Specifications- Key Readings

http://www.gov.scot/Topics/Government/Procurement/buyer-information/spdlowlevel/
routetwotoolkit/developdocumentsroutetwo/specification

Specification Development

It is important to spend time developing the specification detail to ensure consistency on pricing,
product quality, operational functionality and products are fit for purpose in order to reduce the
financial impact of the wrong specification further down the line. This is also a fair process for
suppliers to ensure they are quoting on a like-for-like basis. When developing specifications it is
important to distinguish between product requirements and product preferences and build in
tolerances for suppliers to adhere too and not to restrict supply and build cost into a product. This
process often involves a number of cross functional stakeholders.

https://www.cips.org/Knowledge/Procurement-topics-and-skills/Understand-Need---Market-and-
options-assessment/Setting-KPIs/

Guidelines on Writing Specifications- University Limerick

A specification can be defined as a description of the physical or functional characteristics, or of the

nature of a supply, service, or construction item; the requirements to be satisfied by a product,
material, or process indicating, if appropriate, the procedures to determine whether the
requirements are satisfied. In essence a specification is a statement of the attributes of a product,
process or service a user wishes to purchase, and consequently, which the supplier is expected to
supply. As far as practicable, it is desirable that the requirements be expressed numerically in terms
of appropriate units together with their limits.
Specifications have two basic functions:
1) Communicate: When prepared by the purchaser, specifications inform the supplier what is
required. When prepared by the supplier they provide a prospective purchaser with a description of
the attributes of a product.
2) Compare : Specifications also provide criteria against which the products and services supplied or
available can be compared.
They also
3) Provide evidence in the event of a dispute of what the purchaser required and what the supplier
was able to provide
Burt et al (2008) suggest the purpose of specifications are:
■ Communicate to professionals in the supply management department what to buy.
■ Communicate to prospective suppliers what is required.
■ Establish the tangible goods to be provided.
■ Establish the intangible services to be provided, such as warranty, maintenance, and

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support.
■ Establish the standards against which inspections, tests, and quality checks are made.
■ Balance the specification goals of individual departments, relevant suppliers, desired
product or service performance and cost.

A further TWO can be added to this list

 Define the needs

 Supports standardisation

TYPES OF SPECIFICATIONS

There are basically 3 types of specifications:

1. Functional/Performance Specifications : A functional specification is a clear indication of the

purpose, function, application and performance expected of the supplied material or service,
whereby the supplier is allowed or encouraged to provide an appropriate product. These
specifications describe the capabilities that the article where applicable, performance specifications
are to be selected as they allow wider competition and enable suppliers to suggest new or improved
ways of meeting the requirement. Tests or criteria are developed to measure a product's ability to
perform and to last, as required. They may include such details as required power, strength of
material, test methods, and standards of acceptability and recommended practices. 1Performance
specifications define the task or desired result by focusing on what is to be achieved

2. Technical / Design Specifications : This specification details the characteristics of the product to
be purchased, it is so detailed that it describes how the product is to be manufactured, detailing the
physical dimensions of the product and materials to be used etc. (Most often used for building
contracting and roads)

3. Combination : These specifications include both design and functional features. Characteristics
of both are used as prerequisites and as limiting factors in developing the specification.

A specification should be sufficiently detailed so that the product or service will fit the users
requirements. It should not be so explicit that it prevents negotiation or discourages buyers or
suppliers from using their expertise to propose alternative solutions that may offer better value for
money.

Preparation of a specification should involve close communication between the user and the
Procurement and Supply Chain Manager and, if required, assistance from technical experts.
Involvement of potential suppliers may also be helpful in developing a specification. If supplier input
is required it must not result in adoption of a specification that favours one particular supplier . I.e.
consult and communicate with the relevant stakeholders.

When preparing a specification the following should be considered:

Use functional and performance criteria where possible.

Any technical specifications should be defined by reference to any European, International, National
and quality assurance requirements, which are relevant.

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References, which have the effect of favouring or eliminating particular suppliers, contractors,
products or services, should be avoided.

