Project Procurement Management includes the processes necessary to purchase or acquire products,

services, or results needed from outside the project team.

Project Procurement Management includes the management and control processes required to develop

and administer agreements such as contracts, purchase orders, memoranda of agreements (MOAs),

or internal service level agreements (SLAs). The personnel authorized to procure the goods

and/or services required for the project may be members of the project team,

management, or part of the organization's purchasing department if applicable.

Project Procurement Management processes include the following:

§  Plan Procurement Management.

The process of documenting project procurement decisions, specifying the approach, and identifying potential sellers.

§  Conduct Procurements.

The process of obtaining seller responses, selecting a seller, and awarding a contract.

§  Control Procurements.

The process of managing procurement relationships, monitoring contract performance,

making changes and corrections as appropriate, and closing out contracts.

Figure 12.1 provides an overview of the Project Procurement processes.

More than most other project management processes, there can be significant legal obligations and penalties tied

to the procurement process. The project manager does not have to be a trained expert in procurement management

laws and regulations but should be familiar enough with the procurement process to make intelligent

decisions regarding contracts and contractual relationships.

The project manager is typically not authorized to sign legal agreements binding the organization;

this is reserved for those who have the authority to do so.

The Project Procurement Management processes involve agreements that describe the relationship between two parties—a buyer and a seller.

Agreements can be as simple as the purchase of a defined quantity of labour hours at a specified labour rate,

or they can be as complex as multiyear international construction contracts.

The contracting approach and the contract itself should reflect the simplicity or

complexity of the deliverables or required effort and should be written in a manner

that complies with local, national, and international laws regarding contracts.