Ahmad rizahashimkpfka2006ttt

MAINTENANCE MANAGEMENT AND SERVISES
(CASE STUDY: PERKESO BUILDING’S IN PENISULAR OF MALAYSIA)

AHMAD RIZA BIN HASHIM

A Project Report Submitted as a partial fulfillment of the requirements for the award
of the degree of Master of Science in Construction Management

Faculty of Civil Engineering
Universiti Teknologi Malaysia

December, 2006

PSZ 19:16 (Pind. 1/97)
UNIVERSITI TEKNOLOGI MALAYSIA

BORANG PENGESAHAN STATUS TESIS

JUDUL: MAINTENANCE MANAGEMENT AND SERVISES
(CASE STUDY: PERKESO BUILDING’S IN PENISULAR MALAYSIA)

SESI PENGAJIAN: 2006/2007

Saya AHMAD RIZA BIN HASHIM
(HURUF BESAR)

mengaku membenarkan tesis (PSM/Sarjana/Doktor Falsafah)* ini disimpan di Perpustakaan
Universiti Teknologi Malaysia dengan syarat -syarat kegunaan seperti berikut:

1. Tesis adalah hakmilik Universiti Teknologi Malaysia.
2. Perpustakaan Universiti Teknologi Malaysia dibenarkan membuat salinan untuk tujuan
pengajian sahaja.
3. Perpustakaan dibenarkan membuat salinan tesis ini sebagai bahan pertukaran antara
institusi pengajian tinggi.
4. **Sila tandakan ( )

SULIT (Mengandungi maklumat yang berdarjah keselamatan atau
kepentingan Malaysia seperti yang termaktub di dalam
AKTA RAHSIA RASMI 1972)

TERHAD (Mengandungi maklumat TERHAD yang telah ditentukan
oleh organisasi/badan di mana penyelidikan dijalankan)

TIDAK TERHAD

Disahkan oleh

__________________________________ _____________________________________
(TANDATANGAN PENULIS) (TANDATANGAN PENYELIA)

Alamat Tetap:

NO 15, LORONG 2,

JALAN SP5, TAMAN SERI PANDAN PROF MADYA AZIRUDDIN RESSANG

75250 MELAKA
Nama Penyelia

Tarikh: DECEMBER 8, 2006 Tarikh: DECEMBER 8, 2006

CATATAN: * Potong yang tidak berkenaan.
* * Jika tesis ini SULIT atau TERHAD, sila lampirkan surat daripada pihak
berkuasa/organisasi berkenaan dengan menyatakan sekali sebab dan tempoh tesis ini perlu
dikelaskan sebagai SULIT atau TERHAD.
Tesis dimaksudkan sebagai tesis bagi Ijazah Doktor Falsafah dan Sarjana secara
penyelidikan, atau disertasi bagi pengajian secara kerja kursus dan penyelidikan, atau
Laporan Projek Sarjana Muda (PSM).

SUPERVISOR’S DECLARATION

I hereby declare that I have read this project report and in my opinion this project report is
sufficient in terms of scope and quality for the award of the degree of Master of Science
(Construction Management)

Signature : ....................................................

Name of Supervisor : PROF MADYA AZIRUDDIN RESSANG

Date : ....................................................

DECLARATION

“I declare that this project report entitled “Maintenance Management and Services (Case
Study: PERKESO Building’s in Peninsular of Malaysia) is the result of my own research
except as cited in references. The project report has not been accepted for any degree and is
not is not currently submitted in candidature of any degree”

Signature : ……………………………………….

Name of Candidate : Ahmad Riza Bin Hashim

Date : December 8, 2006

Special dedication to my entire family member and for my beloved wife’s Lina Fazlyanna
Mac Fadzli and daughter’s Aisyah Ahmad Riza.

Thanks for your support

ACKNOWLEDGMENT

First of all, I would like to thank Allah SWT for allowing me accomplishes this
project work in time. In preparing this project report, I was in contact with many people,
researchers, and academicians. They have contributed towards my understanding and
thoughts. In particular, I would like to express highly appreciation to my supervisor,
Associate Professor Aziruddin Ressang who gives me support and guidance during my
study, for his invaluable assistance, guidance, and understanding through out the research
work and especially during the writing of this report. Through this study and report writing,
he had thought me to be more systematic and professional in my works.
I am very grateful to the Property Unit Senior Manager, PERKESO State Manager,
Managers Property Unit, Staff Property Unit, Staff Contractor Maintenance, Staff
PERKESO and the fellows, and all the students that have supported and helped me in
responding to the questionnaires and reacted kindly to my entire question in the interviews.
I am especially thankful to my parents for their patient and understanding through
out my study and during the writing of this project report.
Last but not least, my sincere thanks go to the Faculty of Civil Engineering for
giving me the opportunity to pursue the Master of Science in Construction Management

ABSTRACT

Maintenance Management and Services is a combination of several actions in which to
retain or restore an item to perform its required action. PERTUBUHAN
KESELAMATAN SOSIAL (PERKESO) as one of the semi government sector in
Malaysia that has many assets, needs maintenance to prevent the assets from
deterioration. Maintenance in PERKESO was monitor and control by Property Unit and
Local PERKESO Office. There are two maintenance system presently implemented at
PERKESO: Preventive maintenance and Corrective Maintenance. The maintenance
and services in PERKESO are divided to two building type: stand alone building and
shop lot building. Maintenance and services for stand alone PERKESO building is total
preventive maintenance and services scope and for shop lot PERKESO building scope
maintenance and services only cover cleaning, M&E preventive maintenance and Pest
Control. Aim of this study to propose maintenance management & services system. To
achieve the aim of this study, five objectives have been set, to study the maintenance
management system presently implemented. To identify the common problem in
maintenance management and services. To identify the tenant satisfactory level upon
the maintenance and services implemented. To identify tenant opinion to make
improvement for maintenance management and services. From the data analyze and
propose maintenance management and services system. This research focused on
PERKESO Building’s in Peninsular of Malaysia. To obtain the data the following
knowledge acquisition methods were used by interview, questionnaire and archives. An
interview were set for two session, pre-interview done before set questionnaire and
interview after the analysis data had done Result of the study showed the responds of
the end user customer for the overall building conditions and the services given is fair.
To achieve the tenants’ satisfaction level, a new maintenance management system is
proposed.

ABSTRAK

Penyelenggaraan adalah gabungan dari beberapa tindakan untuk mencegah atau
membaikpulih sesuatu item untuk menunjukkan arah tindakbalas yang diperlukan.
Pertubuhan Keselamatan Sosial (PERKESO) adalah salah satu badan berkanun di Malaysia
yang sudah semestinya mempunyai banyak aset, memerlukan sistem penyelenggaraan
untuk melindungi aset daripada mengalami kerosakan. Di PERKESO, Property Unit adalah
unit yang bertanggungjawab penuh untuk mengawal dan menyelaras semua harta milik
PERKESO terutamanya bangunan milik PERKESO. Sasaran kajian ini adalah untuk
menyelidik sistem pengurusan penyelenggaraan dan perkhidmatan untuk bangunan
PERKESO di Semenanjung Malaysia. Untuk mencapai sasaran kajian ini, empat objektif
telah ditetapkan, iaitu menyelidik pengurusan penyelenggaraan yang dilaksanakan di
PERKESO di Semenanjung Malaysia; mengenalpasti keadaan sebenar bangunan
PERKESO; mengkaji tahap kepuasan penyewa mengenai perkhidmatan penyelenggaraan
dan perkhidmatan di bangunan PERKESO; dan mengusulkan cadangan untuk pengurusan
penyelenggaraan dan perkhidmatan di bangunan PERKESO. Beberapa kaedah kajian telah
digunakan dalam menjayakan kajian ini termasuk menimba pengetahuan dari Property Unit
PERKESO, penguna bangunan PERKESO, dan penyewa ruang banguanan PERKESO.
Hasil keputusan kajian menunjukkan responden yang diwakili oleh penguna fasiliti untuk
keseluruhan keadaan bangunan dan perkhidmatan adalah agak baik. Untuk mencapai tahap
kepuasan penyewa, satu system pengurusan penyelenggaraan baru telah dicadangkan.

