Question

As part of the project management process, consideration must be given to acquiring the products and services that will be used during the project to produce the desired product. Project managers are tasked with sourcing these goods and services and creating and managing contracts with the sellers

1. Explain the importance of project procurement management.
2. Explain the activities associated with conducting and controlling procurements.

Answer 1

Project procurement management helps an organization to take decisions for the purchasing of the resources. It plays important role in supply chain management that it directly relates with the direct purchase. It helps organization to reduce the time duration which takes long in the manual purchase. It handles indirect operational purchase in an organization by reducing the cost, time and resources. Thus, it helps in achieving project procurement goals and making profits with less expenses.

Control procurement helps in managing the procurement association, monitoring contract performance and ensure in making corrections or change as required in the contracts and finally closing the contracts. It ensures the seller’s and buyer’s performance should accomplish the project needs as per the agreed legal agreement.

Conduct procurement is the process of having responses from the potential sellers and contracting. It involves organizing and managing activities ,for example, having bidder conferences, assessment of potential sellers and their selection.