.4 Methods for Assessment how the building is used and managed. The meaning of each rating score is defined for each assessment variable. Building Environmental Efficiency (BEE) is used as an indicator to assess building performance. Scores are given based on a rating system. SINGE-DIMENSIONAL VERSUS MULTIPLE-DIMENSIONAL APPROACH Majority of the current building assessment methods are focused on environmental issues and paying minimal attention to economic and social aspects mentioned in Brundtland report. Copper (1999) critiqued on building performance assessment method that focused only on environmental issues is insufficiency to address the sustainability issues in built environment. Walker et al. (2007) commented in their study where sustainability is not only about the environment; it is also about how the operation of business and management of people. Furthermore, Copper (1999) 61 pointed out that assessment which focuses only on environmental issues offer relative measurement instead of absolute measurement. Corporate contribution to sustainability need to be assessed in absolute degree of economic, social and environmental performance (Figge and Hahn, 2004). This is because effectiveness measures adopted by organisation can be calculated using absolute sustainability indictors (Stahlmann and Clausen, 2000). Figge and Hahn (2004) critiqued that relative measures do not provide information about eco- and social effectiveness. Ragas et at. (1995) mentioned that absolute sustainability indicators must be weighted and aggregated. Munda (2005) proposed to use multidimensional indicators to measure sustainability in an aggregate term. Furthermore, with an absolute assessment, facilities performance benchmarking can be carried out to compare buildings of similar nature (Douglas, 1996; Gilleard and Wong, 2004). Ding (2008) critiqued that a single-dimensional approach in building performance assessment is insufficient to address the multiple components involved in measuring building performance. Besides multiple components, different stakeholders with different objectives are involved in each building. Some authors (eg. Ding, 2008; Gibberd, 2001) suggested using a multi-dimensional approach based on Multiple Criteria Decision Analysis (MCDA) in the decision making process. MCDA is suitable because multiple criteria and objectives involving the triple bottom line in sustainable built environment are to be considered. For variables that are not directly measurable, multi-dimensional indicators may be constructed to assess these qualitatively (Gilleard and Wong, 2004). 62 4.5 SUMMARY OF CHAPTER This chapter reviewed the different assessment tools which are used to evaluate building performance. Existing building assessment methods and their features were reviewed and evaluated based on the principles in sustainability. It is concluded that the existing building assessment methods are predominately focused on environmental issues and minimal emphasis on economic and social aspects. The assessment methods such as LEED-EB, NABERS, CASBEE and GM-EB are based on points system and no weighting scores are calculated. This means comparison with other categories in the assessment scheme is not possible. Several authors proposed that performance of existing buildings should be measured in absolute terms by using multi-dimensional approach instead of single-dimensional approach in order to address different objectives of the stakeholders. 63 _____________________________________________________________________ CHAPTER 5: RESEARCH METHOD _____________________________________________________________________ 5.1 OVERVIEW OF CHAPTER This chapter presents the research method adopted to accomplish objectives set out in section 13. Research design, data collection method, data collection instrument and sampling method are discussed. The rationales for the chosen research method for this study are explained. Data collection is through survey questionnaire. The questions in the survey are explained. Types of statistical methods used to analyse the data are explored. Results for analytical analysis are discussed. 5.2 RESEARCH DESIGN The research methods adopted were: survey for phase 1; and case studies for phase 2. During phase 1, survey questionnaire was designed to collect data on the performance of office buildings. Cohen et al. (2001) suggested quantitative data for building performance can be evaluated through survey. Preiser (1995) suggested survey is useful to conduct post-occupancy evaluation in FM. In addition, survey is chosen to identify important variables contribute to sustainable FM. The data was used to develop a sustainability index for FM. This was followed by a case study in phase 2 where the index is applied. Case study research was chosen because qualitative data can be collected to study the feasibility of the proposed index (Amaratunga and 64 Baldry, 2001). Jick (1979) proposed triangulation can be achieved through a combination of survey design and fieldwork to improve validity and reliability of data. He also pointed out that through this combination, generalizability of research results can be increased. The reason to use survey questionnaires and interviews to collect data is due to most of the FM variables studied are qualitative. For example, the extent of preventive maintenance is practised can only be measured by asking respondents to rate the point scales. In addition, Amaratunga and Baldry (2001) explained that the rationale of FM practices adopted