TABLE OF CONTENTS

LIST OF CONTENTS PAGE

Title i
Declaration ii
Dedication iii
Acknowledgment iv
Abstract v
Table of Contents vii
List of Tables xi
List of Figures xii
List of Charts xiii
List of Appendices xiv

CHAPTER TITLE PAGE

I INTRODUCTION 1
1.1 Introduction 1
1.2 Background of Study 2
1.3 Problem Statement 10
1.4 Aim and Objective of Study 11
1.5 Scope of Study 11

1.6 Research Methodology 13
II LITERATURE REVIEW:
MAINTENANCE MANAGEMENT 14
2.1 Introduction 14
2.2 Definition 15
2.3 Maintenance Classification 15
2.4 Maintenance Standard 19
2.5 Maintenance Objective 20
2.6 Life Cycle Cost 21
2.7 Maintenance Cost 23
2.7.1 Costing System 24
2.7.2 Setting Up a Costing System 25
2.7.3 Maintenance Budget 26
2.8 Design Effect of Building Maintenance 28
2.9 The Role of Designer 30

III RESEARCH METHODOLOGY 33
3.1 Introduction 33
3.2 Archives Data 34
3.3 Questionnaire 34
3.4 Interview 35
3.5 Data Analysis 36

IV MAINTENANCE MANAGEMENT AND SERVICES
AT PERTUBUHAN KESELAMATAN SOSIAL 38
4.1 Introduction 38
4.2 Historical Background 40
4.3 Organizational Structure 43
4.4 Scope of Work 45
4.5 Standard Operational Procedure 47
4.5.1 Preventive Maintenance 47
4.5.2 Corrective Maintenance 49

4.6 Common Defect Problem In Maintenance
Management And Services 53
4.7 Satisfaction level to maintenance management
And Services. 54
4.8 User opinion on improving maintenance
Management and services 55
4.9 General Building Condition 57
4.10 Problem in maintenance Management and
Services Industry 59
4.11 Maintenance Unit Work Performance 60

V DATA ANALYSIS AND FINDINGS 61
5.1 Introduction 61
5.2 Respondent Characteristics 63
5.3 Gender of respondents 65
5.4 Length of Using Facilities 65
5.5 Background Distribution Of Respondents 66
5.6 What are the common problem in maintenance
And management 67
5.6.1 Menara PERKESO Kuala Lumpur 69
5.6.2 Pejabat PERKESO Seberang Perai 71
5.6.3 Pejabat PERKESO Langkawi, 72
5.6.4 Pejabat PERKESO Kangar 73
5.6.5 Pejabat PERKESO Seremban 75
5.6.6 Pejabat PERKESO Batu Pahat 76
5.6.7 Pejabat PERKESO Kulim 78
5.6.8 Pejabat PERKESO Klang, 80
5.6.9 Pejabat PERKESO Sungai 81
5.6.10 Pejabat PERKESO Muar 83
5.6.11 Pejabat PERKESO Kluang, 84

5.6.12 Pejabat PERKESO Rawang 85
5.6.13 Pejabat PERKESO Segamat 87
5.6.14 Pejabat PERKESO Ipoh 88
5.6.15 Pejabat PERKESO Taiping 90
5.6.16 Pejabat PERKESO Teluk Intan 91
5.7 Cause of Building Defect 93
5.7.1 Lift Service 94
5.7.2 Electric Installation 94
5.7.3 Waterproofing Leakage 95
5.7.4 Plumbing System 96
5.7.5 Internal Fixture 97
5.7.6 Alarm System 97
5.7.7 Roof Defect 98
5.7.8 Others 98
5.8 Satisfaction Level With Management
And Servises 100
5.8.1 Menara PERKESO 102
5.8.3 Pejabat PERKESO Langkawi 105
5.8.9 Pejabat PERKESO Sungai Petani 114
5.8.11 Pejabat PERKESO Kluang 117
5.8.14 Pejabat PERKESO Ipoh, 121
5.8.15 Pejabat PERKESO Taping 123

5.9 Respondent opinion on improve maintenance
Management and services that be apply to
PERKESO 126
5.9.1 Menara PERKESO 127
5.9.3 Pejabat PERKESO Langkawi 131
5.9.9 Pejabat PERKESO Sungai Petani 143
5.9.11 Pejabat PERKESO Kluang 147
5.9.14 Pejabat PERKESO Ipoh, 153
5.9.15 Pejabat PERKESO Taping 155
5.10 Analysis and Discussion 159
5.10.1 Weakness of the Existing Maintenance
Management and Services 160
5.10.2 The Fragmented Management Cultural. 160
5.10.2.1 The solution For Fragmented
Management 161
5.10.3 Structural and Organization 162
5.10.3.1 Control and Monitor System 164
5.10.3.2 Proposal improvement to
corrective maintenance and
preventive maintenance 164

5.10.3.3 Preventive Maintenance Shop Lot
PERKESO Buildings 166
5.10.4 Relation Building And
Maintenance Team 167
5.10.5 Relation Maintenance Team And
End User Customer 167
5.10.6 Relation Maintenance Team And
Other Department 167
5.10.7 Training And Skill 168

VI CONCLUSION AND RECOMMENDATION 169
6.1 Introduction 169
6.2 Conclusion 169
6.2.1 PERKESO Maintenance Management
& Services 170
6.3 What Are The Problems In Maintenance
Management And Services? 170
6.4 Satisfaction Level with Maintenance
Management And Services 171
6.5 Respondents Opinion on Improvement
Maintenance Management And services That
That Best Be Apply To PERKESO 171
6.4 Recommendation 172

REFERENCES 175-176
APPENDICES 81 – 92

LIST OF TABLES

TABLE NO. TITLE PAGE
1.1 List of PERKESO buildings in the
scope of research 12
3.1 Rating scale of average index 29
4.1 Maintenance team scope of work 45
4.2 Common problem occur in PERKESO 53
4.3 Indicator to define the satisfactions level of respondent 54
4.4 Itemize the ideal opinion to make improvement to
Maintenance management and services for the
respondent 56
5.1 Question for get respondent information 63
5.2 Showed the distribution and return of the questionnaire63
5.3 Point/Marks for common problem in maintenance
management and services. 67
5.4 The common problem occurred at the PERKESO
buildings 68
5.5 Five (5) top common problem maintenance at
5.6 Defect List at Menara PERKESO Kuala Lumpur 70
Menara PERKESO Kuala Lumpur 70
5.8 Defect List at Pejabat PERKESO Seberang Jaya 71
Pejabat PERKESO Seberang Jaya 72
5.10 Defect List at Pejabat PERKESO Langkawi 73

