Learn some of the major concepts you need to take into consideration as you study procurement. Use this understanding to help you add value throughout your project.
- I know. Every project manager loves procurement management. Okay, in all seriousness, you might not love it but you can get a handle on it by understanding several things. I'm talking about basic concepts to more complex ones. Hold on, more complex ones? Now before you get nervous and start thinking you'll have to apply to law school and get your juris doctor degree, let me ease your fears. You don't have to be a legal expert to manage procurements. All that's required is for you to be familiar with how procurement works. This way, you can add value and provide guidance during the decision making process all the way through contract closeout. Let's look at some of the major concepts you need to take into consideration as you study procurement management. Number one, there is not a one size fits all when it comes to contracting. Contracts can be as simple or detailed as needed. Number two, deliverables should be as clear as possible. This will reduce the likelihood of misunderstandings and disappointing results later on. Number three, it goes without saying, if it's not listed in the contract, then it's not legally enforceable. How many times have you left minor details out of a contract and simply shook hands on it? Repeat after me. If it's important enough to agree on, then it's important enough to get into writing and include it in a contract. Number four, the project team needs to ensure procurements meet the needs of the project. Since your team will be incorporating the procurements into their work, they're in the best position to determine if the procurements are sufficient. And number five, before signing on the dotted line, have your legal team review all contracts. It can't hurt to have another set of eyes look them over before you legally commit your organization. So, the quicker you wrap your head around these concepts the better. It will increase your understanding and give you a leg up when managing your procurements.
- Describe the procurement manager’s role in the procurement process.
- Explore the essentials of good communication with vendors.
- Examine the steps in a contract change control system.
- Identify risks that might arise in a project.
- Define the purpose of a closeout meeting.