Procurement and Contracts

This document discusses the importance of procurement and contracts in project management. It covers topics such as procurement planning, contract management, relationship management with vendors and suppliers, supplier development strategies, and project closure. The document also includes insights from a case study on the Royal Adelaide Hospital.

Running head: PROCUREMENT AND CONTRACTS
Procurement and Contracts
Name of the Student
Name of the University
Author Note

1PROCUREMENT AND CONTRACTS
Reflection:
From my learning of project management concepts I have assessed that the procurement
and contracts is very much important for the successful project management. I have understood
that procurement planning and contract management is important for effective planning at the
initiation stage of the project. This also helps in quality evaluation process and helps in
successful management of the project. I have assessed that the adoption of procurement planning
is able to provide better value for money and high quality of service and project delivery. This
also reduce the risk of the agency. The contract management is considered as integral part of a
procurement management cycle.
From my learning I have gained the knowledge about procurement management and how
effective procurement management can be gained. For an effective procurement first of all
fundamental capabilities need to be developed properly. Also, it is very much important to bring
influence all over the organization for an effective procurement management. This relationship
among the procurement of the complex projects and reinforcing key process will ensure an
effective procurement.
From my learning I have also gained an idea about how to manage relationship with the
vendors and suppliers within the bound of transparency and ethics. From my learning I have
assessed that there are currently two types of approaches for management of the relationship.
First is the reactive approach and the strategic approach. The strategic type of approach for
management of the relationship has been always successful for the business campaigns. I have
also assessed that implementation of technology can make this relationship with the vendors and
supplier more simple and effective.

2PROCUREMENT AND CONTRACTS
From this context I have also learned about the supplier development strategies. From my
learning I have assessed that the supplier development strategies are capable of improving the
performance of the supplier significantly. The performance of the supplier is improved in this
case by reducing the defected products, improving the delivery time and by reducing order
fulfillment cycle time. In this context the best practices in strategic supplier development is first
managing a good relationship with the supplier and effective communication can also help in this
case.
Contracting is also very much important in this context and I have assessed there are
several of trends in contract management process which are building a contract management
team, conflict resolving, stakeholder management and corporate governance. Also, in this
context the man processes of contract management are the management of the service delivery,
management of the contract, seeking for improvements, management of the relationship and
managing the changes.
From the concepts of project management I have also assessed that closure of the project
is also very much important step for completion of the project successfully and for the closure of
the project the project closure document plays an important role. This project closure document
is very much important in this context as this document can provide the information about what
has been done in this project for the satisfaction of agreed requirements. This document also
completes the financial closure and with that this document is also very much important for
indexing and archiving the project records. Lessons learned is very much important here as the
main learning from the project can be recorded and can be utilized to the future projects.

3PROCUREMENT AND CONTRACTS
My learning has also assisted me to develop a comprehensive report in respective of a
project, which can be real life project.
While I consider the case study of new Royal Adelaide Hospital I have assessed that
though the project was completed but actually the project was not successful as the budget of the
project got overrun. I have assessed that though the project was started successfully it failed to
reach its ultimate conclusion. In this case the project failed to reach to the successful closure of
the project. From my point of view there are several of steps through which the project was
capable of reaching to the successful closure of the project. These important steps are completing
the paperwork, releasing resource and archiving documents. From this case study of Royal
Adelaide Hospital I have understood that scheduling of the projects is very much important for
successful completion of the project. In this case the royal Adelaide Hospital has failed to meet
the deadline of the project and for that the overall budget of the project got increased by a huge
margin. This happened due to improper type of procurement management and for improper
scheduling of the project. Thus the proper procurement management must be ensured and proper
scheduling of the project must be developed which has been learned by me from this case study.

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Bibliography:
De Araújo, M. C. B., Alencar, L. H., & de Miranda Mota, C. M. (2017). Project procurement
management: A structured literature review. International Journal of Project
Management, 35(3), 353-377.
Harrison, F., & Lock, D. (2017). Advanced project management: a structured approach.
Routledge.
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Lloyd-Walker, B., & Walker, D. (2015, April). Collaborative project procurement arrangements.
Project Management Institute.
Turner, J. R. (2017). Contracting for project management. Routledge.