There are two types of main contracting

Running Head: PROCUREMENT PROCESS
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PROCUREMENT PROCESS

PROCUREMENT PROCESS
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Table of Contents
Introduction......................................................................................................................................2
Decentralized contracting................................................................................................................2
Associated risks...............................................................................................................................4
Duplication...................................................................................................................................4
Loss of control.............................................................................................................................4
Privacy of project.........................................................................................................................5
Conclusion.......................................................................................................................................5
Bibliography....................................................................................................................................6

PROCUREMENT PROCESS
2
Introduction
Procurement process includes the basic skills and knowledge of project management that
help to manage contracts. This process includes working relationship with departments. This is a
formal process for obtain services and good that is known as procurement. Documents, change
requests, further procurement documentation are known as the output of procurement process.
There are only few skills necessary for managing procurement that includes negotiation, legal
knowledge, etc. Contract is known as the mutually agreed agreement at level that mandates seller
to deliver goods and services to purchaser regarding pre-agreed compensation. There are many
contract evaluated and identified that associated with the particular risk. There are two types of
main contracting. These are centralized and decentralized contracting. If all contracts of business
are managed through purchasing department than known as centralized contracting.
Decentralized contracting is known as the contract in which separate contract mangers are
appointed to complete every projects (Norta, 2015). Following discussion will cover the
decentralized contracting and risks associated with it.
Decentralized contracting
Traditional business structure was centralized as authorities of the businesses
remain within the hand of upper level management and executives. In this kind of business
power is concentrated with the management and lower level management has little authorities to
handle work on day to day basis. In today’s time competition has grown at broader level that
pushes businesses to move forward with decentralized contracting approach. In this kind of
contracting middle and lower level management have gain more authorities to make the
decisions and employees feel more empower as their ideas are factored within the daily
operations of projects. This has also become important for the businesses to understand the
associated risks (Reichmann, & Rohlfing-Bastian, 2014).
Decentralized contracting is work for the businesses to control the process of contracting
for every project. Employee from central procurement office assigned to work with the contract
manager. Management of project maintains the control of contracts award. Efforts of contracting
tailored to singular project. Contracting efforts are tailored to particular projects. Contracting