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FM4.21: Understanding Procurement and Contract Management in Facilities Management

FM4.21: Understanding Procurement and Contract Management in Facilities Management

While moving towards the assignment topics in unit FM4.21: Understanding procurement and contract management in facilities management, it’s crucial to understand the notion of procurement and contract management in the sphere of the IWFM. Procurement in facility management refers to a phenomenon that makes the effectiveness of the primary activities in an organisation. The sub-factors that play a vital role in the evaluation of procurement are the trending process and leads bidding. The strategy of procurement may increase through the evaluation and surety of efficiency by contract value of money.

Procurement management in facility management is crucial because it is the bidding service for describing terms to the clients. One of the basic characteristics of procurement strategy is to make the client understand the concept of acceptable price, legal terms and optimum commercial along. To make strategic management more successful and long-lasting, careful planning is required to commence rather than going to market.

The next essential part of facility management is the system of contract management. Contract management aids in the recognition of useful suppliers as well as it makes the managers know what sort of contracts can be used again by the next suppliers. In other words, contract management is a tricky way to utilise contracts among clients.  An organisation can create numerous contracts through the appropriate use of contract management. The learning outcomes of unit FM4.21: Understanding procurement and contract management in facilities management are several which include:

1. Procurement understanding

In this part of the unit, many questions are included in the assignment criteria of FM4.21: Understanding procurement and contract management in facilities management.

1.1 What are the responsibilities and rights of sellers and buyers? Describe these all aspects of procurements in the light of basic principles.

1.2 Describe the stages and processes which are used in the procurements and have a great function of facilities management that is supported by the goods and services. These functions cover the aspects;

  • Shortlisting
  • Provision monitoring
  • Tenders issue
  • Negotiation
  • Contracts awards
  • Adjudication and receiving of tenders
  • The decline of other bids
  • Contracts start
  • Define and agree with specifications and requirements
  • Supply sources

1.3 Describe the bid process and tendering. Include the processes and tendering that include the following.

  • Interest expressions
  • The practice of spending analysis
  • Analysis of market or supplier
  • Tender lists which are approved
  • Pre-qualification
  • Adjudicating criteria
  • Tender invitations
  • Open days suppliers
  • E-auctions
  • To respond to the questions of tenderers
  • Official tender’s opening
  • Negotiations and presentations
  • Shortlisting process

1.4 Describe the way of selecting proper contracts as well as the specification of service. The factors that have an impact on the services must be discussed are:

  • Types of services and goods that are purchased by the buyers
  • Output and input specification
  • Purchase order
  • Buy or contract
  • Commodities and custom-made
  • Call off contract
  • Duration and value of the contract
  • Forms 2005for the replacement of a contract

1.5 How should the procurement management process organise?  Explain by defining the roles and responsibilities of organisation staff, for example, budget holder, specifier, buyer, and user. Moreover, the uses of power, records, and authority levels ought to be described.

1.6 Recognise the significant legislation principles that include the following notions concerning procurement and contract management.

  • Sales of goods act of 1979
  • OJEU Official Journal of the European Union
  • OGC Office of Government Commerce
  • Environmental standards
  • Competition
  • Discrimination
  • Work rights
  • Working time Instruction
  • Supply of services and goods act 1982
  • Terms of unfair contract 1979

2. Recognise the different kinds of contracts

2.1 Describe the various categories of contracts such as purchase orders, verbal contracts, off-call contracts, for example, framework or enabling contracts, and standard forms of industry.

2.2 Elucidate the pros and cons of the various categories of contracts for the collection of services and goods. In addition, relate the diverse contract types that are explained for the former assessment criteria of different services and goods categories.

2.3 What are the ways to choose the excellent options of procurement that ensemble the type of contract? Support the justification by using the learner’s case studies and examples.

2.4 The ways to choose the excellent type are of contract that ensembles the type of procurement. Support the justification by using the learner’s case studies and examples.

Recognise the procedure of terms and conditions as well as specifications of services and goods in the procurements

3.1 Describe the ways through which specifications can be drafted and utilised for the procurement of services and goods.

3.2 What are the advantages of writing specification that is defined very well?

3.3 How the typical terms and conditions can utilise in the procurement of services and goods? Explain.

3.4 Describe the pros and cons of typical terms and conditions that include the following factors, accessibility, dispute resolution, time, lucidity, and equity. Precedent and ease of management.

Understand the costs of procurement

4.1 What are the features that make the costs of services and goods include, including sales cost, eliminate duty, transport, labour, insurance, consumables, overheads, profits, and raw materials?

4.2 Describe what factors are considered at the time of evaluation of the procurement decision. These may include capacity, quality, time, cost, reliability, compliance, and reputation.

The topics, questions and assignment criteria of unit FM4.21: Understanding procurement and contract management in facilities management are standardised and complex to work with. As in some of the topics students have to explain their personal learning experience and case study, and the assignment will take extra-ordinary mind and effort. Many people might have their views that making an assignment on a field-relevant topic in IWFM is a piece of cake for the students. However, “things are not always what they seem” if you are a student then we can get the idea about the hassles that you have to face in your routine.

No one can contradict the significance of assignments specifically in the field of IWFM. On the other hand, students have to face many tribulations in their education. Limited time for assignments, shortest deadline, influent English, absence of ideas, vulnerable writing skills, and lack of researching skills are some concerns that are common among students. After having these issues students get the prey of awful stress because of their assigned tasks. Instead of it the students who try to prepare the assignments on their courses also have some issues with their assignments which cause marks that are lesser than their expectations.

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