Procurement management in PM (english)

THE OPEN UNIVERSITY OF HO CHI MINH CITY MASTER OF BUSINESS INFORMATION SYSTEM PROGRAM PROJECT PROCUREMENT MANAGEMENT Luu Truong Van, adopted from PMBOK 2000 MAJOR PROCESSES • • • • • Procurement planning Solicitation planning Source selection Contract admistration Contract close-out Luu Truong Van, adopted from PMBOK 2000 PROCUREMENT PLANNING • • • • INPUTS Scope statement: the current project boundaries Product description: Procurement resources: resources to support procurement activities Maket conditionds: Luu Truong Van, adopted from PMBOK 2000 Project scope management PROCUREMENT PLANNING INPUTS • Other planning outputs: preliminary cost, schedule estimate, quality management plan, WBS, identified risks • Constraints: • Assumptions: Project charter Luu Truong Van, adopted from PMBOK 2000 PROCUREMENT PLANNING TOOLS AND TECHNIQUES • Make-or-buy analysis (please see PMBOK) • Expert judgment • Contract type selection: – Fixed price (lump sum) contracts – Cost reimbursable contracts – Unit price contarcts Luu Truong Van, adopted from PMBOK 2000 PROCUREMENT PLANNING OUTPUTS • Procurement management plan: describe how the remainning procurement processes will be managed • Statements of work (SOW): describes the procurement item in sufficient detail to allow prospective sellers to determinate if they are capable of providing the item Luu Truong Van, adopted from PMBOK 2000 SOLICITATION PLANNING INPUTS • Procurement management plan: • SOW: • Otherplanning outputs Luu Truong Van, adopted from PMBOK 2000 Procurement planning SOLICITATION PLANNING TOOLS AND TECHNIQUES • Standard forms: may include standard contracts, standard descriptions of procurement items, standardized versions of all or part of the needed bid documents • Expert judgment: Luu Truong Van, adopted from PMBOK 2000 SOLICITATION PLANNING OUTPUTS • Procurement documents: should be structured to facilitate accurate and complete responses from prospective sellers • Evaluation criteria: be used to rate or score proposals Evaluation criteria are often included aspart of the procurements documents • Statement of work updates Luu Truong Van, adopted from PMBOK 2000 SOLICITATION INPUTS • Procurement documents: • Qualified seller lists: Luu Truong Van, adopted from PMBOK 2000 Solicitation planning 10 CONTARCT ADMISTRATION OUTPUTS • Correspndence: • Contract changes: Changes are fed back through appropriate project planning and project procurement processes, and the project plan • Payment requests: Luu Truong Van, adopted from PMBOK 2000 18 CONTARCT CLOSE-OUT INPUTS • Contract documenttation: Luu Truong Van, adopted from PMBOK 2000 19 CONTARCT CLOSE-OUT TOOLS AND TECHNIQUES • Procurement audits: to be a structured review of the procurement process from procurement planning through contarct admistration Luu Truong Van, adopted from PMBOK 2000 20 CONTARCT CLOSE-OUT OUTPUTS • Contract file: A complete set of indexed records should be prepared for inclusion woth the finalproject records • Formal acceptance or closure: – The person or organization responsiblefor contarct administration shouls provide the seller with formal written notice that the contract has been completed – Requirements or formal accptance and closure are usually defined in the contarct Luu Truong Van, adopted from PMBOK 2000 21 A TYPICAL CONTRACT IN PM: ENGINEERING, PROCUREMENT AND CONSTRUCTION AGREEMENT FOR POWER GENERATION PROJECT Luu Truong Van, adopted from PMBOK 2000 22 Definitions 1.1 Agreement • 1.1.a Authorization 1.2 Bonds 1.3 Change Order 1.4 The City of Dreams, Dakota, a Dakota municipal corporation, acting by and through its Electric Department 1.5 City's Representative 1.6 Construction 1.7 Construction Phase 1.8 Intentionally Left Blank Luu Truong Van, adopted from PMBOK 2000 23 Definitions 1.9 1.10 1.11 1.12 1.13 1.14 5.9 1.15 1.16 1.18 1.19 1.20 1.21 1.22 Contract Documents., Contract Price Days Developer Developer's Representative Developer's Taxes Those taxes described as Developer's Taxes in Section Effective Date Engineering Phase Environment Environmental Condition Environmental Services Excluded Cost Final Completion Luu Truong Van, adopted from PMBOK 2000 24 Definitions 1.23 Force Majeure Event 1.24 Gas Turbine Generator Unit 1.25 Grant Deed 1.26 Hazardous Condition 1.27 Laws and Regulations; Laws or Regulations 1.28 Major Equipment 1.29 Mechanical Completion Luu Truong Van, adopted from PMBOK 2000 25 Definitions 1.30 1.31 1.32 1.33 1.34 1.35 1.36 Milestone Option Agreement Plans Procurement Phase Procurement Services Progress Schedule Project Luu Truong Van, adopted from PMBOK 2000 26 Definitions 1.37 1.38 1.39 1.40 1.41 1.42 1.43 1.44 Project Site Project Taxes Punch List Retention Schedule of Values Scope of Work Specifications Standard Specifications Luu Truong Van, adopted from PMBOK 2000 27 Definitions 1.45 1.46 1.47 1.48 1.50 1.51 1.52 Subcontractor Submittal Substantial Completion., Substantial Completion Target Date Validation Action Work Rules of Interpretation Luu Truong Van, adopted from PMBOK 2000 28 10 Phasing Commencing the Work Contract Documents, Intent, Amending Use Developer's Responsibilities City's Responsibilities Compensation and Payments Title and Risk of Loss Substantial Completion Liquidated Damages Luu Truong Van, adopted from PMBOK 2000 29 11 Changes 12 Warranties and Guarantees 13 Tests and Inspections 14 Indemnities 15 Insurance 16 Bonds 17 Termination 18 Prevailing Wages 19 Nondiscrimination Luu Truong Van, adopted from PMBOK 2000 30 20 Force Majeure 21 Confidentiality 22 Conflict of Interest 23 Solicitation 24 General Compliance with Laws 25 Limitation of Liability 26 Disputes 27 Independent Contractor, Other 28 Representations and Warranties 29 Miscellaneous Provisions 30 Apprenticeable Crafts Luu Truong Van, adopted from PMBOK 2000 31 31 Hours of Work 32 Record 33 Non Collusion Affidavit 34 Notices Luu Truong Van, adopted from PMBOK 2000 32 ... adopted from PMBOK 2000 PROCUREMENT PLANNING OUTPUTS • Procurement management plan: describe how the remainning procurement processes will be managed • Statements of work (SOW): describes the procurement. .. in sufficient detail to allow prospective sellers to determinate if they are capable of providing the item Luu Truong Van, adopted from PMBOK 2000 SOLICITATION PLANNING INPUTS • Procurement management. .. adopted from PMBOK 2000 21 A TYPICAL CONTRACT IN PM: ENGINEERING, PROCUREMENT AND CONSTRUCTION AGREEMENT FOR POWER GENERATION PROJECT Luu Truong Van, adopted from PMBOK 2000 22 Definitions 1.1