The success of a project depends on the processes that are followed, the people who execute them and the contractual terms and conditions. This subject is all the more relevant to companies who take up work with little background and experience. Understanding some of the common pitfalls that should be avoided by sellers is essential.
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All project managers have to buy something, either goods or services. When you have a procurement professional on your team, you can manage the procurement as a subproject. But when you have to do the procurement yourself, you need to know exactly what has to be done, and when.
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This template and its instruction sheet is aimed at project managers of solar projects for managing the procurement system process. It allows you to create and manage different procurement process data (item types, supplier list, contacts by suppliers); to create an RFP, linking it to a restricted list of preferred suppliers; to send automatic email to selected suppliers belonging to a certain RFP; to create a standard form email; to calculate forecasted date of answer from supplier; and report overdue dates.
Could you use a little help during your procurement process? This template is intended to provide a framework for evaluating responses to an RFP (Request for Proposal) from different vendors.
The Procurement and Shipping Tracking Log helps to plan, manage and track the various stages of the procurement process during the project life cycle. It helps to reconcile the shipment dates with the project master schedule. It also provides a basis to mitigate any cost overrun and schedule delay that arises because of procurement processes.
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Claims arise in a project mainly due to lack of clarity in scope and specifications, ambiguities in contract clauses, interface scope with other projects, site conditions and time constraints. Here we discuss various scenarios and issues that can arise during project execution—along with possible solutions to address the issue of claims management in construction projects.
|A.||You are being “taken” by sales people from your hardware vendors who are behaving like used car salesmen. They quote you a low price to get your management’s approval, but when it comes time to actually install you have to add on many necessary extras you really need that they never revealed.|
|B.||It is probably you and your team if you are only figuring initial hardware costs in your project budget. The total cost of any new installation should be calculated both in immediate costs and in long-term costs over the life of the equipment, including non-tangible expenses. Only then can vendor offerings be fairly compared and evaluated.|
|C.||Management should not expect project teams to be pricing hardware. This should be done exclusively by someone from the purchasing department. Your only role is to install whatever arrives on the dock. In this way, if the costs go up you and your team escape the blame.|
|D.||Since recent costs for information technology (IT) items have quadrupled over the life of the equipment, you should multiply any future vendor contract pricing by four and alert accounting how much cash to have on hand in the immediate future. Always pick the lowest bid, as in today’s market all hardware is basically the same.|
Outsourcing vendors make lots of promises around the cost savings and productivity improvements they can deliver. Are the benefits really that good?
There are many reasons and benefits from outsourcing work. Here are some of the top reasons for looking outside of your organization for expertise and assistance in executing projects.
Project management becomes so much more complicated when contracts get involved. If nothing else, it seems to cause so many more project managers (or people who call themselves project managers) to pop out of the woodwork. This should be a good thing, but it can also be an unhelpful complication.
Nuclear technology and project management have a long standing relationship. The River Corridor Closure Project was a finalist for the PMI Project of the Year award in 2015. As a large-scale project that dealt with significant hazards and large budgets successfully, there is much to learn from this project.
Negotiators in this story followed the rules and ethics of the game. The goal was to maximize the gain of their respective organizations. There was no compromise on integrity. At the same time, the instinct of a youngster and the wisdom of a veteran collaborated to take the game beyond zero-sum and made it win-win…
Once project planning begins, procurement quickly becomes a vital activity. Whether you are building a bridge, installing a software upgrade or launching a new product, procurement matters to project success. Procurement poses both ethical and practical challenges.
In fixed bid projects, effective project selection, vendor management, a good contract, organizational change management and project management all play a role in ensuring a positive outcome. In this article, the author discusses how to manage fixed bid IT projects with a focus on the vendor's perspective. The crucial phases in the lifecycle of a fixed bid project and how to effectively navigate them are examined.
In Part 1 of this article, we reviewed the types of contracts, the CM methodology, profession and associations, and the role of the contract manager. Now we’ll review CM’s control tools, best practices, key success factors and the causes of failed contracts. Hopefully, this article and upcoming webinar will provide food for thought on how you can apply one or more of these to your PM role, organization or project.
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