Pejabat PERKESO Langkawi 73
5.12 Defect List at Pejabat PERKESO Kangar 74
Pejabat PERKESO Kangar 75
5.14 Defect List at Pejabat PERKESO Seremban 76
Pejabat PERKESO Seremban 76
5.16 Defect List at Pejabat PERKESO Batu Pahat 77
Pejabat PERKESO Batu Pahat 78
5.18 Defect List at Pejabat PERKESO Kulim 79
Pejabat PERKESO Kulim 79
5.20 Defect List at Pejabat PERKESO Klang 80
Pejabat PERKESO Klang 81
5.22 Defect List at Pejabat PERKESO Sungai Petani 82
Pejabat PERKESO Sungai Petani 82
5.24 Defect List at Pejabat PERKESO Muar 83
Pejabat PERKESO Muar 84
5.26 Defect List at Pejabat PERKESO Kluang 85
Pejabat PERKESO Kluang 85
5.28 Defect List at Pejabat PERKESO Rawang 86
Pejabat PERKESO Rawang 86
5.30 Defect List at Pejabat PERKESO Segamat 87
Pejabat PERKESO Segamat 87

5.32 Defect List at Pejabat PERKESO Ipoh 89
Pejabat PERKESO Ipoh 90
5.34 Defect List at Pejabat PERKESO Taiping 91
Pejabat PERKESO Taiping 91
5.36 Defect List at Pejabat PERKESO Teluk Intan 92
Pejabat PERKESO Teluk Intan 93
5.38 Five (5) major categories causes of
defect Rating scale of average index 93
5.39 List of causes defect to lift service 94
5.40 List of causes defect to electric installation 95
5.41 List of causes defect to waterproofing leakage 95
5.42 List of causes defect to plumbing system 96
5.42 List of causes defect to internal fixture 97
5.44 Respond of satisfaction level with Maintenance
Management and Services at PERKESO Buildings 100
5.45 Five (5) top the lowest satisfaction level with
Maintenance Management and Services at
Management and Services at Menara PERKESO
Kuala Lumpur 102
Maintenance Management and Services at Menara
PERKESO Kuala Lumpur 102
Management and Services at Pejabat PERKESO
Seberang Jaya 103

Maintenance Management and Services at Pejabat
PERKESO Seberang Jaya 104
Langkawi 105
Pejabat PERKESO Langkawi 105
Management and Services at Pejabat
PERKESO Kangar 106
Pejabat PERKESO Kangar 107
PERKESO Seremban 108
Pejabat PERKESO Seremban 108
PERKESO Batu Pahat 109
PERKESO Batu Pahat 110
Kulim 111

PERKESO Kulim 111
Klang 112
PERKESO Klang 113
Sungai Petani 114
PERKESO Sungai Petani 114
Muar 115
PERKESO Muar 116
Kluang 117
PERKESO Kluang 117
Rawang 118

PERKESO Rawang 119
Segamat 120
PERKESO Segamat 120
Management and Services at Pejabat PERKESO Ipoh 121
PERKESO Ipoh 122
Taiping 123
PERKESO Taiping 123
Teluk Intan 124
PERKESO Teluk Intan 125
5.78 List of opinion on improves maintenance
management and services that best to be
apply to PERKESO 126
5.79 Five (5) top opinion on improves maintenance
management and services that best
to be apply to PERKESO 127

apply to Menara PERKESO Kuala Lumpur 128
to be apply to Menara PERKESO Kuala Lumpur 128
5.82 Comparison of the top five (5) results for all
PERKESO Buildings vs. top five (5) results
for Menara PERKESO Kuala Lumpur 129
apply to Pejabat PERKESO Seberang Jaya 130
to be apply to Pejabat PERKESO Seberang Jaya 130
for Pejabat PERKESO Seberang Jaya 130
apply to Pejabat PERKESO Langkawi 132
to be apply to Pejabat PERKESO Langkawi 132
for Pejabat PERKESO Langkawi 132
apply to Pejabat PERKESO Kangar 134

to be apply to Pejabat PERKESO Kangar 134
for Pejabat PERKESO Kangar 135
apply to Pejabat PERKESO Seremban 136
to be apply to Pejabat PERKESO Seremban 136
for Pejabat PERKESO Seremban 137
apply to Pejabat PERKESO Batu Pahat 138
to be apply to Pejabat PERKESO Batu Pahat 138
for Pejabat PERKESO Batu Pahat 138
apply to Pejabat PERKESO Kulim 140
to be apply to Pejabat PERKESO Kulim 140

for Pejabat PERKESO Kulim 141
apply to Pejabat PERKESO Klang 142
to be apply to Pejabat PERKESO Klang 142
for Pejabat PERKESO Klang 143
apply to Pejabat PERKESO Sungai Petani 144
to be apply to Pejabat PERKESO Sungai Petani 144
for Pejabat PERKESO Sungai Petani 145
apply to Pejabat PERKESO Muar 146
to be apply to Pejabat PERKESO Muar 146
for Pejabat PERKESO Muar 147

apply to Pejabat PERKESO Kluang 148
to be apply to Pejabat PERKESO Kluang 149
for Pejabat PERKESO Kluang 149
apply to Pejabat PERKESO Rawang 150
to be apply to Pejabat PERKESO Rawang 150
for Pejabat PERKESO Rawang 151
apply to Pejabat PERKESO Segamat 152
to be apply to Pejabat PERKESO Segamat 152
for Pejabat PERKESO Segamat 153
apply to Pejabat PERKESO Ipoh 153

to be apply to Pejabat PERKESO Ipoh 154
for Pejabat PERKESO Ipoh 154
apply to Pejabat PERKESO Taiping 155
to be apply to Pejabat PERKESO Taiping 156
for Pejabat PERKESO Taiping 156
apply to Pejabat PERKESO Teluk Intan 157
to be apply to Pejabat PERKESO Teluk Intan 158
for Pejabat PERKESO Teluk Intan 159

LIST OF FIGURES

FIGURE NO. TITLE PAGE

1.1 Procedure of tender flow process 7
1.2 Research methodology flow chart 13
2.1 Cyclic nature of design process 32
4.1 Property Unit Structure Organizations 42
4.2 Preventive Maintenance flow chart 49
4.3 Corrective Maintenance flow chart 51
4.2 Combination continuously corrective
maintenance flow chart and preventive maintenance 52
5.1 Existing Organization Chart Property Unit 162
5.2 Proposal new organization chart for Property Unit 163
5.2 Flow process existing for preventive
maintenance and corrective maintenance 164
5.3 Proposal new organization chart for Property Unit 163
5.4 Proposal new process flow in corrective
maintenance 165

LIST OF CHARTS

CHART NO. TITLE PAGE

5.1 Questionnaire return/answer
From each PERKESO Buildings 64
5.2 The respondent gender distribution 65
5.3 The respondent length of using facilities. 66
5.4 The respondent background distribution 67
5.5 Percentage of the satisfaction level due
to maintenance management and
services at PERKESO buildings. 101
services at Menara PERKESO Kuala Lumpur. 103
services at Pejabat PERKESO Seberang Jaya. 104
services at Pejabat PERKESO Langkawi 105
services at Pejabat PERKESO Kangar 107

services at Pejabat PERKESO Seremban 109
services at Pejabat PERKESO Batu Pahat 110
services at Pejabat PERKESO Kulim 112
services at Pejabat PERKESO Klang 113
services at Pejabat PERKESO Sungai Petani 115
services at Pejabat PERKESO Muar 116
services at Pejabat PERKESO Kluang 118
services at Pejabat PERKESO Rawang 119
services at Pejabat PERKESO Segamat 121
services at Pejabat PERKESO Ipoh 122

services at Pejabat PERKESO Taiping 124
services at Pejabat PERKESO Teluk Intan 125

LIST OF APPENDICES

APPENDIX TITLE PAGE
A Full Set of Questionnaire 177-183
B Questionnaire Results 184-190

CHAPTER I

INTRODUCTION

1.1 Introduction

A successful construction industry is essential to us all. We all benefit from
housing, hospitals or infrastructure project that are constructed. Malaysia as one of
the development countries in South East Asia was growing rapidly almost in all
sectors, including construction sector. Large and complex project have been built due
to the demands of both the public and private sectors. To meet the high demand of
both sectors’ need, it is expected that many error and defects will have occurred
during the design and construction phase of the project, later resulting the high cost
of maintenance.

