PROCUREMENT OF FACILITIES MANAGEMENT SERVICES IN

MALAWIS PUBLIC SECTOR

Investigating a procurement route for the delivery of FM services that is
suited to the operating environment of government departments in Malawi

By
Lusayo Timothy Mwabutwa

Supervised by
Dr. Ashley Dabson

Dissertation submitted to the

School of Construction Management and Engineering,
University of Reading,
In partial fulfillment of the requirements for the
Degree of Master of Science in Facilities Management
November 2014

PAGE LEFT INTENTIONALLY BLANK

ABSTRACT

Facilities Management is a fairly new concept in Malawi especially among

government departments. It is a concept that is slowly growing in popularity within
the public sector. Government departments in Malawi are at liberty to place contracts
with FM contractors for the provision of various services such as cleaning,
landscaping, security, building maintenance and other related FM services.
The FM market itself is slowly developing and is offering a number of options for the
public sector. The market comprise of suppliers of single services only and suppliers
of multiple services. These suppliers can be procured and managed by an in-House
team, or through Managing Agents, or through Managing Contractors or through
Total FM Contractors. The challenge posed to procuring entities at this point in time
is to make a choice among these procurement routes.
At this stage in the development of the FM industry in Malawi it is not yet quite clear
which procurement route is the most appropriate for government departments to
realize maximum benefits. It is for the purpose of establishing a procurement route
for FM services that is suited to the current operating environment of government
departments that this research was undertaken.
This research project was rolled out with a statement that hypothesized that the
managing contractor procurement route is more suited to the current operating
environment of government departments in Malawi than any other route. In order to
test this hypothesis a number of preliminary objectives were formulated and had to
be dealt with first vis--vis identification of the available procurement routes for FM
services in Malawi, identification of factors influencing the decision of the route to be
taken, appraising the relative strength of the factors in influencing the decision, the
appraisal of appropriate routes to be undertaken when each of the deciding factors is
considered alone, and the appraisal of procurement routes when multiple factors are
considered at once.
Research participants comprised of Procurement Managers, Facilities Managers,
and FM contractors of government departments. The research population was made
up of twenty professionals selected through non-probability sampling methods.
Purposive sampling was used to come up with the research sample due to the
specialist nature of the research subject.
With the aid of the analytical hierarchy process (AHP) the research tested the initial
hypothesis and concluded with a completely different outcome. It is the finding of this
research that direct contracting with single service providers is a procurement route
that is most suited to the current operating environment of government departments
in Malawi.

ii

DECLARATION

I, the undersigned, hereby declare that this is my own work, unless due
acknowledgement is made to the contrary.
I also agree that, subject to any confidentiality agreement, the College of Estate
Management is permitted to use and/or make reference to the material contained in
this document within its study materials or any other publication, provided
appropriate acknowledgement is made.

Signed: .. Date:
Lusayo Timothy Mwabutwa

iii

TABLE OF CONTENTS
ABSTRACT .............................................................................................................. ii
DECLARATION ....................................................................................................... iii
TABLE OF CONTENTS ........................................................................................... iv
LIST OF TABLES ................................................................................................... vii
LIST OF FIGURES................................................................................................. viii
ACKNOWLEDGEMENTS ........................................................................................ ix
ACRONYMS ............................................................................................................. x
CHAPTER 1 .............................................................................................................. 1
INTRODUCTION ....................................................................................................... 1
1.0
Research Background ............................................................................. 1
1.1
Hypothesis ............................................................................................... 1
1.2
Objectives ................................................................................................ 1
1.3
Rationale .................................................................................................. 2
1.4
Overview of Methodology ....................................................................... 2
1.5
Chapter Summary .................................................................................... 2
CHAPTER 2 .............................................................................................................. 3
LITERATURE REVIEW ............................................................................................ 3
2.0
Introduction ............................................................................................. 3
2.1
Procurement, Facilities Management, and Decision-Making ........... 3
2.2
Generic Procurement Routes For FM Services ..................................... 4
2.2.1 Direct Contracting (with in-house management)..................................... 4
2.2.2 Managing Agent ..................................................................................... 5
2.2.3 Managing Contractor.............................................................................. 5
2.2.4 Total Facilities Management (TFM) ........................................................ 6
2.3
Factors Influencing Choice of Procurement Routes ............................. 7
2.3.1 Management and Administration Costs .................................................. 7
2.3.2 Operational Flexibility ............................................................................. 8
2.3.3 Desired Quality of Service ...................................................................... 8
2.3.4 Desired level of control over service ....................................................... 8
2.3.5 Risk Transfer ......................................................................................... 8
2.3.6 Management Resources ........................................................................ 9
2.3.7 Supplier Market ...................................................................................... 9
2.3.8 Management Time ................................................................................. 9
2.4
Decision Making Tools in Procurement of FM Services ....................... 9
2.4.1 Intuitive Approach ................................................................................ 10
2.4.2 Barrett and Baldry Resource Decision Making Framework................... 10
2.4.3 Analytical Hierarchy Process (AHP) ..................................................... 11
2.5
AHP as a Decision Making Tool ............................................................ 12
2.5.1 Basic AHP Procedure .......................................................................... 12
2.6
Application of AHP in FM Services Decision-making ......................... 13
2.7
Chapter Summary .................................................................................. 15
CHAPTER 3 ............................................................................................................ 16
METHODOLOGY .................................................................................................... 16
3.0
Introduction ............................................................................................ 16

iv

3.1
Research Strategy ................................................................................. 16
3.1.1 Survey ................................................................................................. 16
3.1.2 Justification of Choice of Strategy ........................................................ 16
3.2
Sampling ................................................................................................ 17
3.3
Data Collection Methods ....................................................................... 18
3.3.1 Primary Data ........................................................................................ 18
3.3.2 Secondary Data ................................................................................... 19
3.4
Data Analysis ......................................................................................... 19
3.5
Limitations ............................................................................................. 20
3.6
Consideration of alternate methodologies........................................... 21
3.6.1 Action Research................................................................................... 21
3.6.2 Observation ......................................................................................... 21
3.7
Chapter Summary .................................................................................. 21
CHAPTER 4 ............................................................................................................ 22
DATA COLLECTION .............................................................................................. 22
4.0
Introduction ............................................................................................ 22
4.1
Literature Review ................................................................................... 22
4.2
Questionnaire......................................................................................... 22
4.3
Interviews ............................................................................................... 23
4.4
Ethics ...................................................................................................... 24
4.5
Chapter Summary .................................................................................. 24
CHAPTER 5 ............................................................................................................ 25
ANALYSIS AND PRESENTATION OF EVIDENCE ................................................ 25
5.0
Introduction ............................................................................................ 25
5.1
Generic procurement routes for FM services ...................................... 25
5.2
Factors that influence selection of procurement routes ..................... 25
5.3
Appraisal of the relative strength of decision factors using AHP ...... 25
5.4
Appraisal of procurement routes based on single criteria ................. 27
5.4.1 Appraisal on the basis of lower administrative costs ............................ 27
5.4.2
Appraisal on the basis of risk transfer............................................... 28
5.4.3 Appraisal based of prospects of operational flexibility .......................... 29
5.4.4 Appraisal on the basis of quality service............................................... 29
5.4.5 Appraisal on the basis of offering more control to the client.................. 30
5.4.6 Appraisal on the basis of requiring less management skills .................. 31
5.4.7 Appraisal on the basis of availability on the suppliers market ............... 31
5.5
Appraisal of procurement routes based on multiple criteria .............. 32
5.6
Chapter Summary .................................................................................. 32
CHAPTER 6 ............................................................................................................ 34
CONCLUSIONS...................................................................................................... 34
6.0
Introduction ............................................................................................ 34
6.1
Findings based on research objectives ............................................... 34
6.1.1 Identification of generic procurement routes of FM services ................. 34
6.1.2 Factors influencing choice of procurement route for FM services ......... 34
6.1.3 Appraisal of the relative strength of decision factors using AHP ........... 35
6.1.4 Appraisal of procurement routes based on single criteria ..................... 35
6.1.5
Appraisal of procurement routes using multiple criteria .................... 36
6.2
Conclusion ............................................................................................. 36
CHAPTER 7 ............................................................................................................ 37
RECOMMENDATIONS ........................................................................................... 37
7.0
Introduction ............................................................................................ 37
7.1
Recommendations for Government Departments in Malawi .............. 37

7.2
7.3

Areas of further research ...................................................................... 37

Chapter Summary .................................................................................. 38

REFERENCES........................................................................................................ 39
APPENDICES ......................................................................................................... 42
APPENDIX A QUESTIONNAIRE ..................................................................... 43
APPENDIX B AHP MATRIX FROM RESPONDENT 20 ................................... 49

[Word Count = 12,577]

vi

LIST OF TABLES
Table 1: Advantages and Disadvantages of direct contracting .................................. 5
Table 2: Advantages and Disadvantages of a Managing Agent ................................. 5
Table 3 : Advantages and Disadvantages of a managing contractor ......................... 6
Table 4: Advantages and Disadvantages of TFM Route ............................................ 7
Table 5 : The AHP measurement scale ................................................................... 13
Table 6: Mapping of research strategy to research characteristics .......................... 17
Table 7: Relative weights of factors Influence on choice of procurement route .... 27
Table 8 : Relative weights of procurement routes Lower administrative costs ...... 27
Table 9 : Relative weights of procurement routes prospects of risk sharing .......... 28
Table 10: Relative weights of procurement routes Operational Flexibility ............. 29
Table 11: Relative weights of procurement routes Quality Service ....................... 30
Table 12: Relative weights of procurement routes Greater Client Control............. 30
Table 13: Relative weights of procurement routes management skills required .... 31
Table 14: Relative weights of procurement routes Availability on suppliers market
................................................................................................................................ 32
Table 15 : Weighted Rating of decision alternatives using combined criteria ........... 32
Table 16 : Relative strength of influencing factors ................................................... 35

vii

LIST OF FIGURES

Figure 1: Barret and Baldry Resource Decision-making framework ........................ 11

Figure 2 :An illustration of the AHP ......................................................................... 12
Figure 3 : Pattern of responses on factors influencing choice of procurement routes
................................................................................................................................ 26

viii

ACKNOWLEDGEMENTS
Two roads diverged into a yellow woodand I, I took the one less travelled by. And
that has made all the difference Robert Frost
To God be all the glory for the opportunity to study and extend the horizons of
knowledge.
Special thanks to my wife and best friend, Thandiwe Mwabutwa, and my daughters
(Asayile and Asante) who have been the source of inspiration and have forgone
precious quality time in lending their support to my completing this dissertation.
This research could not have been completed without the generous and
extraordinary support of the College of Estate Management MSc in Facilities
Management Support Team. In particular Dr. Ashley Dabson who willingly accepted
to be my supervisor for this dissertation. To Ashley I owe my deepest gratitude for his
guidance, excellent supervision and continuous support. He provided valuable
insights to the challenge and his dedication went above and beyond the call of duty.
I would also like to thank the following individuals for their support:
Dr. Andrew Green, Course Director, College of Estate Management
Liz Butler, Course Administrator, College of Estate Management
Ellen Nyasulu, Facilities Manager, MPICO Ltd
Peter Du Plessis, Managing Director, MPICO Ltd
Mr. Mackenzie, Office Superintendent, Department of Nutrition
Principal Administrative officers, Government Departments
To all the participants in this survey am grateful for sparing time to respond to the
questionnaires.
This dissertation is dedicated to my employers, MPICO Ltd, who sponsored these
studies over the course of the three years.

ix

ACRONYMS

AHP

Analytical Hierarchy Process

BIFM

British Institute of Facilities Management

CEM

College of Estates Management

FM

Facilities Management

GoM

Government of Malawi

RICS

Royal Institute of Chartered Surveyors

TFM

Total Facilities Management

CHAPTER 1

INTRODUCTION
1.0

Research Background
Facilities Management is a fairly new concept in Malawi especially among
government departments. It is a concept that is slowly growing in popularity
within the public sector. Government departments in Malawi are at liberty to
place contracts with FM contractors for the provision of various services such
as cleaning, landscaping, security, building maintenance and other related FM
services.
The FM market itself is slowly developing and is offering a number of options for
the public sector. The market comprise of suppliers of single services only and
suppliers of multiple services. These suppliers can be procured and managed
by an in-House team, or through Managing Agents, or through Managing
Contractors or through Total FM Contractors. The challenge posed to procuring
entities at this point in time is to make a choice among these procurement
routes.
While the FM market is still in its infancy in Malawi, it has been observed in
practice that government departments accommodated in privately owned
buildings are using their landlords as their managing contractors for procuring
FM services. At this moment in time it is not quite clear which procurement
route is the most appropriate for government departments to realize maximum
benefits. An appraisal of the available procurement routes in the current
operating environment of government departments was thus required. It is for
the purpose of establishing a procurement route for FM services that is suited to
the current operating environment of government departments that this
research was undertaken.

