Nobody downloaded yet

Contracting and Procurement in Project Management - Essay Example

Comments (0) Cite this document
Summary
Project management is a collection of different components which combined together to give shape to the whole project management cycle. As defined earlier, in our presentation, that there are two approaches to the project management i.e. project management cycle as well as project life cycle…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.1% of users find it useful
Contracting and Procurement in Project Management
Read TextPreview

Extract of sample "Contracting and Procurement in Project Management"

Download file to see previous pages Project procurement management is "the process of purchasing goods or services from the vendors" (Phillips, 2003). This very definition of the process suggest that the procurement is the process which involves external organizations as well as persons in the whole project management process. It therefore not only makes it more complicated but also a delicate job too as maintaining relationships with the vendors and suppliers sometimes become a very important element for the overall success of the project. Thus, it is of great importance that the procurement management should effectively be integrated into the overall process of project management so that project can get completed within budgeted times, costs and schedules.
It is also important to understand that the process of procurement management is a phased process therefore it is not only time consuming but also need to have a more strategic outlook as it also provides an opportunity to develop long term relationships with the vendors.
This presentation will present an overview of how the process of procurement management can fit into the whole project management besides discussing the various other aspects to get a braoder view of the whole process.
Procurement is a process which requires the involvement of different resources including people, goods, services as well as other resources. It also involves the evaluation of tenders as well as estimation of different costs involved in the procurement process. This therefore requires that the project managers must take extreme care to manage different risks involved in the process. Since the process of procurement management involves different persons outside the project therefore project managers need to follow a systematic procedure. A procurement management process generally involves following processes:
1) Purchase and acquisition decisions
2) Contract Planning
3) Solicitation of seller responses
4) Selection of sellers
5) Administrating the contract
6) Contract closure
The first phase of purchase and acquisition is about the determination of the different goods and services required to complete the project. This therefore requires that the project managers must clearly identify which project needs can be fulfilled through the procurement process. The emphasis, during this phase of the procurement, is mostly on what, how and when to acquire the resources required for the project. (Ghosh, 2007).
Contract planning is the next important steps which require not only close monitoring of the existing policies and procedures of the firm but also require that the organization's strategic objectives and aims are achieved.
It is important to understand that the very crux of the procurement management process is to make a conscious decision of whether to buy or build the resources required for the project to complete. It has also often been argued that the while planning for contracting, project managers must also take into account the various legal aspects of the contracting and that the drafting of the same should be done after taking into different legal as well as operational aspects of the contracting. While at the phase of the purchase and acquisition decisions, it is also important that the project managers must evaluate the seller responses after making acquisition decisions. It is quite possible that the project ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Contracting and Procurement in Project Management Essay - 1”, n.d.)
Contracting and Procurement in Project Management Essay - 1. Retrieved from https://studentshare.org/miscellaneous/1526515-contracting-and-procurement-in-project-management
(Contracting and Procurement in Project Management Essay - 1)
Contracting and Procurement in Project Management Essay - 1. https://studentshare.org/miscellaneous/1526515-contracting-and-procurement-in-project-management.
“Contracting and Procurement in Project Management Essay - 1”, n.d. https://studentshare.org/miscellaneous/1526515-contracting-and-procurement-in-project-management.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Contracting and Procurement in Project Management

Contracting and procurement methods

...Project Procurement Management Plan E-Mail Upgrade Project April 2009 Contents Sl No Page No 0 Overview ..... 3 2.0 Contract Planning .. 4 3.0 Statement of Work (SOW) 4 3.1 Types of Contract .. 5 3.0 Evaluation Criteria ..... 7 3.1 Weighting Chart & Methodology ..... 7 4.0 Bibliography ....... 8 1.0 Overview The Ohio Department of Human Services (ODHS) needs to upgrade its existing e-mail software. It is proposed that ODHS buy the necessary e-mail upgrade software and implement the project within a period of one year. ODHS currently uses Version 7.0 of an e-mail software called Globalupgrades (a Worldviewupgrades product). The version's support will be phased out in another one year. The current version is 9.0... . It is of...
4 Pages(1000 words)Essay