Under normal condition all building begins to deteriorate the moment after
they are constructed, and of course maintenance is needed. One research conducted
in United Kingdom revealed about 20% of the average annual expenditure on repairs
in building arises from defects (Sadi Assaf et al, 1996). As consequences if the
number of defects could be reduce it would reduce the maintenance expenditures.

It is obvious that the need of maintenance is very important and needed for all
sectors including properties sectors. Regard to the highly cost of maintenance it is
important to study maintenance problem so that an effective maintenance can be
carried out.

2

We know that is not easy to sustain radical improvement in an industry as
diverse as maintenance and services. But, we must do so to secure our future. We
have to commit to driving forward the modernization of the maintenance
management and services industry.

1.2 Background of Study

Project construction life cycles are divided to few stages:
1. Conceptual and feasibility stage,
2. Engineering and design,
3. Procurement,
4. Construction,
5. Implementation,
6. Utilization,
But for building life cycles not only until the ulitilization stage but it
continues to next stages they are:
7. Maintenance,
8. Demolition.

In the industry practice in Malaysia, in the construction stage the contractor
are responsible to maintain the building until handling over stage from contractor to
the project owner after finish the defect liability period. Once project handled over,
the responsibility will be transferred from contractor to the owner, including the
responsibility of maintaining the property after the defect liability period.
Maintenance stage is the longest period among the other construction process until
the property demolished. In the maintenance period there are included activities
renovation, upgrading facilities, refurbishment and repair works. That is why
maintenance is separately from construction phase the group of management team.
Our practices in Malaysia not define those process or cycle as one, seem like
fragmented and divided to construction stage and separated from maintenance stage.
There no cross functional culture of work, no collaborative teamwork among
development team and maintenance team. In PERKESO the maintenance team not

3

involved in the engineering and design stage, the maintenance team is not involved
in feasibility study stage either in development project or in acquires project/facility.
This type of management by sequent rigid movement some author called “separate
over the wall syndrome”. After the construction stage is completed, and the “Defect
Liability Period” has expired then the responsibility to maintain given to the
maintenance team. There is having positive and negative impacts from the
fragmented management cultural. The positive side with these separation
management culture make the team more focus to their job and responsible. The
negative sides create the flow of work become rigid and every team not shares a
same goal.

The concept of the cross functional team by four principles:
i. Consideration of downstream requirement during the design
development.
ii. The use of the cross functional teamwork.
iii. Consideration of the customer requirements in the product
development.
iv. Use of lead time as source of competitive advantage.

Regarding to Reginald Lee (1986), to put the maintenance problem as
mentioned above, it is important to view maintenance in the context of the overall
building process. The role played by maintenance in the construction process can be
started from design stage. The involvement of maintenance department in this stage
is as an adviser for the designer to figure out the maintenance problem in the future.

Some of the advantages of the involvement of maintenance department in
early stage are it would able to check the practicability of the design details, the
suitability of patent joint, anticipate leaks, staining, expansion joints, and many other
things that can prevent further defects in the future caused by miss-design
(Armstrong R. W., 1984).

4

British standard (BS 3811: 1984) classified maintenance as three parts as
follow,
i. Planned maintenance; described as organized maintenance and carried
out with forethought, control, and the use of records to predetermined
plan.
ii. Preventive maintenance, it is carried out at predetermined or to other
prescribed criteria and intended to reduce the likelihood of an item not
meeting an acceptable condition.
iii. Running maintenance, which can be carried out whilst an item is in
service.

These research which focus on the maintenance management and services.
Maintenance Management and Services is a combination of several actions in
which to retain or restore an item to perform its required action. PERTUBUHAN
KESELAMATAN SOSIAL (PERKESO) as one of the semi government sector
in Malaysia that has many assets, needs maintenance to prevent the assets from
deterioration. Maintenance in PERKESO was monitor and control by Property
Unit and Local PERKESO Office.

There are two maintenance system presently implemented at PERKESO:
i. Preventive maintenance.
ii. Corrective maintenance.
The maintenance and services in PERKESO are divided to two building type:
i. Stand alone building
ii. Shop lot building.

Maintenance and services for “stand alone” PERKESO building is total
preventive maintenance package. The total preventive maintenance scope
included of:
i. Specification for Mechanical and Electrical.
ii. Specification of Civil and Structure.
iii. Specification of cleaning.
iv. Specification of pest control.
v. Specification of security services.

5

Maintenance and services for the “shop lot” PERKESO building scope
maintenance and services only cover the scope cleaning work, M&E preventive
maintenance and Pest Control.

In the PERKESO property management for PERKESO building are divided
to (2) two main department or unit responsibility:
i. Rental buildings manage by the Administration PERKESO Department.
ii. PERKESO own buildings were managed by PERKESO Property Unit.
This project research are focused on PERKESO own buildings in Peninsular of
Malaysia which not included those PERKESO rented buildings. To obtain the
data the following knowledge acquisition methods were used by:
i. Interview,
ii. Questionnaire
iii. Archives.

Interviews done into (2) two times in separate section/stage in this research:
i. Pre-interview : Before finally produce the questionnaire.
ii. Interview : During stage analyze data gained from
questionnaire
The important of the pre-interview are development process get to produce a
good questionnaire, and the target is to get valuable data shall be analyzed.
The interview which are arrange after the analyze data process is to study and
section finding the root of the problem by using the transition law from macro to
micro. After recognize the root of the problem then define the corrective action to
be taken. Continuingly the corrective actions propose also other meant is to set
up the proposal of the maintenance management and services system. Corrective
actions were categories into two namely:
i. Short – term corrective actions; and
ii. Permanent corrective actions.
The short – term corrective actions do not remove or improve the factors of
maintenance management and services problem but is aimed at correcting the
problem i.e. to recover or improve maintenance management and services
system. Permanent corrective actions aim is to correct or improve the

6

maintenance management and services system critical factors and this type of
corrective action is more economical and effective compared to the earlier type.
. Corrections are the action taken to improve the situation by first identifying the
root – causes (factors), specifically factors of maintenance management and
services system. The correction should also include improving the process itself
and corrective actions taken to improve performance can be permanently
embedded in the process.

The maintenance cost implemented in PERKESO by the yearly system
budgeting. Those budget will estimated by every branch PERKESO office and
every department office. The budget maintenance management and services were
included:
i. Budget for repair works “corrective maintenance”.
ii. Budget for renovation works.
iii. Budget upgrading/refurbishment.
iv. Budget of “preventive maintenance”.
For unforeseen budget, emergency budget will propose by Property Unit for all
PERKESO building which indicates as contingency budget. The entire yearly
budgets to be spend with the open tender. In PERKESO practice and well
implemented to appoint any contractor or any consultant for any job/work by the
open tender system. Open completion tender culture is implemented in
PERKESO. These cultural of open tendering system create the low profitable to
the industry. The reflected in following:
i. Unreliable rates of profitability which are usually too low to sustain
healthy development.
ii. Little investment in research and development which are damaging
the industry’s ability to keep abreast with innovation in processes
and technology,
iii. Declining levels of trained personnel, skills shortages and ill-
defined career structure to develop supervisory and management
grades,
iv. The continued practice, by clients, of selecting designers and
contractors almost exclusively on the basis of tendered priced.

