project procurement management prof. dr. attaullah shah
TRANSCRIPT
Project Procurement Management Prof. Dr. Attaullah Shah
O you who have believed, avoid much [negative] assumption. Indeed, some assumption is sin. And do not spy or backbite each other. Would one of you like to eat the flesh of his brother when dead? You would detest it. And fear Allah ; indeed, Allah is Accepting of repentance and Merciful.
O mankind, indeed We have created you from male and female and made you peoples and tribes that you may know one another. Indeed, the most noble of you in the sight of Allah is the most righteous of you. Indeed, Allah is Knowing and Acquainted.
Some quotes about procurement Labor was the first price, the original purchase - money that was paid for all
things. It was not by gold or by silver, but by labor, that all wealth of the world was originally purchased. Adam Smith
“Property may be destroyed and money may lose its purchasing power; but character, health, knowledge and good judgment will always be in demand under all conditions.” Roger Babson
“Men use care in purchasing a horse, and are neglectful in choosing friends” John Muir.
Purchasing power is a license to purchase power.” Raoul Vaneigem
“Excellence in any department can be attained only by the labor of a lifetime; it is not to be purchased at a lesser price.” Samuel Johnson
Some quotes…..
Passion can never purchase what true love desires: true intimacy, self-giving, and commitment”
“Experts agree that the best type of computer for your individual needs is one that comes on the market about two days after you actually purchase some other computer.” Dave Barry
It takes me a long time to make a big purchase. Jessica Chastain
If a man will make a purchase of a chance he must abide by the consequences. Richard Richards
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“Self-pity is our worst enemy &
if we yield to it,
we can never do anything wise in this world”
- Helen Keller
CITY UNIVERSITY OF SCIENCE AND CITY UNIVERSITY OF SCIENCE AND INFORMATION TECHNOLOGY, PESHAWARINFORMATION TECHNOLOGY, PESHAWAR
Bio details of the Speaker
Dr. Attaullah Shah Vice Chancellor City University of Science and IT Peshawar Previously Director ( Planning and Projects AIOU)
[email protected]. [email protected], www.drshahpak.weebly.com +92-333-5729809, +92-51-9057212
Qualification PhD Civil Engineering ,M.Phil Eco ,MSc Structure Engg MBA, MA Eco, MSc Envir Design,BSc Civil Engg (Gold
Medal), Post Grad Dip Comp (Gold Medal) Professional and Field experience:
25+ Years Research Publications in refereed journals and conferences:
25 Journals publications+55 Conference publications Areas of interests
Structural Engineering Sustainable built Environment Construction project Management
Engineering Programs: Fall 2015 (Aug-Feb)BS Electrical Engineering – Telecom – Power- Electronics BS Civil Engineering MS Electrical Engineering MS Engineering Management MS Civil Engineering PhD Electrical Engineering
Faculty of Engineering (PhD faculty Prof. Dr. Nauman Khan Dean F/O Engineering Electrical Engineering
Prof. Dr. Sahibzada Fayyaz Noor Associate Professor Dr. Nasimullah Khan Assistant Anisullah Khan Asstt. Prof. Engr. Abraiz Khattak ( PhD Comp/Defense awaited) Asstt. Prof. Fazal Mohd ( PhD Scholar GIK/CityU sponsored)
Civil Engineering: Prof. Dr. Attaullah Shah Assistant Prof. Shahab Samad
Shared faculty Prof. Dr. Anwar Fazil Chishti (Economics/Management) Prof. Dr. Jehanzeb (Economics/Management) Asstt. Prof. Muhammad Tahir ( Computer Science) Asstt. Prof. Ghufranullah Khan ( Computer Science)
What is a Project?
An temporary endeavor to create a Unique Product or Service.
A unique one time effort bound by cost, time and resources/technical performance ( CST) and has defined objectives to satisfy the customer needs.
