Procurement management in PM (english)

PROCUREMENT PLANNING TOOLS AND TECHNIQUES • Make-or-buy analysis please see PMBOK • Expert judgment • Contract type selection: – Fixed price lump sum contracts – Cost reimbursable contr

PROCUREMENT PLANNING



 TOOLS AND TECHNIQUES

• Make-or-buy analysis (please see PMBOK)

• Expert judgment

• Contract type selection:

– Fixed price (lump sum) contracts

– Cost reimbursable contracts

– Unit price contarcts

• Statements of work (SOW): describes the

procurement item in sufficient detail to allow

SOLICITATION PLANNING



 TOOLS AND TECHNIQUES

• Standard forms: may include standard contracts, standard descriptions of procurement items,

standardized versions of all or part of the needed bid documents

• Expert judgment:

• Evaluation criteria: be used to rate or score

proposals Evaluation criteria are often included aspart of the procurements documents

• Statement of work updates

SOLICITATION



 OUTPUTS

• Proposals: seller-prepared documents that

describe the seller’s ability and willingness to provide requirements of the relevant

procurement documents

– Rating the prospective sellers on each criterion

– Multiplying the weight by the rating

SOURCE SELECTION



 OUTPUTS

• Contract: A contarct is a mutually binding

agreement which obligates the sellers to provide the specified product and obligates the buyers to pay for it

• Seller invoices: The

sellers must submit

invoices from timeto

Output of Source

Selection

CONTARCT ADMISTRATION



 TOOLS AND TECHNIQUES

• Contract change control system: to define the process by which the contract may be modified:

– Paper work,

– Tracking system,

– Dispute resolution procedures,

– Approval levels necessary for authrizing changes

• Performence reprting:

• Payment system:

CONTARCT CLOSE-OUT



 TOOLS AND TECHNIQUES

• Procurement audits: to be a structured review of the procurement process from procurement

planning through contarct admistration

• Formal acceptance or closure:

– The person or organization responsiblefor contarct administration shouls provide the seller with formal written notice that the contract has been completed – Requirements or formal accptance and closure are

A TYPICAL CONTRACT IN PM:

ENGINEERING, PROCUREMENT AND

CONSTRUCTION AGREEMENT

FOR

1 Definitions.

2 Phasing

3 Commencing the Work.

4 Contract Documents, Intent, Amending Use

5 Developer's Responsibilities

6 City's Responsibilities

7 Compensation and Payments

8 Title and Risk of Loss

9 Substantial Completion

11 Changes

12 Warranties and Guarantees

13 Tests and Inspections

14 Indemnities

15 Insurance

16 Bonds

27 Independent Contractor, Other

28 Representations and Warranties

29 Miscellaneous Provisions

30 Apprenticeable Crafts

31 Hours of Work

32 Record

33 Non Collusion Affidavit

34 Notices