Manage Project Procurement

This document provides information on managing project procurement, including the steps involved, the purpose of a project procurement management plan, the importance of involving stakeholders, and the selection criteria for vendors. It also discusses the essential elements of a contract and the activities to review progress and manage variations. Additionally, it covers project procurement requirements and the process of vendor selection.

Manage project procurement
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Table of Contents
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................6
TASK 3............................................................................................................................................6
REFERENCES................................................................................................................................8
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TASK 1
1. 5 steps of manage project procurement process
The steps are
Specification – in this the purchasing department develop and approve list of materials which is
necessary for completion of project. Then, department needs to approve listed items.
Selection- here, department identifies potential vendors for buying the items. Thus, there are
certain criteria on basis of which selection is done (Ahsan, and Kumar Paul, 2018). They are
cost, quality, service, delivery, etc.
Contracting – the department than communicate with vendors about delivery date and payment
condition. These are all mentioned in procurement contract and then contract is made.
Control- here, the department control overall process that how delivery is being done and
payment is made. For that meetings are done with vendors
Measurement- the manager set a process in which entire process is evaluated and its success is
measured. For that KPI are set up and measurement is done.
2. Purpose of project procurement management plan
Its purpose is to define method which will be used by manager in managing project
procurement. So, plan describe that what process will be followed and how it is managed.
Alongside, from initiation to closure overall process is defined in it. Thus, it gives insight to
manager that how materials will be supplied, vendor is selected, etc. with help of it manager is
able to handle purchase of goods required in it.
3. Why to involve stakeholders in it
In every project stakeholder play vital role. Thus, they provide info and data related to
procurement. In addition, stakeholders are involved by doing stakeholder analysis and then their
interest is determined. They also help in selecting right vendors in effective way. Moreover, they
are involved in selection criteria as well (Fleming, 2019 ).
4. 3 types of procurement documents
RFP- here, buyer clearly specified purchasing needs and understand need of buyer. So, a
proposal is sent for it.
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RFQ- in this requirement of purchase items is specified along with quotation of price. Basically,
it is used in purchase of IT equipment’s like hardware.
RFI- it is first document in which clearly specify to buyer what purchasing needs are. Thus, it
becomes easy for seller to understand what are needs of buyer
5. selection criteria to select vendor or supplier
It is essential to select right vendor so that goods and materials are purchased in effective
way. If vendor is not selected properly then this directly impact on procurement process.
However, there are criteria which are necessary to be included in selecting vendor. They are
Years in business- it is first criteria which is used in selecting of vendors. The company
established in year and for how long business is done.
Ability of supply goods- here, it is analysed that on how regular basis vendor is able to supply
goods. Also, issues occurred during it are evaluated in it.
Flexibility in change of order- it is analysed that to how much extent vendor is able to adopt
changes made into orders (Jelodar, Yiu. and Wilkinson, 2016).
6. Essential elements of contract required
Offer- it is first element in which offer is made to enter into valid contract.
Acceptance – A contract is legally valid when other party has accepted the offer.
Consideration – it contains various elements such as service, payment, etc. which are known as
consideration. So, both parties need to be agreed on it.
Legality of subject matter- it refers to order in which contract is valid. Thus, there has to be
follow of certain legal statutory regulation to make contract legally bind.
Contractual capacity- it means the ability of person to enter into contract. The entity must be
having legal ability to do so.
7. 4 documents to be used in formation of contract documents
The 4 documents are
Offer- it is first element in which offer is made to enter into valid contract.
Acceptance – A contract is legally valid when other party has accepted the offer.
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Consideration – it contains various elements such as service, payment, etc. which are known as
consideration. So, both parties need to be agreed on it.
Legality of subject matter- it refers to order in which contract is valid. Thus, there has to be
follow of certain legal statutory regulation to make contract legally bind.
8. 2 objectives and 2 benefits of probity process
It is evidence of ethical behavior which confirm integrity, honesty , etc.
Two objectives are
It ensures that business and community confidence is within integrity of process which is
specified by government.
It allows buyer and seller to work together with trust and respect
Benefits
First is that it minimizes complaint of third party regarding trust and ensure accountability as
well as transparency of procurement process
Second is that it ensure decisions taken in procurement are documented and defense (Walker,
and Rahmani, 2016).
9. 3 activities to review progress and manage variation
The activity are
Monitoring- in this process is monitored to review progress. This ensure that if there is any
variation then change is made.
Communication- it is activity in which communication is done to measure progress. Here,
outcomes are measured through it.
Taking follow up- In this activity follow up is take regularly to maintain progress. It is ensured
that process is followed as defined or not.
10. 2 procurement finalization activities
They are defined as
Conducting evaluation of procurement planning- in this the entire plan is evaluated that how
procurement will be done. So, if there is any change required then it is done and procurement is
closed.