by organisations can be explored through case studies. An exploratory study was carried out before survey questions were finalised. The exploratory study included preliminary survey and interviews. The questions in the preliminary survey questions focused on finding out the causes of not practicing sustainable FM in office buildings. The interviews were carried out in order to understand the interviewees’ reasons behind the chosen answers. Five industry practitioners were selected based on convenience sampling and their profiles are shown in Table 6.1. The questionnaires were then developed for the survey. A pilot study was carried out prior to industry wide survey. The purposes are to identify ambiguous questions and wordings in the survey to avoid difficulties in analyzing the data (Bell, 1996). In addition, a pilot study is able to help to test suitability of data collection techniques used (Naoum, 2007). Four FM practitioners were invited to complete the preliminary survey and responses were collected. Their profiles are shown in Table 6.2. This was followed by interviews with regard to the issues raised by the respondents on the preliminary survey questions. The feedback 65 and inputs from the respondents were noted and survey questions were revised and sent back to them for reviewing. The survey questionnaire was finalised. Survey results were collected and analysed. Subsequently, a framework of sustainability index for FM was developed using Multi-attribute Value Theory (MAVT). Subsequently, the SFMIndex was applied in a case study. A case study was used to evaluate building performance using the proposed SFMIndex. Tellis (1997) suggested that case study can be used for sociological study where subjective viewpoint of the participants can be collected by using multiple sources of data. There are three types of case studies identified by Yin (1993): Exploratory, Explanatory, and Descriptive. Descriptive method was chosen for this study. This is because procedures of a particular event can be documented through descriptive case study (Yin, 1981). The main purpose of the case study research was to develop and understanding of FM practices adopted in an organisation and evaluated its performance. Through descriptive case study, the reasons behind FM practices adopted can be answered based on theories (Yin, 2003). 5.3 DATA COLLECTION METHOD For the survey, the data collection was by mail. The survey package comprised a cover letter to explain the purpose of the study, an instruction guide and a set of questions. The advantages of mailed survey are ability to cover spatially dispersed respondents and respondents were given more time to think about the questions before giving their responses (Tan, 1995). However, Jones (1979) pointed out that 66 disadvantage of mailed survey is low response rate as there is no control over the respondents. In order to overcome this limitation, the survey questionnaire was designed to ensure anonymity by not requiring respondents to state their name and company name. Jones (1979) mentioned that respondents feel more comfortable in giving anonym responses especially if confidential information is asked. Respondents were required to return their completed questionnaires within one month. A selfaddressed envelope with pre-paid postage was attached together with the questionnaire. Follow up telephone calls were made one month after survey forms were sent out to remind respondents to complete the questionnaire. This is to increase the response rates (Lindsey, 1921). A summary of the results is promised to be sent to those who leave their email in the survey. This is to encourage their completeness in providing information in the survey. For case study, multiple sources of data were collected to (Yin, 1984). Triangulation strategy was adopted in order to increase the data validity by combining multiple observers, theories, methods, and empirical data (Denzin, 1984). Denzin (1984) suggested triangulation can be achieved through cross verification from more than two resources. Qualitative and quantitative data thus were collected in the case study to assist in the data validation. As mentioned in Yin (1994), to improve the constructability, internal validity, external validity and reliability of the case study, data collection should be treated as design issue. The sources of data collected for the case study included archival records, interviews, direct observation and documentation. Archival records such as electricity consumption were gathered. A list of structured questions were prepared and to be asked during the case study interview. Direct observation was carried out on the physical facilities provision within the 67 building. Documentation such as the historical information and Green Mark award obtained for the building were studied. 