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News & opinion

25 JUL 2018

Increase trust and reduce risk in FM procurement

We have launched our first professional statement to reduce risk, increase transparency, and further trust in procurement in facilities management.

In brief

  • Statement led by RICS, in collaboration with IFMA, with extensive facilities management (FM) industry engagement to address ‘race to the bottom’ culture.
  • RICS professionals will abide by the statement as standard, but adoption of the professional statement would also benefit the wider FM procurement chain.

The RICS Procurement of Facility Management, UK 1st edition, professional statement was worked on in collaboration with IFMA, and also the wider industry. RICS led extensive industry engagement and will be looking to make this a global professional statement in due course.

IFMA RICS Procurement Professional Statement

See more about facility management procurement routes and processes, and guidance on the factors for consideration during a procurement process.

Mandatory from 1 October 2018

All RICS-regulated professionals (mandatory from the 1 October 2018) will follow this guidance, but adoption of the framework would be competitively beneficial for all property professionals involved in the procurement of FM services, including those acting for landlords and occupiers, FM suppliers procuring services from sub-contractors and investors and public and private occupier organisations.

Why is it relevant?

The statement was developed to address the issues in the highly competitive FM procurement market, which in worst case scenarios can be engaged in a race to the bottom. The sector is currently splitting into those engaged in ethical practices and leading on sustainability and those that are not.

The FM sector also has the opportunity to solve issues in other areas of the built environment and improve sustainability – for example through earlier involvement in the construction and design process  so positively impacting building design, sustainability, and project outcomes. The new statement can only increase the sectors ability to deliver on time and on budget.

"It has been a privilege to author the professional statement that forms a framework of simple straightforward must-do's. Together with the guidance notes covering planning, the procurement process and post-procurement activities, they will make a valuable contribution to raising standards. Professionals should focus on investing time and energy in planning, running a fair and transparent process and putting themselves in the bidder's shoes  think about what they need to do and what information they need in order to deliver the benefits that you require," says Derrick Tate, PWC Corporate Finance.

Effective and ethical procurement is a fundamental foundation for facilities management excellence, and recent market events show that this is more needed than ever.

Kath Fontana
ISS Technical Services

Prior to the new professional statement, RICS FM Professionals would have followed the RICS Rules of Conduct – regarding the competence and conduct of members/regulated firms in this area.

"I am delighted that the professional statement of FM procurement has been launched. RICS are the first organisation to produce a statement like this for their professionals. Effective and ethical procurement is a fundamental foundation for facilities management excellence, and recent market events show that this is more needed than ever. This new statement provides clients and suppliers with the platform to manage risk and opportunity consistently and professionally. Ultimately this will enable all to focus on delivering great service, compliance, transparency and value for money," says Kath Fontana FRICS, Managing Director, ISS Technical Services & RICS Senior Vice President Elect.

The professional statement discusses facility management procurement routes and processes and provides guidance on the factors that need to be taken into consideration.

"CIPS are pleased to support the content presented in the RICS procurement of facility management paper. Through the guidance and influence of CIPS and senior professionals the paper offers a standardised piece of guidance that aims to support procurement professionals with a singular best practice approach to tendering and securing the best value from the sourcing process in relation to securing facilities management services," says the Chartered Institute of Procurement & Supply.
"We are pleased to support the RICS FM procurement professional statement. A professional approach to procurement is essential in ensuring contracts are put in place that work effectively for both client organisations and suppliers. The RICS guidance enables this to happen and supports the development of FM as profession. As such it will be incorporated into NHS Property Services approach to FM procurement," says Charles Siddons FRICS, Head of Operations, NHS Property Services.

The guidance note focuses on the appropriate procurement route and all the various factors needed to deliver an effective procurement process that results in a successful contract which delivers.