Study Guide


MultipleChoice Questions:

WhatIFMA stands for.(Chapter 1) – International Facility Management Association.

WhatBOMA stands for.(Chapter 1) – the Building Owners and Managers Association

Major concern of FMers.(Chapter 1)

  • The ways for exhibiting the business worth of a facility to the senior management

  • Strategies for overturning the under financing of our building infrastructure that has been documented publicly since 1990 or after the publication of the NationalResearch Council’s report that was titled , Committing to the Cost of Ownership.

Thefour components of Facility Management.(Chapter 1) –

  • Planning

  • Acquisition

  • Operations and Maintenance

  • Disposition

What it means when we say FM “facilitates” the workers’ abilityto work in the space. (Chapters 1-3)

  • It organizes facility management

  • It is responsible to comes up with a plan, program and a budget

  • Determines lease administration and management approach of the property

Difference between centralized and decentralized management(Chapter 1)

Centralizedmanagement structure features an administration approach where oneperson one person either makes or approves the critical decisions. Onthe other hand, decentralized administration approach features anadministration approach where several people are involved in comingup with the critical business decisions.

Whatis appropriate to outsource and not outsource.(Chapter 2)

  • Appropriate to outsource: equipment technician, labourer, management and staff personnel.

  • Inappropriate services to outsource: non-administrative tasks and top-most management duties that would otherwise make an individual lose control of a facility oversight

What percentage of FM problems to plan for proactively.(Chapter 2) – 90-95%

Thevarious models for providing FM services to an organization and wheneach is appropriate(Chapter 2).

  • One-location, one site model

  • Office manager model

  • Public works model

  • One-location, multiple-sites model

  • Fully international model

  • Multiple-locations, strong-regional, or divisional-headquarters model

The main pre-condition a task must meet before it is considered foroutsourcing.(Chapter 2) –

  • The FM retains the organization necessary for serving clients and he keeps control of the entire organization.

  • More affordable to conduct the task using contractors

What is unique about the three skill sets FMers should possess:technical, business, and communication skills? Know how FMers use thethree skill sets. (Chapters 2-3)

  • Technical – They should have experience to conduct specific job

  • Business – they need to have vast understanding of the FM business as well as the industry they support

  • Communications – facilitates identification of appropriate responsibilities supposed to be allocated to individuals

What“best case” and “worst case” scenarios are in budgeting andwhy they are important in preparing organizations for the future.(Chapter 4)


  • Lease income compensates the capital cost

  • The need for a long-term space is accomplished


  • The cost of leasing is higher and long lasting

  • The cost of capital exceeds is also higher

  • Present leases are hardly extended without incurring a penalty

  • Expansion space disappears at a 50% higher rate than anticipated

  • Allocation of space is done unpredictably

What major cost is for organization over its facility’s life.(Chapter 5)

  • The capital cost is essential when calculating the life of a facility

Categories of costs associated with calculating life cycle costs.(Chapter 5)

  • In-house services

  • Outsourced services

  • Capital

Be able to identify a Capital Project. (Chapter 5)

  • Moving averages

  • Exponential smoothing

  • Simple projection

  • Regression analysis

  • Delphi methodEconometric modeling

Identifythe most advantageous investment for an organization when givendescriptions, costs, and Benefit Cost Ratio (BCR).(Chapter 5)

Theorganization can apply indexes in fine-tuning figures to suit theirlocal application

Knowwhat chargebacks are and their benefits.(Chapter 5)

  • The process of reclaiming the fees paid for a service, especially when a client has used a MasterCard. The primary benefit of the strategy is to allow disgruntled clients to reclaim the money spent on a given service.

Why“constant dollars” are used in Life Cycle Cost Analysis.(Chapter 5)

  • They have uniform purchasing cost that is free from regular inflation and deflation.

What must be analyzed before deciding to lease or own a facility?(Chapter5)

  • Total space requirement should be evaluated prior to purchasing or leasing

Considerations when planning for organizations’ space needs(Chapter 6)

  • The management needs to come up with space objectives the aims of an organization as well as its culture

Benefitsof owning space as well as benefits of leasing space (Chapter 6)

Benefitsof owning space:

  • Helps to save money

  • One has higher control over the facility

  • Enhances consistency

Benefitsof leasing:

  • No down payment

  • No mortgage

  • Fewer responsibilities

  • Negotiable rates

  • Less tax paper work

  • Higher flexibility

Appropriate FM programs for Project Management Method ofmanagement.(Chapter 12)

  • The manager of the facility needs all the big capital projects that he bears responsibility

  • Life-cycle costing is applied in making project decisions

  • Establishing partnerships reduces the chances of experiencing litigation when managing enormous projects

The three categories of requirements documented in the FacilityProgram (Chapter 13)

  • Resources and methods

  • Approval

  • Fiscal matters

WhatFMer should use as basis for design evaluation. (Chapter 14)

  • A brilliant concept and program

Whatservices are offered by a “Full Service” design firm? (Chapter14)

  • Architecture, engineering, and interior design

  • Building services

  • Operations and maintenance

  • Moving and asset management reprographics

  • Project management and estimating

The AIA Basic Services for a Design-Bid-Build project. (Chapter 14)

  • Selecting a representative that is authorized to act on behalf of the senior architect in charge of a project

  • Designing and providing a schedule of the project to the owner for approval

Thingsto know for True/False:

How FM staff configuration differs in large and small organizations.(Chapter 2)

  • The FM staff in large organizations often decentralize specific operations while small organizations often use the one location, one site model.

How involved FM departments should be in corporate businessplanning.(Chapters 2-3)

  • FM departments are rarely involved in corporate business planning since outsourced professionals handle the task.

Who FMer should be advocate for. (Chapter 3)

  • FMer should be advocate for his or her businesses

Whois responsible for identifying methods to maximize facility benefitsandreduce costs? (Chapter 3)

  • Facility manager

Relationship of facility plan and business plan. (Chapter 4)

  • Facility plan aims at establishing the use of a given space to specific clients while business plan intends to meet the requirements of target clients

Relative accuracy of assumptions in planning (Chapter 4)

  • Involves making plans based on facts and analysis. Besides, it involves application of rational and well-timed decisions.

The time sequence of Programming and Design. (Chapter 6)

  • Controlled subroutines or statements conducted following a specific series

Efficient space use and growth planning. (Chapter 6)

  • A good business plan facilitates development of a good space

Two advantages and disadvantages of owning a facility. (Chapter7)

Owninga facility eliminates monthly rent incurrence and enhancesdevelopment since it gives a client a sense of permanence.

  • Owning a facility is disadvantageous because one need to incur high initial capital and its management is quite a tedious process.

Definitions and reasons to do Sale Leaseback. (Chapter 7)

Salelease back is a process of selling a facility, but signs a leaseagreement with the new owner such that the seller can continue usingthe facility on long term but as a tenant instead of an owner.

  • Owner acquires investment capital

  • Long-term control

  • Earnings improvements

  • Gets relieved of the tiresome responsibility for managing the facility

  • Off-balance-sheet treatment

  • Increases flexibility of the users since they can easily transfer business to a new location

  • Long-term, fixed-rate capital

Considerations when selecting a site for various types oforganizations.(Chapter 7)

  • Operating expenses

  • Term length

  • Availability of space

  • The section occupied in a building


Cotts,D. G., Roper, K. O., &amp Payant, R. P. (2010). Thefacility management handbook (3rded).New York, NY: American Management Association.