5.4 DATA COLLECTION INSTRUMENT Survey questionnaire was chosen for cognitive testing (pilot testing) to test the reliability and validity of the variables constructing SFMIndex. In addition, it can be used to gather information to understand the current FM practices adopted in existing office buildings in Singapore. The importance of SFM variables can be rated by FM practitioners based on their experiences in FM field. Thus, qualitative data can be analysed. The survey questionnaire can be found under Appendix A. Section A of the questionnaire covered the background information of the office building. Section B comprised questions on the indicators for performance measurement on FM practices adopted. Section C requested respondents to rate the importance of SFM practices for office buildings in general. Questions under sections B and C in questionnaire were mainly structured based on the 7-points Likert scales (see Tables 4.1 and 4.2). Section D included the information of the respondents and organisation where respondents are working at. Table 5.1 7-point Likert Scales for Section B: The extent of FM practices adopted Degree to which Number Definition practices were adopted symbol 1 Not at all The FM practice is not adopted in firm or on site. 2 To a very little extent The FM practice is adopted in minimal 3 To a little extent The FM practice is adopted but it doesn’t cover most of the aspect 4 To some extent The FM practice is adopted but not to its fullness. 5 To moderate extent The FM practice is adopted to cater basic operations 68 Number symbol 6 7 Degree to which practices were adopted To a great extent To a very great extent Definition The FM practice is adopted in most of the aspects. The FM practice is adopted cover entire context/aspect of the firms operations. Table 5.2 7-point Likert Scales for Section B: The extent of FM practices adopted Number Degree to which Definition symbol practices were adopted 1 Not important The FM practice is not important at all to achieve sustainable FM 2 Slightly important The FM practice is considerably important to achieve sustainable FM 3 Somewhat important The FM practice is somewhat important to achieve sustainable FM 4 Moderately important The FM practice is moderately important to achieve sustainable FM 5 Important The FM practice is important to achieve sustainable FM 6 Very important The FM practice is very important to achieve sustainable FM 7 Extremely important The FM practice is extremely important to achieve sustainable FM 5.4.1 Section A: Building Information General questions on building which respondent’s responses based on were asked. These questions include type of building tenancy, ownership, location, building height, building age, building construction cost and floor area. The aim of requesting background building information is to understand the characteristics of office buildings investigated. Information on types of FM system adopted was asked. Choices provided for the question included in-house, outsourced and hybrid of in-house and outsourced. The purpose of this question is to study which FM arrangement is widely used in 69 Singapore. In addition, frequencies of FM policies and building management plan reviewed were asked to understand FM team’s effort in modify FM policies according to organisation’s changing needs. Respondents were asked if management system such as quality management system (QMS), environmental management system (EMS) and sustainability management system (SMS) were implemented. The aim of this question is to find out whether the organisation has a systematic approach in managing a building. This information is important because awareness of FM personnel in sustainable management can be identified. Status of BCA Green Mark for existing building (GM-EB) award obtained for the building was asked. This information is crucial to justify whether a GM awarded building has a better building performance compared to non GM building. With these information, the relationship between facilities performance and water and electricity consumption are studied. Questions pertaining to the yearly maintenance budget allocated in percentage on building components such as general building maintenance (includes external facade, roof, building fabric work and architectural finishes), civil and structures, mechanical and electrical services, external landscaping, security, cleaning and housekeeping were asked. The purpose of this question is to study profile of budget allocation for each building components where the inference of which building components consumed most maintenance cost. 70 5.4.2 Section B: Performance Measurement Types of performance indicators identified were divided into three sub-headings using principles in sustainability. They are economic, social and environment. Under each sub-heading, variables were structured to ask about their performance of the current or previously managed office building. Types of questions asked included open-ended questions, choices, and based on 7-point rating scale. 5.4.2.1 Economic Sustainability The financial return of an organisation was asked. The revenue is referring to the return of profits in renting out the spaces. The unit of measurement is cost per meter square GFA ($/m2 GFA). The purpose of this question is to study the financial return of an organisation which is believed that tenants’ satisfaction affected by building management strategies adopted (Alexander, 2004). The extent of sustainable development funding or ‘green’ investment in FM provided by company or government was asked. The purpose of this question is to find out to an organisation’s commitment and support in monetary form to deliver sustainable FM. The fund can be used for refurbishment, replacement of devices and retrofitting of existing facilities. Investment in ‘green’ facilities is able to add value to corporate economic returns (Miller et al., 2008). Monthly operating costs for electricity (in kWh/month/m2) and water usage (in litre/month/m2) were asked. The purpose of these questions is to collect data on 71 current building performance in terms of energy and water usage. Energy and water consumption are the two main operating costs in a building (Cole and Kernan, 1996). The information provides a performance measurement of the building operation cost. Subsequently, the information is used to analyse if there is a statistically significant difference between GM and non-GM buildings in their energy and water usage. Lastly, the types of building management strategies adopted were asked to examine the extent of reactive, preventive, predictive and reliability-centered maintenance (RCM) used in an organisation. The definition of each building management strategy was provided for respondents in order to create a common understanding on the terms used. The purpose of this question is to study the trend of sustainable FM practices adopted for the building. Swanson (2001) found that proactive and aggressive maintenance strategies linked to a better building performance. Thus, types of building management strategies adopted are directly impacted on the maintenance cost. 5.4.2.2 Social Sustainability Questions were structured to examine occupant’s performance and satisfaction in the building. The respondents were asked to rate the extent of the working environment affecting their work performance. The variables studied included absenteeism and workers’ productivity. The extent of working environment affects staff recruitment and retention, complaints or feedback received by FM team and safety management were asked. These questions were aimed to study the extent physical facilities affect building users. 72 This was followed by a question on customer satisfaction on facilities provided. The extent of complaints or feedback received on the physical facilities was asked. The aim of this question is to study customer satisfaction level on the building facilities. Daub and Ergenzinger (2005) mentioned sustainable management of relationship between stakeholders and customer is important for business continuity. The extent on FM’s effort in preserving or conserving existing building that has historical value was asked. The purpose of this question is to study the effort of management team in protecting historical building which is considered as ‘social capital’ which is retained for future generation (McKenzie, 2004). In addition, the extent of implementation of Workplace Safety and Health Act (WSHA) was asked. This question aims to investigate the extent of WSHA implemented in managing social health and safety (Vredenburgh, 2002). Respondents were required to rate on the extent of FM team receive complaints and feedback from the public on the facilities provided. The variables examined included air, water, noise pollution and health and safety issues. This is to study the building users’ satisfaction on surrounding building. 5.4.2.3 Environmental Sustainability Questions on how does FM department managing natural resource were asked. The respondents were asked to rate the extent of energy efficient features facilities and 73 water efficiency measures that are in placed in the building. The purpose of these questions is to find out implementation of energy and water efficient management in a building to reduce impacts on environment. Respondents were asked to rate on the extent of waste management practices such as reduce, reuse and recycle practices are implemented to manage office waste. This question aims to study which type of waste management practice is commonly used in office buildings to reduce environmental waste. Procurement policies adopted by the FM department were asked. Respondents were asked to rate the extent of building materials or products procured from local sources or suppliers. The extents of building materials or products procurement that are made from recycled materials were asked. In addition, green products such as water efficiency labels used for the building maintenance and replacement were asked. The purpose of these questions is to find out the procurement policies adopted based on sustainable practices. In addition, questions on indoor environmental quality of the building were structured for respondents to rate on the extent of FM department received complaints from building users. The variables examined included thermal comfort, indoor air pollutants, visual comfort, noise level and space allocation such as layout of the office buildings. These questions aim at studying the satisfaction level of building users on indoor environmental quality. Next, respondents were requested to provide information on transportation system implemented for the building. Respondents were asked to indicate the ratio between 74 car parking spaces to building occupants. The distance to the nearest public transport locations such as bus stops and mass rapid transport (MRT) stations were asked. This question aims at studying the accessibility of public transportation from the main building. Murray et al. (1998) found that there is a link between accessibility of public transportation and impacts on environment. The choices for carpark spaces provided and distance to public transport location were coded using numeric numbers in Tables 5.3 and 5.4. The purpose is to ease the process of statistical analysis using independent t-test. Table 5.3 Ratio between car parking spaces to building occupants and coding Ratio between car parking spaces to Code building occupants Less than 0.4 per person 0 Between 0.4 to 0.7 per person 1 Between 0.7 to 1.0 per person 2 More than 1.0 per person 3 Table 5.4 Distance to public transport location and coding Distance to public transport location Code Less than 5mins 0 Between 5 to 10 minutes 1 Between 11 to 20 minutes 2 More than 20 minutes 3 5.4.3 Section C: SFM Practices and Their Importance Respondents were requested to rate on the importance of variables in the SFM for office building in general based on their experiences. In order to have a common understanding of SFM, a definition was provided. All the variables mentioned under Section B were rephrased for importance of each variable in achieving SFM. The 75 purpose of constructing questions in this way is to attain clarity of the description in the questions to encourage respondents to rate the questions consistently. 