Lai, J H K (2010) Operation and maintenance budgeting for commercial buildings in Hong Kong. Construction Management and Economics, 28(4), pp. 415-427. ISSN 1466433X
Abstract
The significance of whole-life costs for building operation and maintenance (O&M) is well known. The causes of ill-budgeted O&M resources, however, are often uncertain. An in-depth exploration of the problems with budgeting O&M works for commercial buildings in Hong Kong was carried out, based on interviews with building owners, management companies and O&M contractors. The practice of historical-based budgeting predominates among a variety of budgeting bases, and budgets are largely constrained by preceding budgets and predetermined budget ceilings. Budgetary costs are significant, which can be economized through bundling small contracts into larger procurement packages. The importance of satisfying O&M needs is usually recognized but the motivations of practitioners toward preparation of proper budgets are inadequate. Corresponding to the range of problems identified, a framework of improvement measures is outlined, which requires further development to help achieve proper budgeting for sustainable operation and maintenance of buildings.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | budgeting; cost; facilities management; maintenance |
| Index terms: | interview, operation and maintenance, motivation, budgeting, bundling, exploration, commercial building, practitioner, facilities management, building operation, Hong Kong, package, owner |
| Subjects: | sociology, Geography, financial management, management, maintenance engineering, contractual arrangements, financial and cost management, psychology, environmental resource management, practitioner, data collection methods, construction type |
| Topics: | Roles and Professions, Stakeholder Management, Procurement, Construction Technology, Sustainability, Business Strategy, Cost Management, Geographical Context, Research Practice, Human Resources |
| Descriptive scope: | 3 PCE |
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