Project Procurement Management

1849 Words4 Pages
bulb-icon

Recommended: management of projects in procurement

This paper will focus on the concepts of project procurement management and the impacts it can have on the overall success of a project. The paper contains four sections, which focus on a few major tentacles of project procurement management. Section one, describes in detail all of the components that are involved with project procurement management. Section two, summarizes the major project procurement processes, which the Project Management Institute (PMI) view as appropriate for successful execution of projects. Section three, describes the various benefits of categorizing procurements into generic families. Lastly, Section four, will summaries the importance of project procurement management in the overall project management process.

Section One: What is Project Procurement Management?

Fleming (2003) says that project procurement management involves the various processes that are required to acquire good and or services. Procurement management requires buyers (the inside organization) and sellers (the outside organization) to perform business transactions under an agreement. Typically, the buyer is the one buying scope from the seller. The buyer or seller can execute the project procurement processes through teaming arrangements, contracting, or subcontracting (Fleming, 2003, p. 2). In many cases, the project manager will work in conjunction with a procurement subject matter expert (SME) to execute a contract. The SME generally has a background in purchasing, procurement, material, or supply management. The project manager may perform both duties in many organizations. Nonetheless, the role of the procurement leader is to support and improve the management of the overall project (Fleming, 2003, p. 3). Fleming (...

... middle of paper ...

...hile the processes, skills, tools, and techniques of procurement management evolve with time an organization must evolve simultaneously. Efficient procurements processes will allow the company to save money and avoid potential lawsuits, which normally stem from a breach of contract. This paper has examined various topics that relate to project procurement management and the impacts it can have on the overall success of a project. The main take away of procurement management is, this is where contractually the “rubber hits the road” and companies should take special precautions as they execute the procurement process.

Works Cited

Fleming, Q. W. (2003). Project procurement management: Contracting, subcontracting, teaming. Tustin, CA: FMC Press.

Guide (2009). A guide to the project management body of knowledge. Newtown Square, Pennsylvania: PMI, Inc.

Show More
Related

  • Operations Management Metrics

    917 Words  | 2 Pages

    Gray, C., Larson, E. (2008). Project Management: The managerial Process. New York, NY: The McGraw-Hill Companies Inc.

    Read More

  • Building Contract Ccdc 5a

    406 Words  | 1 Pages

    Selecting the right procurement route can have a direct impact on the level of success to a project. There are various items that must be factored before making a decision including: size of the project,

    Read More

  • Management of Field Construction Projects

    1864 Words  | 4 Pages

    Typically, project managers will be appointed at the beginning of a project and will assist the client in developing the project brief and then selecting, appointing and co-ordinating the project team. He or She will then usually represent the client throughout the full development process managing the inputs from the client, consultants, contractors and other stakeholders.’

    Read More

  • Oxford County Hospital Case Summary

    541 Words  | 2 Pages

    Description: Ministry of Health Service (MHS) did fair and open competitive selection process which was the best example of procurement management in my opinion. For better procurement, MHS involved the private sector in order to reduce public-sector costs and risk. From this infrastructure project, I understood the “Finance – Design – Build – Operate – Maintain” model required to practice procurement services. To fulfill the objectives, project team considered traditional procurement and three public-private partnership procurement options.

    Read More

  • Project Cost Management Approach

    1609 Words  | 4 Pages

    The Project Manager will be responsible for managing and reporting on the project’s cost throughout the duration of the project. During the monthly project status meeting, the Project Manager will meet with management to present and review the project’s cost performance for the preceding month. Performance will be measured using earned value. The Project Manager is responsible for accounting for cost deviations and presenting the Project Sponsor with options for getting the project back on budget. The Project Sponsor has the authority to make changes to the projec...

    Read More

  • Procurement Strategy For A Construction Project

    1188 Words  | 3 Pages

    To select a suitable procurement strategy for a construction project, there are some issues which need to consider. From all of those issues, there are 3 big issues that mainly affect the selection decision which are time, cost and quality. There is several type of procurement strategy available in market that commonly used for construction project and each of the common method will be analyze and compare to find the most appropriate method for this project. The choice of procurement strategy is very important to the success of a construction project. Therefore, the characteristic of each strategy have to analyze and also its relative advantages and disadvantages. A recommendation of most appropriate procurement strategy will be made after analyzed the all factor that affect the procurement selection.