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Resolve contract dispute- here, the manager resolve dispute which may be outstanding so that
contract can be finalized with vendor. Also, dispute pending between stakeholder is solved as
well.
TASK 2
2.1
There are several project procurement requirements which need to be considered in it.
they are deliverables and quantity, start and end date, assumptions, constraints, etc. which has to
be needed in it (Fleming, 2019). with that it becomes easy to proceed in effective way. besides
that, agreed management plan is set up in order to select procurement. However, plan will give
insight on what process is to be followed. at last approval of process is obtained from stakeholder
and management. with that it allows manager to evaluate bid and on basis of it contractor is
selected. The stakeholder included in project are supplier, management and student.
Task 2.4
hi
Greeting o you all
This is the invitation for the different vendor for the tender as per the requirement of the
new Albright computer lab. The lab have the requirement of
HP ProDesk 400 G4 Small Form Factor PC $879.00*
 Intel® Core™ i5-7500 Processor (3.4 GHz base frequency, up to 3.8 GHz with Intel®
Turbo Boost Technology, 6 MB cache, 4 cores)
 Windows 10 Pro 64
 Intel® HD Graphics 630
 4 GB DDR4-2400 SDRAM (1 x 4 GB)  500 GB 7200 rpm SATA
HP ProDisplay P223a 21.5-inch Monitor $189.00*
 54.6 cm (21.5")
 Anti-glare; Language selection; LED Backlights; On-screen controls; Plug and Play;
User programmable; User controls
 FHD (1920 x 1080 @ 60 Hz)
 1 VGA; 1 DisplayPort™ 1.2
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HP USB Optical Scroll Mouse $25.00*
HP USB Slim Business Keyboard $35.00*.
This al have the inclusion of the GST. the quoted price along with certain of condition of the
contractor. the retains condition such as there is need to have installing the electrical cabling to
allow 12 computers and one printer to be connected. The lab needs to be furnished with desk
and chair along with supplying 12 computers along with keyboards and mouse for each
computer. As per the contract, there is need to have establish d term and condition of the supply
will be done in the written form in term of the formal and physical meeting held in better both
the parties.
Waiting for your tenders
Thank you
TASK 3
3.1
Hi!
I am honoured that’s XYZ ltd have been selected to their rounds of the tender organized through
RFP. we are kindly looking forward you show up the company the whole level of valuations
team why this could be strategies solutions for addressing the current and future challenges
which are faced by the company. The firm have properly analysis all the proposals submitted in
the response as the subject to solicitations. We are great to inform you that looking after careful
consideration, we have determined as that your proposals are advantageous to the company.
So, our decision is based on their technical, proves and timeline factor along with vendor
ability to understand the business. We wish thank you as to your time and efforts that you have
devoted in participating the subject of solicitations as encouraging the organizations participation
in the future procurement. as per contract there is the construction of new computer lab which
have inclusion of painting and installation of carpets. There is need to have installing the
electrical cabling to allow 12 computers and one printer to be connected. The lab needs to be
furnished with desk and chair along with supplying 12 computers along with keyboards and
mouse for each computer.
As per the contract, there is need to have establish d term and condition of the supply will be
done in the written form in term of the formal and physical meeting held in better both the
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parties. So, I will ask you have their continuous focus on other initiatives and the providing their
insights analytics in organization. I will follow up within the next weeks with any questions as
per the requirement.
Thanks again for the opportunity!
ABC
3.2
Hi
Hope you are doing well. I am received the mail regarding the delays in the supply. So it is
important to let you remember that’s as per out written contract, it have been clear level assume
mentioned there as any level of delays which is incurring the increase in the cost will be bind my
the vendor. The delay caused by you will have faced by the vendor only. So as per the clause if
there of the contract it have been clearly mentioned as level of cost which is being raised by the
Albrights and there vendor stated is the materials have not been supplied in the guard tie frames
will be additional cost born by the vendor in perfect manner. As there have been rapid level of
change in current exchange rate of Australia and America soon. this will be costing higher 10%
as compare of agreed price. So, it is very important for you look into the several issues and
brought me the favourable response of the contract. Then also you are stuck in the situation the
I will be asked to have these issues of the final invoices inn to have reflection the originals along
with agreed and contracted pricing. I open proper per support in the contract that we all li in
justice in perfect manner.
hope the revert as soon as possible
Thank you
3.3
a)
Budget overrun is considered to be the litmus test for the project success and failure. The project
has there need to look into their proper determination of various stakeholder and associated cost.
So, the budget will be helpful in identifying colossal failure in the bottom line or the great
success regarding the project. The facts as there have been increased level of pressure on the
project leaders and their team to face on regular basis. So, there is the need to have effective
budget management to have look over primary area of focus. So, the important strategies –
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understanding the needs, desire and wants of the stakeholders
As the project manager, it will properly look into the as aspect to identify desire of the
stakeholders and get the deeper understanding of what the stakeholders excepting . This crucial
step should be completed before budgets are set. Many projects have been initiated around needs
but executed around wants, automatically putting projects at risk of budget overruns that leave
everyone disappointed.
