PROJ 410 Midterm Exam 1

A basic definition for the procurement is “the way the building is realised” and “involves assembling and organising the skills and services of a team of construction professionals”. (the Construction Round Table, 1995). More precisely, the construction industry describes procurement as “a system that establishes the roles and relationships which make up a project organisation”; hence the overall organisation and communication structure for the management, administration and control of a project is established by the procurement system. (D.C.H Coles, 2010)

| (TCO A,B,C) A property's desirability, relative to competing properties, is influenced by all of the following except ______________ .

3. Comment on the practice of dual sourcing when part of the requirement is produced internally. Relate this to the advantages and disadvantages of a 100 percent requirements contract. (i.e. develop both the pros and cons of dual sources and the pros and cons of requirements contracts).

The procurement life cycle can be made up into 13 key stages. The stages I am going to follow the CIPS stages of procurement and supply management. (Cips.org, 2017)

The needs of a project must be carefully identified, sourced and acquired to have a successful procurement process. Procurement planning is essential to the overall success of a project. It involves identifying the materials and services, finding the suppliers, and properly documenting the transactions.

| (TCO C) Compare and contrast a firm fixed-price contract with a cost-plus contract. When would each be appropriate for

The most valuable output of the Plan Procurement Process is the Procurement Management Plan. As is the case with almost every aspect of the project management process, it is essential and imperative that the project management team implement an effective and concise plan when it comes to the various components of procurement throughout the project’s life cycle. Specifically speaking, the procurement management plan refers to the plan that has been put into place that is meant to dictate and describe the entirety of the procurement process and how it is means to relate to and with the developing procurement documentation, and how contract closure will relate to all. The procurement management plan should be implemented and developed as early in the project life cycle as possible to assure that the procurement process is consistent throughout, however, in some cases the plan may be altered once the project begins, particularly if budgetary reasons dictate.

  Comments: Question 8. Question : (TCO 8) What is an independent estimate and why should a buyer produce an independent estimate before selecting a seller?

Purchase of goods/services: At my job, the procurement manager is the one that decides the contract of vendors. He also decides what suppliers are to be used and approves all purchase

(TCO 2) Part 1. List and define the various cost-plus contract pricing structures. Part 2. Assess whether the seller’s motive is more or less aligned with the buyer’s interests under each cost-plus contract pricing structure. Part 3. Evaluate the level of risk to the seller associated with each cost-plus contract pricing structure.

20) With regard to consideration in a sales contract, the UCC differs from the common law in that

The project manager would inform the suppliers of the needs that they are expected to meet and give them a time frame that is considerable to

Having the management control process will help reduce downtime, increased customer satisfaction, Identification of impact and interdependencies between owners, resources and schedules.

By freeing up resources like time, human capital and money, businesses increase efficiency as outsourcing to a specialist in the respective field will allow companies and businesses to focus on their core activities and continue what they do best to bring the companies to greater heights.

Outsourcing can be defined as ‘the strategic use of outside sources to perform activities traditionally handled by internal staff and resources’. In this strategy, the organizations contract out major functions of their manufacturing products to more specialized and efficient service providers, who later become valued business partners. It looks more like a simple supplementation of resources by subcontracting, but it is actually different to outsourcing. In actual outsourcing, the organization is also involved in substantial restructuring of particular business activities including, often, the transfer of staff from a host company to a specialist, usually smaller, company with the required core competencies. The current stage in the evolution of outsourcing is all about the