5.4.4 Section D: Background information of Respondent and Organisation Background information of respondents was asked. These information included age, educational qualification, profession, designation, years of working experience in FM and extent of knowledge in sustainable FM. Lastly, information of organisation where respondents work in were asked. These questions were aimed to have some theoretical link to rating in sections B and C (Tan, 2008). For example, backgrounds and years of experience in safety of the safety personnel may affect his or her views on the FM practices adopted. 5.5 SAMPLING The population comprised existing office buildings in Singapore. The population frame consisted of lists of existing office buildings obtained BCA GM-EB awards in years 2009 and 2010, facility practitioners from IFMA and AFPM. Sample selection was carried out using simple random sampling. Simple random sampling was chosen because the lists of the offices building with GM awards and FM certified FM personnel can be obtained. Hence, the sample is representative and results from the sample can be generalised. Table 5.3 summarised the sampling design used for this study. 76 Table 5.5 Sampling design Source Sampling Frame Sample Size Sampling method BCA-GMIS-EB 12 (2009)a 22 (2010)b 20 Simple Random Sampling IFMA 200 40 Simple Random Sampling AFPM 113 40 Simple Random Sampling Total 347 100 a: BCA Green Mark Award for Existing Buildings (non-residential) 2009 b: BCA Green Mark Award for Existing Buildings (non-residential) 2010 (Source: BCA, 2009; 2010a) The target of respondents were facility manager, facility officer, building manager, building officer or property manager who is currently managing or has previously managed office buildings. They can be in-house FM personnel or FM services provider. They are the persons who in charge of managing building and understand building performance status and able to provide insights on FM practices. 5.6 DATA ANALYSIS METHODOLOGY Data collected was analysed using SPSS. Data was coded and entered into SPSS before computing inferential statistics for exploratory data analysis (EDA) (Leech et al., 2008). EDA was used to promote better understanding of the FM management adopted. Data were double checked when and after they are being keyed in into SPSS software in order to minimize the statistical error. Statistical analysis methods adopted included descriptive statistics and inferential statistics. 77 Descriptive statistics were used in order to justify the assumptions that the samples collected are representative. Data collected was tested for its normal distribution (Leech et al., 2008). Mean, median, standard deviation, minimum and maximum for building characteristics (section A) and respondents’ profiles (section D) were calculated with the help of SPSS software. The results are presented and discussed in Chapter 6 under characteristics of sample. Inferential statistics were used to understand the relationship between building performance and FM practices. One-sample t-test, independent sample t-test and Pearson correlations were used for inferential statistics. One-sample t-test was employed for each dependent variable under section B of the survey questions. This is to test whether the mean of a distribution differs significantly from some present value (George and Mallery, 2003). This statistical t-test of the mean was carried out to identify significant variables to achieve SFM. Independent sample t-test carried out to analyse the variances between the groups, where firms were divided based on existing office buildings which achieved GM certified award versus without GM award. Independent sample t-test was used to test for the differences between the two groups of buildings in order to know whether the building performances of the organisations are associated with the FM practices adopted. Independent sample t-test was used instead of one-way ANOVA due to small sample size (less than 15 samples within each group) of the collected data (Tan, 2008). Pearson correlation was used to examine the relationship between the independent variables (FM practices) and dependent variables (building performance). This is important to identify effective FM practices in order to achieve SFM. Finally, a SFM index was constructed using 78 Multi-attribute Value Theory (MAVT) approach. MAVT will be further discussed under Chapter 8. 5.7 SUMMARY OF CHAPTER The research methods adopted were survey and case studies. Data collection instrument was a survey questionnaires divided into four sections. There were building information, performance measurement, SFM practices and their importance and background information of respondents. 