Project is an undertaking having definite objectives, and specific beginning and ending points, limited budgets, defined scope.
Sum of certain activities and tasks required to be performed in a specified period of time with human and non-human resources for specified objectives.
( Is your training a project? )
What is a Project?
Project is a one time non-routine opportunity to develop a new product. To satisfy the customer to achieve the organizational objectives.To be completed with in Allocated budget. Scheduled Time. Approved Technical Performance. Approved and agreed Scope of Work. Without any change in the existing culture.
What is management? The process of Planning, Organizing, Staffing, controlling and leading.
Project management: The art of Directing and coordinating the human and non humanResources throughout the life of project by using modernManagement techniques to achieve pre-determined objectives ofscope, cost, time, quality and participants satisfaction.
( Project Management Institute America)
Project management includes:- Project Appraisal ( Before Commencement of Project PC-I, PC-II).- Project monitoring. ( During Execution of the Projects PC-III)- Project Evaluation ( After Completion of the projects. PC-IV,PC-V)
Project Life Cycle: Three Stages of a Project
Establish
Execute Complete
Define project objectives, scope and approach, mobilise project team
Execute the work plan to achieve desired outcome
Wrap up and transition
Project Stages & Project Management Model
Organise Resources
Control the Work
Report Status
Plan the Executio
n
Complete Project
Establish
Execute Complete
Define project objectives, scope & approach, mobilise project team
Execute the work plan to achieve desired outcome
Wrap up and transition
Confirm Definition
Project Selection
Project Stages & Project Management Model
Establish
Confirm Definition
Project Selection
Project Selection• Define Project Scope• Define Project Objectives• Define Approach• Define Business Case• Select Best Projects
Project Stages & Project Management Model
Establish
Confirm Definition
Project Selection
Confirm Definition• Understand Project Sponsor expectations
• Understand Project Scope
• Understand Project Objectives
• Confirm any assumptions
• Identify Project Risks
Project Stages & Project Management Model
Organise Resources
Control the Work
Report Status
Plan the Executio
n
Execute
Plan the Execution
• Define Project Deliverables
• Develop Work Plans
• Develop Scope, Change Control, Issue Management and Sign-off Processes
• Develop Risk Mitigation Plan
• Develop Quality Plan
Project Stages & Project Management Model
Organise Resources
Control the Work
Report Status
Plan the Executio
n
Execute
Organise Resources
• Identify Project Team Roles / Responsibilities
• Assign Team Members to Work Plan tasks
• Communicate responsibilities, target dates, deliverables
• Train Team Members
• Organise physical resources
Project Stages & Project Management Model
Organise Resources
Control the Work
Report Status
Plan the Executio
n
Execute
Control the Work• Monitor work progress
• Resolve issues
• Measure performance
Project Stages & Project Management Model
Organise Resources
Control the Work
Report Status
Plan the Executio
n
Execute
Report Status• Assess project progress
• Prepare status reports
• Communicate progress to relevant audience group
• Follow up any issues resulting from status meeting
Project Stages & Project Management Model
Complete Project
Complete
Complete Project
• Complete any development / administrative activities
• Obtain sign-off of final project deliverables
• Transition to maintenance team where appropriate
Information Technology Project Management, Fourth Edition
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Suggested Skills for Project Managers Project managers need a wide variety of skills.
They should:
Be comfortable with change.
Understand the organizations they work in and with.
(who to go to, SOP, etc)
Lead teams to accomplish project goals.
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Suggested Skills for Project Managers Project managers need both “hard” and
“soft” skills.
Hard skills include product knowledge and knowing how to use various project management tools and techniques.
Soft skills include being able to work with various types of people.
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Suggested Skills for Project Managers
Communication skills: Listens, persuades. Organizational skills: Plans, sets goals, analyzes. Team-building skills: Shows empathy, motivates,
promotes esprit de corps. Leadership skills: Sets examples, provides vision (big
picture), delegates, positive, energetic. Coping skills: Flexible, creative, patient, persistent. Technology skills: Experience, project knowledge.