1.1

Hypothesis
The framing of the hypothesis for this research was largely influenced by the
current procurement practice being followed by government departments.
Though there is no policy documentation to that effect, departments housed in
privately owned accommodations are contracting their landlords as managing
contractors for providers of FM services. This observation led to the framing of
the hypothesis for this research to read as: Managing Contractor is the
procurement route most suited to the current operating environment of
government departments"

1.2

Objectives
The main objective of this research was to investigate a procurement route for
FM services that is suited to the current operating environment of government
departments. In so doing, the study sought:

1. To research generic procurement routes for delivery of FM services

and the benefits and dis-benefits that derive from each of them.
2. To research factors that influences the selection of procurement
routes for delivery of FM services.
3. To appraise the relative strength of the decision factors in the current
operating
environment
of
government departments.
4. To appraise the procurement routes using single criterion by making use of
the analytical hierarchy process (AHP).
5. To appraise the procurement routes using multiple criteria by making use of
the analytical hierarchy process (AHP).
6. To propose a procurement route for the delivery of FM services suited to the
operating environment of government departments.
1.3

Rationale
By appraising the available procurement routes with the help of the analytical
hierarchy process (AHP) and the factors that influence the choice of the
procurement routes in the operating environment of government departments in
Malawi it would be possible to suggest a procurement route that best suits the
environment and would give maximum benefits to the government of Malawi.
This would lead to minimization of waste of resources in the form of time and
money for government departments.

1.4

Overview of Methodology
This research adopted a survey strategy. The methods employed for data
gathering included literature surveys, questionnaires, and personal interviews.
The sample for the survey comprised of twenty (20) participants. The survey
used non-probability sampling methods to select participants to the research.
This was dictated by the specialist nature of the subject under consideration of
which the use of probability sampling methods would not have been applicable.

1.5

Chapter Summary
The chapter has introduced the research background, hypothesis, objectives,
rationale and overview of the methodology of the research. It has also
presented a picture of the current state of the FM market in Malawi. This
chapter justifies why this research was undertaken.

CHAPTER 2

LITERATURE REVIEW

2.0

Introduction
The University of Melbourne (2010) states that, literature review is the
presentation, classification, and evaluation of what other researchers have
written on a particular subject. The literature review of this study considered
published materials on procurement, facilities management, and decisionmaking.
The purpose of this literature review is to provide a theoretical framework that
demonstrates current knowledge and relevant issues in the area of
procurement for FM services in the private and public sector.

2.1

Procurement, Facilities Management, and Decision-Making

The Oxford advanced learners dictionary defines procurement as the process
of obtaining supplies of something, especially for a government or an
organization. In practice procurement is considered to be a major part of
facilities management.
The Royal Institute of Chartered Surveyors (RICS) defines Facilities
Management (FM) as the total management of all services that support the
core business of an organisation. It deals with those areas that the managers of
the organisation consider to support their fundamental activities. FM focuses on
the interaction between the core business, the support functions, and the
facilities throughout all sections of industry, commerce, and services.
From the definition above it is difficult to imagine FM surviving without
procurement.
In the construction industry, according to Al-Tabtabai (2002), procurement is the
framework within which construction is brought about, acquired or obtained. He
further adds that the need to identify a suitable procurement strategy within the
construction industry is a challenge to the owner. Besides the traditional
General Contracting (GC) approach, different procurement strategies have
emerged with the development of the construction industry to suit different
projects, with each strategy having its own set of assumptions.
The sentiments put across by Al-Tabtabai (2002) are believed to also apply to
the FM industry. Facilities managers are faced with decision environments and
problems that are complex. The elements of the problems are numerous, and
the interrelationships among the elements are extremely complicated.
Therefore, the ability to make sound decisions is very important to the
successful selection of a procurement strategy for FM services. It is unfortunate

however that few Facility Managers have had formal training in decisionmaking.
2.2

Generic Procurement Routes For FM Services

Generally it seems there are four common generic procurement routes that a
number of leading authors agree on. Literature reviewed proposes direct
contracting (with in-house management), making use of managing agent,
making use of a managing contractor, and a Total Facilities Management (TFM)
arrangement as generic procurement routes that can be followed by a client
procuring FM services. Wiggins (2010: 34) outlines these four procurement
routes including their advantages and disadvantages. Similarly Atkin and
Brooks (2009:160) agree to a certain extent that service provision ranges from
an agent, acting largely in a consultancy capacity, to a contracting company
providing a complete portfolio of services.
The decision to procure FM services puts the client in a position to make a
choice on a procurement route that has to be followed to achieve their aims. It
is the view of Atkin and Brooks (2009: 160) that the decision as to which is the
most appropriate will depend on requirements identified earlier in the process
as well as the risk tolerance (or aversion) of the client organisation.
In order to make an appropriate choice on the procurement routes a deep
understanding of each of the routes is required. The following sections take an
in-depth look at each of the four procurement routes in turn.

2.2.1

Direct Contracting (with in-house management)

By definition, Direct Contracting (With In-House Management) is an
arrangement whereby an organization directly contracts service suppliers to
carry out a particular function who in turn report to an in-house employee or a
team of in house employees. Under this arrangement services can be
contracted as single services or they can be bundled as a group of services.
Single or packaged arrangement refers to direct contracting of each service line
to a single contractor. In essence every service that is contracted out has a
single contractor behind it. Wiggins (2010) considers this as a short-term
strategy with the opportunity for manpower and cost reductions.
Bundled services arrangement refers to the scenario where two or more
services are put together and contracted out to a single contractor. Wiggins
(2010) state that services can be bundled into either a Hard FM cluster or a
Soft FM cluster depending on what services are required, and what is suitable
for the organization. Wiggin (2010) considers this arrangement as a mid-term
solution leading to gains due to economies of scale and uniformity of services.
The following is a summary of the benefits and dis-benefits of following the
direct contracting (with In-house management) procurement route:
Advantages
Maintains control over all suppliers of
FM services
Allows flexibility in contracting and
assembly of service providers

Disadvantages
All risks remain with the client.
More management time is required by
the client

Data confidentiality is guaranteed

Administration costs increase with

increasing number of contracts
Service providers selected on the It requires more effort to build an
basis of competitive tendering
efficient team to provide the required
services
Offers contract flexibility
Loses out on specialist knowledge
offered by Managing Agents /
Managing Contractors / TFM
Table 1: Advantages and Disadvantages of direct contracting
2.2.2

Managing Agent
Managing agent procurement route is an arrangement whereby an organization
directly contracts service suppliers to carry out a particular function and at the
same time contracts an external organization with the requisite skill or expertise
to manage the performance of the contracted service suppliers. Atkin and
Brooks (2009) posit that by bringing in an external organization to manage the
facilities, the organization is essentially appointing a client representative. This
person will act almost as though he or she were part of the permanent
establishment of the client organization. Under this arrangement, contracts with
service suppliers will be with the client organization and not the managing
agent.
Under this arrangement the procuring organization can choose to contract
services either as single contracts or bundled contracts.
The following table outlines the advantages and disadvantages of a managing
agent procurement route:
Advantages
The client exercises control over all
suppliers of FM services through
direct contracts
The client has the privilege of making
use of specialist knowledge of the
agent to place contracts with suitable
FM suppliers
There is price certainty as contracts
between client and contractors are
based on fixed fees.

Disadvantages
The management fees paid to the
agent increases the operational costs
for the client.
The performance risk of the FM
suppliers lies with the client and not
with the managing agent.
The number of contracts to be
administered by the client is slightly
higher requiring more management
time

Flexibility in terms of changes that

can be made to the contracts
Table 2: Advantages and Disadvantages of a Managing Agent
2.2.3

Managing Contractor
Atkin and Brooks (2009) defines a Managing contractor procurement route as
an arrangement whereby an organization will enter into a contract with one
contractor who will in turn enter into another contract with subcontractors. The
subcontractors will be under contract to the managing contractor and so will not

have a contractual relationship with the client organization. This means that
organizations have a single point of contact with the contractor on all matters
pertaining to service provision.
This model would work well with bundled services arrangement.
The following table outlines the advantages and disadvantages that are
encountered when a client follows a managing contractor route to procure FM
services:
Advantages
There is only one contract to
administer resulting in reduced
management time for the client.
Reduced administration costs, as the
client only has to deal with one
contract.
Eliminates gaps in service provision

Disadvantages
Lack of control over suppliers

Data confidentiality is compromised

There is price uncertainty as the

managing contractor aims to recover
all costs incurred by subcontractors
Client mitigates financial risk through Possible delays in receiving prompt
the use of managing contractor
action due to a longer chain of
command
Open-book
accounting
ensures Managing
contractor
may
transparency in transactions
compromise on quality service by
asking for larger trade discounts from
sub- contractors
Changes to the contract are difficult
compared
to
managing
agent
arrangement
Table 3 : Advantages and Disadvantages of a managing contractor
2.2.4

Total Facilities Management (TFM)

Total Facilities Management (TFM) arrangement refers to the scenario where
all the FM services are put under one contract to a single contractor. According
to Wiggins (2010) the implication of going down this route is that in-house FM
staff cease to manage the people doing the job and are not responsible for the
way the job is done. They manage the performance contract and the service
delivery.
According to Atkin and Brooks (2009) in Total Facilities Management model
organisations are able to pass the full responsibility for managing their facilities
to a single organisation for a fixed price. This does, however, require the client
organisation to provide the contractor with sufficient scope to be able to
manage the various services efficiently.
Theoretically, only one organisation is supposed to provide all the required FM
services to an organisation but in practice the TFM organisation subcontracts.
This view is shared by Atkin and Brooks (2009) While total facilities
management might appear to provide an ideal solution, because it provides a
single purchasing point for the organisation, the reality can be that the
contractor actually subcontracts all or most of the work.
6

In following the TFM procurement route the procuring organization must

consider the following advantages and disadvantages:
Advantages
Cost reduction through economies of
scale
Reduced management time for the
client as there is only one contract to
administer
The client is moderately exposed to
financial risks

Disadvantages
Lack of control of individual services
offered
Data confidentiality is compromised

May compromise on quality service

by asking for larger trade discounts
from sub- contractors
Availability of specialist knowledge Changes to the contract are difficult
on the TFM side benefits the client.
compared
to
managing
agent
arrangement
There is price certainty due to
agreements based on fixed fees
Provides single purchasing point for
all FM services.
Table 4: Advantages and Disadvantages of TFM Route
In the few years that outsourcing has been practiced within government
departments in Malawi, there have been different FM management models that
have been adopted. Departments housed in privately owned buildings have
tended to use their landlords as managing contractors while those in
government owned buildings have tended to keep the management of FM
functions in-house. It remains to be seen if these decisions followed a logical
approach or not.
2.3

Factors Influencing Choice of Procurement Routes

The choice of route in delivery of FM services made by organisations is largely
influenced by a number of factors. The choice of a particular procurement route
is largely as a result of interplay among several factors although some factors
have a larger influence than others. The following paragraphs outline a number
of factors that are deemed to have an influence over the choice of procurement
routes for FM services.

