CH12 - Procurement

CAPM® Exam Prep Workbook
916
where it requires planning

✓ant understanding of how four
#
organization allows to
-
to a
Procure or do toa deal with a
Procurement office or a
That have list

s is , tour
organization might Centralized controling
.
✓
-
of Approved vendors ( like µ ok ;)

.
↳ once we have a
contract .
we then
,
administrate the contract

I> After both parties have
delivered what have
they
promises
917
>
if tou are a Seller then tou are
g
,
stakeholder to the
a
buyer
§¢ →
means that we have an
agreement to purchase
from ( not a che Te ) ( vice versa
µ Both of them agreements

are
>
( s Defined as : A Business relationship in

exchange for funds
918
n÷÷÷÷÷÷÷::÷÷C
- -
t.eu ."
sign the m
contract
¢
919
that you want

everything
s
✓ must
the lawsuits and be in the contract
[ where legalities
that tou have to follow ( which
Contuny )
920
✓
> If You are the Seller , and I'm the
Buyer ,
them
I'm a
key stakeholder to You
↳ That is I 1 the who puts the Terms aus conditions

,
buyer)
> for example :
y to do
381¥: subcontracting ?
""
921
Trends Procurement
I.
Emerging in in
will be handled
y
> for example tou say that
anything that is related to
electricity
by Company X
↳ That do to the contract

→
very Big Projects
is
,
we can Some changes
922
EW im
g
then nut let you have the rest
do as if that %
That is Small
engagement first well go
we on
s , we
goes ,
✓
,
✓ s as if im wa s
supplier Selection
ISL 47 a di I
923
to consider
Thing
in
tailoring DO
will adhere to
the Procurement ⑧
That is
,
which
party
management
•
gg the codes ant who is response ble ?
T
Availability of
"
= The the supplier
do this he is out
that the supplier must be able to or
Ability
•
• . =
924
↳ Same
as ISE 470
925
926
for Procurement
Planning Process #
: t in
ga
° -
• .
- :
Planning : -
is it needed not ?
✓
or
927
928
- -
Q - -
②
③ online
> we
✓ might put the opportunity or
newspaper
④
⑤
929
- -
Same what we have
done with PIF %
→ Seller = Neck
→
Buyer =PIf
930
effect how tou Procure

✓> where they
L
)
✓
s
multiple Suppliers ?
931
I. These tearm we need to know them :
① ? There is
only one Seller who can meet
the reefs
②
Is = There are alot of different
. Salters
③ but tou want to work with only
[
this one
When their prices, all the

company raise
=
a
other follow that

companies will one
Company
932
£ .
Planning for the
project Requirements in
To See the
project Requirements at
:)
oi
.
.
, we will look
I
2
933
> planning
f
&
934
To R will include
. :
o .
:
3
935
The Contract Type
Determining %
•
• .
My
I
↳ As Transfereat Risk Response • .
have the terms of how allowed to

Nate that the Contract
you are
> may
change it
936
of contracts
There 2
Categories :
°
• . are
- s means that it has a
You
which shows what ① Fixed price contracts Pay
I
→ fixed price to
for all
f will provide seller
apply s as a
:÷÷÷÷÷:÷÷:
"""
"
"
"" """
÷:
÷ .
ant will also profit

pay
a
Margin
This the
type is more
risky to
↳ this example the
So if you the
you can't
buyer in
,
are
project Manager ,
sign the contract
PIF
buyer is
937
Type
I
④
> Seller = Mok
✓ Buyer PIF
)
-
in this
type of contract
,
the Teller
will contract
specify the cost of profit of the
art these will be fixed
Addendum em * . case , c.ne.ae .

g. ⇐ ⇐
!
*
'
Inigo:L:
" runs
happens ,
the seller
o is
PIF JI ji t
.
e's IN
ja ←
control
-
gig g
't f
a
dig 'd ? E's gas *,

to the Scope
change
938
Type's
nu
it is the Same as the FFP Type but
,
with the afhitiou of an incentive to do
Something extra (ex .

