Hard FM vs. Soft FM: What’s Actually Included in a Facility Management Contract?
Introduction
Look around the city and walk through any of the modern buildings to see a building that seems to be running smoothly, whether it is an office building, a hospital, a shopping mall, a factory or residential community. Lights stay on. All the rooms are comfortable with air conditioning. Floors stay clean. Security is provided at entrances. Elevators work without interruption.
That’s not something that happens randomly.
Every well-managed property is accompanied by a facility management contract which is the set of terms that pinpoint the owner of the building with the obligation to maintain it up and running. However, many property owners, developers and business managers aren’t aware of all the aspects of this contract. They commonly hear about Hard FM and Soft FM, but it’s not always clear what the difference is, until something is missed.
The line that separates you from someone else is important. It impacts budgeting, legal requirements, maintenance planning, vendor decision making and the everyday use of the building by all.
This guide will explain what both Hard FM and Soft FM are and what services are included in each category and why both are important to the maintenance of commercial and residential properties.
So, What Is Facility Management?
Facility management is the organization of space, staff, resources and services to maintain the safety, operational and effective use of a property throughout its life cycle.
A facility management contract is more than a maintenance contract. Centralizes technical maintenance, workplace services, compliance, safety, cleaning, security and operational planning in a structured service model.
Hundreds of moving parts are responsible for the operation of every building. Air conditioners require maintenance. Fire Alarm Must be Tested. Cleaning timetables should be adhered to. Equipment must be inspected before breakdowns.
Facility management integrates all these functions into a single streamlined process.
The International Organization for Standardization (ISO) says that facility management helps bring together people, place and process to enhance the quality of life and productivity of an organization. Many professional facility management companies use the ISO 41001, which is a global standard for facility management.
What Are the Reasons for Breaking Up Facility Management Contracts?
The risks and responsibilities of services are not the same. That’s also why most contracts for facilities management split services into Hard FM and Soft FM.
Consider changing an electrical panel that has problems.
Now, how do you think the reception area would look after you cleaned it?
Both jobs matter. However, one has to do with the safety of the buildings and the other has to do with comfort and cleanliness to the workplace and the appearance of the buildings.
Separating services simplifies the management of contracts. It also allows the property owner to get a better grip on:
- What services must they provide and legally must provide?
- Which services have an impact on the working environment
- Allocation of maintenance budgets.
- What are the teams that need technical certifications?
- How service level agreements (SLAs) should be measured
It is even more critical in large facilities where more than one vendor may be engaged.
Why Is This Distinction Especially Important in Saudi Arabia?
The realty industry in Saudi Arabia is booming beyond all measure.
When it comes to commercial developments, industrial facilities, hospitals, airports, logistics parks, hotels, and large mixed-use communities, the operational support that is necessary after construction is done is never-ending.
Additionally, professional facility management has seen a rise in demand due to projects associated with Saudi Vision 2030. The building world is getting interconnected, more energy efficient and more reliant on specialized maintenance teams.
Outsourcing facility management is becoming commonplace because it’s impractical to have dozens of separate contractors on staff at large properties.
An obvious FM contract can prevent confusion about roles and responsibilities, and ensure that critical services are provided without interruptions.
What Should Be in a FM Contract?
The format of each individual contract varies, but generally there is a clear delineation of responsibilities, service levels, reporting requirements and maintenance schedules.
The extent of the project is dependent on:
- Property type
- Building size
- Number of occupants
- Operational hours
- Regulatory requirements
- Equipment complexity
A typical facility management contract may include:
Scope of Work
This section clarifies the services that the FM provider must provide.
Service Schedules
This is typically where cleaning frequencies, inspection schedules, preventive maintenance plans and routine maintenance schedules are recorded.
Service Level Agreements (SLAs)
SLAs include response times, completion times, reporting requirements and performance measures.
Compliance Requirements
Local regulations, fire safety guidelines, occupational health guidelines, and building compliance requirements are frequently referenced in contracts.
Reporting
Typically, professional FM service providers will report regularly on various areas such as maintenance tasks completed, work orders accomplished, equipment performance and other key performance indicators.
So What Is Hard FM and Soft FM?
Facility management services can be categorized into two types: hard FM and soft FM. One concentrates on the physical use of the building. The other one deals with helping the people who use it.
It seems they’re always talked about singly but they also operate in tandem on a daily basis.
No building with poor cleaning practices and good maintenance will be a positive workplace.
Likewise, spotless floors won’t compensate for an unreliable electrical system or a malfunctioning fire alarm.