7-point likert scales were adopted for the questions. Questions focused on existing office building performance, FM practices and strategies adopted for the building and FM personnel opinions on the importance SFM variables were constructed in the survey. The random sampling method was used. The population is the lists from BCA Green Mark Award for Existing building, IFMA and AFPM. The sampling frame is the sample size is 100 from a total of 347 in the lists. The target respondents were facility managers/officers and property managers/officers. Data collection methods adopted included survey questions and interviews. Descriptive and inferential analyses were adopted for data analysis. Survey results were coded and analysed using SPSS. MAVT approach was used to formulate SFMIndex and the application of the proposed index will be illustrated using a case study. The characteristics and results analysis are discussed in Chapters 6 and 7 respectively. 79 _____________________________________________________________________ CHAPTER 6: CHARACTERISTICS OF SAMPLES _____________________________________________________________________ 6.1 OVERVIEW OF CHAPTER The characteristics of data samples collected from the survey are discussed in this chapter. By learning the characteristics, the reliability of the data obtained can be established. The profiles of the interviewees in the exploratory study and pilot study are first examined. This is followed by a discussion of the characteristics of office buildings, types of facilities management adopted, frequency of reviewing FM policies, green mark awards obtained, and maintenance profiles of the organisations and profiles of respondents for the survey. 6.2 EXPLORATORY STUDY The fieldwork started with an exploratory study. In the exploratory study, preliminary survey and interviews were conducted to determine the causes of difficulties in achieving sustainable FM practices in office buildings. The survey questions were formulated based on the information gathered to address the main objectives of this research. The profile of interviewees is summarized in Table 6.1. The average experience of the respondents is 11.2 years. They have broad knowledge of FM and thus reliable key 80 information can be obtained. In-house FM personnel were interviewed on the potential causes of difficulties in carrying out sustainable FM practices for office buildings. They were able to provide an integrated overview and insight of their organisations’ operations. FM consultants D and E were selected because they adopt FM practices or packages that could help to determine the probable obstacles for practising sustainable FM. Table 6.1 Profile of interviewees for exploratory study Building Designation Years of Experience Office building A Facility manager 8 Office building B Building manager 10 Office building C Property manager 8 FM consultant A Facility officer 5 FM consultant B Facility manager 25 6.3 PILOT STUDY A pilot study was carried out to pinpoint any inadequacies or ambiguity questions in the questionnaire. The survey questions were sent to four FM practitioners with an average of 10.3 years of extensive FM experience. Their profiles are shown in Table 6.2. The interviewees’ feedbacks were used to improve revise and finalize the survey questions. Table 6.2 Profile of interviewees for pilot study Years of Experience in Building Designation Facilities Management Office building D Facility Manager 12 Office building E Facility Manager 10 FM consultant C Facility Manager 11 FM consultant D Facility Officer 8 81 6.4 SURVEY QUESTIONNAIRE A total of 100 questionnaires were sent by post to FM personnel from BCA-GMISEB, IFMA and AFPM (see Section 5.5). Completed questionnaires were received between March and July 2010. At the end of five months, 32 survey forms were received, giving a response rate of 32%. The survey response rate is summarised in Table 6.3. All the returned questionnaires are usable. Data collected were checked for mistakes, edited and coded for data analysis. Table 6.3 Summary of survey response rate Source Sampling Frame Sample Size Number of Response BCA-GMIS-EB 12 (2009) 22 (2010) 20 13 IFMA 200 40 10 AFPM 113 40 7 Total 347 100 32 (Source: BCA, 2009; 2010a) 6.4.1 Characteristics of Respondents Table 6.4 summarises the profile of the respondents. It shows that professions in FM contribute to 75% of the total responses. This is followed by engineering (15.6%) and property management (9.4%). Most of the respondents are of managerial level (56.3%). Most of the respondents have more than 5 years of FM experience and 15.6% more than 20 years. The average years of FM experience and years of working 82 in the current organisation are 10.5 years and 7 years respectively. Majority of the respondents have a bachelor degree (71.9%) for their highest education, while a quarter is armed with a post-graduate degree. The profile of respondents suggests that they are sufficiently knowledgeable in FM to be key informants. Table 6.4 Summary of respondent profiles Description Details Number of Count Profession Facilities management 24 Engineering 5 Property management 3 32 Designation Manager 18 Property officer 1 Facility officer 13 32 Working experience in 20 5 32 Years of working in 10 years 6 32 Highest education Diploma 1 Degree 23 Post-graduate 8 32 % 75.00 15.62 9.38 100 56.25 3.12 40.63 100 21.88 37.50 25.00 15.62 100 34.38 46.87 18.75 100 3.12 71.88 25.00 100 6.4.2 Characteristics of Office Building Samples The respondents were requested to provide detailed information on one office building of which they are in charge of the FM. The profiles of these buildings are shown in Table 6.5. There is a good mix of building ownership, location and height. 