2.3.1

Management and Administration Costs

The attractiveness of a procurement route depends to a large extent on the
reduced costs of administration. Certain routes will significantly reduce clients
costs of administering contracts while others will increase the administration
costs. According to Atkin and Brooks (2009) the Managing Contractor and TFM
arrangements will have less cost of administration for the client since there is a
single point of contact which translates to a sizeable reduction in paperwork and
fewer payments
It is also the view of Atkin and Brooks (2009) that an organization also needs to
consider the cost of financial administration. For instance, a small number of
labour and material contracts means that invoices can be processed more cost-

effectively than in situations where invoices are many and frequent. Clearly, the
method of procurement has an implication for the accounting function.
2.3.2

Operational Flexibility
Current thinking alludes to the fact that choice of a procurement route will also
largely depend on the flexibility that is offered by the available options. Among
the various options available on the FM market, the managing agent option is
believed to offer client organisation greater flexibility in terms of contracting.
According to Atkin and Brooks (2009) the managing agent approach offers
considerable flexibility for the client organisation to find and then hold on to the
combination of contracts that suits it best. There is no reason why services
should not be part in-house and part outsourced.

2.3.3

Desired Quality of Service

The need for quality service is another factor influencing the resourcing
decision. Management literature cited suggests that quality service flows from
an outsourcing arrangement as a result of the engagement of specialists. It is a
general belief that contracted suppliers will bring in world-class resources that
will deliver high quality services. Al-Najjar (1996) contributes to this school of
thought by declaring that the quality and reliability of processes and services
may be improved by engaging a contractor based on past performance.
To say that quality service will spin off from selecting a particular procurement
route could be some how misleading. In the absence of proper specifications
and service level agreements such an arrangement would yield almost anything
from poor quality to high quality. These sentiments are shared by Quinn (1999)
who pointed out that in the absence of a fully developed monitoring system, the
quality may on occasion be illusory.

2.3.4

Desired level of control over service

Another school of thought suggests that the level of control that an organization
wishes to exercise on a function will influence the choice of procurement route.
Atkin and Brooks (2009) posit that the level of control that can be achieved is
closely correlated with the method of procurement and the contractual
relationship established between the organisation and the service provider. It is
believed that if an organization wishes to exercise greater control over a
function it is very likely going to prefer direct contracting route or the managing
agent route.
Natukunda et al (2013) posits that the resounding reason that companies have
opted for in-house services is because it allows constant control over the
service in terms of costs, quality, and response time.

2.3.5

Risk Transfer
The need to manage risks for the benefit of an organization is also considered
as a major factor influencing the choice of procurement route. One of the ways
of managing such risks is to share the risk with the service providers.
According to Quinn (1999) service providers will undertake significant
investment and share the risks among many clients. Corbett (1998) posits that

when organizations outsource some services to share risk, benefits are made
by a service provider who is better able to estimate alternatives.
It must be stated however that even though the risk is shared with contractors,
thorough due diligence will have to be carried out on the contractor to ascertain
their ability to handle risk. In most cases risk cannot be completely eliminated.
According to Hui (2004) the major challenge of outsourcing is managing the
risk of service agents opportunismexamples of opportunistic behaviours are
contract violations by way of poor workmanship, taking advantage of the clients
dependence to maximize short-term gains and reluctance to meet new
requirements of the client
2.3.6

Management Resources
The level and caliber of resources available within and outside the organization
will have a bearing on the choice of procurement route. These resources relate
to clients knowledge of specialist areas and even financial resources.
According to Kremlic et la (2006), where an organizations function is impacted
by lack of resources the best alternative may be to acquire the needed
resources from a contractor. Green (2000) also shares the same view: In
general, a function is more likely to be outsourced if there is a lack of internal
resources to perform it. Resources available from contractors can help in
performing functions and controlling all aspects of these functions.

2.3.7

Supplier Market
An awareness of the state of the market for services means that anytime a
judgement can be made as to whether or not a preferred option is the most
appropriate Atkin and Brooks (2009)
The suppliers market will dictate the choice of procurement route for FM
services. The solutions available on the market will have a larger say on the
route to be taken by the client. Atkin and Brooks (2009) recommend
undertaking periodic audits to establish the state of the real estate market
(should acquisition or disposal become an option) and the position regarding
service providers in all the categories affected. It is possible this kind of
information will be available from market audits carried out when preparing the
accommodation (or space) strategy and from the valuation of assets for
financial accounting purposes.

2.3.8

Management Time
The time required to manage the contracts for particular options also exert an
influence of the final choice. The client will obviously spend less time in
management of contracts when they adopt a Total Facilities Management
(TFM) approach than when they adopt direct contracting with in-house
management.

2.4

Decision Making Tools in Procurement of FM Services

The main objective of a decision making process is to determine the best
alternative.- Bayraktar (1997)

Warner & Hebdon (2001) described the resource decision-making process for
facilities management services as a complex process, which requires
balancing efficiency goals with public values while considering the
competitiveness of both public and private markets for government service.
The complexity alluded to by the authors can best be handled by making use of
decision support tools to arrive at the right delivery solution, unique to each
organization.
According to Bohanec et al (2003), decision is the choice of one alternative
among a number of others on the one hand, and on the other hand, decisionmaking is a process of making a choice that includes:

Assessing the problem;

Collecting and verifying information;
Identifying alternatives;
Anticipating consequences of decisions;
Making the choice using sound and logical judgement, based on available
information;
Informing others of decision and rationale; and
Evaluating decisions
Barrett and Baldry (2003) state that the effectiveness of decisions is determined
predominantly by the quality of the decision-making process used to generate it
and it is usually best for top management to define the decision making model
to be adopted.
Natunduka et la (2013) state that it is clear that whether or not the company
decides to outsource or insource FM services, it needs to be an informed
decision based upon sound logic.
Management literature presents several approaches through which
organizations arrive at facilities management resourcing decisions. These are
described in summary in the following paragraphs.
2.4.1

Intuitive Approach
The intuitive approach to decision making only considers the advantages and
disadvantages of one choice against the advantages and disadvantages of
another choice. This approach to decision making has been criticized by Barrett
and Baldry (2003) as one whose decisions are vulnerable and presents a risk
to organizations due to unavailability of data at the outset to inform such a
decision.
This approach presents a narrow focus of the factors that play a part in
influencing the resourcing decision. It disregards the influence of the market
forces such as availability of suppliers with the needed skills, labour laws etc. It
is however the approach that is in frequent use by most Facilities Managers due
to its apparent ease in usage.

2.4.2

Barrett and Baldry Resource Decision Making Framework

A model proposed by Barrett and Baldry (2003) considers the advantages and
disadvantages of outsourcing in combination with the impact of driving and
constraining forces on service provision. This qualitative model requires testing

10

the preferred mode of delivery against the friendliness or hostility of the internal
environment.
This model falls short of the quantitative aspects of decision-making. There is
also very little literature cited on its use in a practical scenario. Barrett and
Baldry (2003) present only a few case studies where this model was used.
The model is illustrated by an example taken from resourcing decision of hotel
services in a hospital:

Figure 1: Barret and Baldry Resource Decision-making framework (Source:

Facilities Management- Towards Best Practice (Barrett and Baldry, 2003)
2.4.3

Analytical Hierarchy Process (AHP)

This model which was developed by Saaty (1980) has widely been adopted in
Facilities Management to make decisions on various aspects. Analytical
hierarchy process is a multi criteria decision-making method that allows
establishment of priorities among a number of factors that are being considered
for decision-making. This technique combines both qualitative and quantitative
aspects of decision-making.
Literature reviewed indicates wider application of the AHP tool in the property
sector and in facilities management in particular. Ancarani and Capaldo (2005)
used the analytic hierarchy process to develop a decision support framework for
Facilities Managers in Local Authorities. Ancarani and Capaldo (2006) applied
the model to support decision making for procuring FM services in the health
sector. Gilleard (2004) also illustrated a theoretical framework for benchmarking
facility management using AHP model.
The technique however presents a problem to novice users due to complexities
brought in by the need to master mathematical calculations of Eigen vectors.
This shortfall however has been compensated by the development of software
used to carry out such calculations.
This research will make use of the analytical hierarchy process to investigate a
procurement route for the delivery of FM services that is most suited to the
operating environment of government departments in Malawi.

11

2.5

AHP as a Decision Making Tool

Saaty (1980) defines the analytic hierarchy process (AHP) as a structured
technique for organizing and analyzing complex decisions, based on
mathematics and psychology.
Kabir and Shihan (2003) describe the AHP as a technique that provides
systematic, explicit, rigorous and robust mechanism for eliciting and quantifying
subjective judgements. It is widely used because of its inherent capability to
handle both quantitative and qualitative attributes and data uncertainity.
Rather than prescribing a "correct" decision, the AHP helps decision makers
find one that best suits their goal and their understanding of the problem. It
provides a comprehensive and rational framework for structuring a decision
problem, for representing and quantifying its elements, for relating those
elements to overall goals, and for evaluating alternative solutions.- Wikipedia

2.5.1

Basic AHP Procedure

Bayraktar D,et al (2010) outlines the steps of the AHP as developed by Saaty
as follows:
Step 1: Define the decision problem and determine its objectives. The multiple
criteria decision-making problem is transformed into a hierarchical structure to
determine the main elements being considered. The structuring process begins
by setting the overall objective at the top of the hierarchy and continues by
placing criteria, sub criteria, and decision alternatives at lower levels. An
example of the structure is illustrated below:

Figure
2
:An
illustration
of
the
AHP
http://people.revoledu.com/kardi/tutorial/AHP/AHP-Example.htm)

(Source:

Step 2: Determine the relative weights of the decision criteria in relation to the
goal by pair-wise comparisons. The decision makers are asked to make pair
wise comparisons to judge the relative importance of each decision criteria or
factor in relation to the goal in the first step. The scale developed by Saaty
(1980) is used for the judgement process and is outlined below:

12

Value
1
3
5
7

Meaning
Equally Important / preferred
More Important / preferred
Strongly more important / preferred
Very strongly more important
preferred
Extremely more important / preferred
Intermediate values

9
2,4,6,8

Table 5 : The AHP measurement scale

The quantified judgements obtained by pairwise comparisons are transferred to
square matrices that are called comparison matrices. After the creation of the
comparison matrices, relative weights are computed for the various decision
factors. The consistency of the decision makers judgement is checked by the
calculation of a consistency ratio (CR). According to Saaty (1980) a consistency
ratio of less than 0.10 gives an indication that the judgement is pretty consistent
while that greater than 0.10 means that the judgement is flawed and there is
need for further analysis.
Step 3: Determine the composite weights of the decision alternatives. The
decision makers are asked to make pair-wise comparisons to judge the relative
preference of each alternative in relation to the each of the decision criteria in
the hierarchy. The relative weights of the decision alternatives are multiplied by
the weight of the corresponding criterion along each segment of the path and
added. The result of this aggregation is a normalized vector of the overall
weights of the alternatives. It indicates the relative importance of the decision
alternatives in regard to the overall goal.
2.6

Application of AHP in FM Services Decision-making

Wikipedia lists the following as generic decision situations to which the AHP can
be applied:

Choice The selection of one alternative from a given set of

alternatives, usually where there are multiple decision criteria involved.
Ranking Putting a set of alternatives in order from most to least
desirable
Prioritization Determining the relative merit of members of a set of
alternatives, as opposed to selecting a single one or merely ranking
them
Resource allocation Apportioning resources among a set of
alternatives
Benchmarking Comparing the processes in one's own organization
with those of other best-of-breed organizations
Quality management Dealing with the multidimensional aspects of
quality and quality improvement
Conflict resolution Settling disputes between parties with apparently
incompatible goals or positions.

