Importance of Procurement in Project Management

Running head: PROJECT MANAGEMENT
Project management
Name of the student
Name of the University
Author’s Note

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PROJECT MANAGEMENT
1. Introduction
According to Naoum and Egbu (2015), procurement is defined as one of the procedure
that helps in selecting vendors, establishing payment terms as well as negotiation contracts as
well as actual purchasing of various types of goods. On other hand, it is stated by Wang et al.
(2018) that procurement is mainly concerned with procuring different types of goods, services as
well as work that is considered to be important for an organization. Procurement is considered as
one of the strategic function that helps in improving the profitability of the organization. In
addition to this, it is identified that procurement helps in streamlining different processes by
reducing the cost and prices of the raw materials in order to identify the better sources of supply.
In this paper, a number of journal articles are generally reviewed in order to reflect the
importance of procurement by describing the advantages as well as disadvantages of each of the
method by putting forward proper argument for the procurement choice that is most suitable for
an organization.
2. Discussion
According to Ogunsanmi (2016), the methods that is adopted for procuring the
construction projects generally continues to attract the attention of the project stakeholders
within the construction industry because of the most significant role that they play in the
procedure of project delivery. Each and every construction projects are generally procured with
the help of a specific method and it is found that no project can be procured successfully without
the adopting a proper method. On the other hand, it is stated by Idoro (2012) that a procurement
methodology generally helps in creating a positive impact on the quality, success as well as
quantum of construction project delivery. In addition to this, it is identified that proper method of

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PROJECT MANAGEMENT
procurement is generally required to be adopted within the project in order to determine whether
the undertaken project is delivered successfully or not.
It is opined by Naoum and Egbu (2015) that traditional contract method is identified as
the one of the important research studies or the most important option for properly procuring the
construction project in Nigeria. This method is mainly considered as the forerunner of the entire
contract procurement arrangement within the entire construction industry. Depending on the
entire understanding, it is identified as one of the project delivery procedure that is helpful in
designing as well as constructing different phases of the project. In addition to this, it is found
that traditional contract method is generally categorized into design as well as construction phase
with appropriate defined phases of the project (Kumar, Nair and Piecha 2015). Moreover, it is
found that cost disadvantage is generally entailed with the traditional contract method as the cost
can rise if large number of changes are generally required.
On the other hand, design build is one of the procurement method where both the design
as well as construction phases of the project are generally integrated for carrying out the project
by a single party under the same contract. In addition to this, it is identified that (Lundstrom and
Johanson (2015) it is one of the recent arrangement that is generally conceived as a solution to
the number of shortcomings within the traditional contract method. It is found that researchers
generally describe the method as one of the arrangement where the developers generally contract
with the single party or entity for performing both the construction and design facility of a
project under the specific DB contract. Moreover, the DB method generally combines with the
fragmented responsibilities which are generally associated with the traditional contract method
into a proper entity that helps in providing both construction as well as design phases of the