.
Finish the project
it is the maximum price that you will get
date)
s
✓ an an incentive fee before a certain
↳ That is
,
for example ,
if we facet some
fee
of that incentive
delays will loss some
,
we
939
Tying
usually for several years
↳ an a
really big project that will last
→ This
type is the Same as
the FFP Type .
However , the Seller
the control that the

buyer will hold the changes that
will
specify
-
in
will attack the cast of material ,

cast of - - -
-
T L
-
- oil
- -
y -
gas
✓ ÷::c .
940
when
> That is , we usually use this Category
g the scope of work C it
- be defined early
941
Ty
buyer
↳ the will
That is
,
specify a fixed fee for the
if the Salter
cost . However,
has
spent more ,
the
buyer
will for that
pay
→ But Remember ,
that the buyer has initially
fee
fixed amount of money
or
tou
Jane a
for the cast
942
#
Tye
→ This is the best type that a
Seller could have hahaha go
↳
-
will for
in this
type ,
the
buyer pay
all cost . that the seller will make
incentive fees if accomplished
}
1- an we
the extra thing that the

buyer have
L f finishing the
any
,
, . . e.
amp, e page
share the fees follows

> We
might
as
incentive
g. %Fnm%I's "-
zoa
#
/
inset
state in
emigre .
Project
✓
You as the Seller will relive
the Costs that were to incur
in this blue area
943
Typify
↳ Same
idea as
the C PFF Type .
However , if the seller did a

really good
not cost
lot of
job auf he did a
then the buyer will

give
2 - money ,
the Seller reward for his

a
job
performance
Note that the re want is de term aint

by the buyer
I ,
jg. for
W Jg Is
.
944
u
They & sis 't "

-
>
→
s
g
.
& it is the same as the CP FF type

However , the extra fees for
buyer will
pay
the the project
Time that the Saller puts in
like an
hourly fees
could be time limited

( like we will do this project
in
only 6 months )
945
& .
Determining to Make or
Buy : u
951
You vent or
e-
e-
6.5 months then

the product will be 't for longer
keep than ,
it is better to build it yourself ,

auf Vice Versa
952
245 > Gao 123000 233,600
23,500 44,000 25,500
233,600/25 9.2 months

> Soo
=
953
954
Creating Procurement Management Plan
°
• . : -
.fi
( The vendor must know them )
: :: ::c :
"me
:÷÷÷÷÷÷÷÷÷÷ .
→ The Plan define that
→ The Plan define that
946
define for the costs for

Bases on our
historical data ,
we can an
average
[ the project
→ The plan define that
all of that shit

they will do
;
Ts where
947
ie
. The Procurement plan will also define .
no
?
948
949
od
.
Creating the Procurement Documents : a
Document Name Dis Cri lotion
④ almost the the

same I what is
price
②
⑨ - - -
I".÷÷÷÷÷÷÷smn.aeummmnim#€
That is the
,
buyer wants y
⑦
↳ The
buyer is interested but maybe not
ready to
bag
950
i.
Conducting Procurement in - :
?r . cess
#2 : -
Execution in
want from here ( or what the Procurement

office of the
buyer
what we
>
bid ant make proposal
y wants ) is from the Seller to a
'
Then I l seller of him the contract

the
buyer ) choose
my give
]•:?kp
this is what will happen in
?!! IP
,
,
955
957
Ir s from the P If
will SOW to the Sallee,

① The buyer give a
the Quotation Bi t
request from the Saller
buyer will
or
② Then the
fit cant be an RFP
ant then an RfI
( Rft )
958
> from Mok

I
asked for
with the documents that
the
buyer
③ The Saller will res
pose
-
959
:b
f. safe
the proposals he will Selleck the Venta
buyer
-
all
• % So after the re cire ,
by using :
(You weight
factors
#
)
↳ 42
page
✓
'
Dis ↳ big
screening Eg j 'm
✓a i. , after narrow
e.
it down to
several
Venters , you ( The
like app
it is
f-
an
buyer) negotiate
to see the reviews on
for better price
the vendors
↳ ant at the
you
study re
proposal
960
g. Anything in blue is for to

come that conference Where this Conference is opportunity
where all Sellers
.
an
the seller
i.
Anything in green g
( to ask questions about
that SOW
is for the
buyer @ ③
I
④ E
→
④
T
try a
1.3 Sent to sellers that