It is the view of the researcher that the AHP can be ably used to make a
decision on the choice of procurement route that can be used by government
departments in Malawi with consideration of their operating environment. This

13

view has been formed due to wide applicability of the AHP that has been
encountered by the researcher during literature review.
In facilities management there are a number of areas in which the AHP has
been used to make decisions. The first of these is the selection of a location for
a facility for a product distribution company. Ko J (2013) used the AHP to select
the most appropriate location for a product distribution facility for a
manufacturing company. In the research the location decision model evaluated
several alternatives for the distribution facility locations. The goal of this
research was to provide decision-makers with a more effective and efficient
model for making facility location decisions. Ko managed to show how an
integrated decision model can aid location decisions by generating a solution
that recognizes the practical considerations while adopting AHP weightings for
the decision factors of a qualitative nature.
The AHP has also been used in benchmarking in facilities management.
Gilleard (2004) illustrated the theoretical framework of applying the analytic
hierarchy process (AHP) when benchmarking facility management service
provider performance. In a case study scenario Gilleard (2004) demonstrated
how AHP is particularly effective for handling performance measures that
involves multiattribute multivariate qualitative and quantitative data.
Literature reviewed also indicates that the analytic hierarchy process can also
be used in building maintenance management. Bataju R. (2013) is credited with
research made to provide a methodological analyzing process which separate
out all the factors affecting the decision making criteria regarding the various
components of maintenance management of a building, and arrange them in
accordance to level of risk involved in each component and finally provide a
priority order of the component which should be taken care of in a hierarchal
order. The aim of his research was to use an already developed tool to analyze
and categorize the factors related to maintenance regarding a constructed
building and enable the people to make decisions depending on the situation
which seem to overshadow the facility management process.
The analytic hierarchy process can also be used in supplier evaluation and
selection. Tahriri et al (2008) developed an AHP-based supplier selection model
that was applied to a real case study for a steel manufacturing company in
Malaysia. The use of the proposed model indicates that it can be applied to
improve and assist decision making to resolve the supplier selection problem in
choosing the optimal supplier combination. The work represents the systematic
identification of the important criteria for supplier selection process. In addition,
the results exhibited the application of development of a multi-criteria decision
model for evaluation and selection of suppliers with proposed AHP model,
which by scoring the performance of suppliers was able to reduce the time
taken to select a vendor.
The AHP can also be used to select a procurement method for building
maintenance management. Lin (2013) developed a decision-making model for
selecting procurement method for building maintenance management.
A large number of different types of procurement methods have been
developed to overcome the weaknesses of the existing procurement method.
Thus, it is more challenging for the decision maker to select the most
appropriate procurement method for a specific building as different type of
procurement method suit different type of project. It is indeed very vital to

14

develop a systematic approach that can assist the maintenance personnel in

decision-making on selecting the most appropriate procurement method for a
particular building. Lin (2013)
2.7

Chapter Summary
The literature review has outlined and discussed the concepts or theories of
Facilities Management procurement and decision-making. It has identified
generic procurement routes, factors influencing FM routes selection, and the
decision-making tools in Facilities Management.
A discussion of the analytical hierarchy process, AHP, has been presented with
examples of its application in Facilities Management. It is apparent that the
analytical hierarchy process has a wider application in Facilities Management
and would be a useful tool for this research.

15

CHAPTER 3
METHODOLOGY
3.0

Introduction
This chapter outlines the methodology used in undertaking this research. The
chapter starts with the presentation of the research strategy adopted and the
justification for the choice of strategy. It further presents the methods used in
collecting both primary and secondary data. The chapter then outlines how
ethics in research were observed and concludes with a presentation of other
research strategies that were considered.

3.1

Research Strategy

3.1.1

Survey
This research adopted a survey strategy to investigate a procurement route that
is most suited to the operating environment of government departments in
Malawi. According to Denscombe (2010:11) when something is surveyed, it is
viewed comprehensively and in detail, and the purpose of doing a survey is
generally to obtain data for mapping.
The participants to the survey were identified from fifteen (15) government
departments located within a radius of 100 Km from the researchers work base.
The participants to the research were selected through non-probability sampling
methods. Purposive sampling was carried out due to the specialist nature of the
subject of procurement that was under consideration. Due to scarcity in
specialist personnel within government departments three groups of people in
the name of Procurement Officers, Facility Managers, and FM contractors were
combined to come up with a survey sample of twenty (20) individuals
representing fifteen government departments.
Due to the nature of the survey strategy, the researcher used and triangulated
multiple sources of data. According to Saunders (2009) triangulation refers to
the use of different data collection techniques within one study in order to
ensure that the data are telling you what you think they are telling you. For
example, qualitative data collected using semi-structured group interviews may
be a valuable way of triangulating quantitative data collected by other means
such as a questionnaire. In order to fulfill the stated objectives of the research,
this researcher obtained both qualitative and quantitative data.

3.1.2

Justification of Choice of Strategy

This research used the survey strategy because it allowed the collection of the
relevant data from the specific setting of the research problem. The research
was about investigating a procurement route for delivery of FM services that is
suited to the operating environment of government departments in Malawi. By
adopting the survey strategy all the necessary information required to answer
the research question was obtained. The strategy availed a range of data
collection methods that were used to draw out the relevant data.

16

In justifying the selection of the research strategy adopted a mapping of the

strategy and the research characteristics was carried out as per table below:
Characteristics of Survey Strategy
Uses multiple
collection

methods

of

Characteristics of this Research

data Requires use of

collection methods

multiple

data

Provides snapshot of how things are Seeks to explore factors at play in the
at a specific point in time
procurement decision environment of
government departments at this point
in time
Looks for patterns of activity within Seeks to look at patterns of
groups or categories of people or procurement decision making for
organisations
government departments
Can use multiple cases and generalise Seeks to study several government
the results
departments and generalise the
results

Table 6: Mapping of research strategy to research characteristics

3.2

Sampling
Saunders, et al. (2009:210) outlines that whatever your research question(s)
and objectives, you will need to consider whether you need to use sampling.
Occasionally, it may be possible to collect and analyse data from every possible
case or group member; this is termed a census. However, for many research
questions and objectives, it will be impossible for one either to collect or to
analyse all the data available owing to restrictions of time, money, and often
access. Sampling techniques provide a range of methods that enable you to
reduce the amount of data you need to collect by considering only data from a
sub-group rather than the population. In this research, sampling was used.
According to Zikmund (2000), there are two ways of carrying out sampling vis-vis probability and non- probability sampling. In the opinion of Saunders, et al.
(2009: 214) probability sampling (or representative sampling) is most commonly
associated with survey-based research strategies where you need to make
inferences from your sample about a population to answer your research
question(s) or to meet your objectives. According to Denscombe (2010) non
probability approaches to sampling do not operate on the principle of random
selection to the sample and are used when researchers find it difficult or
undesirable to choose their sample on the basis of pure chance.
The population of the participants to the study was obtained through
nonprobability sampling methods. Purposive sampling was followed to identify
participants to this research. This approach was more suited to this research as
the subject matter under consideration required expert knowledge that could
not be obtained through probability sampling methods such as random
sampling. Denscombe (2010) recommends this method of sampling where we
can get the best information through focusing on a relatively small number of

17

instances deliberately selected on the basis of their known attributes. The

criteria for selecting the sample according to Denscombe (2010) include:
i.
relevance : to the issue /theory being investigated
ii.
knowledge : privileged knowledge or experience about the topic
The sampling frame for the participants to this research was made up of twenty
(20) Malawi government ministries.
3.3

Data Collection Methods

Kane (1991) states that, there are different ways of collecting data and the main
ones are focus groups, secondary sources and data reviews, observations, and
interviews. In additional, Kuhn (1996) asserts that there are three types of
research interviews namely structured, unstructured and semi-structured
interviews. Structured research interviews are pre-arranged interviews that
follow a precise pattern in guiding the respondents to give answers. This type of
interview is normally used in the collection of quantitative data. Unstructured
interviews alternatively do not follow any logical order but give the interviewee a
chance to give their own answers and opinions to the questions and are
normally used for the collection of qualitative data. Semi-structured interviews
are a combination of both structured and unstructured interviews hence they
are used in the collection of both quantitative and qualitative data.
Interviews, whether structured or unstructured can be carried out using
questionnaires. Walsh (1999) states that questionnaires are simply list of prewritten questions with or without standardized answers. Pre-written questions
with standardized answers are referred to as closed questions and the
questionnaire itself is said to be structured. Alternatively, questions without
standardized answers are referred to as open-ended and the questionnaire is
said to be unstructured. Therefore, questionnaire can also be semi-structured
thus containing both closed and open-ended questions. The researcher used
questionnaire with only closed-ended questions to collect primary data for easy
data analysis.

3.3.1

Primary Data
Primary data was obtained through the administration of questionnaires. The
questionnaires were designed to solicit the expert opinions of the participants
with regards to the operating environment of government departments.
Specifically the questionnaires were looking to assess the relative strength of
various factors in influencing the choice of procurement routes for FM services.
A question was put forward to the participants of the research on what they
thought was the most influential factor among the seven identified factors. Thus
comparisons were made among all the factors to come up with a ranking of the
factors in terms of their influence on the procurement route decision.
Then the questionnaires sought the expert opinion of the participants on the
most appropriate route for government departments to use when procuring FM
services by considering each of the identified selection criteria independently.
For example one of the questions asked the participants the most preferred
route for procurement of FM services when a decision is made based on the
aspect of administrative costs. Each of the seven identified criterion was
considered in turn and responses were recorded.

