Anish AbrahamPrivacy Program Manager| University of WashingtonAuburn, Wa, United States
In my current project, we are in the process of creating the procurement statement of work. Since I was never involved with procurement before, I would like to get some clarifications from those project managers who are involved in procurement process. Anyway my understanding is that it is the responsibility of the project manager to make sure that both the product scope and project scope are addressed in the contract. This means that the project manager should be involved in preparing the procurement statement of work, procurement negotiations and the contract that includes what products or services the vendor will provide.
Do you just rely on your procurement administrator or do you involve in procurement process? Also, Is risk a key concern for procurement? Saving Changes...
Relying on anyone else in the project (i.e. procurement administrator) is a decision which can be made based on several factors. The size and complexity of projects as well as the administrator competency are among those factors. However, PM is responsible for the project success and needs to make sure that everything is OK.
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1 reply by Anish Abraham
Dec 07, 2017 6:29 PM
Anish Abraham
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Thanks Abolfazi for your feedback.
Saving Changes...
Anish AbrahamPrivacy Program Manager| University of WashingtonAuburn, Wa, United States
Dec 04, 2017 8:45 AM
Replying to Vincent Guerard
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First the PM need be involved, to what level can varies but a lot.
What kind of projet? IT? Construction?
Do you subcontract all or most of the project? Make sure all is accounted for in you various contracts, no scope missing in between contracts.
Risk should be involve, evaluate financial of subs for one. What are the risk that are mitigated using procurement?
Thanks Vincent for your feedback. This would be basically a Time and Material contract. Saving Changes...
Risk is definitely a concern in procurement. That is why you normally evaluate the financial stability of the supplier and check references.
You will also try to transfer as much risk as possible unto the supplier during contract negotiation - for example, liability. Saving Changes...
Anish AbrahamPrivacy Program Manager| University of WashingtonAuburn, Wa, United States
Thanks for all the comments and suggestions.
So,my understanding is that the project manager should be consulted before the contract is signed with the contractor, because the PM brings expertise in looking at the costs on prior projects, understanding the components of the WBS on which the costs have been estimated, and also knowing the skill levels of human resources that will be needed for a project. Saving Changes...
The project manager should, ideally, be part of the contract negotiations. If not, she should, at least, review the contract for scope, risks and constraints. Saving Changes...
Anish AbrahamPrivacy Program Manager| University of WashingtonAuburn, Wa, United States
Dec 04, 2017 8:51 AM
Replying to Kiron Bondale
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The PM will be responsible for ensuring that requirements, constraints, assumptions and other critical info is incorporated into the work which a procurement analyst will be performing.
Risk is absolutely a key consideration in procurement planning - everything from picking the best contract type to specific terms & conditions will be influenced.
Kiron
Thanks Kiron for your response on this. Saving Changes...
Anish AbrahamPrivacy Program Manager| University of WashingtonAuburn, Wa, United States
Dec 04, 2017 1:47 AM
Replying to Mansoor Mustafa
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PM should involve in procurement process, as he is fully aware of his project, numbers of risk identified in project and their response strategy and is a best person to provide information to procurement manager. Which risk is transfer to third party, all these information should be share to procurement manager. He should also participate in negotiation and bidder conference
Thanks Mansoor for your response. Saving Changes...
Risk is high when procurement is a part of the project and project manager should be directly involved in the process.
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1 reply by Anish Abraham
Dec 07, 2017 11:41 AM
Anish Abraham
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Thanks Sonali for your response.
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Anish AbrahamPrivacy Program Manager| University of WashingtonAuburn, Wa, United States
Dec 07, 2017 5:20 AM
Replying to Sonali Malu
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Risk is high when procurement is a part of the project and project manager should be directly involved in the process.
Thanks Sonali for your response. Saving Changes...
Lawrence Lyle, PMP CSSGB ITILSenior Project Manager| Dekalb County Government, Decatur GeorgiaNorcross, Ga, United States
Anish,
To a good PM, Risk is always a consideration! Especially where deliveries of any kind are a part of the Project Management and/or Contract Administration in general.
I say .. let the procurement people "do what they do" however maintain oversight of the procurement process and solicitation specifications. Make sense?
Larry