7

All the scopes of work and specification for maintenances management and
services in PERKESO were prepared by Property Unit. The scope and
specification must to be check and verify by a committee. For confirmation and
validity the scope of work and the specification suitable for any maintenance
tender will be by committee’s specification of tender. The committee responsible
to checks and go through all the scope of works and specification document, if
the entire member agree to all the content of the document then the document can
to be bind and it’s valid as the tender document. These committees were
appointed by Chief Executive Officer PERKESO. Usually which department or
unit are given responsible to produce the scope of work and specification will be
also appoint as one of the committee member in the specification tender
committee.

Specificati Yes
on Open Tender
Complaint/data Approval

Valuation Tender
Document
No
Not approved,
record and
Manager acknowledge
Prepare Tender to the whom Appoint
Document l Contractor

Yes
No
Progress Of
Approval work / motoring
Estimation “Lembaga” & controlling
budget
No
Yes
Defect
recovered
No
Yes
Yes
Valuation the
budget Payment for
Pengarah Finish /completed
contractor
Negeri & work

Figure 1.1 Procedure of tender flow process (produce from gain information by
interview with Manager Property Unit PERKESO)

8

When the contractor or the consultant appoint, the progress of work will be
monitor and control to which department or state office involve to the project.
The progress of work will be monitor and control by the Manager Office
PERKESO. Usually the Manager of the State office is non technical personnel.

Role of Property Unit in maintenance management and services in PERKESO:
i. Property unit responsible to produces the scope of work and specification
document tender for maintenance and services for all PERKESO buildings.
ii. Property Unit totally fully control and monitoring the Maintenance
Management and Services for stand alone buildings.
iii. PERKESO Branch / PERKESO State fully control and monitoring the
Maintenance Management and Services for branch/ state PERKESO
building.
iv. By appointed by Chief Executive Officer as committee for:
a. Specification of tender
b. Open tender
c. Valuation of tender.
v. Recommendation payment of contractor for all maintenance and services
claims.

Organizing is the process by which managers establish the structure of
working relationship among employees to allow them to achieve organizational goals
efficiently and effectively. Organizational structure is the formal system of task and
reporting relationship that determines how employees use resource to achieve
organizational goals. Organizational design is the process by which managers make
specific organizing choice that result in the construction of a particular organizational
structure.

The differential of group and team in an organization.
i. Group: two or more people who interact with each other to
accomplish a goal.

ii. Team: group who work intensively with each other to achieve a
specific common goal.

9

All teams are groups, BUT, not all groups are teams. Teams often are difficult to
form. Takes time for members to work together. Teams can improve organizational
performance.

Property unit is a small unit if to compare to the burden of work and
responsibility given by PERKESO. To fulfill all the requirement and demand needs,
Property Unit with (11) eleven number of people with different specialization or
discipline background were organize and structure divide to two main groups:
i. Maintenance team.
Main responsibilities and role to manage maintenance management and
services of PERKESO buildings in Malaysia. There are (33) thirty three numbers of
PERKESO buildings in Peninsular of Malaysia, Sabah and Sarawak. The
maintenance team will cooperate and work together with Branch PERKESO office
closely to realize the objective of maintenance of PERKESO building can be
achieved.
ii. Development team.
Main responsibilities and role to manage and control development PERKESO
project in Malaysia, currently there are 8 projects is in construction stage out of from
10 total numbers planned. The other balance 2 numbers of the construction project
are in feasibility stage.

The development team are responsible from process from feasibility stage,
engineering and design stage, procurement stage, construction stage, implementation
stage, utilization stage meant it a continue from the inception of the project until
handling over of the building to user. Included the project closes activities is monitor
and control by development team. After the D.L.P “defect liability period” finished
the building will be handing over to the maintenance team.

During the D.L.P “Defect Liability Period” the maintenance is taken under
responsibility of the contractor, unless for the defect that caused by vandalism or
miss-used by the user. It is critical to identify the defective works under construction
done by contractor or the malfunction, faults, or broken items done by user.

10

In these processes and responsibilities briefly mentioned above, Property Unit
is involved and deal with big quantities of reports and records. The keeping record is
a very important in PERKESO, and the system to keeping those records must be an
efficient and easy to access.

1.3 Problem Statement

Derek Miles et al (1986) described three main problems in maintenance;
inadequate financial, bad management, and poor building design.

Financial is the main measurement for the action will take for maintenance
activities and for some householders’ maintenance budget is the easiest part to cut if
they faced financial problem.

The second problem is bad management, which could be interpreted as
idleness and waste among the maintenance personnel. The maintenance manager and
the staff’s dexterity and responsive to the maintenance problem is one of the tool of
effective maintenance management.

The building design also part of the problem in maintenance. It is important
to give more attention to decide which materials and elements will be use, and
unfortunately it is uncommon at the design state both designer and owner take
maintenance as one of the design consideration. Poor building design also include
the poor quality materials used.

• The PERKESO buildings have different capacity and facility. The differences
will trigger a different approach in maintenance management.

• It is important to identify whether the present maintenance management and
services system is suitable for the all buildings.

11

Regarding to PERKESO’s maintenance management & services, it is
important to identify whether the present maintenance management & services
implemented still appropriate with all buildings. The development of buildings in
PERKESO since 1998 has dramatically changes the capacity and facilities provided.
Obviously, the Menara PERKESO 21 floor building with the bigger capacity up
about to 30 to 40 staff per floor and new facilities such as lift that is totally different
with the previous buildings. The differences in capacity and facility would triggered
a different maintenance treatment requires the study to identify whether the present
maintenance system is can be implemented to the all buildings. The fact that some of
the new multi storey buildings are still under Defect Liability Period (D.L.P) will
make this study appropriate and important to be conducted.

1.4 Aim and Objective

Aim of this study is to improve the maintenance management and services
system for PERKESO building. To achieve the above aim, the following objectives
have been identified:
1. To study the maintenance management & services system presently
implemented at PERKESO buildings.
2. To identify the defect normally occur in PERKESO Building.
3. To find out the satisfactory factors of tenants/students at PERKESO
Buildings.
4. To improve the maintenance management & services system for
buildings at PERKESO.

1.5 Scope of Study

The scope of this study is focus on the buildings in PERKESO at Peninsular
Malaysia. The study covers only the PERKESO own buildings.