18

The researcher conducted a pilot test before the actual data collection process.
Five (5) questionnaires were administered to five work colleagues who
volunteered to carry out a trial. The pilot sample was chosen using the rule of
thumb to pilot about 5 to 10 percent of the final sample number as a
benchmark. This was also done to assess the time taken by the respondent to
complete the questionnaire for planning and costing purposes (Prensky, 1997).
In this research primary data was obtained from a group of procurement officers
working in government departments, practicing facilities managers, and
suppliers of FM services to the public sector. The targeted population for this
research was 20 practitioners.
The respondents were told of the objectives of the study before the
questionnaires were administered, that is, it was purely for academic purposes,
and they were assured of privacy and confidentiality
3.3.2

Secondary Data
Secondary data was collected through literature survey. Desk research was
carried out to investigate the available procurement routes for delivery of FM
services and generic factors that influenced the choice of procurement routes.
The following literature provided core knowledge that informed this research:
1. Atkin, B. and Brooks, A. (2009), Total Facilities Management, 3rd
edition, Wiley-Blackwell
2. Ancarani, A., Capaldo, G. 2005, Supporting decision-making process in
facilities management services procurement: a methodological
approach, Journal of Purchasing and Supply Management, in press.
3. Ancarani, A., Capaldo, G., Allegra T. 2006, Supporting facilities
management of public procurement: A Multicriteria approach to sourcing
strategies in health sector, International Public Procurement Conference
Proceedings, in press.
4. Barrett, P. & Baldry, D. (2003). Facilities Management: Towards best
practice (2nd ed.). Oxford: Blackwell Publishing Ltd.

3.4

Data Analysis
The purpose of analysing data is to obtain usable and useful information. The
researcher used both qualitative and quantitative data analyses. The qualitative
and quantitative data collected through the questionnaires was coded for ease
of reference. For the purposes of recording data respondents were coded in
chronological order as R1,R2, up to R20. Thus R1 represented respondent
number 1.
The raw data was then analysed using the Analytical Hierarchy Process (AHP)
that was developed by Professor Saaty (1980) and the resulting data grouped
and displayed in a series of tables.

19

The AHP was used appraise the selection factors and the procurement routes
as specified in objectives 3,4,5 and 6 of the research. The analysis of the data
entailed determining:
i.
ii.
iii.
iv.

The relative weights of the factors that influence the selection of

procurement routes
The relative weights of the procurement routes when considered
under a single criterion for all the seven factors.
The relative weights of the procurement routes when considered
under a multiple criteria regime.
The most suitable procurement route for government department as
per weighting of a combined criterion.

Matrices tables per each research questions data were analysed to assess the
relationships. AHP matrices with a consistency ratio of less than 0.10 were
accepted as having reliable and consistent data where as matrices with
consistency ratios of greater than 0.10 had to be reviewed. Questionnaires
whose matrices produced inconsistent results had to be modified through
further personal interviews with the original respondent.
Ultimately after the analysis the author attempted to identify obvious patterns in
the data and drew conclusions using the evidence that was available. A
proposal was put forward as to the most appropriate procurement route for
government departments in their current operating environment.
3.5

Limitations
The researcher experienced the following limitations in the research:
i.

Policy documentation on procurement of FM services for government

departments was not available. The researcher only managed to access
policy documentation on the general procurement of goods.

ii.

Coming up with a representative sample for a specialist research was

another limitation. It is generally difficult to make use of probability sampling
methods to obtain a sample that is deemed representative for specialist
subjects such as procurement. Non-probability sampling methods were
used instead. To ensure representation, an attempt was made by the
researcher to identify at least one person in the arena of either
procurement, or Facilities Management, or FM contracting from each of the
fifteen government departments in the vicinity of the researcher.

iii.

The data collection methods adopted for this methodology have each got
their own weaknesses. Questionnaires generally suffer from lack of
response and depth of answers is limited. Personal interviews on the other
hand suffer from the interviewers bias and reluctance of respondents to give
out information to a stranger. None response was expected because
government employees in Malawi generally do not participate in surveys
unless they are paid for participation. Most government employees do not
understand the long-term advantages of results of research on their future
personal wellbeing. However, the researcher experienced a better return
rate. The response rate was 90% (18 out of 20). Since this was a better
response rate, the researcher went on use the data collected as a credible
representation of the sample and subsequently, the population.

20

iv.

3.6

Under normal circumstances, a study requires many resources in financial

and human resource terms. This research was not fully funded and the
researcher had to use personal pocket money to cover some of the
research costs.
Consideration of alternate methodologies
Prior to selecting the survey method for this study, different research strategies
were considered and assessed on their ability to meet the research objectives,
match the available resources and limitations.

3.6.1

Action Research
Generally Action Research is cyclical in nature and could provide personal and
organizational reward, through identifying practical work related issues. These
are then followed through to observe and report on the implemented
improvements, with the organization benefitting from the change.
This methodology however proved lacking in certain aspects. It entailed the
researcher joining each of the procurement teams in government departments
for a considerable period of time to study their way of doing things and identify
bottlenecks. Undertaking this alongside an existing role, allowing time for the
planning, implementation and review would prove too demanding on the
researcher. Despite the benefits, it was unlikely that this feat would be achieved
in the limited time available for this project.

3.6.2

Observation
This would have entailed setting up a routine of observing procurement
transactions in government departments. This would have allowed the
researcher to observe phenomena first hand as it occurred.
Considering the number of departments that were targeted it could have taken
a number of years of observations to come up with the required data especially
due to the fact that procurement of FM services is only done once every year.
Once contracts have been placed what remains is monitoring and control. On
the other hand observations are considered to be expensive and provide limited
information.

3.7

Chapter Summary
This chapter presented the survey as a research strategy that was followed in
this research. It also outlines the justification for the choice of the survey
strategy. The chapter also presents information on how sampling was carried
out and the sampling frame. Questionnaires, literature surveys, and personal
interviews are introduced as data collection methods that were used in this
research. Presentation of limitations and alternate methodologies that were
considered is also made.

21

CHAPTER 4
DATA COLLECTION
4.0

Introduction
The methodology and areas of data collection were carefully selected to obtain
a realistic picture of the procurement environment for FM services among
government departments and specifically to meet the objectives set out in
Chapter 1. This was done through literature survey, questionnaires and
interviews.

4.1

Literature Review
A survey of the literature was carried out to identify the generic procurement
routes that are used in procurement of FM services worldwide. Further research
was carried out to establish the advantages and disadvantages of each
particular route.
The review of the literature also sought to establish the generic factors that
influence the selection of procurement routes for FM services. The results of
this search were recorded and were also used in the formulation of the
questionnaires that were used for further data gathering.
The following literature provided core knowledge that informed this research:
1. Atkin, B. and Brooks, A. (2009), Total Facilities Management, 3rd
edition, Wiley-Blackwell
2. Ancarani, A., Capaldo, G. 2005, Supporting decision-making process in
facilities management services procurement: a methodological
approach, Journal of Purchasing and Supply Management, in press.
3. Ancarani, A., Capaldo, G., Allegra T. 2006, Supporting facilities
management of public procurement: A Multicriteria approach to sourcing
strategies in health sector, International Public Procurement Conference
Proceedings, in press.
4. Barrett, P. & Baldry, D. (2003). Facilities Management: Towards best
practice (2nd ed.). Oxford: Blackwell Publishing Ltd.
This part of data collection managed to fulfill objectives 1 and 2 of the research
as outlined in Chapter 1.

4.2

Questionnaire
Questionnaires were sent to three groups of respondents that included Facilities
Managers, Procurement Managers and FM contractors for Government

22

departments. The questionnaires comprised of twelve closed ended questions.

The questionnaires sought to solicit expert opinion of FM practitioners with
respect to the following:
i.
ii.

iii.

The factors that influence choice of procurement route in the operating

environment of government departments in Malawi.
The relative strength of specific factors in influencing choice of
procurement routes. This was carried out through pairwise comparison
of the factors. Respondents were asked to compare the relative strength
of one factor against another in influencing a choice of a procurement
route.
The preferred procurement routes in the light of each of the selection
factors considered separately. This was carried out through pairwise
comparison of the procurement routes with reference to each of the
selection factors. Respondents were asked to indicate their preference
in terms of procurement routes when considered under each of the
selection factors.

The data gathered through the questionnaires was developed into matrices that
were analysed through Saatys analytical hierarchy process (AHP). The raw
data processed through the AHP methodology yielded the following results:
i.
ii.
iii.

The weights of factors that influence the choice of procurement routes in

the operating environment of government departments in Malawi.
A ranking of procurement routes in terms of preference when single
criteria is applied.
A ranking of procurement routes in terms of preference when multiple
criteria is applied.

All respondents were informed in the introductory page that the data would be
used anonymously and kept confidential to alleviate any concerns about
privacy.
Five (5) work colleagues put the questionnaires to trial. These provided
valuable feedback on clarity and time it took to complete. The final
questionnaire that was sent out can be found in Appendix A.
A purposive sampling approach was used and the respondents targeted were
identified through professional contacts established over years of practice in the
FM industry.
4.3

Interviews
Initially personal interviews were not part of the proposed methodology but in
the course of data analysis it became necessary in order to clarify certain
responses that were given.
Personal interviews were used in instances where information analysed through
the analytical hierarchy process (AHP) proved inconsistent. In that instant it was
imperative that clarification be sought from the respondent through face-to-face
interviews.

23

The responses from the personal interviews were used to moderate the data
gathered through questionnaires and consequently achieve consistency as
required by the AHP method.
4.4

Ethics
In undertaking this research various sources were consulted in order to ensure
that this study met acceptable ethical guidelines. The researcher also undertook
to abide by the Code of Research Ethics that have been adopted by the
University of Reading and College of Estates Management.
The researcher ensured that participants in the research knew they were taking
part in research. In order to give participants a clear understanding of the study
the researcher provided a brief statement on the topic prior to administering
questionnaires and conducting personal interviews.
Consent mechanisms were set up to ensure that each participant participated in
the research with prior consent. The paper questionnaire was handed to each
participant individually. The return of a completed questionnaire was accepted
as indication of the respondents consent to participate in the study. Similarly
acceptance by a respondent to be interviewed was accepted as indication of
the respondents consent to participate in the study.
The researcher also undertook to keep the identities of the participants
confidential and undertook to protect them from any harm in the course of the
research and afterwards.

4.5

Chapter Summary
This chapter has outlined how the actual process of data collection was
executed using questionnaires, literature surveys, and interviews. A
presentation of how ethics were followed is also made.

24

CHAPTER 5
ANALYSIS AND PRESENTATION OF EVIDENCE
5.0

Introduction
This chapter presents a summary of the data obtained during this research.
Both primary and secondary data are presented. Secondary data was obtained
through a survey of literature and primary data was obtained through
administration of questionnaires and personal interview. The data obtained
through questionnaires was further processed using the method developed by
Professor Saaty (1980) known as the analytical hierarchy process (AHP). The
AHP aids decision-making process by assigning weights to decision
alternatives based on responses submitted by participants to a research.

5.1

Generic procurement routes for FM services

A survey of literature revealed that there are four generic procurement routes
being used in procuring of FM services world-wide. The four routes can be
listed as thus:
i.
Direct contracting Single or bundled services (Wiggins (2010))
ii.
Managing Agent (Atkin and Brooks (2009))
iii.
Managing Contractor (Atkin and Brooks(2009))
iv.
Total FM Contractor (Atkin and Brooks(2009))

5.2

Factors that influence selection of procurement routes

A further literature review identified the following seven generic factors as
having the most influence on the decision of a procurement route to be
undertaken in procuring FM services:
i.
ii.
iii.
iv.
v.
vi.
vii.

