Midterm

Question 1

What is procurement

Answer 1

o Procurement is the act of obtaining goods, supplies, and/or services.
o Therefore, project procurement is obtaining the materials and services required for a project.
o Project procurement management encompasses the processes used for making sure project procurement is successful.
https://www.youtube.com/watch/WFwbQgzwHsY

Question 2

What are the 8 major elements of procurement?

Answer 2

• Identification of requirements for procurement
• Procurement vs make-your-own decision
• Selecting contract types, and creating contracts
• Identification of potential vendors
• Evaluating/selecting vendors and their proposals
• Monitoring and controlling procurements
• Managing procurement contracts
• Closing procurements

Question 3

What are agreements / contracts?

Answer 3

• Describe relationship between buyer and seller including deliverables and results
• Can include significant legal obligations and penalties
• Comply with local, national and international contract laws
• More extensive approval process
• Are tailored to the project
• Anything not in the contract cannot typically be legally enforced

Question 4

How can major risks be avoided?

Answer 4

Risk management is something that can be avoided within a project if you write contracts that accurately allocate specific risks to those entities most capable of managing them.

Question 5

What project procurement is vs operational procurement

Answer 5

• o Project procurement may involve factors not present in operational procurement, such as:
• Scheduling
• New Suppliers
• Tracking*
• Project procurement scheduling - delivery of resources during a project can be complex including many dates and locations during the project
• Projects may require new suppliers the organization has not used before, possibly in new supplier categories
• More detailed tracking of procured resources may be required such as shipments on job sites