PMIPMP home
  FAQ
  PMP Tutorial
  Mock exam
  Other Certification sites
  About PREPAREPM
  PMP Books
   Tutorial Topics
  Introduction
  Fundamentals
  Integration
  Scope
  Time
  Cost
  Risk
  Quality
  HR
  Communication
  Procurement
  Ethics
   Practice questions
  Mock Exam 1
  Communication
  Cost
  HR
  Introduction
  Quality
  Risk
  Schedule
  Scope
  preparepm: Tutorial Project Procurement Management
home | tutorial | Mock Exam

preparepm.com Tutorial - Project Procurement Management

This chapter covers key concepts related to Project Procurement Management.
  1. Procurement Management involves getting work done by people outside the project team. The knowledge area of Project Procurement Management consists of the following processes -

    Procurement Management Processes
    Process Project Phase Key Deliverables
    Plan Purchases and Acquisitions Planning Procurement Management Plan
    Plan Contracting Planning Contract Statement Of Work,
    Evaluation Criteria
    Request Seller Responses Execution Sellers list, Proposals
    Select Sellers Execution Selected Sellers,
    Contract
    Contract Administration Execution Contract Changes
    Contract Closure Closure Closed Contracts

  2. Procurement Planning involves build versus buy decisions.
  3. A contract is a formal agreement. It is a legal document biding to both seller and buyer. Changes to contract must be in writing and formally controlled. Most Governments back all contracts by providing a court system.
  4. Sole Source refers to a market condition in which only one qualified seller exists in the market.
    Single Source refers to a market condition in which the company prefers to contract with only one seller.
    Oligopoly refers to a market condition where very few sellers exist, and the action of one seller will have impact on other seller prizes.
  5. Contract can be used as a risk management tool, as in transferring risk.
  6. Centralized Contracting refers to a separate contracting office that handles contracts for all projects. In De-centralized Contracting a contract administrator is assigned for each project.
  7. Force majeure is a powerful and unexpected event, such as hurricane or other disaster.
  8. Privity is contractual information between customer and vendor.
home | tutorial | Mock Exam