5.3

Cost of administering the contracts (Atkin and Brooks(2009))

Risk sharing or risk transfer (Corbett (1998),Quinn (1999))
Operational flexibility (Atkin and Brooks (2009))
Improvements in quality of service (Al-Najjar (1996), Quinn (1999))
Clients desired control over service (Atkin and Brooks (2009))
Management expertise required to administer the contracts (Green
(2000), Kremlic et la (2006))
State of the suppliers market (Atkin and Brooks (2009))

Appraisal of the relative strength of decision factors using AHP

Respondents in this research were asked to give their expert opinion on the
relative strength of the seven factors identified during literature surveys in
influencing decisions on choice of procurement routes. The responses given in
the questionnaires were converted to weightings through the matrices of the
Analyitcal Hierachy Process. In assessing each respondents weighting of the
factors the following patterns emerged:

25

i.
ii.

iii.

iv.

v.

vi.

61% of the respondents believe that the market of the suppliers dictate
the choice of the procurement route.
17% of the respondents believe that the administrative costs of
managing the contracts have a far much greater influence on deciding
the procurement route to be followed.
6% of the respondents believe that the aspect of risk transfer and risk
sharing is a major influencing factor in deciding the choice of
procurement route for FM services.
A further 6% of the respondents believe that quality of desired service
greatly influence the route that will be undertaken to procure FM
services.
5% of the respondents believe that suppliers market and cost of
administering contracts have equally greater influence on the choice of
procurement route.
A further 5% believe that the market of suppliers and the aspect of risk
sharing all exert the same influence on the decision of procurement
route to be undertaken.

This pattern of responses can thus be represented graphically as below:

Figure 3 : Pattern of responses on factors influencing choice of procurement

routes
From the foregoing information it is apparent that there are four major factors
that influence the choice of procurement routes in the operating environment of
government departments in Malawi. This is further confirmed by the ranking
emanating from taking the average of the weightings obtained from each of the
respondents as calculated using the AHP procedure. The average weighting of
each of the factors is thus presented herein as below:

26

RELATIVE WEIGHTS OF FACTORS INFLUENCING CHOICE OF PROCUREMENT ROUTE

RESPONDENT
R1

R2

R4

R5

R6

R7

R8

R9

R10

R11

R12

R13

R14

R15

R16

R17

R19

R20

Average
Weights

FACTOR

RISK SHARING

0.27
0.03

0.09
0.02

0.05
0.27

0.43 0.19
0.14 0.06

0.17
0.17

0.12
0.37

0.20
0.07

0.17
0.06

0.08
0.24

0.13
0.02

0.36
0.08

0.40
0.13

0.17
0.06

0.17
0.02

0.26
0.04

0.18
0.20

0.26
0.05

0.206
0.113

OPERATIONAL EFFICIENCY

0.03

0.02

0.05

0.09 0.04

0.06

0.02

0.07

0.03

0.03

0.03

0.06

0.06

0.03

0.03

0.05

0.08

0.05

0.046

QUALITY SERVICE
CLIENT'S DESIRED CONTROL

0.09
0.05

0.02
0.02

0.16
0.16

0.09 0.06
0.09 0.04

0.06
0.05

0.07
0.05

0.10
0.06

0.02
0.02

0.40
0.03

0.04
0.04

0.06
0.05

0.06
0.13

0.02
0.05

0.06
0.02

0.07
0.06

0.10
0.04

0.06
0.07

0.086
0.057

CLIENT'S MANAGEMENT
EXPERTISE

0.27

0.03

0.02

0.09 0.07

0.04

0.04

0.04

0.04

0.02

0.03

0.06

0.16

0.05

0.03

0.03

0.03

0.04

0.061

SUPPLIERS MARKET

0.27

0.81

0.27

0.09 0.53

0.46

0.33

0.46

0.66

0.2

0.7 0.33

0.06

0.61

0.66

0.49

0.38

0.47

0.432

COST

1.00

Consistency Ratio

0.006 0.0002

0.000

0.000 0.008 0.032 0.080 0.052 0.060 0.009 0.090 0.028 0.026 0.070 0.074 0.084 0.093 0.066

0.043

Table 7: Relative weights of factors Influence on choice of procurement route

5.4

Appraisal of procurement routes based on single criteria

The questionnaire further solicited opinions from respondents in relation to the
most preferable routes if a decision on a procurement route was to be made in
the light of a single criterion alone.
The responses were processed using the AHP and the weights were assigned
to each route according to the respondents expert opinion. The results are as
outlined in the following sections.

5.4.1

Appraisal on the basis of lower administrative costs

In this instance the respondents were asked on which procurement route they
thought would be more preferable due to lower administrative costs.
The weightings assigned to each route after processing the responses using
the AHP are summarized in the table below.

Table 8 : Relative weights of procurement routes Lower administrative costs

27

On average the respondents agree that the most preferable route if the
government departments were to incur lower administrative costs is that of
engaging a Total FM contractor.
These findings are quite consistent with the literature reviewed. It is the view of
Wiggins (2010) that in theory, there should be economies of scale which
should lead to cost savings. Also Atkin and Brooks (2009) indicated in their
book Total Facilities Management that the managing contractor and TFM
arrangements will have less cost of administration for the client since there is a
single point of contact which translates to a sizeable reduction in paperwork and
fewer payments.
5.4.2

Appraisal on the basis of risk transfer

The respondents were asked further on what they thought would be the most
preferable route for government departments if they were to make a decision
based on the consideration of risk transfer.
The weightings assigned to each route after processing the responses using
the AHP are summarized in the table below.
PREFERABILITY OF PROCUREMENT ROUTE BASED ON PROSPECTS OF SHARING RISK
RESPONDENT
R1
PREFERED ROUTE
CLIENT DIRECT
CONTRACTING
MANAGING AGENT
MANAGING
CONTRACTOR
TOTAL FM
CONTRACTOR

Consistency Ratio

R2

R4

0.13 0.10
0.08 0.11

R5

R6

R7

R8

R9

R10

R11

R12

R13 R14

R15

R16

R17

R19

R20

Average
Weights

0.12
0.09

0.12 0.11
0.11 0.12

0.09 0.10 0.05 0.10 0.09 0.04 0.12 0.10 0.13 0.13 0.06 0.08 0.10
0.11 0.10 0.09 0.08 0.12 0.12 0.09 0.08 0.13 0.13 0.09 0.07 0.10

0.10
0.10

0.38

0.4

0.4

0.36 0.36

0.40

0.4 0.39

0.4

0.4 0.42

0.4 0.37 0.38 0.38 0.43 0.43 0.35

0.39

0.41

0.4

0.4

0.41 0.41

0.40

0.4 0.46 0.42

0.4 0.42

0.4 0.46 0.38 0.38 0.43 0.43 0.45

0.41
1.00

0.089 0.048

0.09

0.013 0.013

0.09 0.024 0.044 0.022 0.088 0.084 0.009 0.017

0 0.063 0.003 0.016

Table 9 : Relative weights of procurement routes prospects of risk sharing

On average the respondents agree that the most preferable route in terms of
higher prospects of risk transfer is that of engaging a Total FM contractor. This
is followed by managing contractor route. The managing agent route and direct
contracting are less preferable in terms of risk transfer.
The results obtained are in agreement with the literature reviewed. If the client
procures their FM services through a TFM arrangement the client is moderately
exposed to financial risks. This view is expressed by Atkin and Brooks (2009)
in terms of risk, the organisation is only moderately exposed and can derive
a good deal of comfort from knowing that there is a single point of contact and
less administration.

28

5.4.3

Appraisal based of prospects of operational flexibility

The respondents were asked further on what they thought would be the most
preferable route for government departments if they were to make a decision
based on the consideration of achieving higher operational flexibility.
The weightings assigned to each route after processing the responses using
the AHP are summarized in the table below.
PREFERABILITY OF PROCUREMENT ROUTE BASED ON IMPROVING OPERATIONAL FLEXIBILITY FOR THE CLIENT
RESPONDENT
R1
PREFERED ROUTE
CLIENT DIRECT
CONTRACTING
MANAGING AGENT
MANAGING
CONTRACTOR
TOTAL FM
CONTRACTOR

Consistency Ratio

R2

R4

R5

0.502 0.386 0.427

0.22 0.293 0.427

R6

R7

R8

R9

R10 R11 R12 R13 R14 R15 R16 R17 R19 R20

Average
Weights

0.41 0.25 0.32 0.40 0.32 0.32 0.32 0.32 0.30 0.34 0.56 0.39 0.31 0.41 0.39
0.36 0.35 0.32 0.40 0.32 0.32 0.32 0.32 0.30 0.32 0.26 0.39 0.31 0.38 0.39

0.37
0.33

0.14 0.30 0.28 0.12 0.28 0.28 0.28 0.28

0.3 0.28 0.12 0.15 0.31 0.15 0.15

0.22

0.06

0.09 0.10 0.07 0.09 0.07 0.07 0.07 0.07

0.1 0.07 0.06 0.07 0.06 0.06 0.07

0.07
1.00

0.057 0.064 0.063

0.077 0.025 0.01 0.088 0.01 0.01 0.01 0.01

0.22 0.223 0.087

0.058 0.098

0 0.022 0.044 0.012

0.1 0.012

Table 10: Relative weights of procurement routes Operational Flexibility

On average the respondents agree that the most preferable route in terms of
operational flexibility is that of Direct Contracting. This is followed by Managing
agent route and the Managing Contractor route. Total FM contractor is the least
preferred in terms of achieving operational flexibility.
The results of the appraisal differ slightly from the literature review. According to
Atkin and Brooks (2009) the managing agent approach offers considerable
flexibility for the client organization to find and then hold on to the combination
of contracts that suits it best. There is no reason why services should not be
part in-house and part outsourced.
5.4.4

Appraisal on the basis of quality service

The respondents were asked further on what they thought would be the most
preferable route for government departments if they were to make a decision
based on the consideration of achieving quality service.
The weightings assigned to each route after processing the responses using
the AHP are summarized in the table below.

