Benchmarking Questionnaire on

Facility Management Costs and Business

Practices

April 21, 2004

Introduction

KPMG has been contracted by Hydro Quebec’s Facility Management Division to perform a benchmark study
on the management of administrative buildings (both office and industrial facilities). Ultimately, the intent is to
draw comparisons with similar organizations throughout North America.

We are pleased to invite you to participate in this benchmark study. Our goal is to collect comparative
information on various facility management elements, including:

„ financial metrics on the management of your facility management department in 2003;

„ non-financial metrics on the management of your facility management department in 2003;

„ information on your business practices.

You can complete this questionnaire and return it by e-mail. Alternately, we can organize a conference call at
your convenience to answer the following questions verbally.

The results presented to Hydro Quebec’s Facility Management Division will be aggregated to preserve the
confidentiality of your responses. As a token of appreciation, each organization that participates in this
benchmark survey will receive an executive summary of the study results.

On behalf of Hydro-Québec and ourselves, we thank you for your cooperation.

2
General Information

Organization name:
Contact person name:
Position:
Telephone:
E-mail:

ORGANIZATIONAL PROFILE
Employee information
Total number of employees:

Number of occupants (including permanent and temporary employees,

contract workers and consultants with access to a workstation):
Number of occupants used to calculate ratios in this questionnaire, if different
from previous response:
Information on rentable area (usable office space in addition to its share of common floor and common building areas –
ref.: BOMA)

Total square meters being managed:

o Leased: % M2
o Owned: % M2

Square meters by category:

o Office space: % M2
o Others: % M2

Square meters by location:

o Urban centres: %
o Regions: %
Does your organization’s facility management department work in a shared
services environment? Yes No

Do you rely on external suppliers for your space planning services? Yes No
Does your administrative unit have a quality certification? (e.g. ISO,
Qualimètre, etc.) If so, please specify Yes No

3
2003 Financial Metrics

Occupancy costs per square meter

Occupancy costs (sum of A, B, C) $ - $ per M 2
= =
Square meters M2

The occupancy costs consists of the operating costs, fixed asset costs and general costs. Please provide the cost
breakdown.

1
Categories from BOMA
A. Operating costs
$ %
Sanitary management (1) -
Interior maintenance and repairs (2) -
Exterior maintenance and repairs (3) -
Utility costs (4) -
Security costs (5) -
Building management (6) -
Partial operating costs - as per BOMA $0 0.0%
Leasing expenses (7) -
Total operating costs $0 100.0%

What is the proportion of labour expense compared to the total operating costs?

1
Each cost category enclosed in brackets ( ) is explained in the "Definitions" section.

B. Fixed asset costs $ % C. General costs $ %

Depreciation - Information technology (8) -

Financial accounting (9) -
Financial costs -
Environnemental costs (10) -
Taxes -
Human resources (11) -
Others (please specify) - Others (please specify) -
Total fixed asset costs $0 0.0% Total general costs $0 0.0%

4
Occupancy costs per square meter (cont’d)
Does your organization calculate this metric using a different method? Yes No

If so, what metric did you obtain?

Occupancy costs (Sum of A, B, C) $ - $ per M2

= =
Square meters M2
What are the differentiating factors?

Occupancy costs per occupant

Occupancy costs (Sum of A, B, C) $ - $ per occupant

= =
Number of occupants Occupants

Space planning costs per occupant

Space planning costs (D) $ - $ per occupant
= =
Number of occupants Occupants

No. of resources
Space planning costs (D) $ %
Internal External
Planning: corporate objectives, annual program, three-year
-
plans, etc.
Coordination: project management, identification and
-
accountability of stakeholders
Design: proposals, preliminary and implemation plans -
Implementation: layout and moving costs as well as major
-
renovation and construction costs
Furniture: management and maintenance -

Others: signs, name plates, etc. -

Total space planning costs $0 0.0%

5
Non-financial Metrics for 2003

Square meters per occupant

Rentable area1 in both rented and owned
buildings = M2 = - M2/occupant
Number of occupants Occupants

Vacancy rate
Vacant rentable area1 M2 x 100 - %
1
Rentable area in both rented and owned = =
M2
buildings

