GUIDANCE NOTE Statutory Compliance in FM Procurement

1 GUIDANCE notes tatutory Compliance in FM ProcurementPublished by the Institute of Workplace and Facilities Management (IWFM)October 20172 GUIDANCE NoteWhat is Compliance ?All of the below will be considered by the courts in addition to Statutory obligations when dealing with cases of possible negligence and malpractice. A non-exhaustive list of key hard FM Compliance requirements is contained in Annex addition clients may have their own policies and procedures that they want staff and contractors to observe when working in their purpose of this GUIDANCE Note is to highlight some of the key points that shouldbe taken into consideration when managing your supply chain and/or workforce to ensure that your facilities remain statutorily Compliance in FM ProcurementWith other industry GUIDANCE it is always as well to spell out which documents you want contractors to comply with just to be on the safe side, although as stated above.

2 Courts will often rely on accepted industry guidelines when it comes to deciding whether organisations have acted you want suppliers to comply with any of your organisations policies and procedures you will need to specify and provide copies of them with your Invitation to Tender (ITT) and include them in any contracts you enter into. A code of conduct can help support this and can outline your specific requirements for complying with health, safety and environmental procedures. You will also need to set up a procedure for updating your suppliers with any changes to your policies or codes of conduct, during the life of the engaging suppliers you do not need to specify legal Compliance requirementsin contract documents, they go without saying, however it is best practice to reinforce certain legal do I ensure Compliance through Procurement ?

3 2 GUIDANCE NoteThe focus however should not be about avoiding prosecution but implementing practical processes for keeping staff, the public and the buildings they occupy to deliver Compliance can also result in service delivery failures, which whilst not as severe as legal failures can impact on the operation of your facilities, your core business and your can happen if Compliance is not delivered?The price of failure for both suppliers and clients in delivering a safe and secureenvironment is high. In extreme cases where there is a life or death threatening injury, it can result in prosecution and imprisonment and corporate manslaughter cases which, whilst rare, do focus on the responsibilities of directors and senior officers of an organisation.

4 For most organisations the penalties for non- Compliance may vary from heavy fines, increased insurance cost and of course reputational Compliance in FM ProcurementThe way you intend all of these factors to work post-contract should be clearly spelt out in the ITT and any contract that you is important in proving Compliance and as a client you should consider and specify what access you require to supplier s data and management reporting systems so that you can remotely monitor will need to show they have taken all reasonable steps to mitigate issues with third party service providers ; therefore conducting a rigorous due diligence process is of paramount importance.

5 This should be carried out during the Procurement stage as well as forming part of ongoing performance do I ensure Compliance is delivered?THE BEST WAYS TO ENSURE THAT YOUR SUPPLY CHAIN AND/OR WORKFORCE CONTINUE TO DELIVER Compliance ARE TO: Request Compliance statements from your supply chain in any regular reports you receive. Include Compliance on the agenda of regular meetings with suppliers Have Compliance included as a KPI in any performance monitoring regime instigated on service delivery contracts4 GUIDANCE NoteHow do I conduct audits?The audit regime you apply on a small single service contract may be less frequent,conducted jointly and more basic than on a significant single service contract or TFM contract where you might want to consider different types of audits, comprising.

6 Annual third party audits organised by the supplier to ensure continued Compliance to quality, environmental, safety and health management system accreditations such as ISO 9001, ISO 14001 and OHSAS 18001 Regular internal audits, self-delivered and reported by the supplier Occasional client audits, pre-arranged or otherwise Ad hoc audits by regulatory bodiesHowever you choose to set up your audit regime, make sure that the requirements are clearly spelt out in the ITT and contract and that the supplier has a duty to co-operate on delivering Compliance in FM Procurement1. By contracting out or outsourcing, a client may mitigate risk but can never fully delegate (or abdicate) it.

7 In law the client is the property owner/occupier and therefore retains overall responsibility. Outsourcing risks can be mitigated via: Due diligence Service delivery audits KPIs Reporting Insurance2. Suppliers have a duty and professional responsibility to ensure that products and services are legally compliant and delivered using good industry practice3. Clarity of responsibilities is vital. Parties can avoid black holes by ensuring that Compliance , service delivery, management, auditing, reporting and monitoring requirements are clearly set out in the ITT and contract. Set up a Contract Obligations Tracker to record what you expect to receive in terms of proof of Compliance , and check off against it4.

8 Be clear on what information you want the supplier to hold electronically and what records will be required to be held in hard copy on site. The sort of information you might want made available to you could include: A workflow diary for periodic testing and certification, including closure after remedial action has been completed. This should include clear identification of what is considered to be Statutory tasking A register of contractors authorised to undertake periodic testing, certification, planned maintenance and remedial maintenance including up to date evidence of professional qualifications, membership of accrediting bodies and professional liability insurance Details of appointments such as authorised person, competent person, duty holder etc.

9 An electronic repository/library for storing planned maintenance programmes, certificates and other evidence to demonstrate completion of tasking and Compliance A simple client dashboard that gives up to date status of workflow usually via a simple RED, AMBER, GREEN report5. Where data systems are being provided by the supplier, agreement will need to be made regarding read and/or write access to the system, and whether the client will receive periodic back-ups of information throughout the contract period. The specification should include requirements for demobilisation of the contract which should include plans for handover of Compliance documents and information / transfer of data in an agreed format, and notification of any outstanding matters /work tasks which will require considerations6 GUIDANCE NotesSummaryWhen first engaging with third parties to deliver a service it is best practice to specify exactly what scope and specification is requiredThe focus of delivering a complaint service should be to ensure the safety and security of all personnelThe best way to ensure a compliant service is through regular audits.

10 Review meetings and management reporting. The placing of the contract is not the it is the beginning!In law the client is the property owner/occupier and therefore retains overall responsibilityGood record keeping is critical to ensure Compliance and the Client is the owner of any data pertinent to their compliance7 Statutory Compliance in FM Procurement8 GUIDANCE NoteAnnex AExamples of hard FM Compliance requirementsThe following is for GUIDANCE only. Regulations, Codes of Practice, Acts of Parliament and the like are constantly evolving so please check that you are using the most up to date and safety miscellaneous Requirement GUIDANCE source CommentEmployers Liability InsuranceHSE posterEmployers dutiesPermit to workEmployers Liability (Compulsory Insurance) Regulations 1998 as amendedHealth and Safety Information for Employees Regulations (HSIER)Health and Safety at Work Act 1974 (HSWA 1974)Control of Substances Hazardous to Health (COSHH)