The procurement management plan describes how the procurement processes will be managed from developing procurement documentation through contract closure. The procurement management plan can include guidance for:
• The types of contracts to be used;
• Whether independent estimates will be used and if they are needed as evaluation criteria;
• Those actions the project management team can take unilaterally, if the performing organization has a proscribed procurement, contracting, or purchasing department;
• Standardized procurement documents, if they are needed;
• Managing multiple suppliers;
• Coordinating procurement with other project aspects, such as scheduling and performance reporting;
• Any constraints and assumptions that could affect planned procurements;
• Handling the required lead times to purchase items from sellers and coordinating them with the project schedule development;
• Handling the make-or-buy decisions and linking them into the Estimate Activity Resource and Develop Schedule processes;
• Setting the scheduled dates in each contract for the contract deliverables and coordinating with the schedule development and control processes;
• Identifying requirements for performance bonds or insurance contracts to mitigate some forms of project risk;
• Establishing the direction to be provided to the sellers on developing and maintaining a work breakdown structure (WBS);
• Establishing the form and format to be used for the procurement/contract statements of work;
• Identifying pre-qualified sellers, if any, to be used; and
• Procurement metrics to be used to manage contracts and evaluate sellers.
A procurement management plan can be formal or informal, can be highly detailed or broadly framed, and is based upon the needs of each project. The procurement management plan is a subsidiary component of the project management plan (Section 22.214.171.124).
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.