Contract strategy for premises management

Purpose:

Contract strategy is about choosing the right contract for allocating risks to the party who is best able to deal with them, in a way which is consistent with a Department's objectives for the commission or project. The contract strategy will therefore depend on the objectives of the commission or project and how Departments wish to manage risks.

Fitness for purpose checklist:

Departments are responsible for:

• achieving value for money, normally through competition;
• ensuring that they comply appropriately with their legal obligations under the European Communities' (EC) procurement rules and other international agreements;
• ensuring that the roles and responsibilities of staff are clearly defined and that there is adequate separation of duties;
• ensuring that staff are aware of the Procurement Policy Guidelines and the guidance on procurement which is issued by the Office of Government Commerce (OGC); and
• ensuring that the guidelines are brought to the attention of other public bodies for which they are responsible.

The principal steps required in developing the contract strategy are:

• Identify need for commission or project
• Nominate the Premises Manager
• Appoint Premises Adviser where necessary
• Define objectives and prioritise them
• If project management, feasibility design, environmental or
• cost advice is needed then make temporary appointments
• Re-evaluate and prioritise
• Decide and appropriate contract strategy in light of objectives

Suggested content:

A detailed contract strategy for premises management should address the following issues:

• factors outside the control of the project team (eg inflation, legislation, etc);
• departmental resources;
• project characteristics;
• ability to make changes and change control procedures;
• risk management;
• funding;
• cost issues;
• timing;
• quality and performance; and
• environmental impacts and energy efficiency.

Source information:

• Business Plan
• Estate Strategy

Notes:

Departments should consult the Procurement Policy Unit, OGC, before seeking advice from the European Commission on the EC procurement rules. In addition, departments should draw the attention of OGC to issues which may have wider implications for procurement policy or practice, or on which wider legal issues arise.

Further information:

See the briefings on workspace managment (under development); see also guidelines or contract management. For detailed advice, see the Premises management guide.