MAPUA INSTITUTE OF TECHNOLOGY AT LAGUNA

Academic Year 2023-2024

REVIEWER: BS 8572 2011 & BS EN 15221-2

Submitted by:
MARMOL, John Rey M.
PAMPLONA, Nicole Q.
PASTOR, Mike Laurence C.
REGANIT, John Paolo Z.

Group 5 - C73
BS 8572 2011 - Guide to the Procurement of Facility-Related Services

- It offers comprehensive guidance on the preparation of facility management

agreements.
- It outlines the best practices, legal considerations, and key components that need to
be considered when drafting these agreements.
- It aims to enhance the understanding of facility management and ensure that all
parties involved are aware of their roles and responsibilities.

Key Principles of BS 8572 2011

- Ethical Procurement
- It is essential to comprehend and follow ethical procurement procedures. In
order to comply with legal and ethical requirements, organizations must
guarantee fairness, openness, and accountability throughout the procurement
process.
- Value for Money
- A fundamental principle is to reduce expenses without sacrificing quality. It
entails evaluating and selecting suppliers based on their capacity to provide
high-quality services at affordable pricing.
- Accurate Specification
- Clear and accurate service standards are crucial for providers to comprehend
and deliver relevant proposals.

Understanding the Procurement Process

1. Assessment of Needs - Identifying the necessary facilities services for the
organization, taking into account scale, breadth, and timelines.
2. Sourcing Strategy - Evaluating various sourcing options, which may include
outsourcing, insourcing, or a combination of both, based on the organization's
strategic objectives.
3. Legal Compliance - Ensuring that the procurement process complies with
relevant laws and regulations, including labor and environmental standards.

Preparing the Procurement Strategy

- Market Analysis - conduct a comprehensive market research relevant to suppliers
and current market trend and price dynamics
- Risk Assessment - Evaluating potential risks associated with different procurement
strategies and developing risk mitigation plans.
- Inviting Proposals - Creating clear and detailed requests for proposals (RFPs) to
invite competitive bids from potential suppliers.

When Selecting the Right Suppliers

1. Quality Assessment - Evaluate suppliers based on their track record, certification
and the ability to meet the quality standards
2. Cost-Effectiveness - Thoroughly analyze pricing proposals and negotiate to achieve
the best value for money without sacrificing quality

Risk Management in Facility-Related Services Procurement

 1. Evaluation - Thoroughly assess potential risks in procurement process,
including financial, operational and legal risks.
2. Mitigation - Developing proactive strategies to mitigate identified risks and
minimize their impact on service delivery and financial stability

BS EN 15221-2 - Guidance on how to prepare facility management agreements

● BS EN 15221-2 provides a structured approach to Facility Management agreements,

promoting effective client-service provider relationships and minimizing disputes.
● BS EN 15221-2 is a European Standard that provides guidance on the preparation of
Facility Management agreements. It was approved by CEN on 16 September 2006.
● The standard is applicable to Facility Management agreements for both public and
private European Union cross-border, as well as domestic, client-Facility
Management service provider relationships.
● It is a performance-oriented standard that focuses on prices or mechanisms to
determine prices for services, which are closely linked to performance.
● The standard clarifies rules for final payment, criteria for adjustment of the agreed
price, and procedures to be applied at the ending (expiration or termination) of
Facility Management agreements.
● It is important to note that BS EN 15221-2 is a guidance document and does not
oblige the parties to use any part of its content.

Primary Activities:

- It is important for both parties to an agreement about Facility Management that the
service provider knows about the client's main activities, stakeholders, relevant
organizational strategies, and organizational structure before the agreement starts
and while it's in effect.

The primary activities description should include:

● description of the client’s intended corporate image and trademark;

● description of the client’s products and services;
● description of the client’s customers.
- Each organization decides for itself what the difference is between the main activities
and the support services. This difference needs to be kept up to date all the time.

Different types of facility management agreements:

Introduction - This section explains the different types of Facility Management agreements.
Before the two parties agree on the specifics of the agreement, they should make sure they both
understand what kind of agreement they want.

Organizational Needs - The following areas should be used to figure out how much each
party is responsible for the facility services mentioned in the Facility Management agreement.
 Investments Strategy and Ownership - Clients should figure out what kind of facility
operating plan they need to fit their strategy for investing in assets and equipment.

Price and Rate Mechanisms - There are three main methods of price mechanisms and their
combinations that can be considered:

● Lump Sum
● Unit Rate
● Cost Plus

Performance Based Payments -

● Incentives within the scope of the Facility Management agreement

● Incentives on added value to primary activities
● Incentives about savings

Main Characteristics of Facility Management Agreements:

Preparation time and resources - The Facility Management deal should be given the right
amount of time and resources based on its size, importance, and level of difficulty.

Mutuality and Benefits - Both the client and Facility Management service provider should
share a mutual vision and understand the desired outcome and objectives of the client.

Strategic Objectives - When it comes to the Facility Management agreement, the Facility
Management service provider should fully understand and back up the client's (Facility Management)
plan.

Necessary Components of Facility Management Agreement:

● Term of the Facility Management agreement

● Exclusivity
● Management of client procured facility services
● Sub-contracting
● Allocation of management responsibility
● Information responsibilities
● Communication
● Regulations
● Client's standards
● Preparation for ending the Facility Management agreement

Preparation and implementation of Facility Management agreements

Preparation of Facility Management agreements:

● Client preparation phase

 ● Pre-qualification and selection phase
● Tender/negotiation phase
● Facility Management agreement preparation phase
● Signature phase

Implementation of Facility Management agreements:

● Mobilization phase
● Validation phase
● Operational phase
● Ending phase