Question review

Question 1

Procurement strategy Q422

Answer 1

Meaning: to decide on delivery method, type of legally binding agreements and advancement of procurement through procurement phases

Question 2

Procurement strategy - Types of delivery methods Q422

Answer 2

1) For professional services buyer/services provider without subcontracting buyer/services provider w/ allowed subcontracting joint venture buyer - service provider buyer/services provider as representative 2) Construction (industrial, commercial) turnkey design build DB design bid build DBB design build operate DBO build own operate transfer BOOT etc

Question 3

Procurement strategy - Types of contract payment types Q422

Answer 3

Fixed price contracts (scope well defined, requirements well defined and not likely to change) Cost plus contracts (work evolving, likely to change, work not well defined) Incentives and awards (to align objectives of buyer and seller) Other: lump sum, firm fixed price, cost plus award fees, cost plus incentive fees, time and material, target cost…

Question 4

Procurement strategy - Types of procurement phases Q422

Answer 4

PS can include information on procurement phases: Criteria from moving from one phase to another sequencing, description of phase, specific goal for the phase, MC plan for tracking progress of procurement, process for knowledge transfer from phase to phase

Question 5

Sources of project risks

Q356

Answer 5

Question 6

Procurement - Source selection criteria (TT/O)

Q412

Answer 6

Selection methods/criteria:

• least cost (proc. of standard or routine nature with
  well-established practices,standards exist, a specific and well-defined outcome is expected,which can be executed at different costs)
• qualifications only (when value of the procurement is relatively small)
• quality based/highest technical proposal score (The selected firm is asked to submit a proposal with both
  technical and cost details and is then invited to negotiate the contract if the technical proposal proves acceptable.
  Using this method, technical proposals are first evaluated based on the quality of the technical solution offered.
  The seller who submitted the highest-ranked technical proposal is selected if their financial proposal can be
  negotiated and accepted.)
• quality and cost-based (The quality and cost-based method allows cost to be included as a factor in the seller
  selection process. In general, when risk and/or uncertainty are greater for the project, quality should be a key
  element when compared to cost.)
• sole source (only one seller, prepares technical and financial proposals, which are then
  negotiated. Since there is no competition, this method is acceptable only when properly justified and should be
  viewed as an exception.)
• fixed budget (The fixed-budget method requires disclosing the available budget to invited sellers in the RFP and selecting the highest-ranking technical proposal within the budget. Because sellers are subject to a cost
  constraint, they will adapt the scope and quality of their offer to that budget. The buyer should therefore ensure
  that the budget is compatible with the SOW and that the seller will be able to perform the tasks within the budget.
  This method is appropriate only when the SOW is precisely defined, no changes are anticipated, and the budget is fixed and cannot be exceeded.)

Question 7

Control resurces process rationale

Q310

Answer 7

Process of ensuring that physical resources assigned to the project are available as planned, monitoring planned versus actual utilization of resources and taking corrective actions if needed.

Key benefit: ensuring assigned physical resouces are available at the right time and in the right place and are released when no longer needed.

Human resouces = controlled via Manage team

Question 8

Reasons for initiating projects?

Q9

Answer 8

• Satisfy stakeholder requests or needs
• Meet regulatory, legal or social requirements
• Implement or change business or technological strategies
• Create, imporeve or fix products, processes or services

Question 9

How do we tackle emergent risks?

Plan risk mngt

Q351

Answer 9

With developing project resilience:

• each project should have the right level of budget and schedule contingency
• flexible project processes that can cope with emergent risks,
• an empowered project team with clear objectives and is trusted to get the job done,
• frequent review of early warning signs to identify emergent risks early
• clear input of stakeholders to clarify areas where the project scope or strategy can be adjusted in response