Chapter 12: Project Procurement Management | Overview

The approach taken with procurement is a very formal one because poor decisions or ineffective management can lead to costly mistakes, schedule problems, and quality issues.

Project Risk Management Processes

The project team is responsible for determining how rigorous the processes need to be while also making sure that the procurement needs of the project are managed within the overriding purchasing policies and procedures of the organization.

In order for the project’s objectives to be achieved, material, supplies, resources, results, or solutions may need to be purchased.

But the first step is to determine whether the project team can meet the need or whether the need is best met by an entity outside the project.

So project procurement begins with a thorough inventory of every good, service, or result needed by the project, followed by a make-or-buy analysis and decision.

For “make” decisions, the activities, and resources needed to produce the good, service, or the result will become part of the project management plan. For “buy” decisions, additional procurement processes will be undertaken that solicit and evaluate sellers, establish contracts, and manage the buyer-seller relationship.

It’s important for us to realize that the procurement processes occur for each project need, and in projects that are meeting needs through multiple outside sources, there can be several procurement processes going on simultaneously but in different procurement phases.

This chapter includes:

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