Learning Objectives Procurement Explanation Tenders Project Procurement Processes

Learning Objectives Procurement Explanation Tenders Project Procurement Processes Introduction: Learning Objectives 1. Learn how to contribute to the development of the procurement management plan under the direction of the Project Manager 2. Understand how to contribute to the development of project documentation for contract definition and formation 3. Assist with the development of the final tendering and contractual documentation 4. Monitor and control contractors and suppliers and their activities for compliance with contractual requirements 5. Report on contracting and procurement management issues and responses Click on Next to continue Next

Learning Objectives Procurement Explanation Tenders Project Procurement Processes Introduction: Project Procurement Management • Includes processes to purchase or acquire products or services from outside of the project team • It also includes the contract management and change control processes required to develop and implement 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 4 th Edition Click on Next to continue Previous Next

Learning Objectives Procurement Explanation Tenders Project Procurement Processes Introduction: 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 4 th Edition Click on Next to continue Previous Next

Learning Objectives Procurement Explanation Tenders Project Procurement Processes Introduction: Procurement Approaches • 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 Open Tender • Proposals are sought from all potential suppliers Previous Supplier • Recurring purchasing from a previously selected and well performing supplier Preferred Suppliers • Pre-qualified list of potential suppliers for different categories of products or services Quotation Closed Tender Click on Next to continue Previous Next

Learning Objectives Procurement Explanation Project Procurement Processes Tenders Introduction: 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 Click on Next to continue Adapted from PMBOK 4 th Edition Previous Next

Learning Objectives Procurement Explanation Project Procurement Processes Tenders Introduction: Common Tender Process Negotiate Contract Procurement Process Selection Request for Information Review Respondents Announce Selection Business Requirements Definition Pre Qualification Briefing Review Selection Criteria Supplier Submissions Requirements Briefing Session Issue Request For Proposal Click on Next to continue Previous Next

Learning Objectives Procurement Explanation Tenders Project Procurement Processes Introduction: Tender Definitions RFI – Request for Information • An open enquiry that spans the market seeking broad data and understanding RFQ – Request for Quotation • An opportunity for potential suppliers to competitively cost the final chosen solution(s) RFT – Request for Tender • An opportunity for potential suppliers to submit an offer to supply goods or services against a detailed tender Click on Next to continue Previous Next

Learning Objectives Procurement Explanation Tenders Project Procurement Processes Introduction: 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 Supplier Briefings • Held by the buyer with all potential or short listed supplier to answer questions and clarify requirements EOI – Expression of Interest • An opportunity for potential suppliers to show interest in responding to a tender Click on Next to continue Previous Next

Learning Objectives Procurement Explanation Tenders Project Procurement Processes Introduction: Project Procurement Management Processes PMBOK Project Procurement Management Processes 12. 1 Plan Procurements 12. 2 Conduct Procurements 12. 3 Administer Procurements 12. 4 Close Procurements PMBOK 4 th Edition Previous