Maintenance issues

Procuring planned maintenance work

Contracts for planned maintenance works vary with the type of planned maintenance activity. Regular inspections and minor maintenance tasks may be let on a term contract. Larger scale repairs and replacements are generally let on lump sum contracts. Cyclical works, such as redecoration and overhaul of services plant, may be let on either a term or lump sum contract.

All works may be carried out in-house or contracted out. Commonly (but not exclusively) planned maintenance work tends to be contracted out. This is not necessarily the most cost-effective solution. Organisations should weigh up the advantages and disadvantages carefully before choosing a route. A combination of in-house and contracted out procurement may provide the most satisfactory route.

Larger scale planned maintenance works may involve contracting out both the professional aspects as well as the construction work.

Building services maintenance, cleaning and building fabric maintenance are often separated.

Individual contracts may be taken out for specific components, typically services plant such as lifts and air conditioning which require specialist contractors and need to meet mandatory inspection and maintenance requirements.

Contracts

Planned maintenance activities for fabric components are commonly packaged as one-off projects, although some planned maintenance campaigns may form rolling programmes where large numbers of buildings are involved.

Planned maintenance work is usually let as a lump sum contracts and occasionally as measured term contracts.

Forms of contract for planned maintenance and repairs include term contracts and lump sum contracts. Consideration should also be given to contract conditions and content, specialist maintenance considerations and building services contracts.

Term contracts

Term contracts are also known as planned preventive maintenance (PPM) contracts. They run for a fixed period, usually 3 years but they may be as short as a year. A schedule of priced activities is agreed.

  • Term contracts encourage a working relationship between the contractor and the employer.
  • Competitive tendering is not excluded.
  • Administration of orders and getting works carried out is relatively straightforward.

Variations of term contracts include:

  • Measured term contract: JCT Measured Term Contract (MTC) - where a schedule of rates for the likely works is agreed without the full extent of the works being measured. Used for planned maintenance work such as kitchen or bathroom repairs, redecorations.
  • Specialist term contract: limited to specialist tasks such as concrete repairs, lift repairs, redecorations.
  • Planned maintenance term contract: used for servicing of plant and equipment. A lump sum is included for regular inspections and maintenance activities. A schedule of rates is priced for specific repair and replacement of components.

Lump sum contracts

Lump sum contracts or project contracts run for the duration of a specific set of works, such as a repainting programme, or a kitchen furniture or window replacement programme. They tend to be used for larger value projects, to obtain the best price for a fixed piece of work.

  • Minor Works Building Contract: Revision 1, 2007 (MW) - a lump sum contract for smaller sized planned maintenance works.
  • Intermediate Building Contract: Revision 1, 2007 (IC) - a lump sum contract for larger scale planned maintenance work which may also include improvements and allows for specialist subcontractors.
  • JCT Standard Form of Building Contract 2007 (SBC/Q), (SBC/AQ) or (SBC/XQ) - for larger works, over £200,000. Includes a specification and schedule of works. With Quantities with Approximate Quantities or without Quantities.
  • JCT05 Management Building Contract (MC) Main Contract - for large scale works where an early start and early completion is required. Full design information is prepared as the project progresses.
  • JCT: Framework Agreement (FA 07) - for the procurement of construction/engineering related works over a period of time. Used with standard forms of construction contracts. Meets the requirements for public procurement rules.

Other contracts that could be used for lump sum projects include:

  • Model 'F' Form of Contract;
  • ICE Form of Contract;
  • NEC Engineering and Construction Contract;
  • Project Partnering Contract;
  • GC/Works Contracts; and
  • bespoke contracts developed for specific projects or programmes.

Contract conditions and content

In summary, the key information to include within contracts for planned maintenance are as for any building contract:

  • clearly defined scope of work, specification and drawings;
  • definitions, terms and conditions;
  • price, payment and variations;
  • commencement and duration of the contract, working hours, damages;
  • dealing with disputes, termination clauses;
  • insurance;
  • warranties;
  • specialist contractors; and
  • defects liability period.

Specialist maintenance considerations

Some building types (such as historic buildings) or planned maintenance with specific requirements (such as concrete repairs) may only be achieved by employing specialists.

Building services contracts

Building services contracts may also be considered a specialist area for a building surveyor to refer to a building services specialist. Further information on building services contracts may be found from CIBSE and BSRIA.