PMLT

EPM-1163 Managing Project Uncertainty: Risk And Procurement Management

Advanced Project
Management and Strategic
Leadership

© Cestar College of Business, Health and Technology, North York,

PMLT Faculty Toronto, ON, M2J 1S5, Canada
Course
Description EPM-1163 Managing Project Uncertainty: Risk And Procurement Management

In This Course Course Description

In this course the student explores the related areas of planning in
project risk management and project procurement management.
Risk management planning processes include identifying and
analyzing risk and developing risk response plans. Procurement
management planning involves acquiring goods and services from
outside organizations and developing an approach to how the
work of those organization's efforts integrate into the project
endeavour.

© Cestar College of Business, Health and Technology, North York,

PMLT Faculty Toronto, ON, M2J 1S5, Canada 2
Session
Coverage 8
EPM-1163 Managing Project Uncertainty: Risk And Procurement Management

Session Coverage
8. Compare and contrast the generic types of
contracts from the standpoints of a
balance of seller and buyer risks
8.1 Compare and contrast the generic
types of contracts from the standpoints
of a balance of seller and buyer risks.

© Cestar College of Business, Health and Technology, North York,

PMLT Faculty Toronto, ON, M2J 1S5, Canada 3
 EPM-1163 Managing Project Uncertainty: Risk And Procurement Management
8. Compare and contrast the generic types of contracts from the standpoints of a balance of seller
and buyer risks
The generic types of contracts
Contract Contract Types
Types • Contract type determines the risk shared between buyer and seller.
• The type of contract to be used and the specific contract terms and
conditions fix the degree of risk being assumed by the buyer and seller.
• Major Contract Categories
I. Fixed Price Contracts- suitable when the type of work is
predictable, and the requirements are well defined and not likely to
change.
II. Cost Reimbursable Contracts (CR) - suitable when the work is
evolving, likely to change, or not well defined.
III. Time and Material Contracts (T&M) – When the project is managed
by the client. The client only want the provider to provide goods
and services, and have no other say in the project execution.
© Cestar College of Business, Health and Technology, North York,
PMLT Faculty Toronto, ON, M2J 1S5, Canada 4
 EPM-1163 Managing Project Uncertainty: Risk And Procurement Management
8. Compare and contrast the generic types of contracts from the standpoints of a balance of seller
and buyer risks
The generic types of contracts
Fixed Price
Contracts
Fixed Price Contracts:

• Firm Fixed Price Contracts (FFP),

• Fixed Price Incentive Fee Contracts (FPIF),

• Fixed Price With Economic Price

Adjustment Contracts (FP-EPA).

© Cestar College of Business, Health and Technology, North York,

PMLT Faculty Toronto, ON, M2J 1S5, Canada 5
 EPM-1163 Managing Project Uncertainty: Risk And Procurement Management
8. Compare and contrast the generic types of contracts from the standpoints of a balance of seller
and buyer risks
The generic types of contracts
Cost
Reimbursable
Contracts
(CR)
Cost Reimbursable Contracts (CR)

• Cost Pus Fixed Fee Contracts (CPFF),

• Cost Plus Incentive Fee Contracts (CPIF),

• Cost Plus Award Fee Contracts (CPAF)

© Cestar College of Business, Health and Technology, North York,

PMLT Faculty Toronto, ON, M2J 1S5, Canada 6
 EPM-1163 Managing Project Uncertainty: Risk And Procurement Management
8. Compare and contrast the generic types of contracts from the standpoints of a balance of seller
and buyer risks
The generic types of contracts
Time and
Material Time and Material Contracts (T&M)
Contracts
(T&M) • Time and material are a hybrid type of contractual
arrangement with aspects of both cost-reimbursable
and fixed-price contracts. They are often used for staff
augmentation, acquisition of experts, and any outside
support when a precise statement of work cannot be
quickly prescribed.
- The most common type of contract
- Payment based on time elapsed on work location
- Can be hourly/ daily/ weekly/ yearly
- Not linked to productivity or work done
© Cestar College of Business, Health and Technology, North York,
PMLT Faculty Toronto, ON, M2J 1S5, Canada 7
 EPM-1163 Managing Project Uncertainty: Risk And Procurement Management
8. Compare and contrast the generic types of contracts from the standpoints of a balance of seller
and buyer risks
The generic types of contracts
Risk to
Buyers &
Sellers

© Cestar College of Business, Health and Technology, North York,

PMLT Faculty Toronto, ON, M2J 1S5, Canada 8
EPM-1163 Managing Project Uncertainty: Risk And Procurement Management
8. Compare and contrast the generic types of contracts from the standpoints of a balance of seller
and buyer risks
Quiz-2: Project Procurement Management Quiz
15 Questions- 25 Minutes
1. Please keep your cameras on during the test.
2. When the test starts, please bring your Identification paper - Passport; Aadhar Card; PAN card;...any govt-
issued document with your photograph on it - to the camera to take a picture clearly for at least 5 seconds;
3. If there is any problem with your camera during the test, continue with your test, and complete it. We will sort
out the matter later on. For any reason, do not stop the test in between.
3. There must not be any electronic device - cellphone, tablet, second laptop/computer, camera- within a 2 mt—
radius near you.
4. You will not talk to anybody or receive/make phone calls until you have completed your test.
5. You will not leave your seat and go away until you have completed your test.
6. Taking pictures of the test questions and answer options is strictly prohibited.
7. Any window other than the Moodle test you take shall not remain open on your screen.
7. If you have doubts over any question's correctness, note down the first 3-4 words of the question, keep it in a
text file with you and paste it in the chat-box. Then carry on with your test. Inform the instructor about your
doubts after the test. The instructor will escalate the issue.
8. Questions will move sequentially forward. You will not be able to come back once you have moved past a
question.

© Cestar College of Business, Health and Technology, North York,

PMLT Faculty Toronto, ON, M2J 1S5, Canada 9
 EPM-1163 Managing Project Uncertainty: Risk And Procurement Management
Assignment-4: Project Case Study: Procurement Plan Development including make and
Assignment-4 buy calculations and RFP scenarios – 12.25% [Group Assignment]
Using your assigned project, create a Procurement Plan: (100 Marks)
Rubric
1. Procurement Management Plan -60 Marks
2. Make or Buy Scenarios – 20 Marks
3. RFP scenarios – 20 Marks

Instructions:
You must
I. Upload an MS Word file only, with only your Group No or Group Name as the file
name. (-5, -5 Marks)
II. Include the components of these artifacts as discussed in the class, or as available on
pmi.org, or as available on project management.com. Any template from any random
internet site must not be used. The source of your template must be referenced in
your submitted document.
III. Use the submission template for Group Assignment

© Cestar College of Business, Health and Technology, North York, 10

PMLT Faculty Toronto, ON, M2J 1S5, Canada
 EPM-1163 Managing Project Uncertainty: Risk And Procurement Management
Breakout

Learners to be moved into

breakout rooms to work on
This assignment and finalising
their group presentation, the
next day.

© Cestar College of Business, Health and Technology, North York, 11

PMLT Faculty Toronto, ON, M2J 1S5, Canada
 EPM-1163 Managing Project Uncertainty: Risk And Procurement Management
Questions?

Any Questions?

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PMLT Faculty Toronto, ON, M2J 1S5, Canada 12
 EPM-1163 Managing Project Uncertainty: Risk And Procurement Management
Thank You

Thank You !

© Cestar College of Business, Health and Technology, North York,

PMLT Faculty Toronto, ON, M2J 1S5, Canada