12

Table 1.1 List of PERKESO buildings in the scope of research
.
Area
Bil. Building Name Location Building type i ) Lot
ii ) Floor net
( KPS )
1 Menara 281 Jln.Ampang, Stand alone i) 38,000.00
PERKESO, 50538 Kuala Lumpur. 20 storey ii ) 224,000.00
2 Pejabat PERKESO Lot PT 3969, Mukim 1 Stand alone i) 56,713.00
Seberang jaya Seberang Perai Tengah 7 storey ii ) 59,863.00
Pulau Pinang.
3 Pejabat PERKESO No.8, Lebuh Bunga Shop lot i) 1,119.00
Langkawi Raya 5, Langkawi Mall 2 storeys. ii ) 2,238.00
07000 Kuah, Langkawi. ( 1intermidiate lot )
4 Pejabat PERKESO Lot 30, Komplek Kedai Shop lot i) 1,200.00
Kangar 3 Tingkat Fasa III, Jalan 3 storey ii ) 3,420.00
Hospital, Kangar. ( 1intermidiate lot )
5 Pejabat PERKESO Lot 37, Betaria Business Shop lot i) 2,243.00
Seremban Centre, Seremban. 4 storey. ii ) 7,786.00
Negeri Sembilan. ( 1 intermediate lot )
6 Pejabat PERKESO Lot PTD 25084 & 25085 Shop lot i) 1,540.00
Batu Pahat Tmn.Setia Jaya, Jln.T.S. 3 storey. ii ) 7,720.00
Hoe, Batu Pahat, Johor. ( 2 intermediate lot )
7 Pejabat PERKESO Plot 4 & 5 di atas lot 926, Shop lot i) 2,800.00
Kulim Mukim Keladi, 3 storey. ii ) 6,628.00
Kulim, Kedah. ( 2 intermediate lot )
8 Pejabat PERKESO No.2, Jalan Tiara 2, Shop lot i) 4,125.00
Klang Bandar Baru Klang, 5 storey. ii ) 17,175.00
Selangor. (Conner lot)
9 Pejabat PERKESO No.30 & 31, Lengkok Shop lot i) 2,800.00
Sungai Petani Cempaka, Amanjaya, 3 storey. ii ) 7,130.00
Sg.Petani, Kedah. ( 2 intermediate lot )
10 Pejabat PERKESO PTB 10956 & 10957, Shop lot i) 3,080.00
Muar Tmn.Tun Dr.Ismail ( 1 ) 3 storey. ii ) 7,784.00
Bandar Maharani, Muar. ( 2 intermediate lot )
11 Pejabat PERKESO Lot 8927, No.28 Jln.Duku, Shop lot i) 4,373.00
Kluang Kampung Haji Manan, 3 storey. ii ) 8,559.00
Kluang, Johor. (Conner Lot )
12 Pejabat PERKESO No.29, Jalan Setia Shop lot i) 2,100.00
Rawang Rawang 1, 48000 Rawang, 3 storey ii ) 5,785.00
Selangor. (Conner lot )
13 Pejabat PERKESO No.13, Jalan Emas, Shop lot i) 1,540.00
Segamat Taman Bukit Hampar, 4 storey. ii ) 4,786.00
85000 Segamat, Johor. (intermediate lot)
14 Pejabat PERKESO Lot No.9587N, Stand alone i) 26,237.00
Ipoh Jalan Hospital, Ipoh, 5 storey ii ) 2,941.55
Perak Darul Ridzwan.
15 Pejabat PERKESO Lot PT No. 1233 & 1234, Shop lot i) 3,338.00
Taiping Bandar Taiping 3 storey ii ) 7,183.00
Daerah Larut Matang (2 Lot)
Perak Darul Ridzwan (Conner lot)
16 Pejabat PERKESO No. 8, 9 & 10 Shop lot i) 3,600.00
Teluk Intan Medan Sri Intan 3 storey. ii ) 8,806.00
Jalan Sekolah (3 lot)
Teluk Intan, Perak (intermediate lot)

13

1.6 Research Methodology

To carry out the study, several research methodologies were used, which
includes literature review, knowledge acquisition, and data analysis techniques.
Figure 1.1 showed the activity flow used to achieve the objectives that have been set.

Literature review Brainstorming discussion

Topic
Identification

Archives Data Preliminary Interview

Brainstorming for fine- Questionnaire and Question
tuning Interview List
Design

Questionnaire
launching

Reply from respondent Follow up

Storing data,
Analyze and consolidate analyzing, and
results summarizing
results

Propose
Maintenance
Management

Figure 1.2 Research methodology flow chart

CHAPTER II

LITERATURE REVIEW:
MAINTENANCE MANAGEMENT & SERVISES

2.1 Introduction

As a part of construction process, maintenance has an important role to
ensure the long live of the constructed building. The building maintenance can be
defined as the regular inspection of all parts of the building and the execution of
work necessary to keep the structure, finishes and fitting in a proper and acceptable
state of repair, including decoration both internally and externally (Cripps, 1984).

Any constructed facility can be considered as an asset or investment that
needs to be maintained to ensure its long life cycle. Owner is always expected its
asset to be long life to ensure their capital investment returned and profitable.

There are many literatures that discussed on maintenance. Most of them
(British Standard 3811; Robert Milne, 1985; Cripps, 1984; Noble, 1984) have the
same concept about maintenance, which defined as an action that prevent or restore a
condition to its original condition.

15

2.2 Definition

British Standard 8210 defined maintenance as the combination of all
technical and administrative action intended to retain an item in, or restore it to, a
state in which it can perform its required function.

The previous version of British Standard (BS 3811: 1964), defined
maintenance as a combination of any actions carried out to retain an item, or restore
it to, an acceptable condition. According to Wordsworth (2001) the action is referred
to the initiation, organization, and implementation of series of works. There are two
processes of works that envisage, retaining and restoring. Retaining is more to the
work carried out in anticipating of failure, and restoring is the work carried out after
the failure.

Wordsworth further explanation is about maintenance acceptable standard
concept that is referred to the acceptability of the person who is paying the work to
the person receiving benefit or to some outside body with the responsibility for
enforcing minimum standards.

It is clear that there is no absolute standard for maintenance (Noble, 1984;
Lee, 1987). The standard is depending on the request of each person or organization
as the client of the works. It could be higher or lower than the initial design standard,
depend of the client inquires.

2.3 Maintenance Classification

The maintenance can be classified into several types. The most common
classification consists of two main parts, which are preventive and corrective
maintenance.

16

British standard 3811: 1964 classified maintenance into three parts, planned
maintenance, preventive maintenance, and running maintenance. The difference
between these types of maintenance can be described as follow.
a. Planned maintenance, it is defined as maintenance that organized and
carried out with forethought, control and the use of records to
predetermined plan.
b. Preventive maintenance, it is carried out at predetermined or to other
prescribed criteria and intended to reduce the likelihood of an item not
meeting an acceptable condition.
c. Running maintenance, which can be carried out whilst an item is in
service.

Another maintenance classification was done by Milne (1985) that classified
maintenance into two categories, planned maintenance and preventive maintenance.
Planned maintenance is a method whereby all of the work which can be foreseen in
the coming year or longer if necessary, is detailed, costed and mapped out on a chart,
listed in diary form or entered on a computer program in such a way that the
maintenance manager can see at a glance just what task are due to be carried out any
time of the year. Planned preventive maintenance, in the other hand, is an attempt to
eliminate as far as possible the need of day-to-day maintenance and reduce the
number of separately funded maintenance works by instituting a system of inspection
at regular predetermined intervals and carrying out any minor repairs before they
have time to develop into tasks of some magnitude.

According to Wood (2003) the background of the planned preventive
management is large scale programs of repair, maintenance and improvement of
large stocks of buildings, particularly in the public sector. The fundamental reason
of preventive maintenance was related to thinking and operating on grand scale and
was logical extension of the kind of thinking that had dealt with sum clearance, the
rebuilding of large areas flattened by bombing and the blitz, and the planning and
construction of complete new towns.

17

Planned preventive maintenance will more worthwhile if it is meet some
criteria (Lee R, 1987), such as:
a. it is cost effective
b. it is wanted to meet statutory or other legal requirements
c. it is meet a client need from operating point of view
d. it will reduce the incidence of running maintenance necessitating
requisitions for work from the user
e. there is a predominant incidence of work for the craftsman rather than
pure inspection

Another maintenance classification was made by Noble (1984) that
classified maintenance as five different types:
a. Routine or cyclic maintenance, it is task carried out at more or less
regular intervals without prior inspection, such as cutting grass, lamp
changing, cleaning of drains and gutters.
b. Planned maintenance; can be determined as selected services, plant and
equipment. It is a regular inspection and servicing (lubrication and
adjustment) with repairs and replacements made or programmed only
when found to be necessary.
c. Planned inspection, for selected elements of structure, fabric and
finishes. It is a regular inspection but with maintenance work carried out
or only when found to be necessary.
d. Breakdown or emergency maintenance, an action taken to remedy
failure.
e. Minimum maintenance, often applied to premises awaiting disposal. No
action except to meet mandatory requirements, e.g. for health or safety,
to conform to the terms of a lease, or to keep the property wind and
waterproof.

