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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