Procurement Management

Any project that deals with vendors will need a procurement management plan. This document defines the procurement processes within an organization, the types of procurement documents that will be used, and any specific contracting procedures the project manager must follow. As the procurement documents are created and responses are generated between the vendor and the project manager (or centralized procurement office) the documents become part of the procurement package and should be incorporated into the procurement management plan – or at least referenced where this information is stored and can be identified.

Often the project team is comprised of not just internal resources but contracted resources that’ll play a role on the project team. When a contractor is brought onto the project team the project manager and the vendor need to communicate about how the contractor will serve as part of the project team – not just as a placed or contracted employee. No doubt there’ll be expectations between the project manager, management, the vendor, and the contracted employee as to their roles and responsibilities on the project team. It’s paramount to clarify any assumptions and detail the expectations of all parties before the project work commences.

Once the vendor has completed their obligations the buyer and seller should confirm the contract’s completeness and close accordingly. This means that both parties are bound to the terms of the contract, including payments, warranties, and even claims management.

There are four videos for this module of the PMP Exam Prep:

Planning Project Procurements

Conducting Procurements