It is not normally permitted to use brand names, sources of supply, trade marks, patent types,
origins or other means of production when writing product specifications. The exception is when the
goods and services cannot otherwise be described by reference to technical specifications, which are
sufficiently precise and intelligible to all suppliers. In these cases, the brand names etc. must be
accompanied by the words "or equivalent".

There are, however, instances where it is permissible to derogate from the prescribed hierarchy of
specifications. Again, like other exceptions, these are clearly defined. For example, where there
exists a statutory duty in relation to, say, health and safety; technical reasons of conformance;
incompatibility or disproportionate technical differences or disproportionate costs; or innovative
reasons.

https://www2.ul.ie/web/WWW/Services/Finance/Procurement_and_Supply_Chain_Office/
UL_Procurement/Policies_%26_Procedures/Guidelines_on_Writing_Specifications

The seven Cs – NBS 2016

CIPS often ask for four characteristics/features/criteria of/for an effective specification

Specifications should follow the seven Cs: clear, concise, correct, complete, comprehensive,
consistent, co-ordinated.
Here are the 7Cs of effective specifications
1. Clear: Use plain English. The trend in legal drafting is to avoid Dickensian legalese and aim
instead for ease of understanding by all intended audiences (not just the lawyers). But
sophisticated content still requires sophisticated expression. In particular, avoid ambiguity.
An independent internal ‘devil’s advocate’ review is a useful safeguard. Trimming waffle
exposes ambiguity (and redundancy) and makes the whole thing easier to edit. But too much
concision can lead to ambiguity.
2. Concise: Avoid repetition. Use ‘streamlining’, which involves the use of ‘keywords’ and
colons, and has been around since 1939 − it is not new. It is normal practice in master
specification systems the world over (Gelder, 2005a).
3. Correct: Develop some quality control procedures. Cross-references must be correct – check
BS numbers, check currency, check scope. Requirements covered elsewhere do not need to
be stated again – the builder must comply with the contract documents as a whole,
including referenced documents. Avoid redundancy.
4. Complete: Ensure appropriate breadth. But, note Pareto. External cross-references are often
required to complete a specification, e.g. asking for a fire rating of 30/30/30 makes no sense
unless the relevant standard (where the 30s are given meaning) is cited as well. It cannot be
left as ‘understood’.
5. Comprehensive: Ensure appropriate depth. For example, ensure that all relevant
characteristics are covered in performance specifications, and that all relevant items are
described in the specification and drawings taken together.
6. Consistent: Watch terminology and style. Referenced documents are inevitably inconsistent
(with each other, and occasionally within themselves) so, rather than trying to fit in with

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 them where they are inconsistent, the specification should provide independent overall
consistency.
7. Co-ordinated: Across all work sections, and between all contract documents.

http://www.thenbs.com/training/educator/specification/specIntro/specIntro10.asp

http://www.designingbuildings.co.uk/wiki/Nbs

The NBS is owned by RIBA Enterprises Ltd, part of the Royal Institute of British Architects (RIBA). It
operates to make a profit for the benefit of RIBA members.NBS stands for National Building
Specification. Based in in Newcastle upon Tyne, the NBS has been creating specification products for
over 40 years. It's products include the national standard specification system for the UK which was
launched in 1973 and describes the materials, standards and workmanship for construction projects.
NBS specification products now cover building construction, engineering services and landscape
design.

METHODS OF DESCRIPTION

The description of an item may take any one of a variety of methods or, indeed, may be a
combination of several different methods. For our discussion, description will mean the various
methods by which a buyer conveys to a seller a clear, accurate picture of the required item. The
term specification will be used in the narrower sense referring to one particular method of
description.

The methods of description will be discussed in order:

1. By brand
2. “Or Equal”
3. By specification
a. Physical or chemical characteristics
b. Material and method of manufacture
c. Performance or function
4. By engineering drawing
5. By miscellaneous methods
a. Market grades
b. Sample

Let us understand each method in detail.

1. Descriptions by brand

This method is used when a product or service is proprietary, or when there is a perceived
advantage in using a particular supplier’s products or services.

Descriptions by brand may be not only desirable but necessary under the following
circumstances:

a. The manufacturing process is secret or covered by a patent.

