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.
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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…
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.
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.
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.
|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.|
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.
Software infrastructure such as databases and core applications must be available 24/7 to support the business. As these infrastructure elements age, you should start planning when they will be updated or replaced. Take a look into three main areas of achieving this—making decisions, design success and selecting vendors.
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.