Successful
^
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Media Snapshot – Good Project Management Skills from The Apprentice
Leadership and professionalism are crucial.
Know what your sponsor expects from the project, and learn from your mistakes.
Trust your team and delegate decisions.
Know the business. Stand up for yourself.
Be a team player. Stay organized and don’t
be overly emotional. Work on projects and for
people you believe in. Think outside the box. There is some luck
involved in project management, and you should always aim high.
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The Project Management Profession
Professional societies such as the Project Management Institute (PMI) have grown significantly. PMI
There are specific interest groups in many areas, such as engineering, financial services, health care, and IT.
Project management research and certification programs continue to grow.
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Project Management Certification PMI provides certification as a Project
Management Professional (PMP). A PMP has documented sufficient project
experience, agreed to follow a code of ethics, and passed the PMP exam.
The number of people earning PMP certification is increasing quickly.
PMI and other organizations are offering new certification programs
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Growth in PMP Certification, 1993-2003
1,000 1,900 2,800 4,4006,415
10,086
18,184
27,052
40,343
52,443
76,550
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Year
# P
MP
s
Project management ProcessesPMI approach
Five Processes. Initiating: Authorizing the project or phase Planning: Defining Objectives and selecting
approach Execution: Managing human and non human
resources to execute the project.Controlling: Monitoring, evaluation and
correcting Closing: Formal acceptance and close out.
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Nine Project Management Knowledge Areas
Knowledge areas describe the key competencies that project managers must develop. Four core knowledge areas lead to specific project
objectives (scope, time, cost, and quality). Four facilitating knowledge areas are the means
through which the project objectives are achieved (human resources, communication, risk, and procurement management).
One knowledge area (project integration management) affects and is affected by all of the other knowledge areas.
All knowledge areas are important!
A Framework for Project Management
Construction Project Lifecycle
Procurement Management Procurement is acquisition of goods and services.
Project Procurement Management includes the contract management and change control processes required to administer contracts or purchase orders issued by authorized project team members.
Procurement means the activities related to purchase, subcontracted items
Procurement items are usually classified as goods, work or services (GWS) Goods represent raw material or produced items Work means contracted labor Service means consultation
Planning, budgeting, scheduling and follow-up control of all fall under procurement management
Logistics plan includes everything related to the transport and storage of materials for the projects. GWS items cannot be scheduled to arrive just-in-time (JIT). Provision must be made to store and protect them until they are needed.
Procurement of Items
Procurement management refers to planning and control of the following Equipment , material or components designed and
provided by vendors specifically for the project It may be a portion of a work package or entire work
package It may be off-the-shelf (OTS) equipment and
components bulk material, like cement, metal piping etc. Consumables items; nails, bolts, lubricants Support equipment for construction, cranes, lifts etc Administrative equipment, computers, project office
facilities
Procurement Management
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Industrial Project Cost Distribution
Item Description Weight
1 Engineering 5%
22 Equipment / Material Equipment / Material 65%65%
33 Construction Construction 15%15%
4 Testing and Commissioning 10%
Project Procurement Management Processes and Key Outputs
Plan Purchases and Acquisitions. Determining what to purchase or acquire and determining when and how. Purchase of equipment Procurement of works Procurement of supplies etc
Plan Contracting – documenting products, services, and results requirements and identifying potential sellers. Developing the requisite documents Specification No and make etc.
Procurement Cycle
Request Seller Responses. obtaining information, quotations, bids, offers ,or proposals, as
appropriate. Inviting bids Inviting quotations Request for Proposals ( RPFs) Expression of Interest ( EOI) etc.