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 b. The supplier’s manufacturing process calls for a high degree of ‘workmanship’ or ‘skill’
that cannot be defined exactly in a specification.

c. Only small quantities are bought so that the preparation of specifications by the buyer is
impracticable.

d. Testing by the buyer is impracticable.

e. The item is a component so effectively advertised as to create a preference or even a

demand for its incorporation into the finished products on the part of the ultimate
customer.

f. There is a strong preference for the branded item on the part of the design staff, a bias
the buyer may find almost impossible to overcome.

Advantages

A brand represents the manufacturer’s pledge that the quality of the product will be
consistent from one purchase to the next. A supply manager can be certain that a reputable
manufacturer will strive to keep this pledge. Burt

Brand name products are among the simplest to describe on a purchase order. Thus, they
save time and reduce supply management expense. Inspection expense is also low for
branded products. The only inspection required is sight verification of the brand labels. The
brand is the quality ordered. The higher prices usually paid for name brands thus are offset
to some extent by reduced description preparation and inspection costs. Burt

The main disadvantages of specifying branded item are as follows:

a. The cost of a branded item may be higher than that of an unbranded substitute.

b. The naming of a brand effectively results in a ‘closed specification’ which restricts the
number of potential suppliers and deprives the buyer of the possible advantage of a lower
price or even of improvements brought out by competitors.

C Suppliers sometimes change the specification without changing the brand name which
can cause problems for the purchaser- bailey et al

2. “Or Equal”

It is not unusual to see requests for quotations or bids that will specify a brand or a
manufacturer’s model number followed by the words “or equal”. In these circumstances,
the buyer tries to shift the responsibility for establishing equality or superiority to the bidder
without having to go to the expense of having to develop detailed specifications.

3. Descriptions by specification

In some cases, an organisation may need to provide very detailed descriptions of the
characteristics of an item or service. Specification constitutes one of the best known of all
methods employed. A lot of time and effort has been expended in making it possible to buy

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 on a specification basis. Closely related to these endeavours is the effort towards
standardisation of product specifications and reduction in the number of types, sizes, and so
on, of products accepted as standard. It is becoming common practice to specify the test
procedure and results necessary to meet quality standards as part of the specification as
well as instructions for handling, labelling, transportation and disposal to meet
environmental regulations.

a. Specification by physical or chemical characteristics

This specification provides definitions of the properties of the materials the buyer desires. They
represent an effort to state in measurable terms those properties deemed necessary for satisfactory
use at the least cost consistent with quality.

b. Specification by material and method of manufacture

The second type of specification prescribes both the material and method of manufacture. This
method is used when special requirements exist and when the buyer is willing to assume the
responsibility for results.

c. Specification by performance or function

The heart of performance specification is the understanding of the required functions. Performance
or function specification in combination with a request for proposal is employed to a considerable
extent, partly because it throws the responsibility for a satisfactory product back to the seller.
Performance specification is result-and user oriented, leaving the supplier with the decisions on how
to make the most suitable product. The assumption is that the supplier will know the best way to
meet the buyer’s needs. This enables the supplier to take advantage of the latest technological
developments and to substitute anything that exceeds the minimum performance required. The
detailed specification is in the hands of the supplier.

There are two primary advantages of describing quality by performance specifications:

(1) ease of preparing the specifications and

(2) assurance of obtaining the precise performance desired.

The clarity of a performance specification also brings clarity into any legal or liability issue that may
ensue if the supplier does not meet the specification as agreed.

Where applicable, performance specifications are to be preferred in that they allow a wider
competition and enable suppliers to suggest new improved ways of meeting the requirement. The
satisfactory use of a performance specification, of course, is absolutely dependent on securing the
right kind of supplier. It should be noted that it may be difficult to compare quotations and the
supplier may include a risk allowance in the price.

See mock exam question

In general, traditional advantages of buying with specifications include:

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i. Evidence exists that thought and careful study have been given to the need and the ways in which
it may be satisfied.

ii. A standard is established for measuring and checking materials as supplied, preventing delay and
waste that would occur with improper materials.

iii. An opportunity exists to procure identical requirements from a number of different sources of
supply.

iv. The potential exists for equitable competition. This is why public agencies place such a premium
on specification writing. In securing bids from various suppliers, a buyer must be sure that the
suppliers are quoting for exactly the same material or service.

v. The seller will be responsible for performance when the buyer specifies performance.

