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The Outer Circle (& beyond) : Receive Information via general APM publicity.
The Middle Circle : Those on the C&P web mailing list.
The Inner Circle Circle : Those who are willing to contribute when asked e.g. Talks, contributing & reviewing documents. Limited direct emails.
The Bulls Eye : Committee members & those who want to initiate ‘projects’ & pro-actively contribute. Copied in on most emails wrt SIG initiatives.Bi-monthly web / tele-conference meetings.
What is Procurement ?� APM Body of Knowledge 5th edition (Section 5.4)
(and last Procurement Guide)
“Procurement is the process by which the resources (goods and services) required by a project are acquired.
It includes the development of the procurement strategy, preparation of contracts, selection and acquisition of suppliers, and management of the contracts.”
� APM Body of Knowledge 6th edition (Section 3.7.3)“Procurement is the products and services are acquired from an external provider for incorporation into the project, programme or portfolio.”
� Are these still valid as definitions for the APM ?
Why is Procurement Important ?� If 80 – 90% of many projects’ spend is outsourced
in some way, then might having the right organisations and people on board with good contracts in place be helpful ?
� Research shows that good procurement decisions can have just as much effect on delivering projects to time, cost and performance as technical decisions.
� A Project Manager can only manage and administrate a contract through the cards he is dealt. Procurement & Contracts are about the cards you deal yourself.
What is Procurement ?� APM Body of Knowledge 5th edition (Section 5.4)
(and last Procurement Guide)
“Procurement is the process by which the resources (goods and services) required by a project are acquired.
It includes the development of the procurement strategy, preparation of contracts, selection and acquisition of suppliers, and management of the contracts.”
� APM Body of Knowledge 6th edition (Section 3.7.3)“Procurement is the products and services are acquired from an external provider for incorporation into the project, programme or portfolio.”
� Are these still valid as definitions for the APM ?
� Procurement is the process by which the benefits, enhanced capabilities, functions / performance or resources (goods & services) required from or by a project or programme are acquired.
It includes deciding the package structure and, for each package, the development & implementation of the
� contracting strategy
� contract documents, including the specific scope / requirement
� process and evaluation criteria for selection and award
leading to the effective management and administration of the contracts once entered into."
Other key definitions in the GuideA contract is a legally enforceable agreement between two or more parties with mutual obligations. It normally includes (when for a sub-project) at a minimum :
� the Requirement which defines the performance or deliverable;
� the constraints in which this performance has to be delivered;
� how the contract is administered in terms of when payments are made, quality is assured etc;
� how change, whether instigated through or by the Employer or arising from external circumstances, is administered and ideally managed to minimise the adverse impact on the Employer’s project objectives and outcomes; and
� remedies for non- or poor performance by either party;
Other key definitions in the GuideAn Employer is the party who normally instigates the contract and who is receiving the Requirement in exchange for the ‘consideration’, normally monetary.
The Provider is a broad enough term to encompass :
� A manufacturer supplying ‘off the shelf’ goods
� A manufacturer designing and manufacturing goods to an Employer’s unique requirements, whether it is a one-off deliverable or 1000’s of units;
� A consultancy organisation providing professional services, whether these are ‘business as usual’ services, such as accountancy, or project specific services;
� An outsourcing organisation providing on-going services tailored to the Employer’s specific needs; or
� A contractor delivering a works contract, however expressed.
The Project Brief is a high–level outline specification, in terms of capability or functions and performance levels, of stakeholders’ (customers/clients) needs and requirements for the project needed to deliver the agreed Benefits. This would include the Benefits being refined where possible into tangible or measurable Success Criteria.
Activity 7 : Develop Project Scope Statement
� What’s in, what’s out and what’s a maybe ?
� High level boundaries / constraints.
� High level project breakdown structure for costing & planning.
� In theory, they have been evolved and fine tuned over time to take out ambiguities & inconsistencies which cause dispute. Where this is not the case, case law may exist to confirm their legal interpretation.
� Familiarity amongst practitioners with both their interpretation and the procedures to operate them. (‘better the devil you know’ !)
� The contra preferentum or constructor against the grantor rule does not apply to the standard terms.
Stage 5 : Select Contractor & Award Contract.Outline Sequence
� Relevant background law
� Types of Selection Criteria
� Typical Stages of a Selection Process
� EU Procurement Regulations
� Forming a Contract
� Other considerations / good practice e.g. :– answering queries during the tender etc – avoiding mis-representation in negotiation– status of letters of intent etc.
� Procurement is the process by which the benefits, enhanced capabilities, functions / performance or resources (goods & services) required from or by a project or programme are acquired.
It includes deciding the package structure and, for each package, the development & implementation of the
� contracting strategy
� contract documents, including the specific scope / requirement
� process and evaluation criteria for selection and award
leading to the effective management and administration of the contracts once entered into."