All types of maintenance explained above are depending and restricting by
situation and factors. One of the factors is cost. Cost constrain together with the rates
at which building materials and elements deteriorate in use, make maintenance more
difficult. The cost of preventive action will increase if the work differed and if it is
delayed to the point of failure the cost will be many times greater than if the job had

18

been done at the right time. Another factor is time; the correct timing of maintenance
work is therefore very important (Noble, 1984).

Cripps (1984) classified building maintenance in the five main heading:
Main fabric, determined as regular maintenance of the structure of
building, including walls, floors, roofs, windows, doors, sanitary fittings
and plumbing, drains, fire escapes, yard, roads and cleaning, and
restoration of elevation.
Internal finishes, including of redecoration of walls and ceilings,
replacement of floor surfaces, and repairs to special finishes.
Specific features, especially for public services, defined as all repairs to
entrance doors and shop windows, including replacement of door springs,
replacement of glass of the maintenance of electrical signs.
Cleaning, defined as regular cleaning of parts of the building by
maintenance staffs or outside contractors.
Engineering services, this type of maintenance relate to mechanical and
electrical equipment in the building. There are five headings that should
be considered.
1. Electrical and gas services, periodic inspection of surface
installation and major detailed surveys by professional
consultants and subsequent execution of repairs found
necessary.
2. Heating, ventilation, and air-conditioning, periodic inspection
of installations, cleaning, lubricating and repairs including
safety testing.
3. Lift, escalator, and mechanical equipment, periodic
inspection as detailed under (2).
4. Fire precaution, periodic inspection and repair of sprinkler
systems, fire detection system, fire extinguishers and
blankets, hose-reels and hydrant.
5. Special equipment, periodic inspection of refrigeration
installation, kitchen equipment, etc.

19

2.4 Maintenance Standard

As mentioned before, there is no absolute maintenance standard since the
need of building maintenance is typical for each building. But the general
maintenance standard is needed as guide for the owner or tenants to maintain their
building.

Wordsworth (2001) mentioned the standard should be as a function rather
than an object. Further he described maintenance standard as a balance between need
and resource with the provider or controller of the resource usually having the
greatest influence over what this balance may be.

The main idea about maintenance standard is basically the request or
maintenance work order from the owner to contractor, which area or defect that
should be repair or replace, and this order should be clear as a standard for the
contractor to perform the job. The work order should include the sufficient detail in
order to enable the workman to take with him the correct quantity and type of
material when making the maintenance work (Milne, 1985).

In fact some of 40% of the maintenance standard was directed in site (Milne,
1985). The engineer or the maintenance department has to visit the site and check
and determine the condition of building that should be maintained. The other
advantage of site visit is it gives more attention and gives direct instruction to their
employee or hired contractor to repair.

Lee (1987) as mentioned in Building Maintenance Management described the
maintenance standard as two part, lower level and upper level. Lower level is the
need of maintenance due to increasing probability of failure involving not only
enhanced repairs costs but also consequential losses where the normal user of the
building is interfered with. For upper level of maintenance is set by the cost of
achieving it.

Based on the building individual element, Reginald Lee (1987) divide the
maintenance standard as three conditions, physical condition of the elements, times,

20

and financial criteria. Physical condition has two related terms, the condition of
element that related to the magnitude of defect that calls for remedial action, and the
second term is the performance or the environmental systems. This system is known
as condition controlled maintenance. This system suggests that there is a regular
inspection to measure the condition or the performance of elements whether it is
deteriorated below that laid down.

The second condition is times, which repairs or replacements are to be made.
This method more to the frequent inspection and it need certain knowledge of the
rate of decoration. The balance between frequency inspections, risk, and
consequences of failure is the important part that should be achieved. The last
condition is financial criteria; this criterion can be taken from the variable sum based
on the costs of some primary activity or replacement value, or taken from fixed sum
based on historic costs or an analysis of anticipated benefits.

2.5 Maintenance Objective

As well as the definition of maintenance, the primary aim of maintenance is
to preserve the value of the asset so as to ensure a long term trouble free investment
capable of providing a continuous and satisfactory return by minimum expenditure
(David Arditi et al, 1999). Furthermore the specific objective of maintenance based
on Arditi can be described as follow:-
Perform daily housekeeping and cleaning to maintain a properly
presentable facility.
Promptly respond and repair minor discrepancies in the facility.
Develop and execute a system of regularly scheduled maintenance
actions to prevent premature failure of the facility and its systems and
components.
Complete major repairs based on lowest life-cycle cost.
Identify design and complete improvement projects to reduce and
minimize total operating and maintenance costs.

21

Operate the facility utilities in the most economical manner while
providing necessary reliability.
Provide for easy and complete reporting and identification of necessary
repair and maintenance work.
Perform accurate cost estimating to ensure lowest cost solutions to
maintenance problems.
Maintain a proper level of material and spare parts to support timely
repairs.
Accurately track the costs of all maintenance work.
Schedule all planned work in advance, and allocate and anticipate staff
requirements to meet planned and unplanned events.
Monitor the progress of all maintenance work.
Maintain complete historical data concerning the facility in general and
equipment and components in particular.
Continually seek workable engineering solutions to maintenance
problems.

2.6 Life Cycle Cost

Building life cycle costs is the total costs of owning the building over its
predicted life span including initial capital cost, occupation costs, operating costs,
and the cost incurred or benefit derived from the disposal of the asset at the end of its
life (Wordsworth, 2001; Chew M. Y. L et al, 2004).

Basically, building life cycle is a technique to ascertain a suitable balance
between capital cost on initial provision and costs incurred as a consequence of use.
The basic concept of Life Cycle Cost, LCC is that decision on the design and
acquisition of durable assets should take into account the long term financial
consequences and should not based solely on initial costs. LCC can be used to
evaluate the economic value of the construction process at every stage as described
by Wordsworth (2001) as follow.

22

a. LCC at Inception Stage
At the inception stage, LCC is use to determine the most economic way of
meeting a need for additional building space. The option to be compared may
include:
Rearrangement of the internal spaces within an existing building
Building an extension
Gradual redevelopment of the existing site
Development of new site
Purchase or lease of another building

b. LCC at Design Stage
The use of LCC at design stage is to assist the client and designer as well in
developing the most economic plan shape, structural form, and internal
layout. One thing that should keep on mind is the earlier the LCC applied, the
greater the possibilities on savings and the lower the committed costs.
At the detail design stage, LCC is used to help the designer identify the design
features, components and finishing that have the lowest cost. This stage would
culminate in the preparation of LCC plan which should be incorporated in the
maintenance manual for guidance of the guidance of the property manager.

c. LCC at Occupation of the Building
During the occupation of building LCC can be used to assists in formulating
planned maintenance and renewal policies. It also provides a means of
identifying high cost areas and evaluating changes that will reduce these
costs.

Regarding to the Brandon P. S. (1987) there are five factors that should be
taken into account when using LCC as evaluation technique. These factors will effect
to the calculation of life cycle cost of the building. The five factors are component
performance that depends on detail design, workmanship, building use, client attitude
to maintenance, exposure, weather climate and so on that effect to the building
condition. The second factor is the building life, which depends on the assumption on
the economic life span of the building. The next factors are inflation, technological

23

change and fashion, and taxation. The last three factors exclude taxation is
unpredictable factors that have high uncertainty.

