Project Procurement Management: Processes and Importance

Running head: ASSESSMENT TASK 1
Assessment Task 1: Research and Questioning
Name of the Student:
Name of the University:

1ASSESSMENT TASK 1
Answer to question 1
Fleming (2019) stated that project procurement is a process by means of which both
goods as well as services are purchased and procured for the project. There are four major
procurement processes such as procurement planning, making purchase of goods, monitoring
process and closeout of the procurement phase. Schwalbe (2015) discussed that the purpose of
procurement is creating and sustaining stronger relationships with vendors of services throughout
lifecycle phase of project work. Maintenance of relationships with vendor means to get superior
quality from the vendors employed by business organization to meet with organizational goals.
The project procurement is key significant element of the supply chain management.
Answer to question 2
Yes, there is a formal process to procure the goods as well as services of project. The
procurement management processes are as follows:
i. Identification of goods as well as services for procurement
ii. Completion of purchase orders plus issues to the project suppliers
iii. Agreed on timeframe of product delivery and procedures
iv. Receiving of goods as well as services from project suppliers
v. Review along with acceptance of procured items (Nicholas and Steyn 2017).
vi. Approval of the payments for suppliers

2ASSESSMENT TASK 1
Answer to question 3
Project procurement is effective in embedding value in the project as it helps to identify
significant factors which can influence on improvement initiatives in business organizations. It
takes improvement initiative into business organization implied diffusion, implementation as
well as sustainability of the project related work (De Araújo, Alencar and de Miranda Mota
2017). The key embedding factors are:
 Demonstration of improvement over project management
 Involvement of the project stakeholders
 Adoption of motivating the staffs
 External collaboration
Answer to question 4
The procurement planning is a process to identify as well as combine the project
requirements and also determine timeframes for the procurement activities. The activities of
procurement planning are as follows:
 Assessing the requirements and needs of the project
 Research on the local market for prices of the goods and its availability
 Determine and estimate the cost of project procurement (De Marco 2018).
 Identification of relationships among the key project stakeholders
 Consolidation of the project requirements
 Identification of the procurement processes
 Preparation and implementation of the key project processes