29

PREFERABILITY OF PROCUREMENT ROUTE BASED ON OFFERING HIGH QUALITY SERVICE TO THE CLIENT
RESPONDENT
R1
PREFERED ROUTE
CLIENT DIRECT
CONTRACTING
MANAGING AGENT
MANAGING
CONTRACTOR
TOTAL FM
CONTRACTOR

R2

R4

R5

0.077 0.094 0.116

0.13 0.163 0.09

Consistency Ratio

R6

R7

R8

R9

R10 R11 R12 R13 R14 R15 R16 R17 R19 R20

Average
Weights

0.09 0.25 0.07 0.07 0.12 0.07 0.09 0.05 0.04 0.06 0.10 0.12 0.07 0.07 0.12
0.16 0.25 0.13 0.19 0.23 0.28 0.29 0.32 0.13 0.12 0.30 0.09 0.28 0.28 0.09

0.09
0.20

0.345 0.371 0.397

0.371 0.25 0.36 0.169 0.305 0.315 0.292 0.318 0.418 0.299

0.3 0.397 0.322 0.322 0.397

0.34

0.345 0.371 0.397

0.371 0.25 0.45 0.565 0.346 0.342 0.331 0.318 0.418 0.523

0.3 0.397 0.322 0.322 0.397

0.38
1.00

0.056 0.043 0.009

0.043 0.000 0.09 0.049 0.084 0.022 0.011

0 0.083 0.02 4E-04 0.009 0.01 0.01 0.009

Table 11: Relative weights of procurement routes Quality Service

On average the respondents agree that the most preferable route in terms of
achieving quality service is that of engaging a Total FM contractor. This is
followed by Managing contractor route and the Managing agent route. Direct
contracting is the least preferred in terms of quality service.
5.4.5

Appraisal on the basis of offering more control to the client

The respondents were asked further on what they thought would be the most
preferable route for government departments if they were to make a decision
based on the levels of control that are offered to the client by a particular route.
The weightings assigned to each route after processing the responses using
the AHP are summarized in the table below.
PREFERABILITY OF PROCUREMENT ROUTE BASED ON OFFERING GREATER CONTROL TO THE CLIENT
RESPONDENT
R1
PREFERED ROUTE
CLIENT DIRECT
CONTRACTING
MANAGING AGENT
MANAGING
CONTRACTOR
TOTAL FM
CONTRACTOR

Consistency Ratio

R2

R4

R5

R6

R7

R8

R9

R10 R11 R12 R13 R14 R15 R16 R17 R19 R20

Average
Weights

0.532 0.480 0.572

0.31 0.277 0.209

0.39 0.56 0.58 0.56 0.57 0.71 0.56 0.65 0.67 0.57 0.55 0.73 0.65 0.56 0.65
0.32 0.25 0.24 0.30 0.27 0.18 0.25 0.09 0.16 0.23 0.28 0.13 0.19 0.25 0.19

0.58
0.23

0.081 0.122 0.109

0.144 0.10 0.09 0.078 0.09 0.063 0.096 0.13 0.087 0.162 0.094 0.072 0.077 0.096 0.077

0.10

0.081 0.122 0.109

0.144 0.10 0.09 0.07 0.073 0.056 0.096 0.13 0.087 0.047 0.083 0.072 0.077 0.096 0.077

0.09
1.00

0.078 0.073 0.001

0.009 0.021 0.02 0.06 0.03 0.09 0.021 2E-04 0.007 0.086 0.051 0.012 0.038 0.021 0.038

Table 12: Relative weights of procurement routes Greater Client Control

On average the respondents agree that the most preferable route in terms of
offering greater control to the client is that of placing direct contracts with
individual FM service providers. This is followed by Managing agent route and
the Managing contractor route. Total FM contractor is the least preferred in
terms of offering control to the client.

30

These findings are in agreement with the literature reviewed which indicate that
clients seeking to exercise greater control over FM services should use direct
contracting or managing agent procurement route. These sentiments are
echoed by Natukunda et al (2013) who posits that the resounding reason that
companies have opted for in-house services is because it allows constant
control over the service in terms of costs, quality, and response time.
5.4.6

Appraisal on the basis of requiring less management skills

The questionnaire further sought the respondents opinion on the most
preferable route for government departments if they were to make a decision
based on the consideration of the level of management expertise required to
manage the contract of a particular route.
The weightings assigned to each route after processing the responses using
the AHP are summarized in the table below.
PREFERABILITY OF PROCUREMENT ROUTE BASED ON REQUIRING LESS MANAGEMENT SKILLS ON THE CLIENT SIDE
RESPONDENT
R1
PREFERED ROUTE
CLIENT DIRECT
CONTRACTING
MANAGING AGENT
MANAGING
CONTRACTOR
TOTAL FM
CONTRACTOR

Consistency Ratio

R2

R4

R5

R6

R7

R8

R9

R10 R11 R12 R13 R14 R15 R16 R17 R19 R20

Average
Weights

0.084 0.094 0.06

0.22 0.163 0.087

0.10 0.12 0.06 0.10 0.06 0.07 0.09 0.06 0.05 0.06 0.06 0.04 0.09 0.10 0.07
0.35 0.09 0.12 0.11 0.12 0.10 0.12 0.12 0.09 0.12 0.12 0.12 0.12 0.10 0.15

0.08
0.14

0.369 0.371 0.427

0.297 0.40 0.37 0.397 0.366 0.404 0.397 0.411 0.39 0.366 0.366 0.42 0.397 0.249 0.391

0.38

0.325 0.371 0.427

0.25 0.40 0.45 0.397 0.452 0.422 0.397 0.411 0.461 0.452 0.452 0.42 0.397 0.558 0.391

0.41
1.00

0.011 0.043

0.02 0.008 0.03 0.05 0.03 0.091 0.08 0.085 0.044 0.03 0.02 0.051 0.009 0.021 0.012

0.06

Table 13: Relative weights of procurement routes management skills required

To a greater extent the respondents agree that the most preferable route in
terms of requiring less management skills on the side of the client is that of the
Total FM contractor. Whereas placing direct contracts with FM service providers
is the least preferable.
These findings are in agreement with the reviewed literature. Wiggins (2010)
states that the implication of engaging TFM contractor is that in-house FM
staff ceases to manage the people doing the job and are not responsible for the
way the job is done. They manage the performance contract and the service
delivery.
5.4.7

Appraisal on the basis of availability on the suppliers market

Lastly the questionnaire sought the opinion of the respondents on the most
preferable route for government departments if they were to make a decision
based on the consideration of the availability of the route on the suppliers
market.
The weightings assigned to each route after processing the responses using
the AHP are summarized in the table below.

31

PREFERABILITY OF PROCUREMENT ROUTE BASED ON ITS AVAILABILITY ON THE SUPPLIERS MARKET

RESPONDENT
R1
PREFERED ROUTE
CLIENT DIRECT
CONTRACTING
MANAGING AGENT
MANAGING
CONTRACTOR
TOTAL FM
CONTRACTOR

Consistency Ratio

R2

R4

R5

0.57 0.480
0.21 0.28

0.56
0.25

0.11 0.12

R6

R7

R8

R9

R10 R11 R12 R13 R14 R15 R16 R17 R19 R20

Average
Weights

0.61 0.53 0.59 0.57 0.57 0.51 0.54 0.54 0.61 0.55 0.40 0.56 0.67 0.56 0.65
0.21 0.24 0.19 0.23 0.27 0.29 0.20 0.20 0.21 0.31 0.40 0.30 0.16 0.25 0.19

0.56
0.24

0.1

0.09 0.11 0.15 0.16 0.09 0.15 0.13 0.13 0.09 0.07 0.12 0.08 0.09

0.1 0.08

0.11

0.11 0.12

0.1

0.09 0.11 0.07 0.05 0.07 0.04 0.13 0.13 0.09 0.07 0.09 0.07 0.09

0.1 0.08

0.09
1.00

0 0.07

0.02

0.08 0.000 0.02 0.071 0.034 0.084 0.088 0.088 0.078 0.089 0.009 0.06 0.01 0.02 0.04

Table 14: Relative weights of procurement routes Availability on suppliers

market
The results obtained indicate that to a greater extent the respondents agree
that the most preferable route in terms of its availability on the market is that of
direct contracting where as the Total FM contractor is the least preferred.
5.5

Appraisal of procurement routes based on multiple criteria

The results in the preceding sections were further processed using the
Analytical Hierachy Process (AHP) in order to come up with the most suitable
procurement route for Government Departments in their current operating
environment.
The following results were obtained:

Table 15 : Multiple Criteria Appraisal of Procurement routes

The results obtained after considering all the seven factors in combination give
an indication that the most suitable route for government departments as per
weightings is Direct Contracting. This is in contrast to the results obtained when
the procurement routes were considered with only one criterion in mind. These
results are influenced to a greater extent by the weight assigned to the
influence exerted by the suppliers market.
5.6

Chapter Summary
This chapter presented results of the investigation carried out by the researcher
with regards to generic procurement routes for FM services, factors influencing
choice of procurement route for FM services, the relative weights of factors in

32

influencing choice of procurement route in the operating environment of

government departments and relative weights of procurement routes in terms of
suitability to the operating environment of government departments.
In the next chapter conclusion are drawn based on these findings.

33

CHAPTER 6
CONCLUSIONS
6.0

Introduction
This research project set out to test the hypothesis that the managing
contractor procurement route is more suited to the current operating
environment of government departments in Malawi than any other route. In
order to test this hypothesis a number of preliminary objectives had to be dealt
with first vis--vis identification of the available procurement routes for FM
services in Malawi, identification of factors influencing the decision of the route
to be taken, appraising the relative strength of the factors in influencing the
decision, and the appraisal of appropriate routes to be undertaken when each
of the deciding factors is considered alone.
This chapter therefore reviews individually each of the objectives set out to test
this hypothesis.

6.1

Findings based on research objectives

6.1.1

Identification of generic procurement routes of FM services

This research managed to fulfill the first objective of identifying generic
procurement routes for FM services that could be followed by government
departments in Malawi. Through literature surveys four generic procurement
routes for FM services were identified.
The four routes that can be used by government departments in Malawi to
procure FM services can be listed as thus:
i.
Direct contracting Single or bundled services
ii.
Managing Agent
iii.
Managing Contractor
iv.
Total FM Contractor

6.1.2

Factors influencing choice of procurement route for FM services

The research further managed to fulfill the second objective of identifying
factors that influence the choice of procurement route for FM services. A list of
seven generic factors was identified through literature surveys and was
confirmed by participants to this research through questionnaires.
In the light of the data given in the preceding chapter it can be concluded that
the following factors play a role in the decision of the choice of procurement
route:
i.
ii.
iii.

Cost of administering the contracts

Risk sharing or risk transfer
Operational flexibility

34

iv.
v.
vi.
vii.
6.1.3

Improvements in quality of service

Clients desired control over service
Management expertise required to administer the contracts
State of the suppliers market

Appraisal of the relative strength of decision factors using AHP

In terms of the evidence presented in the preceding chapter the suppliers
market has the greatest influence on the procurement route that is to be
undertaken by a particular government department. Operational flexibility is
regarded as having the least influence on the procurement route to be
undertaken.
It is thus expected that a route that is readily available on the market will have a
higher chance of being selected by a government department than the one that
is not available.

Rank
1
2
3
4
5
6
7

Factor
Suppliers Market
Cost
Risk transfer
Quality Service
Management Skills
Control
Operational Flexibility

Weight
0.43
0.21
0.11
0.09
0.07
0.05
0.04

Increasing Influence

After appraisal the factors that influence the choice of procurement route are
ranked as follows:

Table 16 : Relative strength of influencing factors

6.1.4

Appraisal of procurement routes based on single criteria

Following the appraisal of the procurement routes by considering each of the
identified criteria in isolation conclusions can be drawn as follows:
i.

ii.

iii.

iv.

v.

Criteria 1 - Lower administrative costs: In terms of evidence presented in

the preceding chapter, the most suitable procurement route for
departments that are seeking to reduce their administrative costs is the
TFM procurement route.
Criteria 2 Risk Transfer: In terms of evidence presented in the
preceding chapter, the most suitable procurement route for departments
that are seeking to transfer risks to FM operators is the TFM
procurement route.
Criteria 3 Operational Flexibility: In terms of evidence presented in the
preceding chapter, the most suitable procurement route for departments
that are seeking operational flexibility is that of placing direct contracts
with multiple single service providers.
Criteria 4 Quality Service: In the light of the evidence in the preceding
chapter, the most suitable procurement route for departments that are
seeking high quality service is the TFM contractor arrangement.
Criteria 5 Control: It is apparent from the evidence presented in the
preceding chapter that the most suitable procurement route for

35

vi.

vii.

government departments seeking to exercise greater control over the

services is direct contracting (in-house management).
Criteria 6 Management Skills: The evidence gathered in this research
points to the fact that the most suitable procurement route for
government departments with minimal hands on management
experience is the TFM arrangement due to the minimal levels of hands
on management that is required to administer such type of contracts.
Criteria 7 Suppliers market: The evidence presented in this report
point to the fact that government s departments would go for direct
contracts with FM suppliers due to the availability of the solutions on the
market.