2.7 Maintenance Cost

Maintenance cost is one the important thing that should be considered if the
property’s high rate of return is expected. For illustration, one housing developer
builds some houses for rental purposes. For business purposes, a developer always
thinking how to build a house with lowest initial cost and have high quality income.
This idea often takes the developer to pressure the initial cost to the lowest level and
sometimes affected the quality of the building. The low quality of building has low
rental price and also will affected the revenue they have. In term of maintenance,
developer will take the budget from rental value. As consequence, for the low quality
building would have maintenance cost slightly higher rather than the high quality
building. Some developer have to spent as much as 50% of their rental revenue to
cover maintenance cost (Derek Miles et al, 1987), they are caught in vicious circle,
because they are running low cost housing estates rents has to kept low, and it caused
poor maintenance.

Basically, the value of the property can be determined from the first phase of
construction. When the owner has intention to build a new building he/she has to
clearly state the purpose of the building. At the feasibility and design stage, the
designer should know what are the purpose of the building, the owner needs and all
other information that related to construction of the building. From this stage, a
designer should anticipate the effect of his/her design for the maintenance cost.
Derek Miles et al (1987) stated from the feasibility and design amount that only 8 %
of total project cost, the decision made during this stage commits nearly 95 % of the
cost of building’s total life. From this fact, it is clear that the maintenance cost can be
predicted from the early stage of construction. The agreement and understanding
between client and designer from early stage of construction influence the initial and
running cost of the building.

24

Another factor that influence the maintenance cost is the uncertainty of casual
factors such as intensity of use and changing maintenance requirements (Miles, et al
1987). In this way, the maintenance cost need to be optimized not only at the design
phase, but also during the management of the building in use.

From the statement above, it is can be conclude the factors that affected the
maintenance expenditure, there are:
Material, to keep the lower initial cost of building, client ask the
contractor to find cheaper prize of materials, that usually (not
always) have lower quality and life time period rather that expensive
materials. The lower quality materials need more maintenance to
keep their quality form deterioration.
Strategic design, poorly designed and constructed buildings may cost
as much as more than a well designed and properly constructed
building, depend on management and productivity at construction
site. The important things in reducing future maintenance cost is that
is strategic design of the building, that is shape, orientation, ratio of
wall or floor, and so on rather than high initial cost.
The uncertainty of casual factors, such as intensity of use and
changing maintenance requirements.

2.7.1 Costing system

Maintenance costing can be classified into three categories, committed cost,
variable cost, and managed cost (Miles et al, 1987).

Committed cost cover the cost that cannot normally be altered during
particular accounting period as fixed contract exists with supplier, for example
covering the lease of office equipment.

Variable cost is the cost that closely related to the activity of the organization
and their size is fairly close related to the output of the unit. Variable cost is based on

25

the labor productivity and the materials used. For example, for slab concreting
activity the cost is based on the area concreted and the materials used. It is possible
to measure the work content accurately and establish the cost based on the work
done.

Managed cost is uncommitted and not directly related to the volume of
activity, but specifically authorized at the discretion of the management.

From these categories, committed cost is easier to identify and handle, since
all the price and condition are mention at the contract. Any addition work in the field
can be considered as variation work. For this reason, some of building owner or
maintenance manager prefers to hire a contractor rather than hired their own
employees to perform maintenance work (Miles et al, 1987).

Based on variable cost system, a manager will measure the work performance
based on budgeted cost. If cost was under the budget it can be said that the
performance was perfect and thrifty, but if it was more than budget it can be said that
something going wrong.

It is not easy to justified work performance solely based on budget. There are
some possibilities to explain why some works is under or above the budget. For
example if the work done was under the budget, it might be the manager can perform
perfect job with low cost, or another possibility the work is under quality, or the
budget is over estimate.

2.7.2 Setting up a costing system

One of the objectives of costing system is to allow the manager to make
decision leading to effective cost control and then to study of the possibilities for cost
reduction. Derek Miles (1987) described the steps to set up costing system as follow,

26

1. Collect all of the necessary data that related to running cost for
building maintenance. To achieve this, all expenditure throughout
the year must be collected into suitable expense centers according
to the location and type.
2. Compared the collected costs data with the original estimates. It is
important to look closely at those items where estimated costs have
been exceeded, and to investigate the reason for excess.
3. Examine the possibilities for achieving cost savings by changes
policy, techniques or replace of items that giving rise unacceptable
maintenance or repair costs.

2.7.3 Maintenance budget

To maintain the effective cost control it is important to set out the
maintenance budget as a cost standard. To make it effective, budget has to use as
working document throughout the year and managers are more likely to work hardly
to achieve budgets that have been set up.

Budget is the vital link in the chain of control which involves three aspects
(Miles, 1987), there are communication of information about plans and intentions,
motivating people to achieve planned targets, and the last aspect is performance
reporting. Basically, the important function of budgeting is to provide a factual basis
for cost control. Graham (1978) defined some factors that should be take in account
to set up the budget, there are;
Changes in numbers/types of units comprising the estates
The number of jobs is directly proportional to be increase or reduction in
the number of units to be maintained, although the types of properties
and services must be taken into account.

Maintenance service standard
Maintenance serviced standard should be agreed for each financial year.
This standard should specify the service requirements and the average

27

job completion times in each trade and maximum acceptable job
completion periods. Changes to this standard may affect the likely
number of jobs to be completed each week or certain period.

Variation in the incoming number of jobs
The variations occur during the financial period, whether it was
requested by tenants or the owner or by emergency situation should be a
ware and must be taking into account. In practice these fluctuation when
low can be offset by feeding to the work force program routine
maintenance and preventive maintenance tasks. Peaks in the workload
which cannot be programmed economically for the labor force can cover
by using contractors. Annual estimates should include a provision for
this.

Work arising from pre-painting surveys
Technical staff should undertake a survey of properties in the year prior
to that when external painting is programmed. The survey should be
concerned mainly with the fabric of the building and with identifying all
maintenance and repairs required to bring property up to acceptable
standard before painting is carried out. This work must be completed
before the end of the current financial year and before commencement of
the current external painting program.

Work content
An effective work study based incentive bonus scheme will require the
measurements of the work content of all jobs completed each year. The
recorded data will show the average work content per job for each trade
in terms of Productive Standard Hours (PSH) per job. Using the records,
together with a careful examination of anticipated trends, a accurate
work content figure can be forecast for repairs and routine program
work.

28

2.8 Design Effect of Building Maintenance

One of the factors that influence the maintenance cost is the building design.
The designer is the first person that accepts the idea from owner to design a building.
From this idea the designer translate the owner need of the building to a general
design and continued into detail design. The term designer in this part is not solely an
architect, but it can be a team that has many people involve such as architect,
structural engineer, quantity surveyor, etc that necessary or have relationship with the
project (Marsh, 1979).

The design stage starts with design brief from the client. Some of the client
knows what information that should they give to the designer, but many were not
understood. It is the designer responsible to assist the client to give an adequate
briefing. It is very important to collect as many data from the client such as what
type a building they need, what is the budget, what is the purpose of the building, and
all of information that the designer need. This stage is very important but sometimes
it was neglected by the owner or the designer or both.

One investigation conducted by The Building Advisory Service at 1970-1974
in United Kingdom showed the highest faulty that made was the wrong choice of
materials or components for particular situation, such as a wrong adhesive for floor
tiles on a heated sub-floor, or necessary cavity trays and flashing was missing from
the design. The common faulty that often happened were (Marsh 1979) (Miles et al,
1987):
a. Inadequacy of the client brief
b. Inadequacy of design, such as error of specification, material or
component choice, juxtaposition of incompatible materials or
components
c. Construction error due to ambiguity or inadequacy of specification
or supervision
d. Defects in materials and components

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