However, there are also several limitations in using specifications:

i. There are requirements for which it is practically impossible to draw adequate specifications.

ii. The use of specifications adds to the immediate cost.

iii. The specification may not be better than a standard product that is, readily available.

iv. The cost is increased by testing to ensure that the specifications have been met.

v. Unduly elaborate specifications sometimes discourage potential suppliers from placing bids in
response to inquiries.

vi. Unless the specifications are of the performance type, the responsibility for the adaptability of
the item to the use intended rests wholly with the buyer.

vii. The minimum specifications set up by the buyer are likely to be the maximum furnished by the
supplier

http://procurementmanagement.pressbooks.com/chapter/methods-of-description/

A poor specification may result in:

 the product or service not being delivered as required;

 difficulties in evaluating offers;
 offers from unsuitable suppliers or no offers because the department's requirements are
unclear;
 the need to clarify the specification to potential tenderers during the tender process; and
contract variations.

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Basic Contents of Specifications
Scope, Classification, or Description
The first words or lines of a specification should be a general description, classification, or scope of the product
desired and the intended or desired use of the item.

List of Requirements
These requirements should identify measurable physical, functional, and quality characteristics that meet the
requirements. This may include a detailed list of characteristics, such as: sizes, physical dimensions, weights,
percent and type of ingredients, types and grades of materials, standard of
workmanship, or basic design. The text should be clear, simple language, free of vague terms or those subject
to variation in interpretation. The use of abbreviations should be restricted to those in common usage and not
subject to possible misunderstanding

Shall, May, Should, or Will?

• Use “shall” to express a requirement binding on the contractor or the purchaser.
• Use “may” or “should” to express non mandatory provisions.
• Use “will” to express future requirements or when certain conditions are met.

Definition of Terms
The necessity for definition of terms can usually be avoided with good specifications. However, in those cases
where proper interpretation is necessary or agreement as to definition of terms is a key part of the
specifications, such definitions should be included.
Measurements
All terms relating to measurements (gauge, capacity, volume, etc.) should be used in accordance with
established precedent and trade practice. Review the document and make every effort to replace words with
numbers or use words and numbers in combination (one (1) two (2) ).
Whenever you use numbers instead of words, communication is truly enhanced. All measuring and testing
equipment is designed to provide specific numerical answers.
Figures and Tables
Figures, illustrations, graphs, etc. can often describe the item more clearly and accurately than text. They
should be used as much as possible.
References to other Specifications or Publications
References to other specifications or publications should be limited to the federal government, commercial
organizations, technical societies, etc., which are widely recognized and accepted by industry.
Group terms are designations with established precedent and trade practice, such as: type, grade, class, and
composition. These terms are defined as follows:
• Type: Implies design, model, shape, etc. of commodities.
• Grade: Implies quality of a commodity.
• Class: Implies mechanical or other characteristics that are not in quality of grade.
• Composition: Implies chemical differences in commodities.
• Other: Other terms such as: style, color, form, weight, size, etc., are also used as group terms.
Sampling, Inspection, and Test Procedures
When samples are required, it should be clearly identified as a requirement in the specifications. All samples
and test results should be retained for delivery compliance of products ordered.
When possible, a test inspection plan should be developed and included in
the specification.
Packaging and Delivery Information
Where specifications differ from standard commercial-sized packages, this should be clearly defined. Custom
packaging may increase the cost of the product.
Special or unusual delivery dates or delivery points should be listed. Many times, items need to shipped to
variety of locations within the State. A complete list of delivery addresses should be included in the
specifications so that a bidder may take into account delivery costs and submit an accurate bid.

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Development of Specifications
Developing specifications can be a difficult task to manage because it involves many variables,
including the problem of conflicting human sensitivities and orientations. Many departments are
capable of contributing to specifications development; they are frequently thwarted from fully doing
so, however, because of conflicting views. Before the optimum in design can be achieved, these
major conflicting views must be reconciled.

