Procurement

and Contract
Management
Course Outline
Discussion
Where does a project start from?

DISCUSSION POINT PMBOK POINT OF VIEW

Types of Projects
Internal Project
• Any change or value-based
initiative
• Within the organization
• Doing it yourself
External Project
• Any project beyond the
organization’s capacity,
capability, and competency
• The component of the
organizational project is
outsourced
• Procurement VS Project
Starting documents

BUSINESS CASE PROJECT AGREEMENT ORGANIZATIONAL ENTERPRISE

STATEMENT OF PROCESS ASSETS ENVIRONMENTAL
WORK FACTORS
Business Case

Business case for

What was the
Why you went for this customer is different
background working
project? than it is for the
carried out?
contractor

Technical versions Financial version

include the capacity, include the financial
capability, and sense of this project
competency to do this including payback
work period, NPV, IRR
Project Statement of Work

So, Customer’s
Customer outsourcing a
procurement statement of
component creates
work becomes the Scope description Details of project
procurement statement of
Contractor’s project
work
statement of work
Agreement

After the procurement process, an agreement is The terms and conditions of the agreement also
signed between contractor and customer. influence the management of the project
Agreement

Exchange of considerations/obligations Customer’s consideration/obligations are Contractor’s consideration/obligations are

usually in the form of finances usually in the form of services or products
Organizational
Process Assets
Enterprise
Environmental
Factors
Stakeholder Register
Communication Strategy
 Source Procurement
Make-or-Buy Publication of Response to
Selection Documents
Analysis RFP/RFQ/RFI RFP/RFQ/RFI
Criteria Preparation

Contract Draft Financial Technical Pre-

Shortlisting
sharing Assessment Assessment qualification

Assigning of
Contract Contract Develop Stakeholder
Project
Negotiation Signing Project Charter Identification
Sponsor

Business Case
Requirements
Communication
Documentation Scope Detailing
Project Statement of Work and RTM
Strategy

Agreement

Organizational Process Assets

Project Scope Work breakdown
Work Package
Enterprise Environmental Factors Statement structure
Requirement Traceability Matrix