Unit FM4.21 Understanding procurement and contract management in facilities management
TABLE OF CONTENTS
1.1 Principles of procurement 3
1.5How the Management of the Procurement Processare Organised. 5
1.6 Principles of Relevant Legislation. 6
2.1 Different types of contracts. 7
2.2 Advantages and disadvantages of different contracts over a range of goods and services316. 8
2.3 Selection of suitable procurement option. 10
2.4 Selection of suitable contracts. 10
Procurement of hospitality services. 10
Process and stage of procurement of goods and services. 11
Fcators to be considered while choosing the bests succesfful tender. 12
3.1 Scope and specifications to be used in contract tendered. 13
3.2 Process used for specification. 14
3.3 Input or output specification. 15
3.4 Scope of standard terms and conditions with advantages and disadvantages. 16
4.1 Elements which make up the cost of goods and services. 17
4.2 Factors to be considered behind deciding elements of procurement decision. 18
INTRODUCTION
Understanding procurement and contract management are one of the most important paradigms which focus to bring on rational functional strength for various business decisions and expansion focus through which wider rational services can be attained within the business world. The report discusses various types of contracts and principles of procurement, cost and various detailed explanation onto vivid factors of strengthened business factors which built on wider rational paradigms to bring on higher relative expansion for gaining the goodwill of service among business cale customers. The report discusses the working fundamentals of Hilton hotel is working with the best paradigms and rational functional roles to keenly bring on expertise and choose the best supplier company based on their relativity of roles. The report explains elements advantages and disadvantages of inputs and output specification factors which further enable companies to build synergy along with an explanation on how it will best benefit for the company to seek further progression and rational functional strengthened to build procurement program within business scenario (Tas, 2019).
MAIN BODY
TASK 1
1.1 Principles of procurement
Procurement is an agreement that is made between buyer and seller of products or raw material to purchase it at specific prices for exchange of services. There are various principle of procurement that needs to be followed by both buyer and seller while exchange goods and services such as:
Right products: While buyer and seller exchange good and services between each others at that time seller should ensure that right products are given to buyer so that it needs can be satisfied in effective manner and firm can easily expand its business operation (Zarei, Carrasco-Gallego and Ronchi, 2019.). Buyer should also information about specific quality of good that will be required to sellers so that better procurement can take place between them.
Right price: Before procurement of products and services seller and buyer need to agree on prices that will buyer pay for specific quantity and quality of goods and services. It can also be stated that setting of price of products in advanced helps in reducing chance of conflict and confusion between