Project procurement and contract management

...Project Procurement and Contract Management Selection of a successful purchasing specialist during a competitive tendering process In managing contracts related to procurement of materials in projects the purchasing manager or the specialist has to perform a series of tasks according to some predefined criteria. In the same way the purchasing specialist has to take it to consideration the number of factors that directly and indirectly impact on his performance (Guth, 2009). In the first instant skills of the purchasing specialist would be enhanced by the vertically integrated...
7 Pages(1750 words)Essay

Project Procurement Management

...Project Procurement Management Background information and objectives TopLiance Corporation sells home appliances. They have over 50 sales agents across multiple states. They have decided to implement an online sales program, which is Internet based and is expected to increase the sales volume and enhance the profit margin. As a person leading the project team, my objective is to generate the project charter, schedule and rough cost estimate. The Project Charter The project initiation phase consists of defining the Project Charter. The Project Charter is "A document issued by senior...
3 Pages(750 words)Essay

Contracting and Procurement

...-incentive-fee contract can be opted for (National Oceanic and Atmospheric Administration, 2008). In these types of contracts payments of all incurred costs which range within a predetermined total estimated cost are paid to the people who are hired. 2. Whenever a training entity is hired for the purpose of teaching Project Management students about the techniques of using the newly installed software, it would definitely be for a particular duration, for instance a stipulated number of days or months. Cost sharing contract is the appropriate choice for such tasks. In a cost sharing contract, both the parties involved in the...
3 Pages(750 words)Essay

Contracting and Procurement in Project Management- Phase 2 DB

...Running head: Contracting and Procurement in Project Management – Part 2DB Contracting and Procurement in Project Management Phase 2 - DB Author Affiliation November 2008 Abstract In this paper I will explain contracting and procurement activities into overall project cost and schedule. I will also explain what the requirements for a legal contract are. In this scenario my aim is to present the requirement of legal contract for buying the scheduling tool plus additional goods and services like hiring technicians, hiring a...
3 Pages(750 words)Essay

Contracting and Procurement in Project Management- Phase 2 part 2DB

...Running head: Contracting and Procurement in Project Management – Phase 2- Part 2DB Contracting and Procurement in Project Management – Phase 2 Part 2- DB Author Author Affiliation November 2008 Abstract In this document I am going to discuss different contract types and risks associated with each contract type. Then I will analyze all contract types and try to find out which will be best for ACME Development Corporation (ADC) project of purchase for new scheduling software and other associated goods and services those are associated to this project. The contract type risk factor highlights the level of cost risk established by the contractor varying contract categories. The working resources modification is an alteration added... up the...
4 Pages(1000 words)Essay

A Proposed Health Promotion Campaign Against Obesity

8 Pages(2000 words)Assignment

Procurement - Assignment 2

...impact on time, costs and quality; to ensure that the project’s goals are attained. One needs to consider a variety of factors from the project’s internal and external environment in which the industry operates. A point to note is that different projects may require different systems based on a project’s features (Hashim, Yuet, Chu, Hooi, Heng & Yong 2006). Procurement systems are divided into three categories namely; traditional, management contracting and design and build methods. These three categories have different influences on each factor. The following factors are may be considered in the construction of...
6 Pages(1500 words)Essay

Project Procurement Management

...the terms of the contract, which is legally binding. According to Gibson (1988), there should be the agreement based on mutual understanding in any given contract, and this principle should always be upheld so as to avoid a situation like the one presented in the case study given above. In brief, it can be noted that there is a need for the project manager to constantly monitor all the developments in a project. Another effective way of doing this is to ensure that there is constant feedback from all parties involved in order to create mutual understanding among them. References Burke, R. (2007). Introduction to project...
1 Pages(250 words)Essay

Ways To Improve The Impact Of Contraceptives By High School Students

2 Pages(500 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Contracting and Procurement in Project Management for FREE!

Contact Us