Find out how to administer procurements by monitoring relationships, contract performance, and making any necessary changes. Also, discover two ways you can do this.
- Think back to the last time you made a large purchase. Maybe it was when you closed on your house, or booked an airline ticket to Bali at the last minute because your friend found a steal of a deal online. Either way, here's my question for you. How did it make you feel? Happy? A bit apprehensive? Or maybe you ended up having buyer's remorse? But here's the thing. You made the purchase, so what's done is done. Now it's time to get down to business. In procurement management, this is commonly referred to as administrating procurements, and it officially begins after you've awarded the contract. During this stage, you'll be responsible for monitoring relationships, contract performance, and making any necessary changes. Let's take a look at two of the ways you'll do this. The first is technical compliance. Here, you'll keep an eye on how procurements are progressing based on the agreed upon statement of work. To help you get a better understanding, you might ask questions such as is the product or service meeting technical requirements? Does the quality data and reporting show any early warning signs? Are the deliverables fit for use? These are just some of the questions you should be asking. But don't stop there. While you're at it, why not go ahead and prevent unnecessary scope changes and additional features from being introduced? Second, you'll need to make sure the administrative requirements of the contract are being followed. This can be anything from monitoring project expenses so you can keep your costs in line, to ensuring delivery and installation happen on time. Doing this will help to ensure the contracts are adhering to regulations and policies, prevent your organization from being overbilled, and make sure goods and services are received. No matter if you're monitoring for technical compliance or administrative requirements, you'll need to identify variations from the standard process and recommend any necessary changes. This way, you'll be able to take the latest business or market conditions into account while maintaining the integrity of the process. I can't stress this enough. It's important for you to be proactive when dealing with potential contract changes. One way to do this is to conduct regular contract audits. They enable you to discover what's working and what's not. This way, you can identify potential issues and fix them before they become larger problems. For example, vendor delays can negatively impact your project schedule. By consistently auditing the process, you can catch these delays sooner and hopefully reduce the risk of a deadline being missed later. Administering procurements effectively can ensure expected benefits are realized. And who knows? If the contract goes as planned, you may have time to catch that last-minute flight to Bali.
- Defining procurement management
- Identifying the project manager’s role
- Tailoring procurement techniques for your organization
- Dealing with conflicts of interest
- Controlling procurements
- Implementing procurements in six stages
- Rapid procurement
- Reverse auctions