Procurement Management Plan

PROCUREMENT MANAGEMENT PLAN
<CONSTRUCTION OF GREEN BUILDING>
COMPANY NAME
STREET ADDRESS
CITY, STATE ZIP CODE
DATE

PMGT 530 Procurement Management
Plan Template
Table of Contents
1.0 INTRODUCTION...........................................................................................................................3
2. 0 PROCUREMENT MANAGEMENT APPROACH...............................................................................3
2.1 PROCUREMENT DEFINITION.......................................................................................................3
3.0 TYPE OF CONTRACT TO BE USED...............................................................................................4
4.0 PROCUREMENT RISKS................................................................................................................4
4.1 PROCUREMENT RISK MANAGEMENT.........................................................................................4
5.0 COST DETERMINATION...............................................................................................................4
6.0 STANDARDIZED PROCUREMENT DOCUMENTATION...................................................................5
7.0 PROCUREMENT CONSTRAINTS...................................................................................................5
8.0 CONTRACT APPROVAL PROCESS................................................................................................5
9.0 DECISION CRITERIA....................................................................................................................5
10.0 VENDOR MANAGEMENT...........................................................................................................6
11.0 PERFORMANCE METRICS FOR PROCUREMENT ACTIVITIES......................................................6
SPONSOR ACCEPTANCE....................................................................................................................7
References........................................................................................................................................8
2

PMGT 530 Procurement Management
Plan Template
1.0 INTRODUCTION
This project is based on the construction of a green building. Green buildings are those, which
are constructed using “green” or sustainable and rapidly recycling materials. Moreover, the main
objective of constructing green buildings is to reduce pollution that is a huge problem in regular
buildings. Pollution not only means contamination of only air or water but also negative impacts
on the environment and the natural habitats (Larson & Gray, 2013). Green buildings have
become extremely popular nowadays due to low cost as well as environment friendly nature.
In this report, a project management plan for the construction of a green building has been
prepared including an in-depth analysis of the type of contract that may be used for the
construction process.
2. 0 PROCUREMENT MANAGEMENT APPROACH
Procurement is an important part of any construction project and several factors are to be
considered for preparing the procurement plan of a project. For this particular project, the
procurement management approach should include the following important considerations.
Quality – Quality of the materials and resources is to be ensured in any type of project. For this
project, it should be ensured that the best quality of construction materials is procured through
reliable vendors. However, it should also be ensured that the costs of the materials are not too
high as it will risk overshooting of the overall project budget.
Reliability – Reliability of the vendor should also be analyzed before the contract is handed over
to them for procurement of the materials (Phillips, 2013). Before handing the contract, a
background check should be conducted on the vendor in order ensure the vendor will not
perform any fraud while delivering the materials.
Quantity – Before handing the contract, it should be ensured that the vendor will be able to
provide sufficient amount of materials throughout the course of the project as changing vendors
during the project will be very inconvenient, time consuming as well as expensive.
2.1 PROCUREMENT DEFINITION
Due to the scale of the construction of the green building, a large number of materials should be
procured for the project. However, for the convenience of listing, the materials are divided into
several categories and listed in the following table.
Item/Service Justification Needed By
Construction Vehicles
like Cranes, Bulldozers,
Construction Trucks,
etc.
These vehicles are used for various purposes including
digging of foundation soil, mixing of cement, lifting of
structures and others.
Construction Team
First and Hospitality
Vehicles include
Ambulance
Large scale construction projects have high risks that may
also cause loss of life of the on-site workers; hence,
immediate healthcare response is necessary.
Emergency Response
Team
Construction Materials
(Cement, Bricks,
Mortars, Sand, Iron
Bars, etc.)
Construction materials will be required for constructing the
building stage by stage.
Construction Team
3