FM Procurement: Strategic or Tactical

The Contractors Perspective

Context
• We contract with Public and Private Sector
• We see many different types of procurement with a variety of
requirements expressed in many different ways
• Common Features of most tenders:
– Specification
– Submission requirements
– Site visit
– Open Q & A process
– TUPE
– Pricing template
– Contract conditions / Heads of Terms
– Tender Return Deadline
Common Transactional Procurement Options
Establish need

Business Property Service

Objectives Needs Needs

Sector Buy Insource

Governance Lease Outsource
Regulation Tenure Risk
Go to Market

Business Property Service Procure FM Tender

Objectives Needs Needs Contract Response

Sector Buy Insource Process Strategy

Governance Lease Outsource Engagement Solution
Regulation Tenure Risk Criteria Margin
Appoint Contractor

Business Property Service Procure FM Tender Deliver FM

Objectives Needs Needs Contract Response Services

Sector Buy Insource Process Strategy Manage

Governance Lease Outsource Engagement Solution Enhance
Regulation Tenure Risk Criteria Margin Retain
Key Stakeholder Engagement

Business Property Service Procure FM Tender Deliver FM

Objectives Needs Needs Contract Response Services

Sector Buy Insource Process Strategy Manage

Governance Lease Outsource Engagement Solution Enhance
Regulation Tenure Risk Criteria Margin Retain

FM

USER
Missed Oppourtunity?

Business Property Service Procure FM Tender Deliver FM

Objectives Needs Needs Contract Response Services

Sector Buy Insource Process Strategy Manage

Governance Lease Outsource Engagement Solution Enhance
Regulation Tenure Risk Criteria Margin Retain

FM

USER
Examples where FM can input strategically
• Maintenance approach:
– SFG 20
– BFM
– Run to Fail
• Compliance with obligations:
– Lease
– Law
• Space utilisation
• Technology substitution and/or enhancement
• Experience from other (similar) contracts
• Experience from other (different) sectors
• Energy Efficiency
The Procurement Challenge

Business Property Service Procure FM Tender Deliver FM

Objectives Needs Needs Contract Response Services

Sector Buy Insource Process Strategy Manage

Governance Lease Outsource Engagement Solution Enhance
Regulation Tenure Risk Criteria Margin Retain

FM ENGAGEMENT

USER ENGAGEMENT
Strategic Procurement Options

Early Adopter needed…..

What do we need?