Site management Munich Re

makon supports the international reinsurance company Munich Re during the conception, procurement and implementation of extensive services related to Facility Management. The real estate portfolio consists of 21 premium administrative buildings, some of them under monumental protection as landmark buildings. An area of about 200.000m² with approximately 5.800 workplaces has to be managed. An operational model that is unique for the FM market provides the contractual foundation between Munich Re and the FM service provider based on a Floating GMP contract (Guaranteed Maximum Price with risk / profit sharing). This was developed by the makon specialists in cooperation with the applicable departments of the Munich Re. The main objective was to achieve a maximum of efficiency and transparency concerning the property management.

As a major portfolio holder, the Munich Re is increasingly trying to transfer comprehensive operational management responsibilities to external service providers to achieve maximum possible synergy and efficiency potentials in regard to property management. At the same time, compensation should be based on fixed-price models, if possible, to maximize the reliability of cost calculations and to minimize the internal administrative expenditures. The resulting conflict of objectives is being solved by the comprehensive transfer of the operational tasks through pooling of responsibilities and competencies, life cycle orientation, consequent orientation on results as well as through a sophisticated but nevertheless easily manageable quality assurance system. makon has combined all these principles in a Floating-GMP-contract model with open-book systematic and custom-built to math the specific requirements of the Munich Re. In the process, a baseline was established based on the costs made transparent through the open-book systematic. Results above or below the baseline lead within a specified area (floating corridor) to risk / profit sharing between Munich Re and the service provider. But outside of this corridor, the innovative model acts as fixed-price contract (Guaranteed Maximum Price) with maximum cost control.

The project started at the end of 2008 with an analysis of the existing organizational structures and service contracts. makon carried out extensive auditing procedures of the service providers at the time in regard to technical as well as infrastructural building management. In addition, through the analysis of the existing organizational structure and communication structures, the prerequisites were created for the conceptual deliberations carried out early 2010 regarding a FM operational model that did not exist up to that date.

In spring 2010, a first market analysis was carried out in form of an Expression of Interest (EOI) procedure. The contractor qualification process to further narrow down the circle of contractors followed and then consequently the actual tender process. Based on the evaluation of the submitted proposals that was carried out jointly by makon and Munich Re and the intensive communication during the award phase, the contract was awarded in August 2010 to a joint venture between the two companies HOCHTIEF Facility Management GmbH and KLÜH Service Management GmbH. The resulting operating company FMgo! GmbH, which was established specifically for this assignment, has taken over the extensive operational responsibilities of the technical and the infrastructural FM for a time period of currently eight years.

Since October 2010, makon provides support for the management of the service provider implementation and the implementation of the operational model into the regular operations.

(Source: Munich Re)