Select Sellers. Reviewing offers, choosing among potential sellers, and
negotiating a written contract with each seller. Tender/bids opening Evaluation and Assessment of bids Negotiation if required and allowed Selection of the seller/contractor
Contract Administration – Managing the contract and relationship between the buyer and
seller. Reviewing and documenting how a seller is performing or has
performed to establish required corrective actions Provide a basis for future relationships with the seller, Managing contract-related changes and, when appropriate, Managing the contractual relationship with the outside buyer. Contract Agreement
Contract Closure – completing and settling each contract, including the resolution
of any open items, Closing each contract applicable to the project or a project
phase.
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Procurement Planning Procurement planning involves identifying
which project needs can be best met by using products or services outside the organization. It includes deciding whether to procure how to procure what to procure how much to procure when to procure
Procurement Planning Contract Types Different types of contracts are more or less appropriate for Different types of
purchases. Fixed-price or lump-sum contracts. Cost-reimbursable contracts.( cost Plus) Time and Material (T&M) contracts.
Fixed Price contracts Fixed price or lump sum - Cost price with re-determination Fixed price plus incentive fee. Fixed price plus economic price adjustment Fixed price with successive targets incentives Fixed price for service material and labor at cost. Time and material labor hours only.
Others methods: Turnkey Bonus - Penalty Joint venture Combination of the above BOOT ( Build Operate Own and Transfer BOT ( Build Operate and Transfer) Build Lease and Transfer ( BLT)
Selection of project delivery system All project delivery systems include three participants
Owner, designer and construction organization Their relationships vary according to the different
systems and ownerships. Project delivery systems
Traditional design–tender–build ( Design Bid Build) choice for owners of most construction projects during many
centuries
Design–build Single contract with an organization that becomes
responsible for both the design and the construction of the project
One of the primary reasons for low productivity in the construction industry is the lack of integration of activities across the project life cycle.
The Design–Build Institute of America (1994) lists potential benefits from the design–build method as follows.
Singular responsibility. - Quality. - Cost savings. Time savings. - Potential for reduced administrative burden Early knowledge of firm costs. - Balanced award criteria. Risk Management
Disadvantages of Design and Build: Importance of the project brief: Difficult when scope
not defined Difficulty of establishing a price for the work. Costly tendering Short tender periods Potential low quality. Less control over subcontractor and consultant
selection. Generally less control by the owner over both project
definition and execution than design–tender–build projects.
Project manager Adding a project manager between the owner and the
architect/engineer and general contractor This arrangement implies that the project manager contracts
with the designer and the general contractor.
Separate prime contracts The owner contracts directly with individual specialty
contractors, each of whom can be considered as a ‘prime’ contractor.
There is no single general contractor to coordinate their work. An ‘agency’ construction manager may be engaged , who will
assist the owner in this coordination, but the chart makes it clear that the construction Manager is not related contractually to the several prime contractors.
Turnkey The owner and contractor agree on a fixed contract sum for a
contract under which the contractor will take responsibility for the entire project.
Agreements are often designated as EPC contracts, because of the prime responsibilities for engineering – providing basic and detailed design, procurement – supplying parts and other goods required for the project and construction – erecting and commissioning the project
Seems more like D&B. However, the scope of the contractor’s responsibility is typically broader than basic design, procurement and construction
In the UK, a recent turnkey example is the completion of the world’s first commercial digital terrestrial television network for the British Broadcasting Corporation and ONdigital.
Build–own–operate–transfer (BOOT) The build–own–operate–transfer (BOOT) type of project has
evolved as a means of involving the private sector in the development of the public infrastructure.
The term BOT, for build–operate–transfer, was first coined by the Turkish Prime Minister in 1984 in connection with the privatization of that country’s public-sector projects.
Examples of projects that have used the BOOT approach include power stations, toll roads, parking structures, tunnels, bridges and water supply and sewage treatment plants.
It is apparent that such an approach requires a complex organizational structure and carries considerable long-term risk for the project sponsor, while minimizing such risk for the governmental owner.
