The Act modernises public sector procurement, focusing on transparency, efficiency, and accessibility. It simplifies how public contracts are awarded, encouraging fair competition and making it easier for small businesses to participate. The Act also emphasises value for money, social impact, and environmental considerations in procurement decisions, helping align public spending with broader societal goals. New threshold values are also introduced, meaning that all contracts over £30,000 will be affected. 

The Public Procurement Act 2023 will now come into force on 24 February 2025.

£213,477

£5.3 million

£138,000

It is cost effective to hire an consultant when your organisation faces complex challenges, needs expert advice, or lacks in-house experience. In fact, our consultants often save clients money by running retendering and benchmarking processes, improving operational efficiency of the business or using their expert knowledge to avoid costly mistakes.

Hiring a consultant is an investment, however a good consultant should never cost you money in the long term.

Consultants bring specialised expertise, industry insights, and an external perspective that can be hard to achieve internally. They offer tailored strategies, benchmark performance, and identify opportunities for cost savings and efficiency that might be overlooked by in-house teams. Consultants also provide access to best practices, tools, and networks, ensuring solutions are up-to-date and effective. When your team lacks capacity, objectivity, or specific knowledge, consultants can deliver focused support to address challenges and drive improvements.

Vixus Property Advisory offers a fresh approach to facilities management consultancy, delivering industry-leading solutions to clients seeking innovative and effective ways to manage their properties. We prioritise understanding the client’s broader business objectives and tailoring their services to achieve those goals.

Vixus Property Advisory emphasises a bespoke approach, ensuring our services align with the specific needs of each client. We are dedicated to delivering projects on time and within budget, without compromise.

Vixus Property Advisory offers a free eBook that provides valuable insights into optimising facilities management costs without compromising service quality. You can download the eBook HERE.

Facilities management (FM) oversees the services, processes, and systems that ensure buildings function efficiently and safely. It includes maintaining infrastructure, managing utilities, ensuring compliance with health and safety standards, and providing services like cleaning, security, and waste management. FM combines hard services (e.g. building maintenance) with soft services (e.g. catering and cleaning) to create productive, safe environments. It also focuses on sustainability, helping to reduce energy use, and optimise costs. Essential across sectors like commercial, healthcare, and education, FM supports core business operations by ensuring facilities meet the needs of occupants while adhering to regulations and operational standards.

Hard services refer to the physical, technical, and structural aspects of facilities management that directly impact the building and its operations. These services are essential for the safety, functionality, and maintenance of a property. Examples include fire safety systems, electrical systems, plumbing, etc. 

Soft services are non-technical, day-to-day support services in facilities management that enhance the comfort, functionality, and experience of a building’s occupants. These services are less about the building’s structure and more about maintaining a pleasant and efficient environment. Examples include cleaning, security, landscaping, etc. 

ISO 41001 is the international standard for facilities management, providing a framework to optimise FM processes and align them with organisational goals. It focuses on improving efficiency, reducing costs, and ensuring compliance with legal and regulatory requirements. Applicable to organisations of all sizes and sectors, it promotes best practices in managing facilities, whether handled in-house or outsourced. Adopting ISO 41001 demonstrates a commitment to operational excellence, sustainability, and creating safe, productive environments.

ISO 45001 is an internationally recognised standard for occupational health and safety management systems. It provides a framework to help organisations proactively manage workplace health and safety risks, reduce the likelihood of accidents or illnesses, and promote a safe and healthy environment for employees, contractors, and visitors.

The standard focuses on risk prevention, continuous improvement, and legal compliance, ensuring organisations can identify hazards, assess risks, and implement effective controls. By adopting ISO 45001, businesses demonstrate a commitment to the well-being of their workforce and improve overall operational resilience and reputation.

Facilities management supports sustainability goals by optimising building operations to reduce environmental impact. This includes improving energy efficiency through smart technologies, managing water usage, and implementing renewable energy solutions. Effective waste management and recycling initiatives minimise landfill contributions, while sustainable procurement ensures eco-friendly materials and services are prioritised. FM teams also play a key role in maintaining compliance with environmental regulations and standards, such as ISO 14001. By promoting practices like green cleaning and enhancing indoor air quality, facilities management creates healthier, more sustainable workplaces. These efforts not only reduce costs but also support broader corporate social responsibility objectives.