This appraisal albeit based on single criteria does not point at a single route
that departments should follow in their current operating environment. The
operating environment of government departments is influenced by all the
seven factors outlined in the preceding paragraphs as such there was a need
for a single solution in which the relative strength of all the factors are
considered. Thus an appraisal of all the procurement routes using multiple
criteria was carried out.
6.1.5

Appraisal of procurement routes using multiple criteria

This appraisal utilized data obtained from objectives 3 and 4. This data was
processed using the AHP software.
According to the results obtained the most suitable procurement route for
government departments when obtaining FM services is Direct Contracting. The
results obtained after considering all the seven factors in combination are in
contrast to the results obtained when the procurement routes were considered
with only one criterion in mind. These results are influenced to a greater extent
by the weight assigned to the influence exerted by the suppliers market.
It thus follows that obtaining FM services through direct contracting and
managing them through an in-house team is the most suitable procurement
route for government departments. The FM market in Malawi offers few options
and is largely dominated by single service providers.

6.2

Conclusion
At the onset of this research we started with a hypothesis that suggested that
procuring FM Services through a Managing Contractor is the procurement route
most suited to the current operating environment of government departments
but we conclude this research with a completely different outcome. Through the
use of the analytical hierarchy process we have disproved the initial hypothesis
and have arrived at a new logical conclusion that puts to the fore the fact that
direct contracting with single service providers is a procurement route that is
most suited to the current operating environment of government departments in
Malawi.

36

CHAPTER 7
RECOMMENDATIONS
7.0

Introduction
The following specific recommendations are made, reflecting the conclusions
set out in Chapter 6, for the purpose of improving procurement decisions made
by government departments with regards to procurement of FM services in
Malawi.

7.1

Recommendations for Government Departments in Malawi

In the preceding chapter, direct contracting has been identified as the

procurement route that is most suited to the current operating environment of
government departments. It is therefore being recommended herein that
government departments adopt this procurement route in order to realize
maximum benefits from their procurement of FM services.
This research is also recommending the strengthening of government
departments facilities management sections so that they are better placed to
manage FM contracts. Management of FM services by an in-house team
requires extra resources in terms of manpower and finances. It also requires
knowledge and understanding of the facilities services so that appropriate
service levels are achieved.
It is also important that departments become aware of their operating
environment and make appropriate decisions by use of decision-making tools.
Departments must search for solutions that fit their operating environment and
must arrive at conclusions using sound logical processes. Illogical decisions
generally lead to waste of public resources. Public procurements must minimize
waste as much as possible. Procurement of facilities management services is
one area where significant savings can be realized if procurement is made
responsibly. This can only be done through appropriate selection of
procurement routes to match the operating environment of government
departments.
7.2

Areas of further research

In the preceding chapter it has been concluded that the most suitable
procurement route for the current operating environment of government
departments is direct contracting with an in-house management team. However
the practice on the ground seems to favor the use of landlords as managing
contractors for FM services supplied to government departments and that
raises the question of why the situation is as it is. What would be the cause of
this scenario? Could it be that politics play some role in the selection of the
route to be taken?

37

With this scenario at hand, this research proposes the following areas for
further research:
i.

ii.

7.3

The role of politics in the selection of a procurement route for FM

services. In most cases politics will have an influence on the selection of
a provider to undertake a particular assignment but it is not clear as to
whether politics can also influence the selection of a procurement route
for FM services.
In the context of government departments in Malawi, is it more beneficial
to procure FM services by using landlords as their managing contractor?
A cost benefit analysis of the current practice to shed light on the
gains and losses of following this particular trend.

Chapter Summary
This chapter outlines recommendations made to government departments in
Malawi with regards to procurement routes to be undertaken in order to realize
maximum benefits. It also makes recommendations on human resources and
awareness of operating environment if their procurements are to cost effective.
The chapter concludes by recommending areas of further research.

38

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41

APPENDICES

42

APPENDIX A QUESTIONNAIRE

INVESTIGATING A PROCUREMENT ROUTE FOR THE DELIVERY OF FM

SERVICES THAT IS SUITED TO THE OPERATING ENVIRONMENT OF
GOVERNMENT DEPARTMENTS IN MALAWI
Hello. My name is Lusayo Mwabutwa and I am a student with the College of Estates
Management. I am conducting this Academic Research as part fulfillment of my Master of
Science in Facilities Management. I am grateful for your assistance and cooperation in
responding to this questionnaire. This questionnaire aims to assess the relative strength of
various factors in influencing the choice of procurement routes among government
departments. It will take about 30 minutes to be completed.
Please take note that your agreement to complete this questionnaire shall be considered as
consent to participate in this research and I undertake to keep all participants of this research
anonymous. Your feedback will be instrumental in helping me academically and the government
of Malawi in deciding its future course.
For Section A, please select only one answer by ticking inside the box. For other Sections (B
& C) tick for each given option that best suits your choice. Thanks!
SECTION A: GENERAL QUESTIONS
1. What is your gender?
Male

Female

2. What is your job title?

Procurement Manager
Facility Manager
(Please Indicate): _____________________________

Contract Manager

Other

3. What is your line of work?

Facilities Management (Public Institution)
Procurement (Government)
FM Contractor (Government)
Other (Please Indicate): _____________________________

SECTION B: FACTORS INFLUENCING SELECTION OF PROCUREMENT

ROUTE FOR FM SERVICES

4. Given a list of factors below; Select the factors that you would include among a shortlist of
five (5) as having the most influence on the choice of a procurement route for FM services
within the operating environment of government departments? (Tick on your choices)
Cost
Risk sharing ratios
Operational Flexibility

43

Quality Service
Desired Control (Client )

Management Skills (Client)

Suppliers Market

SECTION C: COMPARATIVE INFLUENCE OF SELECTION FACTORS

The following comparative table should be used to answer the following questions
designed to solicit your expert opinion on the relative strength of the factors in
influencing a procurement route for FM services.
Value
1
3
5
7
9

Meaning
Equal Influence
More Influential
Strongly more influential
Very strongly more influential
Extremely more influential

5. When you make a choice of a procurement route for delivery of FM services, which of the
factors below is more influential and to what degree? (Tick where appropriate)
Pair Comparisons
Factor A

Factor B

Cost

Risk

Cost

Operational Flexibility

Cost

Quality of Service

Cost

Desired Client Control

Cost

In-House Skills

Cost

Supplier Market

Risk

Operational Flexibility

Risk

Quality of Service

Risk

Desired Client Control

Risk

In-House Skills

Risk

Supplier Market

Operational
Flexibility
Operational
Flexibility
Operational
Flexibility

Quality of Service

Influential
Factor
Factor
A
B

Desired Client Control

In-House Skills

44

Magnitude
5
7

Operational
Flexibility
Quality of service

Supplier Market

Quality of service

In-House Skills

Quality of service

Supplier Market

Desired Client Control

In-House Skills

Desired Client Control

Supplier Market

In-house Skills

Supplier Market

Desired Client Control

SECTION D: PREFERENCE OF THE PROCUREMENT ROUTES

The following comparative table should be used to answer the following questions
designed to solicit your expert opinion on the preference of procurement routes when
considered under each influencing selection factor.
Value
1
3
5
7
9

Meaning
Equally Preferred
More preferred
Strongly preferred
Very strongly preferred
Extremely preferred

6. If you were to make a decision on the basis of lower costs alone which procurement
route would you prefer over the other and to what degree? (Tick where appropriate)
Pair Comparisons
Route A

Route B

Direct Contracting

Managing Agent

Direct Contracting

Managing
Contractor
TFM

Direct Contracting
Managing Agent
Managing Agent
Managing
Contractor

Preferred
Route
Route
A
B

Managing
Contractor
TFM
TFM

45

Magnitude
3
5
7

7. If you were to make a decision on the basis of transferring more risk alone which
procurement route would you prefer over the other and to what degree? (Tick where
appropriate)
Pair Comparisons
Route A

Route B

Direct Contracting

Managing Agent

Direct Contracting

Managing
Contractor
TFM

Direct Contracting
Managing Agent
Managing Agent
Managing
Contractor

Preferred
Route
Route
A
B

Magnitude
3
5
7

Managing
Contractor
TFM
TFM

8. If you were to make a decision on the basis of improving operational efficiency alone
which procurement route would you prefer over the other and to what degree? (Tick
where appropriate)
Pair Comparisons
Route A

Route B

Direct Contracting

Managing Agent

Direct Contracting

Managing
Contractor
TFM

Direct Contracting
Managing Agent
Managing Agent
Managing
Contractor

Preferred
Route
Route
A
B

Magnitude
3
5
7

Managing
Contractor
TFM
TFM

9. If you were to make a decision on the basis of offering better quality alone which
procurement route would you prefer over the other and to what degree? (Tick where
appropriate)
Pair Comparisons
Route A

Route B

Direct Contracting

Managing Agent

Direct Contracting

Managing
Contractor
TFM

Direct Contracting
Managing Agent
Managing Agent

Preferred
Route
Route
A
B

Managing
Contractor
TFM

46

Magnitude
3
5
7

Managing
Contractor

TFM

10. If you were to make a decision on the basis of Offering more control alone which
procurement route would you prefer over the other and to what degree? (Tick where
appropriate)
Pair Comparisons
Route A

Route B

Direct Contracting

Managing Agent

Direct Contracting

Managing
Contractor
TFM

Direct Contracting
Managing Agent
Managing Agent
Managing
Contractor

Preferred
Route
Route
A
B

Magnitude
3
5
7

Managing
Contractor
TFM
TFM

11. If you were to make a decision on the basis of requiring less in house expertise alone
which procurement route would you prefer over the other and to what degree? (Tick
where appropriate)
Pair Comparisons
Route A

Route B

Direct Contracting

Managing Agent

Direct Contracting

Managing
Contractor
TFM

Direct Contracting
Managing Agent
Managing Agent
Managing
Contractor

Preferred
Route
Route
A
B

Magnitude
3
5
7

Managing
Contractor
TFM
TFM

12. If you were to make a decision on the basis of its availability on supplier market alone
which procurement route would you prefer over the other and to what degree? (Tick
where appropriate)
Pair Comparisons
Route A

Route B

Direct Contracting

Managing Agent

Direct Contracting

Managing
Contractor

Preferred
Route
Route
A
B

47

Magnitude
3
5
7

Direct Contracting

TFM

Managing Agent

Managing
Contractor
TFM

Managing Agent
Managing
Contractor

TFM

Thank you for taking the time to complete this questionnaire.

Your input is important to me and I value your response.

48

APPENDIX B AHP MATRIX FROM RESPONDENT 20

i. Appraisal of factors influencing choice of procurement routes

ii. Appraisal of procurement routes based on single criterion (Respondent 20)

a. Appraisal based on contract administration costs

49

b. Appraisal based on risk sharing

c. Appraisal based on Operational Flexibility

50

d. Appraisal based on quality service

e. Appraisal based on desired control

51

f. Appraisal based on required expertise on the client side

g. Appraisal based on availability on suppliers market

52

iii. Appraisal of Procurement Routes based on multiple criteria (Respondent 20)

53