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Managing Procurement and Contracts in Facilities management

Managing Procurement and Contracts in Facilities management

1.1 Explain the basic principles of procurement
(including: general principles such as the five
rights (quality, quantity, time place, price)
and the need for probity, ethics and
transparency; and company-specific
requirements such as policies relating to
ethics, sustainability, business critical
supplies, competitive advantage and impact
on bottom line)
1.2 Review the processes and stages of the
procurement of goods and services
(including specification, sourcing, tender
evaluation, adjudication, negotiation, terms
and conditions, monitoring, review and exit)
1.3 Review compliance with relevant legislation
(including EU procurement process, OJEU,
open competition, Office of Government
Commerce (OGC), collusion, bribery, fraud,
environmental standards, employment
(Working Time Directive, Right to Work,
Discrimination), Sale of Goods Act 1979,
Supply of Goods and Services Act 1982,
Unfair Contract Terms Act 1979)
1.4 Review the effectiveness of tendering and
bid processes (including processes such as
spend analysis, supplier/market analysis,
expressions of interest, pre-qualification,
approved tenderer lists, time-scales,
adjudication criteria, invitation of tenders,
answering of questions, supplier open days,
e-auctions, return and opening of tenders,
adjudication processes, short listing,
presentations and negotiations)

2.1 Analyse and compare the different types of
contracts. (see below)
2.2 Select the most appropriate procurement
option that suits the contract type (see
below)
2.3 Select the most appropriate contract type
that suits the procurement of a particular
good or service (see below)
2.4 Review contract management procedures
and identify improvements (see below)
2.5 Evaluate start up and close down processes
and procedures of contract (see below)
(All of the assessment criteria for this
learning outcome can be addressed by an
exercise based on practice at an
organisation where the learner currently
works or has worked in the past. The
contract types considered should include
verbal contracts, purchase orders, call-off
contracts (enabling or framework contracts),
and industry-standard forms (such as JCT
forms 2005, PPI/PPP). The contract
management procedures should include
examples such as key performance
indicators, customer-supplier meetings,
continuous improvement, flexibility, dispute
resolution, sharing of benefits and demand
fluctuation work. The start up and close
down processes should deal with issues such
as contract mobilisation, early termination,
exit processes, liability, ownership & title,
acceptance and record keeping.)

3.1 Develop and use specifications for
procurement of goods and services (see
below)
3.2 Compare and contrast the principal types of
specifications (see below)
3.3 Evaluate the standard terms and conditions
that are used in the procurement of goods
and services (see below)
(All of the assessment criteria for this
learning outcome can be addressed by an
exercise based on practice at an
organisation where the learner currently
works or has worked in the past. The
principal types of specifications should
include input and outcome specifications.
The standard terms and conditions should
be evaluated with regard to factors such as
reduction of risk, clarity, common meaning,
time saved in not drafting own terms and
conditions, and international standards.)

4. Be able to manage
procurement costs
4.1 Analyse the elements which may make up
the cost of goods or services. (by reference
to practice at an organisation where the
learner currently works or has worked in the
past, and including elements such as raw
material, labour, manufacture, packaging,
transport, consumables, cost of sales, excise
duty, insurance, overheads, profit)
4.2 Analyse the factors which should be taken
into account when making a procurement
decision (including factors such as cost,
reliability, capacity, reputation, cost, time,
quality, compliance)

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