Both categories can be evaluated and compare services much easier with understanding.
What Is Hard FM?
Hard Facility Management includes services directly associated with the building’s physical infrastructure.
The services typically include fixed assets that would not be easily removed without damaging the building.
Examples Include:
- HVAC systems
- Electrical systems
- Plumbing
- Mechanical equipment
- Fire detection systems
- Fire suppression systems
- Elevators
- Escalators
- Building Management Systems (BMS)
- Emergency generators
Many Hard FM activities are legally required as they involve issues of safety for the occupants and compliance with regulations.
For instance, intermittent testing of fire alarms and emergency lighting is not a choice in many commercial buildings. They are a way to make sure the property is in line with the local rules and regulations and to minimize the risk during operation.
Hard FM teams often consist of certified technicians, electricians, HVAC engineers, mechanical specialists and safety professionals.
One of Hard FM’s largest responsibilities is preventive maintenance.
Maintenance schedules are planned throughout the year instead of waiting for equipment failures to occur, and are based on manufacturer recommendations, operating environment and asset criticality.
This method can minimize unforeseen downtime, maximize equipment life, and provide cost savings for repairs over the long-term.
What Is Soft FM?
Soft Facility Management services are the ones which help the building occupants and make the place easier for the day-to-day living.
Usually, these services are not related to permanent building infrastructure but they do have a direct effect on comfort, cleanliness, safety and customer experience.
Some of the Most Common Soft FM Services Offered Are:
- Custodial and maintenance works.
- Waste collection
- Pest control
- Landscaping
- Reception services
- Security personnel
- Mailroom operations
- Helpdesk support
- Catering services
- Washroom consumables management
Soft FM services are not as fixed as Hard FM and can vary depending on occupancy, business and/or seasonal needs.
For instance, an office building can ramp up extra cleaning during flu season or do additional security during large outdoor gatherings.
Soft FM also has a significant impact on workplace satisfaction and brand perception, given that these services are closely integrated with the employees, visitors, and customers as they interact with the building.
The welcoming lobby, the cleanliness of the restrooms, well-groomed landscaping, and efficient security personnel all impact the client’s experience of a building before he or she ever gets to see the technical systems.
What Is the Difference Between Hard FM and Soft FM?
It’s easy to see the difference, Hard FM keeps the building going. Soft FM maintains the usability and comfort of the building.
They are both necessary, but they serve different purposes, and have different skill needs and expectations for services.
| Hard FM | Soft FM |
|---|---|
| Concerns physical infrastructure of the buildings | Specializes in services for the persons being occupied |
| Typically meets regulatory requirements | Typically concentrates on operational quality |
| Needs qualified technical experts | Needs trained operating personnel |
| Contains planned and reactive maintenance | Includes services provided in the workplace on schedule |
| Adversely impacts on safety and building functions | Directly impacts comfort, cleanliness and customer experience |
Commercial offices cannot be in operation without electrical systems and HVAC equipment functioning. Meanwhile, inadequate housekeeping, unmaintained landscaping and unchecking security alert are bad representations to employees and guests.
The top facility management companies do not view these two as two distinct departments, but as one part of the operational plan.
Which Are the Typical Hard FM Services?
Hard FM includes the assets that are used to keep a building running. This can range from property to property, but most contracts consist of preventive maintenance, corrective maintenance, and emergency maintenance.
Common Hard FM Services Consist Of:
HVAC Maintenance
- Chillers
- Air Handling Units (AHUs)
- Fan Coil Units (FCUs) are also referred to as fan coil heaters.
- Ventilation systems
- Air conditioning inspections
- Filter replacement
Electrical Maintenance
- Distribution panels
- Switchgear
- Emergency lighting
- Backup generators
- UPS systems
- Power quality inspections
Mechanical Systems
- Pumps
- Compressors
- Boilers
- Pressure vessels
- Water treatment equipment
Plumbing
- Water supply
- Drainage
- Sewer systems
- Leak detection
- Pump maintenance
Fire and Life Safety
- Fire alarms
- Sprinklers
- Fire extinguishers
- Smoke detectors
- Emergency exits
- Fire pumps
Vertical Transportation
- Elevators
- Escalators
- Passenger lifts
- Service lifts
Some of these systems need to be inspected periodically to meet local requirements and manufacturer’s recommendations.
Typical Soft FM Services Include
Soft FM is built around assisting individuals, not the building.