83 The office buildings survey, are made up of 40.6% government and 59.4% private properties. Most of the office buildings are located in non-central business district (CBD) area (62.5%). There is a good mix of low, medium and high rise building, with an average of 18 storeys. Half of the office buildings surveyed are less than 10 years old; only one building is more than 30 years. The average age of the buildings surveyd is 12 years. The majority of the buildings surveyed have GFA more than 410,000m2, with an average of 350,000m2. The skew towards buildings with larger floor areas suggest that effective management of the building facilities is important. Table 6.5 Summary of building profiles Description Details Number of Count Type of Government 13 ownership Private 19 32 Location CBD area 12 Non-CBD area 20 Building height Building age Gross floor are (GFA) 30 storeys 30 years 2 50,000 m2 84 % 40.62 59.38 100 37.50 62.50 32 10 8 7 7 100 31.24 24.00 21.88 21.88 32 100 16 12 3 1 50.00 37.50 9.38 3.12 32 100 2 7 5 3 3 14 6.25 21.88 15.63 9.38 9.38 43.75 32 100 6.4.3 Building Management and Performance Profiles The types of FM adopted are in-house (37.5%), outsourced (34.4%) and hybrid of inhouse and outsourced (25%). Most of the firms reviewed FM policy and procedures twice a year (78.1%), while 15.6% conduct yearly reviews. This indicates that FM policy and procedures reported by respondents are subject to frequent updates. However, the frequency of reviewing building asset management plan (BAMP) less compared to FM policies. Most companies review BAMP on an ad-hoc basis (78.1%) while 15.6% do it half yearly. This implies that companies are constantly updating the FM policy and procedures according to the needs and changes, but not BAMP. This may be due to BAMP is developed for use at organisational level to manage whole organisational asset while FM policy and procedures are formulated for FM execution. Table 6.6 Summary of FM practices adopted Number of Count Description Details Type of FM In-house Outsourced Hybrid Frequency of reviewing FM policy and procedures ½ yearly Yearly 3 years Ad-hoc Frequency of reviewing building asset management plan (BAMP) ½ yearly Monthly Yearly Ad-hoc 85 % 12 11 8 37.50 34.38 25.00 32 25 5 1 1 32 5 1 1 25 100 78.13 15.63 3.12 3.12 100 15.63 3.12 3.12 78.13 32 100 6.5 SUMMARY OF CHAPTER This chapter discussed the characteristics of the samples surveyed. The interviewees for the exploratory study consisted of 2 facilities managers, a building manager, a property manager and a facility officer from 5 different companies. Their average experience in FM is 11.2 years. Subsequently, a pilot study was carried out and the interviewees consisted of 3 facility managers and a facility officer from 4 different companies. Their feedbacks were used to improve the survey questionnaire. The total number of response received was 32 (response rate of 32%). Majority of the respondents were involved in FM profession (75%) and 15.6% of the total respondents have more than 5 years of FM experience. 71.9% of the respondents possessed a bachelor degree. The buildings reported by the respondents were made up of 40.6% government and the rest were private properties. Majority of the buildings surveyed are located in CBD area (62.5%) and average buildings age and GFA were 12 years and 350,000m2 respectively. The building management strategies adopted in the buildings surveyed mainly in-house (37.5%) and 78.1% of them reviewed FM policy and procedures twice a year and BAMP was reviewed on ad-hoc basis. 86 _____________________________________________________________________ CHAPTER 7: RESULTS AND DISCUSSION _____________________________________________________________________ 7.1 OVERVIEW OF CHAPTER This chapter discusses the findings and analyses of the survey results. Independent sample t-test analysis was performed to study the significant variables practised by the firms. The relationships between FM variables and electricity and water consumption were studied using Pearson Correlation. Survey questions on the respondents’ opinions on the effectiveness of each independent variable were also analysed using one-sample t-test. Finally, the Multi-attribute Value Theory (MAVT) was used to construct the sustainable facilities management index (SFMIndices) based on the significant variables identified in one-sample t-test. 7.2 COMPARING BUILDING PERFORMANCE OF GM and NON-GM OFFICES The Green Mark (GM) rating system is used as an indicator to measure building’s environmental sustainability performance in Singapore (see section 4.3.6). Office buildings with GM and without GM certification were studied. About 46.9% of the office buildings obtained FM certification in the non-residential category: 12.5%, 25.0% and 9.4% were awarded GM Certified, GM Gold or Gold Plus, and GM Platinum respectively. The rest or 53.1% did not have GM certification. Table 7.1 summarised the GM certification status of the office buildings studied. 