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Procurement Management

Procurement Management consists of the following processes. See also Knowledge Areas - Procurement.

Process Project Phase
  Plan procurement management   Planning
  Conduct procurements   Executing
  Control procurements   Monitoring & Controlling  
  Close procurements   Closing  

Procurement Management involves getting work done by people outside the project team. It includes processes required to aquire goods or services that will be performed outside the project team. Project Procurement Management includes administering contracts and change control process to manage contracts or purchase orders.

The project manager's role is to understand the procurement process, understand contractual terms, idenify risks and develop mitigations associated with the contract, and adjust the schedule based on procurement process and/or contractual terms, etc.

Not understanding the terms of a contract can lead to potential issues on your project.

Bugs Bunny  

"Okay, wise guy. My contract SPECIFICALLY says I am always to be drawn AS A RABBIT!"   Bugs Bunny

Plan Procurement Management

Procurement planning involves determining what products or services will be aquired outside the project team to complete the project work. Many projects involve work being performed by an outside vendor. Thus, planning includes analysis of potential sellers, determining associated risks, and identifying the type of contract that will be used. During this phase, the project manager needs to plan for how the work will be performed as per contractual agreements, how communications will be handled with the vendor, what measures will be taken to inspect the vendor's deliverables to ensure compliance to project requirements and contractual obligations, etc.

Contract Types

Conduct Procurements

During the Conduct Purchases process, proposals from sellers are evaluated. Once evaluated, a seller is select to perform the work and a contract is awarded.

Bid Documents

Purchasing or bid documents are submitted by the buyer to the seller and are documents that serve as invitations to sellers, solicit offers and establish contractual terms.

Control Procurements

The Control Procurements process involves managing vendor relationships to ensure the seller's delivery meets the requirements as stated in the contract.

Tips for Managing Vendors

There are pros/cons associated with each contract type. Below are advantages / disadvantages to help you manage each type of contracutal relationship effectively.

      Pros & Cons of Different Contract Types

Close Purchases

The Close Procurement process involves verifying that all planned work has been completed as per the terms of the contract.

Additional Information

    Visit the Procurement Management Bookshelf to search for books available for purchase.

    Procurement on Wikipedia

    Procurement Management Sample Questions