RICS draft code of practice - Procurement of facility management

Procurement of facility management code of practice

Procurement of facility management, 1st edition

Glossary

Terms and abbreviations

Definitions

Benchmarking

A method of checking that the DO is getting value for money compared to market conditions and the common standards of service at the time of checking. Benchmarking is typically purely a cost assessment.

Demand organisation (DO)

The organisation procuring facility services from an external service provider.

IFM

Integrated facility management.

Invitation to tender (ITT)

See RFP.

Key performance indicator (KPI)

A target that the service level should achieve.

Limit of liability

The level of damages that one party will be obligated to provide to the other party under the terms and conditions of the contract.

Mobilisation period

The period between contract award and contract commencement. In some cases it is between contract signature and contract commencement. It is typically at least three to four months in length.

Non-disclosure agreement (NDA)

A document used to keep information confidential. It can can be one-way (bidder keeps the DO's information confidential) or two-way (the DO also keeps bidders information confidential).

Performance mechanism

A method of assessing whether objectives are being achieved and standards of service being maintained. They are typically composed of an SL, KPI and a consequence of failure (deduction in price).

Procurement

The process of finding and agreeing to terms, and acquiring goods, services or works from an external source, often via a tendering or competitive bidding process.

Project governance

The set of policies, regulations, functions, processes, and procedures and responsibilities that define the establishment, management and control of projects.

Region

Multiple territories in a geographic proximity, e.g. AsiaPac

Request for information (RFI)

A document issued to potential bidders to obtain information.

Request for proposal (RFP)

A document issued to bidders outlining the procurement process and associated documents and requirements.

Service level (SL)

A defined and measurable level of service that should be delivered.

Service level agreement (SLA)

An agreement to deliver a defined and measurable level of service.

Soft market testing

Meetings with suppliers in the market prior to the commencement of a procurement process.

Selection Questionnaire (SQ)

A standard questionnaire used by service providers applying to become bidders to provide information about their company and previous experience. This is also known as a Pre-Qualification Questionnaire (PQQ).

Territory

The country a DO is procuring services in.

Total facility management (TFM)

See IFM.

Transition period

The period after contract commencement, when the supplier makes changes to implement its delivery model.

Value testing

A method of checking that the DO is getting value for money compared to market conditions and the common standards of service at the time of checking. Value testing should include some assessment of non-financial benefits, whereas benchmarking is purely a cost assessment.