    Read More

  • Cost Reimbursable Contracts

    1365 Words  | 3 Pages

    As a project manager, one must understand the procurement concepts, regardless of whether you are a buyer or a seller. Needless to say, procurement management helps identify a suitable supplier or contractor to procure goods or services. In most cases, a procurement contract is created. A procurement contract is an agreement in which the buyer agrees to acquire goods or services from a seller in exchange for consideration. A contract is a legally binding agreement between two or more parties. Usually, one party is known as a buyer and the other as the seller. This binding agreement is the key to the buyer and seller relationship and this provides the framework for how they will transact with each other. These contracts are mostly

    Read More

  • Legal Aspects of Procurement Management

    1764 Words  | 4 Pages

    This paper examines the legal aspects of procurement management and specifically how procurement management can be used as an effective tool for the overall management of a project. This paper focuses on the basics of common contract laws, the basics of agency law, the Uniform Commercial Code (UCC), and some aspects of that pertain to the Federal Acquisition Regulations (FAR). A summation of the company’s position in relation to a given supplier (provided the company decides not to procure all of the material in a contract) will be examined along with how that position is strengthened by understanding the legal aspects of procurement management. Finally, the paper will analyze how the project manager is supported by the contracting management function.

    Read More

  • Standard Forms Of Contract Case Study

    1147 Words  | 3 Pages

    The procurement approach for this project was chosen based on the project management. The process of selecting the (construction) project management contractor (Siemens) as well as its team was significant as the key in producing an effective project with regards to quality and cost in this approach relies on the management team’s experience and knowledge in all aspects.

    Read More

  • Essay On Private Sector Procurement

    2929 Words  | 6 Pages

    In both public and private sector procurement, goods and services have to be acquired, and in both there are good motives to strive for the best contract in procuring the required goods and services. Still, despite these similarities, it is well recognized that public procurement is quite different from procurement in the private sector (Erridge, 1996; Thai, 2001; Thai et al., 2004).

    Read More

  • Procurement Process Essay

    903 Words  | 2 Pages

    The procurement process step by step guide gives a guideline on following each step to complete the procurement process. Following legal guidelines, the request to contract a supplier is done by filling out important documents like the statement of work document and other contractual obligation documents. The next step requires high quality solicitation documents to be completed when selecting the right supplier for the tasks ahead. The process needs to be thorough so each option is evaluated correctly ensuring that everything that needs to be communicated is completed. Once the supplier is chosen terms and conditions need to be explained. The supplier must commit to the same performance agreed on in the contract. Project managers need to have a sound knowledge of legal implications if contractual agreements are not being followed. Reasons for failure are poor communication, contract terms not being defined well enough and acceptance of contract terms not being understood. The project manager’s role in this stage is to follow each step and thoroughly examine and compare the information received from requests for procurement of suppliers and completing legal requirements by completing important documents is also a high priority for this stage to be

    Read More

  • The Importance Of Procurement Performance

    1546 Words  | 4 Pages

    (2014) deduced that procurement performance can be assessed by focusing ondelivery,flexibility, quality, cost and technology. Optimal performance attainment is dependent onhow current suppliers`relationships aremanaged so asto ensure constant availability of needed quality supplies at the organization. This will ensure that sourced materials are indeed procured at the right costand atthe right time. Procurement performancestrives toenable improvements in the procurement process at the organizationso as to improve on qualitydelivery of firm products and servicesatleast possible time and

    Read More

  • Reflection Paper On Project Management

    1545 Words  | 4 Pages

    Project management involves all activities that encompass scheduling, planning, and controlling projects. A successful project manager ensure that an organization’s resources are being used both efficiently and effectively. Most projects need to be uniquely developed require a sense of customization and the ability to adapt to any posed challenges. The scope of effective project management includes defining what the project is and what is being expected to be accomplished. Projects are imposed to fulfill a certain need and project managers must have the ability to create the proper definition. Goals and the means used to attain those goals have to be clearly stated. Project Managers must also have the ability to plan

    Read More

  • What Is The Importance Of Project Management

    781 Words  | 2 Pages

    When planning a new project, how the project will be managed is one of the most important factors. The importance of a managers will determine the success of the project. The success of the project will be determined by how well it is managed. Project management is referred to as the discipline that entails the processes of carefully planning, organizing, controlling, and motivating the organization resources so as to foster and facilitate the achievement of specific established and desired goals and meet the specific criteria of success required in the organization (Larson, 2014). Over the course of this paper I will be discussing and analyzing the importance of project management.

    Read More

  • Different Procurement Methods: Pros and Cons

    2190 Words  | 5 Pages

    In general, there are different types of procurement type for various situations due to no one method can be suitable under the all different construction project. In this case, there are four procurement paths, which are traditional, design and build, management and design and manage, will be advised to use. However, each method has different aspects of advantages and disadvantages.

    Read More

More about Project Procurement Management

Open Document