Occupant churn rate

Number of occupants relocated in the year x 100 0 %
= =
Number of occupants

Workstation utilization rate

Workstations used x 100 0 %
= =
Total workstations available for use

1
Usable office space in addition to its share of common floor and common building areas – ref.: BOMA

6
 Information on Business Practices

1. Maintenance of the facility management assets

A. What proportion of your maintenance and operating fees is paid to internal and External %
external suppliers (subcontractors, outsourcing partners)?
Internal %
100%
Comments:

B. What type of maintenance and operating tasks do you outsource for your facility management assets?

C. What percentage of your maintenance budget is allocated to preventive and Preventive %

corrective tasks?
Corrective %
100%
Comments:

2. Space planning
A. The North American facility management market focuses more and more on workstations that are planned in
a homogenous manner (identical workstations, modular furniture, cubicles, etc.).
Do you apply this practice in your organization? Yes No
If so, in which proportion (% of workstations)? %
Comments:

7
 B. Does your organization apply the principle of occupational centres? Yes No
This practice aims at grouping business units within the same division in close proximity
to facilitate personnel movement in the case of divisional reorganizations and serves to
significantly reduce moving costs.
Comments:

C. What is the average space allocated to M2 M2/Workstation

each workstation in your organization?
Workstation
Comments:

3. What orientations and principles underlie your facility management strategy? (Location, building
categories, ownership vs. leasing, average leasing term, etc.)?

4A. How many leases does your organization manage?

4B. Number of employees assigned to lease management (negotiation, analysis, renewal, etc.)
5. Number of employees assigned to lease payment?

6A. How many municipal tax accounts does your organization manage?
6B. Number of employees assigned to tax accounts payment?

7. Chargeback of facility management costs

A. Are facility management costs billed to internal clients? Yes No
Explanations:

Comments
Do you have comments on this questionnaire or the information being benchmarked?

We thank your for your cooperation. You will receive the executive summary of this study results shortly.

8
Definitions

(1) Sanitary management Includes salaries and benefits of employees and supervisory staff as well as the costs of
costs contracted work, equipment and supplies, waste removal and recycling efforts dedicated
to maintaining interior sanitation and cleanliness.
(2) Interior maintenance Any preventive and corrective maintenance as well as equipment replacement costs.
and repairs expenses This category focuses on electrical and HVAC (heating, ventilation, air conditioning)
systems, plumbing, fire protection, structure, roofing, building envelope, elevators and
other building components. It includes salaries and benefits of employees and
supervisory staff as well as maintenance contracts, equipment, supplies and parts,
maintenance vehicles, and environment-related costs.
(3) Exterior maintenance Encompasses snow removal and landscaping expenses as well as the costs associated
and repairs expenses with the preventive and corrective maintenance or the replacement of equipment outside
the buildings (e.g. in free parking facilities). This category includes salaries and benefits
of employees and supervisory staff as well as maintenance and services contract,
equipment, supplies and parts costs.
(4) Utility costs Purchase costs of energy destined for heating, air conditioning, lighting and building
services: electricity, gas, fuel oil, chilled water and steam. Also includes water and
sewage costs.
(5) Security costs Expenses to protect any building and its occupants through the maintenance and
operations of burglar alarm, surveillance, fire alarm and access control systems. This
category includes salaries and benefits of employees and supervisory staff as well as
maintenance and service contracts, equipment, supplies and parts costs.
(6) Building management Expenses directly related to building management. Includes salaries and benefits of
expenses managers, secretaries and assistant building managers, professional or management fees,
training, IT and general office costs as well as travel expenditures.
(7) Leasing expenses Leasing expenses and other costs excluded from leases.
(8) IT expenses Expenses including office automation, software development, systems support and
maintenance as well as telecommunications costs.
(9) Financial accounting Expenses related to financial planning and control activities such as budget management,
financial analyses, costing, internal and external billing, financial statements, business
plans and operating reports.
(10) Environmental costs Costs related, among others, to implementation and maintenance of environmental
management systems, (e.g. ISO 14001), internal and external audits, environmental
inspections, management reviews and monitoring activities.
(11) Human resources Expenses related to recruitment and staffing, compensation program management, social
benefits, industrial relations, training and development, etc.