Joint venture
A voluntary association of two or more parties formed to conduct a single project with a limited duration
Joint venture agreements are formed between construction firms or between design firms and construction firms; they do not include owners.
The usual purpose of such an arrangement is to spread the risks inherent in large projects and to pool resources in a way that permits the joint venture to execute a project that would be beyond the capabilities of one of the parties individually.
Force account project owner acts as the prime contractor and carries out
the work with its own forces by providing field supervision, materials, equipment and labor
This method is usually confined to relatively small, uncomplicated projects that are built for the owner’s use rather than sold to another party upon completion.
They must consider the tradeoffs among the extra time and expense of the formal contracting process and the possible construction cost savings, potential time savings and improved quality resulting from these competitive or negotiated contracts
Project Delivery Options System Features Advantages Limitations
Traditional design–tender–build
Separation of design and construction responsibilitiesCompletion of design prior to selection of contractor
Certainty of priceClarity of rolesNo coordination risk to ownerEasy to accomplish changes during design
No opportunity for phased constructionFixed price established late in processOwner administers all design and construction contractsNo contractor input to design
Design–build
Single organization responsible for design and construction
Single point of responsibilityConstructability input during designFixed price early in processOpportunity for phased construction
Difficulty of formulating price prior to designLack of oversight by designerCostly tendering processLess control by owner
Construction manager
Professional manager to advise owner and designer on construction aspectsMay be agency type (advisory role only) or at- risk type (more responsibility for on-site performance)
Construction expertise available during design phaseConstruction manager provides advice to owner during construction phaseUnder ‘at risk’, some risk is removed from owner
Increased overhead costsOwner may take on greater risks under‘agency’ type, especially if multiple primes are usedOwner relinquishes some control
Project manager
Professional manager to advise owner anddesigner on all aspects of project
Owner relies on project manager for coordination of most aspects of projectPotential for rapid project start-up and prosecution
Owner relinquishes considerable controlIncreased overhead
Project Delivery Options System Features Advantages Limitations
Document and construct
Early design performed under contract to ownerLater design performed (possibly by same designer) under contract to contractor
Fixed-price contract and complete documentation before construction begins Centralized responsibilityConstructability considered during design
Designer may not control whom it ultimately works forNew and unfamiliar methodLimitations similar to design–build
Separate prime contracts
Owner contracts with individual specialty contractorsSavings in cost of engaging general contractorPotential for effective phased construction
High degree of control by owner Requires owner construction expertise
General contractor risks assumed by ownerLess clear relationship between designer and on- site activities
Turnkey
Single organization responsible for all aspects of project including, but not limited to, design and construction
Owner relies on turnkey contractor for entire projectPotential cost and time savings
Requires clear and detailed scope and needs statement at beginning of project Owner relinquishes almost all control
Build–own–operate–transfer
Single organisation responsible for designing, building and operating facility for a certain time period, after which it is transferred to owner
Owner transfers most risk to project sponsorDesign tends to recognise long-term cost impactsConstructability considered during design
Major risks to project sponsorComplexity due to large number of parties Long lead time Large up-front costs
Project Delivery Options System Features Advantages Limitations
Joint venture Two
contractors in a temporary partnership to build a single project
Takes advantage of strengths of each joint ventureAllows combined expertise to build large projectsAllows each contractor to gain experience in new area or with new type of work
Coordination challenges Like a partnership, requires very clear agreement between the co-vertures
Force account Construction project carried out by owner’s own forces
Avoids time and expense of tendering Owner can exercise more direct control
Workforce may lack needed skills Owner may lack needed managerial expertiseNo price competition
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Statement of Work (SOW)
A statement of work is a description of the work required for the procurement
Many contracts, or mutually binding agreements, include SOWs
A good SOW gives bidders a better understanding of the buyer’s expectations
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I. Scope of Work: Describe the work to be done to detail. Specify the hardware andsoftware involved and the exact nature of the work.