87 Table 7.1 Summary of Green Mark (GM) certification for existing non-residential buildings Number of Count Green Mark Certification 15 YES for Existing Building GM Certified 4 Puls 8 (Non-Residential) GM Gold/Gold GM Platinum 3 NO 17 32 % 46.88 12.50 25.00 9.38 53.12 100 The first hypothesis was to test whether there is any significant difference in building performance and FM practices between existing GM certified and non FM certified office buildings (see section 1.4). Independent samples t-test was carried out to assess whether the two sample means are significantly different. Independent samples t-test was carried out instead of ANOVA test since the sample size is less than 30 for each group. A 5% level of significance is used. The assumption made for using this test was that both samples came from normally distributed populations with approximately equal variances. Table 7.2 presents the results for independent samples t-test. From the Levene's Test results in Table 7.2, the two variances for all variables are not significantly different (the significant level is greater than 0.05). The results implied that all the variables met the assumption of the two groups has approximately equal variance on the dependent variable. Office buildings which are GM certified consumed on the average significantly less electricity (mean=0.512kWh/month/m2) compared to non-GM certified office building (mean=2.039kWh/month/m2) as p[...]... manage an existing building The specific objectives are to develop a sustainable FM framework for office buildings that incorporates the sustainability principles: economic, social and environmental, to construct an assessment method to evaluate an existing office building and to apply the proposed SFMIndices with a case study This study focuses on the performance assessment of existing office buildings. .. consider sustainability in FM to reduce impacts on environment, offer better quality of life and generate better value for organisation (Shah, 2007) 1.3 RESEARCH OBJECTIVES This study aims to incorporate sustainable practices into FM for existing buildings management The specific objectives are: 1) to develop a sustainable FM framework for office buildings that incorporates economic, social and environmental... on office buildings in Singapore Office building is chosen because the integration of FM into business function, dynamic changing needs, different business climate and objectives are suitable to be explored to study FM’s contribution to business sustainability The office buildings studied are both GM-EB and non-GMEB in Singapore Single and multiple tenancy office buildings are studied Types of FM for. .. characteristics of data samples collected in the exploratory study and pilot study The survey response rate, characteristics of office building samples, building management and performance profiles of the office buildings are presented Chapter 7 discusses the results analysis Independent one-sample t-test, Pearson Correlation and t-test are used in the analysis The differences in means for buildings with... Data Analysis Energy Management System ecologically sustainable development Facilities Management Gross floor area Green Mark Green Mark For Existing Building Hong Kong Building Environment Assessment Method International Facility Management Association Information Technology Key performance indicators Life Cycle Assessment Leadership Leadership in Energy and Environmental Design for existing building... Profile of interviewees for pilot study 79 Table 6.3 Summary of survey response rate 80 Table 6.4 Summary of respondent profiles 81 Table 6.5 Summary of building profiles 82 Table 6.6 Summary of FM practices adopted 83 xiii xiv Table 7.1 Summary of GM certification for existing non-residential building 86 Table 7.2 FM Practices practised by office buildings with GM Award 93 Table 7.3 Item 3h: Ratio between... application of these indices was presented using a case study on an existing office building 8 Chapter 9 summarizes the findings and validates the hypothesis Recommendations are presented for the use of the SFMIndices in office buildings Limitations are discussed Finally, conclusion and recommendations are presented 9 _ CHAPTER 2: LITERATURE REVIEW OF FACILITIES MANAGEMENT. .. Scores allocated for types of variables used 113 Table 8.2 MAVT calculations based on maximum scores 121 Table 8.3 Profile of Building Users (Employees) for case study Building A 123 Table 8.4 Profile of Building Users (Employees) for case study Building A 123 Table 8.5 Ratings for Building A 128 Table 9.1 Review of Research Hypotheses 133 xv xiv _ LIST OF FIGURES ... 2000) In this study, there were qualitative data such as profiles of respondents, background of office building involved The data collection methods used for this study were survey questionnaires and interviews The data collection instruments were surveys and face-to-face interviews The population frame adopted for this study was existing office buildings in Singapore The sampling frame used included... Analysis Ministry of Trade and Industry National Australian Building Environmental Rating System Private Finance Initiative Reactive-centred Maintenance Strategic asset management Standard deviation Sustainable Facilities Management Sustainable Facilities Management Indices United Nations Conference on Environment and Development United Nations Department for Policy Coordination and Sustainable Development ... Characteristics of Office Building Samples 6.4.3 Building Management and Performance Profiles Summary of Chapter 86 CHAPTER RESULTS AND DISCUSSION 7.1 Overview of Chapter 87 7.2 Comparing Building Performance. .. evaluate an existing office building and to apply the proposed SFMIndices with a case study This study focuses on the performance assessment of existing office buildings in Singapore Existing building... study aims to incorporate sustainable practices into FM for existing buildings management The specific objectives are: 1) to develop a sustainable FM framework for office buildings that incorporates