Service Charge Modelling

SCMPB CONSULTING

Overview

Provides life cycle costs for all types of asset maintenance categories and services, including Buildings, Communities, Amenities, Infrastructure, and Utilities.
Covers all associated “Soft” FM costs, including Cleaning, Security, Transportation, Landscaping, Management, Administration, Manpower and Labor, Consumables, Spare Parts, and other related expenses, including inflation, legal fees, and insurance costs.
Demarcates service charges and service categories between utilities, infrastructure, buildings, support facilities, and end users.
Confirms annual service charge revenue and cost requirements for Operations and Maintenance services, as well as Capital Replacement fund projections (sinking funds) for a development.
Supports the preparation of FM operating budgets.
Facilitates benchmarking of FM Operator and Service Provider costs.
Details each line item for each service category (technical and non-technical services) calculated on a m² and ft² basis and in monetary terms to meet client obligations to owners, tenants, and concessionaires under the Service Charge Fund asset owners.
Ensures that all individual Community, Infrastructure, Utilities, Building, and support service elements and assets are analyzed, captured, apportioned, and included in the service charge provisions based on Life Cycle Analysis principles.

Methodology (Process):

Step 1:

Various meetings will be held with site development personnel and project managers to gather information, drawings, technical specifications, tender documents, existing contracts, and Bills of Quantities.

Step 2:

Once all available data and information about process requirements have been collected and collated, we will review and analyze the data to determine:
Validity
Completeness
Gaps
Assumption criteria
This step includes determining the interconnection between data for individual utilities and how these interrelationships affect the overall development and expense appropriation and allocation.

Step 3:

Model Development: Once the background information and assumption criteria have been collected and synthesized, the initial draft financial models are constructed, edited, and revised to incorporate all necessary categories of information/data for the operating and capital cost models.
Calibrate Model: Once the structure and model elements have been developed, the model is calibrated in terms of data ranges being checked and the model operation confirmed before it is applied, and conclusions are drawn and provided.
Mixed-Use Development: An Applied “Weighted Criteria Assessment Matrix” will be used for the fair and reasonable apportionment of common areas and other services.

Step 4:

Based on the findings of the cost model, several conclusions are drawn to assist the Client in budgeting future operations, maintenance, and capital replacement activities and projects by undertaking sensitivity analysis and risk analysis within the context of their Master and Financial Plans.
Risk analysis is a subset of sensitivity analysis, where parameters that cause the greatest changes in the bottom line are determined. This helps establish where greater controls and insurances may be required.

Best Solutions

Our Approach

Collaborative Data Collection

We engage closely with your site development personnel and project managers to gather all necessary information, ensuring a thorough understanding of your property’s unique needs.

Comprehensive Data Analysis

We meticulously review and analyze collected data to validate completeness, identify gaps, and establish sound assumption criteria for model development.

Precision in Model Development

Our approach to model development is methodical and iterative, ensuring that all relevant data categories are included and accurately represented in the final financial models.

Rigorous Model Calibration

We rigorously calibrate our models, checking data ranges and confirming model operations before applying them to real-world scenarios, ensuring reliability and precision.

Strategic Risk Management

Our methodology includes risk analysis as part of the sensitivity analysis, identifying critical areas where enhanced controls and insurance may be necessary to protect your investments.

Client-Centric Reporting

We provide clear, detailed reports that outline our findings and conclusions, offering you the insights and recommendations needed to make informed decisions and drive long-term success.

Key Features

Expertise in Comprehensive Modeling

Our team’s deep expertise in life cycle cost analysis ensures that every aspect of your property’s maintenance, from infrastructure to amenities, is accounted for in the service charge model.

Tailored Solutions for Diverse Needs

We offer customized solutions that demarcate service charges between utilities, infrastructure, and buildings, ensuring clarity and fairness for all stakeholders.

Enhanced Financial Planning

Our models confirm annual service charge requirements and support capital replacement fund projections, enabling you to plan with confidence and accuracy.

Benchmarking for Cost Efficiency

We provide benchmarking tools to compare FM Operator and Service Provider costs, helping you optimize spending without compromising on quality.

In-depth Risk and Sensitivity Analysis

We conduct thorough risk and sensitivity analyses to identify areas that may require additional controls, ensuring your financial plans are robust and resilient.

Cognisphere Management and Consultancy

Empowering Safety, Protecting Lives