Introduction to Procurement Includes processes to purchase or

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Introduction to Procurement Includes processes to purchase or acquire products or services or results

Introduction to Procurement Includes processes to purchase or acquire products or services or results from outside of the project team It also includes the contract management and change control processes required to develop and administer purchase orders and contracts The project procurement processes form the lifecycle of any contract that is established as part of that process A complex project can involve managing multiple contracts or subcontracts simultaneously Purchasing interactions with government departments and large organisations are often dictated by complex and formal procurement policies and procedures Adapted from PMBOK 5 th Edition

Procurement Contracts Project procurements often involve a formal contract, contracts are legal documents between

Procurement Contracts Project procurements often involve a formal contract, contracts are legal documents between a buyer and a seller that are mutually binding Sellers are obliged to provide the specified products or services Buyers are obliged to provide monetary compensation Some contracts are extremely complex and others can be very simple Contracts will include terms and conditions specified by the buyer and negotiated with the seller Contracts normally require an extensive negotiation and approval process including expert assistance from procurement and legal professionals Adapted from PMBOK 5 th Edition

Procurement Approaches Quotation Closed Tender Open Tender Previous Supplier Preferred Suppliers Often requires three

Procurement Approaches Quotation Closed Tender Open Tender Previous Supplier Preferred Suppliers Often requires three to five quotes and selecting the lowest or the one that best fits the requirements Proposals are sought from a pre-selected group of potential suppliers Proposals are sought from all potential suppliers Recurring purchasing from a previously selected and well performing supplier Pre-qualified list of potential suppliers for different categories of products or services

Tender Process Procurement processes for large organisations and government departments normally include some form

Tender Process Procurement processes for large organisations and government departments normally include some form of tender process Tender processes can be very complex and time consuming so they are normally reserved for major procurement, often over a particular monetary threshold There are different types of tenders available – open and closed There are many different potential steps that can be included in the tender process depending on the preferences and policies of the purchasing organisation Tenders result in a legally binding contract between the buyer and the seller Adapted from PMBOK 5 th Edition

Common Tender Process Business Requirements Definition Procurement Process Selection Request for Information Review Respondents

Common Tender Process Business Requirements Definition Procurement Process Selection Request for Information Review Respondents Pre Qualification Briefing Issue Request For Proposal Requirements Briefing Session Supplier Submissions Announce Selection Negotiate Contract Review Selection Criteria

Tender Definitions RFI Request for Information RFT Request for Tender An open enquiry that

Tender Definitions RFI Request for Information RFT Request for Tender An open enquiry that spans the market seeking broad data and understanding An opportunity for potential suppliers to submit an offer to supply goods or services against a detailed tender RFQ Request for Quotation An opportunity for potential suppliers to competitively cost the final chosen solution(s)

Tender Definitions RFP Request for Proposal An opportunity for potential suppliers to submit a

Tender Definitions RFP Request for Proposal An opportunity for potential suppliers to submit a detailed proposal on their ability to meet the requirements of the tender EOI Expression of Interest An opportunity for potential suppliers to show interest in responding to a tender Supplier Briefings Held by the buyer with all potential or short listed supplier to answer questions and clarify requirements

Introduction: Project Procurement Management PMBok Procurement Processes PMBOK Project Procurement Management Processes - 12.

Introduction: Project Procurement Management PMBok Procurement Processes PMBOK Project Procurement Management Processes - 12. 1 Plan Procurement Management 12. 2 Conduct Procurements 12. 3 Control Procurements 12. 4 Close Procurements PMBOK 5 th Edition

Hire Purchase Accounts Hire Purchase n Hire PurchaseHire Purchase Accounts Hire Purchase n Hire Purchase
Normal Purchase with GST Make Purchase requisition PurchaseNormal Purchase with GST Make Purchase requisition Purchase
Purchase Purchase Service With Service Entry Create PurchasePurchase Purchase Service With Service Entry Create Purchase
Procurement and Terms of References Procurement Procurement RulesPoliciesProcurement and Terms of References Procurement Procurement RulesPolicies
District Budget Accounts Introduction to Purchase Orders PurchaseDistrict Budget Accounts Introduction to Purchase Orders Purchase
Hire Purchase and Instalment Purchase system Introduction ThereHire Purchase and Instalment Purchase system Introduction There
Apply Contract and Procurement Procedures Procurement Processes CertificateApply Contract and Procurement Procedures Procurement Processes Certificate