II. Location of Work: Describe where the work must be performed. Specify thelocation of hardware and software and where the people must perform the work
III. Period of Performance: Specify when the work is expected to start and end,working hours, number of hours that can be billed per week, where the work mustbe performed, and related schedule information.
IV. Deliverables Schedule: List specific deliverables, describe them in detail, andspecify when they are due.
V. Applicable Standards: Specify any company or industry-specific standards thatare relevant to performing the work.
VI. Acceptance Criteria: Describe how the buyer organization will determine if thework is acceptable.
VII. Special Requirements: Specify any special requirements such as hardware orsoftware certifications, minimum degree or experience level of personnel, travelrequirements, and so on.
Statement of Work (SoW)
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Solicitation Planning Solicitation planning involves preparing
several documents: Request for Proposals: used to solicit
proposals from prospective sellers Requests for Quotes: used to solicit quotes
for well-defined procurements Invitations for bid or negotiation and initial
contractor responses are also part of solicitation planning
Plan Contracting: Outputs Procurement /Tender Documents
Procurement documents are used to seek proposals from prospective sellers.
A term such as bid, tender, or quotation is generally used when the seller selection decision will be based on price (as when buying commercial or standard items),
A term such as proposal is generally used when other considerations, such as technical skills or technical approach, are paramount.
Components of RFP Introduction. Provide a brief summary of your project and describe
the process and rules for submitting a proposal. Company. List the information you need to know about the suppliers
Company such as their vision, objectives, market share, customers, expertise and experience.
Solution. List the information needed to understand the solutions proposed by the supplier, including the total quantity of each solution proposed.
Implementation. List the information you need to understand the price of each of the solutions proposed by the supplier. This will allow you to compare the total price of solutions offered by suppliers.
Other Information. List any other information needed to enable a supplier to complete a detailed proposal for the supply of goods and services to the project,
Evaluation Criteria Evaluation criteria are developed and used to rate or score proposals.
They can be objective or subjective Evaluation criteria are often included as part of the procurement documents.
Other Selection criteria Understanding of need. How well does the seller’s proposal address the
contract statement of work?
Overall or life-cycle cost. Will the selected seller produce the lowest total cost (purchase cost plus operating cost)?
Technical capability.
Management approach.
• Technical approach.
Financial capacity. Does the seller have, or can the seller reasonably be expected to obtain, the necessary financial resources?
Production capacity and interest. Does the seller have the capacity and interest to meet potential future requirements?
Business size and type.
References. Can the seller provide references from prior customers verifying the seller’s work experience and compliance with contractual requirements?
Intellectual property rights. Does the seller assert intellectual property rights in the work processes or services they will use or in the products they will produce for the project?
Proprietary rights. Does the seller assert proprietary rights in the work processes or services they will use or in the products they will produce for the project?
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Solicitation Solicitation involves obtaining proposals
or bids from prospective sellers Organizations can advertise to procure
goods and services in several ways approaching the preferred vendor approaching several potential vendors advertising to anyone interested
A bidders’ conference can help clarify the buyer’s expectations
Request Seller Responses: Tools and Techniques
Bidder Conferences Meetings with prospective sellers prior to preparation
of a bid or proposal. To have a clear, common understanding of the
procurement All potential sellers are given equal standing during
this initial buyer and seller interaction to produce the best bid.
Advertising
Develop Qualified Sellers List Qualified sellers lists can be developed from the
organizational assets if such lists or information are readily available. Whether or not that data is available, the project team can also develop its own sources.
