Manage Project Procurement

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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