1DAY52AgendaDay5•ProcurementManagement•ProfessionalResponsibility•Wrap-up3UNIT10:ProcurementManagementContract4Overview•Terminologymaybeunfamiliar•Testtakershavenotfoundthequestionstobedifficult•Youdonothavetobeaattorneytoanswerthesequestions.Theyaremoreprocessorientedthanlegaloriented.5Overview•Questionsaregenerallyaskfromthebuyersperspectiveinthebuyer-sellerrelationship.So,haveyourbuyerhaton.•Buyermaybereferredtoascustomer.•Sellermaybereferredtoassubcontractor,thirdparty,orvendor.BuyerCustomer6Processes1.PlanPurchasesandAcquisitions2.PlanContracting3.RequestSellerResponses4.SelectSellers5.ContractAdministration6.ContractClosure7ProcurementManagementProcessesrequiredtoacquiregoodsandservicesfromoutsidetheperformingorganization8TheProcurement(Contracting)ProcessPlanPurchases&AcquisitionsPlanContractingRequestSellerResponsesSelectSellersContractAdminContractClosure•MakeorBuy•StatementofWork•TypeofContract•Documents:-RFP-RFQ-IFB•EvaluationCriteria•SOWupdates•Bidder’sConference•Qualifiedsellerlist•Advertising•Issuerequest•Receivingproposalsorbids•Applyevalcriteria•Negotiate•Contractawarded•Monitorperformance•Managechanges•Processpaymentrequests•Documentthefiles(adminrecords)•Lessonslearned(akaProcurementaudit)PlanningExecutingClosing(Binderp.10-1,PMBOK®GuideChapter12)HandoutPg609ContractsIntheUnitedStates,contractsare:ContractLegalDocumentsSubjecttoremedyincourtsBindingonbothpartiesCOURT10Overview•Sellerisoutsidetheorganization.•Sellermanagestheeffortasaproject.•ProjectManagerworksforthebuyerorganizationPMCustomer111.PlanPurchasesandAcquisitionsDecidingonwhatgoodsandservicesneedtobeprocuredfromoutsidetheorganization.“Whatdoweneedandwhendoweneedit.”AugustSMTWTFS1234567121.PlanPurchasesandAcquisitionsInput•EnterpriseEnvironmentalFactors–MarketConditions(Costup/down)–Aretherecompaniesthatcandowhatweneed?–Dowehaveaprocurementsdeptforsupport–Otherwise,ProjectTeammustperformactivities•OrganizationalProcessAssets–ProcurementPolicie...
