Evaluate the effectiveness of private property management companies' procurement systems : a case study of cleaning contracts in Hong Kong

Abstract

This dissertation is a study of procurement systems in private property management companies. The writer initiates this idea of studying procurement systems as he finds different companies have very different procurement systems but an effective procurement system is a very important management issue which directly affects the performance of property management company.

Through the research, several evaluation factors have been used to evaluate the performance of five different procurement systems through a procurement of cleaning service contract. For these five property management companies – Nan Fung, MTR, Wellborn, ISS and Knight Frank, they all have different procurement systems with different advantages and disadvantages. Although it eventually cannot find a perfectly effective procurement system, some factors like the use of technology and suitable approval system affect the effectiveness of procurement systems.

The research also concluded that property management companies have to develop their own optimal procurement systems as different factors like goals of management and size of company make differences that one single system cannot fit in all. Furthermore, property management companies are recommended to regularly review their systems to ensure the procurement is suitable to the current environment and atmosphere.