⑥ only show
up for the conference
my
⑥
> with not all-
g
°
5. Sellers
⑧ that
(
only the
→ ones
B
↳ to is interested )
in
p
is
I the buyer
6.4
⑨
6.7
961
962
.
• .
Selecting the Seller in
the Seller ?
How to choose
a-
will be the
not always maybe
, experience
factor I
'
predominant
963
>
I ISE 470 ; a
→
That is
only one can I
.
it ( as we saw previously)
fixed
↳
maybe the
buyer has a
baby it
964
Tools out Tech How to
§
on
seller to
g
.
965
first
today
contract with
have we
may go
>
That is , might
we
a ,
y memorandum of understanding that

say what the Seller will da
a
what the will

ans
buyer pay
.
→ Then we
give
that to the lawyers ,
cut the lawyers will write the
contracts
this time , have Letter of
This Process may take time During we will a
→ .
Intent that show that i
deal with the seller

→ we have a
→ The terms at conditions
• This will let the seller pre par
~
for the world that will be initiated
with the
buyer
& The Letter of Intent will be before
¢ Nate :
the contract
966
Procurements # 3
Controlling ?rMonitoring
°
in - : . cess
: -
• .
8 Controlling : u
-
F>
or the Procurement
Department
967
> a claim
-✓ is a
disagreement
968
→ The most important input
→ done
performance that
was
raw data about the
969
late this will effect the PIF

.
if Mok
✓
are
so ,
interface some risks

✓
> That is
,
the vendor may
970
i.
Preparing for Contract Administration in
971
972
oi.
Performing claims Administration in
hy Canceled ?
:@
>
→
↳ where it will define the allowance to cancel the
contract
973
✓s where the Seller to a

change
that was not approved
do ADR
?
How do culet ? d we
✓
we es .
→
- r
>
GE
974
g.
Performing Contract closure : -
to the
maybe subject
> review
✓
975
↳ for
making sure that what was
payed was
received
2 - actually
976
977
> if the contract was Canceled , so we

may
✓ have settlement
negotiation
a
]
L
978
#
Sometimes called :
-
↳
§ where it is an
agreement
from both parties that
they
have met
That is this the terms of the contract ant we are done

,
certificate will
be archived in the
Procurement file
979
980

CH12 - Procurement

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CH12 - Procurement

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CAPM® Exam Prep Workbook

where it requires planning

Procure or do toa deal with a

That have list

of Approved vendors ( like µ ok ;)

administrate the contract

µ Both of them agreements

( s Defined as : A Business relationship in

that you want

↳ That is I 1 the who puts the Terms aus conditions

↳ That do to the contract

= The the supplier

effect how tou Procure

I. These tearm we need to know them :

When their prices, all the

other follow that

have the terms of how allowed to

- s means that it has a

ant will also profit

> Seller = Mok

art these will be fixed

Addendum em * . case , c.ne.ae .

dig 'd ? E's gas *,

with the afhitiou of an incentive to do

Something extra (ex .

the control that the

will attack the cast of material ,

specify a fixed fee for the

for the cast

Seller could have hahaha go

incentive fees if accomplished

the extra thing that the

share the fees follows

You as the Seller will relive

the Costs that were to incur

in this blue area

However , if the seller did a

then the buyer will

the Seller reward for his

Note that the re want is de term aint

They & sis 't "

& it is the same as the CP FF type

could be time limited

6.5 months then

it is better to build it yourself ,

245 > Gao 123000 233,600

23,500 44,000 25,500

233,600/25 9.2 months

→ The Plan define that

→ The Plan define that

define for the costs for

all of that shit

Document Name Dis Cri lotion

④ almost the the

want from here ( or what the Procurement

Then I l seller of him the contract

will SOW to the Sallee,

> from Mok

g. Anything in blue is for to

1.3 Sent to sellers that

Tools out Tech How to

y memorandum of understanding that

what the will

Intent that show that i