Project Procurement Procedures: Steps, Documents, and Contract Laws

Running head: PROJECT PROCUREMENT PROCEDURES
Apply Project Procurement Procedures
Name of the Student:
Name of the University:

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PROJECT PROCUREMENT PROCEDURES
Formative Assessments
Activity 1:
Answer to question 1
For procurement management, the procurement manager should keep the cost in line to
make sure that they meet with customer’s requirements along with expectations with
procurement of the quality products and services. Effective procurement management is required
of people, process and technology. Having right people into procurement such as users, suppliers
and management are required to negotiate contracts and ensure products as well as services to
meet with business specifications. Process is required a minimum of three bids before purchasing
of products. Technology is used for confirmation of purchase requests, specifications of purchase
and selection of vendor.
Answer to question 2
The inputs to the procurement management which establish the project’s procurement
requirements are:
Scope baseline: It acts as reference point throughout the project life cycle and it is
approved version of the scope statement (Nojavan et al. 2015).
Risk register: It is a risk management tool which helps to identify the risks, nature of
risk, impact, probability and mitigation measures.
Project schedule: It reflects on work associated to deliver the project plan on time.

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PROJECT PROCUREMENT PROCEDURES
Cost performance baseline: It is part of project baseline which handles the amount of
money that the project is forecasted to cost (Istrate et al. 2015).
Requirements documentation: It is a document which contains the requirements for
certain products.
Answer to question 3
The delegated project team members collect the information regarding procurement
planning includes of type of products and services required, estimation of cost and project
constraints (Pheng 2018). Therefore, the project team members and procurement manager are
delegated the authority into context of development of procurement management plan.
Answer to question 4
There are ten components which are included into the procurement management plan are:
 Initiation of request
 Development of requirements such as time, quality and constraints
 Request for approval
 Purchasing of authority
 Review of bid
 Responsibility of contract management
 Requirement of contract closure
 Making changes into the procurement documents
 Flowchart for procurement process
 Monitoring of procurement process

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PROJECT PROCUREMENT PROCEDURES
Answer to question 5
Contract is integral part of procurement cycle which assists the contract manager to
manage the contracts by addressing the performance monitoring and helping to make sure that
both contract manager and supplier’s requirements are fulfilled (De Marco 2018). The
procurement contract is termed as document provides details legally-binding agreement among
vendor of products as well as service. Therefore, it is an agreement between two parties which
makes a relationship among them. It also provides of framework of how to deal with each other.
At the time of procurement planning between the organization and supplier, there should
be ensured that the organization should receive of good quality products and services from the
supplier side. The supplier should provide the goods at mentioned time to the organization. The
supplier should also receive of financial benefits based on agreed prices of ordered products and
services. There is consideration that both the parties should agree with offer made by one party
as well as accepted by other. It is included of goods, services and pledge for exchanging the
items. The quality assurance plan is proposed for supplier to monitor their supplier’s
performance. When acceptance of contract, the supplier is intended to profitable by make sure
that it controls the cost.
Activity 2
Answer to question 1
A supplier is a party those can supply of goods as well as services to various
organizations. They add specialized inputs to the deliverables.

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PROJECT PROCUREMENT PROCEDURES
Answer to question 2
The tools and techniques which assist to gather and evaluate information on suppliers are
shipping status tool which provide timely information on shipping of products and services,
order processing tools help to gather information on when the customers should receive delivery
of products (Birou, Lutz and Zsidisin 2016).
Answer to question 3
The organization can manage procurement decisions related to selection of supplier are
measuring the supplier performance, gaining the feedback from supplier, developing the strategic
partnership and ensuring of quality for the customers. While selecting the supplier, the
organization should include the key stakeholders in process to agree on significant criteria the
supplier meets, requires of good communicational skills and perform audits on selected supplier
(Mena, Christopher and Van Hoek 2014).
Answer to question 4
The methods used to select right supplier are:
1. Weighted point method is used technique for evaluation of right supplier based on
scoring to each supplier performance and the score is then multiplied by assigned weight
for each factors.
2. Dimensional analysis method helps to resolve the drawbacks of the approaches. This
method is combined of various criteria for various dimensions which is relative to
importance into single entity for each of the suppliers (Whitaker 2016).

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PROJECT PROCUREMENT PROCEDURES
Answer to question 5
The other terms which are meant to contract are agreement, bond and settlement.
Agreement is negotiated and legally binding arrangement among the parties as course of actions.
There is contract agreement which consists of policies as well as procedures for the organization.
The bond is fixed income statement where the investor loans money to the entity which borrows
of fund for defined period at variable and fixed interest rate. Settlement is official agreement that
is intended to resolve the disputes as well as conflicts.
Answer to question 6
Terms and conditions have great impact on the contract. At the time of negotiating a
contract terms, it makes sure that conditions of contract are defined as well as agreed to by the
parties (Pheng 2018). The business terms and conditions set contract foundation among the
customers and suppliers. The importance of term and conditions are understood by explanation
of contract. When the contract is put into written form, then statement is to be term of contract.
The general rule is party is bound by the terms out into the contractual document once it is
signed it. It is applied whether it read terms as well as understood them all.
Answer to question 7
Probity is termed as quality to have stronger moral principles as well as honesty. There
should be strict adherence to the code of ethics based on honesty. It is related to the project
management as higher level of probity throughout the financing phase of project can structure to
continue during the project (De Araújo et al. 2017).