Facilities Manager's Desk Reference, 3rd Edition

13Procurement

13.1 Introduction

FMs (facilities managers, or facilities management) often manage the most dynamic purchasing budget in an organisation. Cost savings are required in procurement activities to ensure that value for money is achieved. FMs have traditionally been able to offer significant savings in corporate spend with the use of a range of procurement strategies. FMs need to develop a purchasing strategy for various goods and services, create appropriate specifications, appreciate the impact of contract terms and conditions, evaluate supplier proposals using suitable cost models, and ensure compliance with relevant contract and procurement legislation.

The term ‘procure’ can be defined as ‘to obtain by care or effort, to acquire or to bring about’ whereas the term ‘purchase’ describes the transaction of buying and the items bought. Purchasing is therefore just one aspect of procurement. Many purchasing departments have changed their name to ‘procurement’ to reflect the wider remit of their roles. The list of potential goods and services that are required in FM is endless. Table 13.1 shows a list of a range of goods and services that an FM may have to procure.

13.2 Purchase criteria

The key criteria to consider in procurement and purchasing include:

• The right product (or service).
• At the right place.
• In the correct quantity.
• At the right quality.
• Delivered when it’s needed.
• From a reliable source.
• At the right price.

13.3 Procurement policy

FMs have to consider ...