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Outline for a Request for Proposal (RFP)I. Purpose of RFP
II. Organization’s Background
III. Basic Requirements
IV. Hardware and Software Environment
V. Description of RFP Process
VI. Statement of Work and Schedule Information
VII. Possible Appendices
A. Current System Overview
B. System Requirements
C. Volume and Size Data
D. Required Contents of Vendor’s Response to RFP
E. Sample Contract
Planning for land Procurement
Consultancy Procurement
Civil Works Planning
Road Construction Planning
Procurement of Equipment and Goods
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Source Selection Source selection involves
evaluating bidders’ proposals choosing the best one negotiating the contract where allowed awarding the contract
It is helpful to prepare formal evaluation procedures for selecting vendors
Buyers often create a “short list”
Select Sellers
Selection decision process: cost can be the primary determinant for an off-the-shelf
item, Proposals are often separated into technical
(approach) and commercial (price) sections, with each evaluated separately.
Multiple sources could be required for critical products, services, and results to mitigate risks that can be associated with issues such as delivery schedules and quality requirements.
Select a single seller that will be asked to sign a standard contract.
Select Sellers
Establish a negotiating sequence by ranking all proposals by the weighed evaluation scores assigned to each proposal.
On major procurement items, the overall process of requesting responses from sellers and evaluating sellers’ responses can be repeated.
A short list of qualified sellers can be established based on a preliminary proposal. A more detailed evaluation can then be conducted based on a more detailed and comprehensive proposal that is requested from the sellers on the short list.
Select Seller Techniques Weighting System Independent Estimates Screening System Contract Negotiation (Not under PPRA) Seller Rating Systems Expert Judgment
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Sample Proposal Evaluation Sheet
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Be Careful in Selecting Suppliers and Writing Their Contracts Many dot-com companies were created to meet potential
market needs, but many went out of business, mainly due to poor business planning, lack of senior management operations experience, lack of leadership, and lack of visions. Check the stability of suppliers
Even well-known suppliers can impede project success. Be sure to write and manage contracts well with all suppliers (see What Went Wrong?)
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Contract Administration Contract administration ensures that the
seller’s performance meets contractual requirements
Contracts are legal relationships, so it is important that legal and contracting professionals be involved in writing and administering contracts
Many project managers ignore contractual issues, which can result in serious problems
Contract• An agreement enforceable by Law
•A contract is awarded to each selected seller.
•The contract can be in the form of a complex document or a simple purchase order.
• Regardless of the document’s complexity, a contract is a mutually binding legal agreement that obligates the seller to provide the specified products, services, or results, and obligates the buyer to pay the seller.
Contract Administration: Tools and Techniques
Contract Change Control System A contract change control system defines the process by
which the contract can be modified.
Buyer-Conducted Performance Review
Inspections and Audits
Performance Reporting
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Suggestions on Change Control for Contracts
Changes to any part of the project need to be reviewed, approved, and documented by the same people in the same way that the original part of the plan was approved
Evaluation of any change should include an impact analysis. How will the change affect the scope, time, cost, and quality of the goods or services being provided?
Changes must be documented in writing. Project team members should also document all important meetings and telephone calls
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Contract Close-out Contract close-out includes
product verification to determine if all work was completed correctly and satisfactorily
administrative activities to update records to reflect final results
archiving information for future use Procurement audits identify lessons learned in the
procurement process A procurement audit is a structured review of the
procurement process from the Plan Purchases and Acquisitions process
Records Management System
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Using Software to Assist in Project Procurement Management
Word processing software helps in writing proposals and contracts, spreadsheets help in evaluating suppliers, databases help track suppliers, and presentation software aids in presenting procurement-related information
In the late 1990s and early 2000s, many companies started using e-procurement software to do many procurement functions electronically
Companies such as Commerce One, Ariba, Concur Technologies, SAS, and Baan provide corporate procurement services over the Internet
Organizations also use other Internet tools to help find information on suppliers or auction goods and services
Can you name some from Pakistan?
I have learnt “Silence” from
the talkative,
“Toleration” from the “intolerant”,
& “Kindness” from the unkind; yet strange, I am
ungrateful to
these teachers.
Kahlil Gibran (1883 - 1931)
Iqbal’s Poetry
Thank You