The Contract And Procurement Management Process

This initial lesson introduces the concept of acquisition planning and the decisions that take place during the strategy-making process. Most questions elicit a thorough explanation of the rationale for the response you provide. It is important to recognize that different responses to the same question may be appropriate depending on the

According to the Project Management Body of Knowledge (PMBOK) there are four phases in the project procurement process. The PMBOK Guide (Project Management Institute, 2008) defines these as Plan Procurements, Conduct Procurements, Administer Procurements,

Clough, Richard H, Glenn A. Sears, S K. Sears, Robert O. Segner, and Jerald L. Rounds. Construction Contracting: A Practical Guide to Company Management. , 2015. Print.

Acquisition planning and documentation is an important factor for any vendor wanting to do business with the government. The acquisition plan will ensure acquisition objectives to include technical, business, management and other important factors that will control the acquisition, which are addressed and consistent with applicable U.S Statutes while ensuring the best interest of the government is secure.

The contracts and purchasing department will review the procurement items, determine whether it is advantageous to make or buy the items, and begin the vendor selection, purchasing and the contracting process. However it seem the substantial (major) procurements will be done at Aecon “home office” and not locally.

The acquisition process is a vital component of project management. The requirements to ensure successful execution of a project must be logical and efficient. It requires rigorous planning and constant improvement of the project plan in order to discover and address any potential issues that may interrupt the final delivery. Applying proven acquisition processes and principles will aid Project Managers in creating an environment for success.

In order to institutionalize best procurement and acquisition practices in an organization, I would begin by forming a cross-functional team made up of supply management personnel, finance personnel, attorneys, human resources, engineers, and other subject matter experts. As was highlighted in chapter ___ of the class text, this is the best approach for ensuring that the broadest possible range of ideas and perspectives are incorporated early into the planning process. Additionally, it ensures that a great idea conceived of by one functional area is viewed from within the restrictions and/or limitations imposed by another. As with specifications development, this process allows the team to develop a reasonable, effective, and implementable plan that works across functional areas and provides the greatest return on investment.

Ms Smith’s supervisor noted that she seemed to know the ABC people and not people from the other companies present. He casually asked Ms Smith where she had met the ABC team previously and was amazed when she told him she had been helping ABC while on leave. She indicated her personal preference to see ABC win the contract, as she would become an employee if this occurred.

Management Responsibility (C-S) – They should also internally audit there processes in regards to this project to ensure that the new management is onboard and understands the particulars of their responsibility to this project.

1 (c). Explore principles behind project management systems and procedures. Has there been a proper management approval for the given project?

Most companies will have a rigid purchasing policy that must followed during the lifecycle of a project. For example, the amount of written quotes need for each dollar amount spent on a task. And payment methods used for the amounts. And what amounts needed to be signed of and approved before they can be spent.

In order to assess the the contractual/ legal issues involved due to the problem, it is necessary to understand the procurement approach undertaken for the project. The project endorses traditional procurement approach where Architect is acting as the client’s Superintendent. According to CRC (2004) traditional approach involves consultant that are appointed for designing and cost control by the client, while the contractor is responsible for carrying out the works.

Acquisition means “an asset or object bought or obtained”. ISO/IEC 38500 defined acquisition as it balances benefits, opportunities, costs and risks in both short and long term [7]. Also, the delivery of acquisition contributes valid reasons in decision making.

Every organisation throughout the globe is somehow linked in the process of procurement. By the utilization of these procurement processes the specific product or project can be developed. Within the context of the purchasing mechanism the goods or services are requested from the other company or organisation. As these purchase are of large scale of a specific Procurement Plan is developed by the industry so that so whenever they required the product or services they are available.

Soriede (2002) mentions that, it is important to note that SCM is an integral part of procurement in the public sector. Therefore, it is used as a tool for the management of public procurement practices. However, despite the employment of SCM as a strategic tool, public procurement still faces enormous predicaments. These include, among others lack of proper knowledge, skills and capacity, non-compliance with SCM policy and regulations, inadequate planning and the linking of demand to the budget, accountability, fraud and corruption, inadequate monitoring and evaluation of SCM, unethical behavior, and too much decentralization of the procurement system.