Important of contingencies
there is need to have factoring out the important aspect for the future purpose which may have
impact pricing of supplies, resources, labour, financing, product/service shortages, currency
exchanges and so on. there is need to have development of backup plan as the vendor may not be
successful to get the devilry on time. there is need to have development of more realistic budget
which have the incision of section for unforeseen circumstances whose cost will be impacted.
Development of relevant KPI
KPI will be helping out to get the approximation of costs which have differs perform the actual
cost of what have been actually planned. So the commonly used essential and effective project
budget management are such as the actual cost, cost variance, earned value, planned value and
return on investment.
Most important there is need to have the revisiting m reviewing and reforecasting.
The project manager and the assessment trainee have to understand that projects which is left to
run without having proper budget management and reforecasting will lead to learn failure. the
frequent budget oversights have been the essentials over preventing the budget getting fares out
of hand. just as a project’s budget needs to be constantly revisited to keep it on track, so too do
the project’s resource usage, since the people working on a project contribute to its cost.
b) As to have the ending of the contracts with the vendor, this will be identified as closure in the
project management activities. This can be more fully explained as the acceptance nd rejection of
the financial product revied for the vendor. all the activities of the project have need to be
maintained by making proper implements of the subsidiary plans along with looking into there
all records so that’s the result could be properly made. I will clearly look into the all the project
requirement and open of the contract. Closing the project is a process that requires reviewing the
updated PM plan, accepted deliverables, and changes made to the subsidiary plans
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Revisiting the project scope, requirements and finals feature checklist others everything’s rea
met in perfect manner.
Securing the approval an signature by looking the full stakeholders approvals an stakeholders
satisfactions by getting the sign off on relevant deliverables.
Settle the payments which can be such as Process outstanding invoices, commissions, fees, or
bonuses. Build positive relationships by being prompt on payments.
Highlighting their important issues and reason which are learned which will be help improve the
quality, value, workflow, speed of completion, cost-efficiency, and team synergy of the next
project. However, plan will give insight on what process is to be followed. at last approval of
process is obtained from stakeholder and management. with that it allows manager to evaluate
bid and on basis of its contractor is selected. The stakeholder included in project are supplier,
management and student.
c) As per the proper level of evaluations it is important to have looking into the following
criteria. This will be ebb sure to have their proper considerations. There is need to have properly
look inti the properly suitability looking as all the needs caused have been presented to be aero in
organization manner. As due to the successful issues there will be proper level of monitoring of
the review progress. Hence ensuring the proper level of variation changes where it is needed to
be prefeed made. I will like look into the proper information which are necessary to make the
extra efforts is establishing the contracts in the perfect manner. The project will be look into the
all the checklist related to contracts and completion of clauses. there will be checking of the
product is properly delivered and accepted by vendor. proper payment done. The review also
investigates whether the product is produced as required. It ends up with generating findings and
recommendations on project improvements. This information can be useful later in future
projects. This will be creating the lesson learned documentations and generating the
procurements that’s list sets are closed a settle contract. there is need to have development of
backup plan as the vendor may not be successful to get the devilry on time. there is need to have
development of more realistic budget which have the incision of section for unforeseen
circumstances whose cost will be impacted.
d.
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As from the above completed projects manages, there are 5 important lessons which are learned
in the perfect manner. all the step in the project management are integration actions an activities
which re performed to have the achievement of the specific results or services. The lesson are to
be learned in the respective step such as by identification of the proper comments and
recommendation which cane earned to form the projects . this is helpful in evaluating their
knowledge of assets forte future projects.
Moving next is important to note the documents as per the discussion in the reports. There is
need to put into the referend of the entire projects an ad in it for future references. Analysing
there renaming the different lessons learned by applicability’s of sharing with other team
members. This will b helpful in improving the projects managers in the training session.
storing retention lessons from the earned re[ports by the drive and cloud solution . this will be
helpfully creasing major level unfavorability in all project teas.
The lats is retrieving as storing the lessens along with setting the keyworks seraph capability
to make it easily retriable at any time during and after the project .
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REFERENCES
Books and journals
Ahsan, K. and Kumar Paul, S., 2018. Procurement issues in donor-funded international
development projects. Journal of Management in Engineering, 34(6), p.04018041.
Fleming, Q.W., 2019, January. Project procurement management: contracting, subcontracting,
teaming. Project Management Institute.
Jelodar, M.B., Yiu, T.W. and Wilkinson, S., 2016. Relationship-quality judgment model for
construction project procurement: A conjoint measurement. Journal of Construction
Engineering and Management, 142(7), p.04016012.
Walker, D.H. and Rahmani, F., 2016. Delivering a water treatment plant project using a
collaborative project procurement approach. Construction Innovation.
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