Key Concept

Question 1

refers to a bundle or full range of services provided by a third-party single contractor or group of contractors; it also implies that the vendor provides day-to-day management

Answer 1

outsourcing

Question 2

refers to the provision of individual services by a small service provider

Answer 2

out-tasking

Question 3

What are some typical reasons for outsourcing

Answer 3

• better access to specific technical skills and expertise,
• to adapt to workflow fluctuations,
• to handle on-time or emergency situations

Question 4

What organizational function would not likely be outsourced

Answer 4

budgeting

Question 5

Is outsourcing a budgetary, organizational, contractual, or staffing decision

Answer 5

Staffing

Question 6

What is a characteristic of a more traditional corporate structure

Answer 6

vertically aligned

Question 7

the gain that an activity produces, such as corporate profit

Answer 7

Value added

Question 8

What should the organizational perspective of the new facilities manager be focused on

Answer 8

the corporate big picture

Question 9

When outsourcing major components of their operations, facilities managers are more successful and retain greater control when they do what

Answer 9

develop the plan

Question 10

What are some general categories of large facilities-related outsourcing contractor

Answer 10

architectural/engineering/interior/space planning, real estate and property managing, and building operations

Question 11

Facilities groups that originated as a part of a large parent company generally have what advantage

Answer 11

an understanding of large complex organizations

Question 12

What is the most compelling legal reason a company would hire an architectural/engineering
firm as a leading firm for a project

Answer 12

construction drawings must be signed and sealed by licensed professionals

Question 13

What individual is most qualified to perform tenant buildout work

Answer 13

the space planner

Question 14

For highly specialized projects and atypical renovations such as laboratories or manufacturing areas, what type of firm should take the lead?

Answer 14

a specialty contractor

Question 15

Who should write the first draft of the contract for an outsourcing partner

Answer 15

facilities manager

Question 16

How are contracts generally established for more professional and technical services such as architectural and other consulting services

Answer 16

negotiated contract approach

Question 17

What method of selecting contractors is as standardized as possible with selection based on price alone

Answer 17

formal bidding

Question 18

When establishing a contract, a greater amount of risk for the contractor should equate to what?

Answer 18

a greater amount of profit

Question 19

Which contractual arrangement is most often used in formal or sealed bidding

Answer 19

firm fixed price

Question 20

What is the least risky contractual arrangement for a contractor

Answer 20

fixed price level of effort

Question 21

What is a major problem with the cost-plus contracts

Answer 21

there is no incentive for the contractor to control costs

Question 22

a method of payment that is commonly used for consulting contracts, where a lump
sum of money is paid up front to cover the consultant’s startup expenses

Answer 22

retainer

Question 23

When combining similar activities into functional areas to prepare specifications, how should you group your staff

Answer 23

into project-oriented teams

Question 24

To a facilities department, what is the advantage of performance-based specifications

Answer 24

the contractor has the latitude to devise innovative methods that fulfill the general idea

Question 25

What may result if the technical requirements are not stringent enough to weed out technically inferior offers

Answer 25

high-quality firms may choose to ignore the bidding situation

Question 26

What is a widely used contracting technique that recognizes both cost and technical considerations

Answer 26

technical/price split

Question 27

For a contractor to respond meaningfully to an RFP, how should project proposal rating criteria be defined

Answer 27

as specific as possible

Question 28

What should the facilities department do if work is highly specialized and no in-house expertise exists to evaluate the contractor’s performance

Answer 28

hire a consultant as a contract manager

Question 29

What is the best approach to obtain a high level of quality work and effectively control costs on a facilities contract

Answer 29

actively keep track of the contractor’s work

Question 30

Success in obtaining funding is based on a business plan that has what trait

Answer 30

a plan with strong justification

Question 31

Comparing company facility staff size to total corporate staff size allows the facilities manager to estimate the facilities workload based on what

Answer 31

population

Question 32

Using the number of work orders, time to complete orders, space inventory, and staff size to estimate workload is called workload based on what

Answer 32

service standards

Question 33

How should you estimate the facilities department workload for the next year?

Answer 33

combine several workload estimation methods, such as business cycles, corporate revenues, and salary and equipment projections

Question 34

How does a facilities manager demonstrate trends in workload?

Answer 34

use data from several years

Question 35

A midsize company with growing inventory and limited staff ordinarily needs a facilities department staff with what type of skills

Answer 35

broad scope and very little technical depth

Question 36

Larger and more geographically dispersed organizations will likely need staff with what type of skills

Answer 36

broad scope of authority and substantial technical depth of skill

Question 37

What is the most challenging part of the recruiting process when hiring an employee for your facilities management department

Answer 37

writing an accurate job description and advising human resources on the technical competence and expertise you require

Question 38

What are some of the qualities that facilities management employees must possess

Answer 38

analytical thinking, flexibility, and initiative

Question 39

Qualifications are merely an indication of what?

Answer 39

competence

Question 40

What are some important keys in understanding service?

Answer 40

appreciating the customer’s point of view, clarifying you department’s capability, and avoiding taking things personally

Question 41

What are some ways of maximizing staff performance

Answer 41

writing a good job description, performing periodic and systematic appraisals, maintaining balance among all factors contributing to performance, and using clear communication methods

Question 42

What is included in a good job description?

Answer 42

qualifications, list of essential duties, and physical requirements

Question 43

Applying different standards to different employees may lead to what?

Answer 43

grievances based on discrimination

Question 44

When one person may have to perform multiple functions, what is the best method of staff development?

Answer 44

cross-training

Question 45

cross-training

Answer 45

cross-training

Question 46

What criteria must you use to justify an upgrade in an individual’s existing position

Answer 46

the nature of the position has changed, the labor market is paying higher rates for this work, and the upgrade is for the position, not the person