Services Commonly Include:
Cleaning and Housekeeping
- Daily cleaning
- Deep cleaning
- Window cleaning
- Carpet cleaning
- Washroom sanitation
Security Services
- Access control
- Visitor management
- CCTV monitoring
- Security guards
- Incident reporting
Landscaping
- Irrigation
- Lawn care
- Tree maintenance
- Seasonal planting
Waste Management
- Waste collection
- Recycling
- Hazardous waste coordination
Workplace Support
- Reception
- Mailroom services
- Meeting room preparation
- Helpdesk services
Pest Control
Regular inspections and treatments ensure hygiene levels in commercial and residential properties.
What Is a Service Level Agreements (SLAs) in Facility Management?
The SLA outlines the speed at which services should be performed and the metrics used to measure their performance. It turns expectations to measurable commitments.
If SLAs are not clearly defined, it may be hard to determine if a contractor is fulfilling contract requirements.
Typically, a facility management SLA will include:
Response Time
The speed in which technicians respond to a reported problem.
Resolution Time
The time the contractor will need to carry out the repairs.
Planned Maintenance Compliance
How often have the scheduled maintenance activities been completed on time?
Uptime
Critical equipment availability – HVAC systems, elevators, generators etc.
Cleaning Standards
Inspection scores for housekeeping services.
Customer Satisfaction
Feedback from the occupants or building management.
Well-defined SLAs create accountability for both the client and the service provider.
What’s the Structure of a Facility Management Contract?
There are standard and common elements in most FM contracts, regardless of the type of property. The intent is to set expectations, standards, and reporting needs in advance of work.
A typical contract will contain:
Scope of Services
Specifies all of the responsibilities for Hard FM and Soft FM under the agreement.
Asset Register
Records all equipment under maintenance program.
Maintenance Schedules
Sets up maintenance schedules for assets.
Staffing Requirements
Designates technician, supervisor, cleaning and security staff, and specialist engineers.
KPI Reporting
Describes the way performance will be monitored and assessed.
Emergency Procedures
Describes escalation procedures for critical incidents.
Exclusions
Recognizes services not covered by the contract and thus avoids future conflicts.
A detailed contract will help to minimize misunderstandings and will help to control expectations between the parties during the contract.
Would You Rather Have In-House or Outsourced Facility Management?
Outsourcing offers many organisations access to expertise that they otherwise wouldn’t have on-site, without hiring a maintenance team. Decision will be based on the property size, complexity and requirements.
Outsourcing is sometimes appropriate when:
- Requires several technical areas.
- Buildings run on 24 hours a day.
- There is a need for certified staff for regulatory compliance.
- The management of preventive maintenance programmes is essential.
- It is good for organizations to have a single point of contact for several services.
Some businesses have a strategic role in-house and outsource daily operations to an experienced FM provider.
Such a method enables the management team to concentrate on their business and the specialists to keep the building performing.
Frequently Asked Questions
Does Hard FM Have to Be Compulsory?
Statutory compliance is a major component of many Hard FM services as they impact life safety, electrical systems, fire protection and building operations. Inspection and maintenance requirements varies by property type and are outlined in local regulations.
Is It Possible to Use Only Hard FM as a Building System?
Technically, yes. Practically, it isn’t a good long-term approach.
If the building is not maintained, secured, cleaned, and cared for, its quality of service to employees, visitors and tenants drops-off rapidly.
So, What Is Integrated Facility Management (IFM)?
Integrated Facility Management: This is a combination of Hard FM and Soft FM services provided by a single service provider.
Rather than having to manage several contractors, clients can connect with one organisation to oversee the technical maintenance, workplace services, reporting, vendor coordinating and performance management.
How Often Should Facility Management Contracts Be Reviewed?
Most companies hold KPI meetings every month and have a comprehensive contract evaluation before renewal every year.
Are Individual FM Contracts Possible?
Yes.
Each property will be unique in its operating needs. The service level and staffing models needed for hospitals, industrial facilities, residential compounds, airports and office buildings vary.
Conclusion
Together, Hard FM and Soft FM ensure buildings remain safe, efficient and comfortable. One covers the physical structure which makes the property work. The other helps the user every day.
Knowing the difference can inform property owners to make sound decisions for facility management contracts, for comparing service providers, and for long-term facility operation budgets.
A good FM contract is more than just a distribution of responsibility. It provides accountability, with well-defined scope, measurable SLAs, preventative maintenance schedules, and transparent reporting.
Organizations that invest in professional facility management will benefit from having the ability to maintain asset value, minimize operational disruption, and provide a consistently positive experience for occupants as Saudi Arabia continues investing in commercial developments, health care facilities, industrial zones and Vision 2030 projects.