Reducing your building’s carbon footprint involves improving energy efficiency, such as upgrading to LED lighting, optimising HVAC systems, and using energy management technologies. Switching to renewable energy sources, like solar or wind power, can further decrease emissions. Insulating the building and improving windows can reduce energy loss. Implementing waste reduction and recycling programmes also helps minimise environmental impact. Consider sustainable procurement for materials and services, and encourage eco-friendly practices among occupants. Regular energy audits and monitoring ensure continued improvement. These steps not only lower emissions but also reduce operating costs over time.

Energy audits identify inefficiencies in a building’s energy use, providing actionable insights to reduce waste and improve performance. By analysing energy consumption patterns, audits highlight areas for improvement, such as outdated lighting, inefficient HVAC systems, or poor insulation. They also recommend cost-effective solutions like upgrading to energy-efficient equipment, implementing automation systems, or adopting renewable energy sources. Energy audits ensure compliance with regulations and help prioritise investments for maximum impact. Over time, they lead to reduced energy costs, lower carbon emissions, and a more sustainable, efficient building

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Technology enhances facilities management by streamlining operations, improving efficiency, and enabling data-driven decision-making. Key benefits include:

• Automation: Tools like CAFM and CMMS automate scheduling, maintenance tracking, and asset management, reducing manual effort and errors.
• Real-Time Data: IoT sensors provide live data on building performance, occupancy, and energy usage, allowing managers to optimise resources effectively.
• Predictive Maintenance: AI-powered systems predict equipment failures, reducing downtime and extending asset life.
• Energy Efficiency: Smart building systems adjust lighting, heating, and cooling automatically, supporting sustainability goals and reducing costs.
• Enhanced Security: Advanced access control and monitoring systems improve safety and provide detailed records of building activities.

These technologies transform facilities management into a more proactive, efficient, and sustainable process.

Smart building technologies offer numerous benefits, including:

• Energy Efficiency: Automated systems optimise lighting, heating, ventilation, and air conditioning, reducing energy consumption and lowering operational costs.
• Improved Comfort and Productivity: Smart systems maintain optimal indoor conditions, enhancing occupant comfort and workplace productivity.
• Proactive Maintenance: IoT sensors and predictive analytics detect potential issues early, minimising downtime and reducing maintenance costs.
• Enhanced Security: Smart access control, CCTV, and monitoring systems ensure safer environments and provide detailed activity tracking.
• Sustainability Goals: By optimising resource usage and reducing waste, smart technologies support environmental sustainability initiatives.
• Data-Driven Decisions: Real-time data and analytics help facilities managers make informed decisions about resource allocation, space utilisation, and long-term planning.
• Cost Savings: The combination of energy savings, reduced maintenance expenses, and operational efficiency leads to significant cost reductions over time.

Smart building technologies provide a comprehensive approach to improving efficiency, sustainability, and the overall experience for building occupants.

AI plays a transformative role in facilities management by enhancing efficiency, accuracy, and decision-making. Key contributions include:

• Predictive Maintenance: AI analyses data from equipment and IoT sensors to predict failures, allowing for timely repairs and reducing downtime.
• Energy Optimisation: AI-powered systems learn usage patterns to optimise energy consumption, reducing costs while maintaining comfort.
• Smart Scheduling: AI streamlines the scheduling of tasks, staff, and resources, improving operational efficiency.
• Enhanced Security: AI supports intelligent surveillance, identifying unusual patterns and potential security threats in real-time.
• Improved Space Utilisation: AI analyses occupancy data to optimise space allocation, ensuring effective use of resources.
• Automation of Routine Tasks: Repetitive tasks such as inventory tracking or compliance reporting are automated, saving time and reducing human error.
• Data-Driven Insights: AI processes large volumes of data to identify trends and make recommendations, supporting better strategic decisions.

By leveraging AI, facilities management becomes more proactive, cost-effective, and aligned with the demands of modern, dynamic environments.

A service charge is a fee that is charged by the building management committee (often through a Property Management Company) that contributes towards the upkeep of your block/estate.  Your service charge fee is usually spent on:

• Planned maintenance (e.g. testing fire alarms, emergency lights and boilers). For posher buildings this could also include maintaining the swimming pool and/or gym equipment
• Reactive maintenance (e.g. repairing the boiler when it breaks down)
• Utilities for common areas (gas, electricity, water)
• Buildings insurance
• Property Management Company fees
• Sink fund (pot of money held in reserve for major works or emergencies)

Service charge and ground rent are payments made by leaseholders, but they serve different purposes.

