Project management procurement

Project Management Procurement
Name:
Institution:
Table of Contents
 TOC \o "1-3" \h \z \u  HYPERLINK \l "_Toc370491476"
1.0 Introduction  PAGEREF _Toc370491476 \h
3
 HYPERLINK \l "_Toc370491477"
2.0 Procurement and Contract Management  PAGEREF _Toc370491477 \h
3
 HYPERLINK \l "_Toc370491478"
3.0 Importance Of Procurement And Contact Management In Business  PAGEREF _Toc370491478 \h
5
 HYPERLINK \l "_Toc370491479"
4.0 The Concept of Procurement Planning and Strategies For Project Success  PAGEREF _Toc370491479 \h
6
 HYPERLINK \l "_Toc370491480"
5.0 Selecting the Most Qualified Vendor  PAGEREF _Toc370491480 \h
7
 HYPERLINK \l "_Toc370491481"
6.0 Contract Evaluation and Legal Process  PAGEREF _Toc370491481 \h
9
 HYPERLINK \l "_Toc370491482"
7.0 Comparisons of Critical Contract’s Critical Elements  PAGEREF _Toc370491482 \h
10
 HYPERLINK \l "_Toc370491483"
8.0 Conclusion  PAGEREF _Toc370491483 \h
12
 HYPERLINK \l "_Toc370491484"
9.0 References:  PAGEREF _Toc370491484 \h
12

PROJECT MANAGEMENT PROCUREMENT
Introduction
Procurement management engrosses having work done by individuals that are outside the project team. The project management procurement may include administration of contracts and alter control process in order to purchase orders or control contracts. It can also be termed as an act of maintaining, establishing as well as closing relationships with the suppliers of certain services and goods for the project (Wheaton, 2008). The knowledge setting of the project management procurement comprises of various processes that includes; the Plan procurement Management, Conduct procurements, Control procurements, close procurements. A personal involvement, as a member of a team of a successful procurement project brought about increased knowledge regarding the new learning in project management field, as well as its relationship with the management of purchasing and supply.
Procurement and Contract Management
The project team was focused on increasing the efficiency when dealing with suppliers of services, goods or works for enhancing the professionalism of the organization. In the project, procurement was termed as the act of attaining goods, the services or works from a certain external source. The procurement seemed to require that the services and goods or works provided be appropriate, being procured at a favorable cost in order to cater for the needs of the purchaser, in consideration of both quantity and quality. Moreover, time and location are considered, while the public bodies and corporations frequently define the processes that are intended to endorse open and fair competition suitable for their business and on the other hand minimizing the exposure to collusion and fraud. In addition, the contract management involves the act of managing the contracts made to vendors, customers, employees or partners, among others. In this practice, it involved negotiating the condit6ions and terms in contracts as well as making sure that there is compliance with the conditions and terms. Moreover, it entails documenting and coming to agreement in case there would be any amendments or alterations likely to arise in the occasion of implementation of its execution or implementation. The function of the procurement as well as contract management is to offer basic direction and information concerning the procuring services or commodities within a given location. In addition, it helps in recommending strategies suitable for managing the resulting contract. After the requirements or needs for certain services are identified, the activities of procurement ought to be initiated in the earliest time possible because the process is likely to take some reasonable time before accomplishment. The manager of this project had taken responsibility for the real procurement of the products or services that were needed in the development and implementation of the project. This is because the activities involved were fit to be directed via a procurement or contracting team leader. The activities usually have a certain impact on the on the schedule and the budget of the project, making it important for its integration into the general project schedule as well as the project plan. Both procurement and contract management is very significant in the contemporary business.
Importance of Procurement and Contact Management in Business
The significance of procurement can be termed as irreplaceable since they are unique and engaging for other lines to handle. Firstly, procurement is responsible for management of internal transactions for making orders as well as receiving services and goods, and handling the data of procurement. The original goal in this case is maximizing the competence of transaction-flow as well as reporting. In addition, procurement provides support for the engagement of vendors and contracting processes. The roots of procurement are in regular negotiations of price for tools, raw materials, consumables, components, and packaging, among other regular purchases. This is usually a tactical process and is transaction-focused. The procurement that is considered to be value-based and strategic brings about translation into bottom line developments to the corporation in order to make sure that the strategy of procurement is aligned with, rolling up to the general corporate strategy. On the other hand, contract management is impactful where procurement is concerned, regardless of the fact of being assumed by numerous organizations. The contacts can be altered in occasions when the climate of the business turns from the way it was during the time when the contract was initially conceived, and it is the duty of procurement to recognize that time. The contract management is significant in providing the saving chances that is usually accompanied by paying close consideration to the contract details. This is because there are hidden savings found in contracts, which procurement should be keen about. Procurement is very helpful in discussing prices as well as contracts and thus making it important to involve procurement early in the project in order to make sure that the discussions are both safe and strategic. The executives and businesspersons ought to comprehend the legal language found in contracts in order to ensure that they are safe.
The Concept of Procurement Planning and Strategies For Project Success
Procurement is very important in meeting the organizational goals of any business or company. Procurement planning may be divided into two categories, one of which is consolidated planning and individual planning. For an organization that has a decentralized structure, the procurements plans are usually developed at distinct levels that include corporate, country office as well as business unit (Zambia Public Procurement Authority, 2011). All the country offices and business units are normally build up consolidated plans, which are prepared annually although it is considered a good practice when they are regularly reviewed. On the other hand, individual planning is reflected where procurement planning happen at the project stage or at the action stage, as this depends on the difficulty of the action as well as the sum of interrelated actions of procurement. All the activities of procurement require procurement strategies. Every organization requires understanding all the information involving the nature of activities of procurement, an understanding about the market as well as knowledge of potential or existing risks within an organization. The strategies for a competent organization include a higher purchase in moderate expenditure and easy, ensuring supply likely to require a strategy with the plan of ensuring that total cost is decreased. A low purchase in relation to expenditure and hard in securing supply is likely to require a strategy that seeks to guarantee a progressive supply so that exposure may be reduced. Moreover, a purchase high hen related to expenditure and hard to protect supply is likely to need special supplier relationship management. The strategies of procurement are meant to meet the goals of the project that have been identified as well as mitigating the existing risks. For instance, when there is procurement transaction in occasions where quality is vital, the organization procurement strategies include vivid specifications that reflects national together with international standards. In addition, the procurement strategies include the prior qualifications of the supplier, factory visits, pre-shipments inspection, or sampling and self-governing laboratory testing, among others. Furthermore, in projects that can be termed as having critical delivery, the potential strategies may contain early ordering in case there is conduction of proper planning. The pre-qualification of suppliers can also be involved in order to make sure that all the suppliers being considered are capable and reputable, and developing the substitute sources, while still monitoring the manufacturing capacity. The strategies may also include request...