Organizational Approaches

Several approaches to developing balanced specifications are used individually or jointly by most
companies. The approaches in order of collaborative orientation from lowest to highest include;
informal approach,

 supply management coordinator approach,

 early supply management involvement (formerly EPI),
 early supplier involvement (ESI),
 consensus development,
 and cross-functional team approach.

Stakeholders play an important part in effective specification development.

For example:

 Design or engineering functions will contribute to technical specifications and func-tionality

 Marketing will ensure there is customer focus
 Procurement will provide awareness on markets, materials availability, supplier capa-bility
and cost.
 Manufacturing will provide practical input and production factors.

The Stakeholder Management Matrix helps procurement to identify the key stakeholders to engage
in the communication loop and development of the specification.

The Early Supplier Involvement (ESI) Matrix helps procurement to establish how best to engage
suppliers in the development process and the appropriate time relative to specific developments.
Working in collaboration with suppliers in developing the specification and utilising their expertise
for specific projects can often help to reduce the lead-time and improve the quality.

Bibliography

http://procurementmanagement.pressbooks.com/chapter/methods-of-description/

http://www.thenbs.com/training/educator/specification/specIntro/specIntro10.asp

http://www.designingbuildings.co.uk/wiki/Nbs

https://www.cips.org/Knowledge/Procurement-topics-and-skills/Understand-Need---Market-and-
options-assessment/Setting-KPIs/

9
http://www.gov.scot/Topics/Government/Procurement/buyer-information/spdlowlevel/
routetwotoolkit/developdocumentsroutetwo/specification

https://www2.ul.ie/web/WWW/Services/Finance/Procurement_and_Supply_Chain_Office/
UL_Procurement/Policies_%26_Procedures/Guidelines_on_Writing_Specifications

Exam Question

Explain FIVE reasons why a purchaser might favour an ‘output’ specification over a ‘conformance’
specification. (25 marks)

Marking scheme

This is a wide-ranging question, and candidates should explore fully why purchasers might favour
‘output’ specifications over ‘conformance’ (or ‘input’) specifications. Answers should clearly
delineate FIVE different reasons for a purchaser to favour an output specification; and there are
many reasons from which to choose.

By way of examples only, answers might state that:

• It can be much quicker to write an output specification

• An output specification is likely to be a very much shorter document than a conformance

specification, making it much easier and cheaper for all interested parties to handle, amend, read
and understand.

• An output specification places all of the risks of non-achievement of performance squarely with
the supplier, and not with the purchaser: if the required performance is not met, then the supplier
must remedy the situation, wholly at his time and cost;

• An output specification allows for innovation and new approaches to achieving the desired/
required performance, and to dealing with any problems that arise; this encourages flexibility and
innovation in the marketplace, and it can be argued that it encourages new start-up companies and
diversification of existing companies;

• An output spec requires little or no detailed technical knowledge on the part of the purchaser;

• An output spec will avoid reliance on existing suppliers and their brands/IPR.

These are examples only, and all other valid reasons should be accepted and given marks
appropriately. Higher marks should be awarded for the more comprehensive and well-reasoned
explanations, which give good coverage to legitimate reasons for preferring output specifications.

Benefits of Conformance Specifications

Can be difficult and time consuming and costly to develop.

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Fails to deliver outcomes

Requires technical skills

Risk lies with client

Stifles innovation and VFM

Can restrict supplier base

Why Should procurement be Involved

 ensuring that a good response can be obtained from a competitive market, by e.g. providing
an independent review of the content and quality of the specification;
 by challenging users to avoid over-specification and/or under-specification;
 by promoting value-add and/or innovation;
 by ensuring that the specification is written in such a way as to allow for meaningful
evaluation between competitive tenders;
 by promoting the use of performance specifications wherever appropriate;
 and by promoting standardisation, variety reduction, and increased use of ‘unbranded’ or
‘off-the-shelf’ items.

Contribution Of procurement

 Supply market awareness

 Supplier contacts
 Awareness of commercial aspects of purchases
 Awareness of legal aspects of purchases
 Purchasing disciplines

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