• Service charge: Covers the costs of maintaining, repairing, and managing communal areas and services in a building or estate, such as cleaning, landscaping, or lift maintenance. These charges vary based on actual expenses incurred.

• Ground rent: A fixed annual fee paid to the freeholder for leasing the land on which the property is built. It is usually set out in the lease and does not cover maintenance or services.

For more information, check out this short video: https://youtu.be/qaSXdZU3AUI

The service charge can vary greatly depending on the type of property being managed (private estates are generally a lower cost than blocks of flats), and the standards and facilities being provided.  For example a swanky block of apartments in Chelsea with a swimming pool, gym and private cinema will likely demand a higher service charge than an ex-council block in Solihull, because the expectations of the leaseholders might be higher, and because there are more communal facilities that require maintaining.

Therefore service charge fees can range from a few hundred to tens of thousands of pounds a year.  This should be made clear to the prospective buyer of a property in the seller pack, as it needs to be taken into consideration when making an offer on the flat/house in question.

The service charge period is generally calculated annually, albeit leaseholders are likely to be billed on a quarterly or 6-monthly basis.  You will receive a bill each period from your Property Management Company that breaks down what the service charge fee comprises for that interval.

Sometimes, when major work is required and there isn’t enough money in the service charge fund to cover it, a Section 20 notice is issued to leaseholders, where additional fees are demanded to cover the cost of these works.  These are ad hoc and can be issued at any time, and as frequently as is required depending on the number of major works being undertaken.

This refers to Section 20 of the Landlord and Tenant Act 1985.

A Section 20 notice is issued when a repair or improvement is required on the building or estate, and the estimated value of the work is likely to cost over £250 per leaseholder.  These are sometimes referred to as ‘Qualifying Works’.

It is a legal requirement for the landlord (usually via the PMC) to inform leaseholders of such impending works, and a formal procedure must be followed to allow a period of consultation prior to the works commencing.  The consultation procedure follows three stages:

• Stage 1: Notice of Intention
  • This Notice should describe the proposed works and invite all leaseholders to make written observations. Leaseholders can also provide the details of appropriate contractors who could be approached to undertake these works.
  • The expiry date for this is 30 days from the date of Notice
• Stage 2: Notice of Estimates
  • This notice provides details of the estimates or quotes received from the contractors that have been approached to undertake the works
  • The landlord/PMC must provide at lease 2 genuine estimates, with at least one of these coming from a source that is in no way connected to the landlord/PMC.
  • As with stage 1, leaseholders have 30 days to make written observations
• Stage 3: Notice of Contract Award
  • A Notice of Award is only legally required if the selected contractor did not provide the lowest priced estimate. Regardless, it is seen as good practice for the PMC to issue a Notice of Award to keep leaseholders informed of the situation
  • If a Notice of Award (also known as a Notice of Reasons) is provided due to the PMC not selecting the lowest priced contractor, this must be done so within 21 days of entering into the contract

If this procedure has not been properly followed, the landlord/PMC will only be entitled to claim a maximum of £250 per leaseholder for the works.

For more information, check out this short video: https://youtu.be/qV6SJClLm94

A Resident Management Company (RMC) is a company that is set up to manage the communal areas of your building.  The RMC is usually made up of leaseholders (people who own the individual properties) who become shareholders of the RMC.  All leaseholders should be afforded the opportunity to apply to sit on the board of the RMC, through an application process where the other building leaseholders can vote to approve or reject the application. These positions are almost always voluntary roles.

The RMC is responsible for managing the service charge on behalf of all leaseholders.  This involves ensuring that best value is obtained on all planned and ad hoc spend, as well as enforcing safeguarding measures to keep the building compliant (e.g. arranging buildings insurance).  Often the RMC will appoint a Property Management Company to take responsibility for the day to day running of the building.  They will charge a fee for this service (that gets included in the service charge).

When a leaseholder sells their property, their shares in the RMC automatically transfer to the new owner.

If your building does not have a Resident Management Company in situ, or if enough leaseholders are of the opinion that the RMC is not carrying out their duties to a satisfactory level, a Right to Manage (RTM) process can be pursued.  Similar to an RMC, the RTM must form a Limited Company, however leaseholders become company members rather than shareholders. 

RTM’s are generally regarded as a more combative approach compared to an RMC, as it usually follows a dispute with the freeholder.  The RTM will provide leaseholders with greater control (and no compensation payable to the freeholder), however the setting up of an RTM can be complex and fraught with pitfalls.  For more information, check out this short video: https://youtu.be/TjZTxrak8SI