Selecting a Seller Pmbok Section

Once the sellers have presented their proposals, bids, or quotes (depending on what the buyer requested), their documents are examined so that the project manager can select which sellers are the best choice for the project work. In many instances, price may be the predominant factor for choosing a particular seller—but not always. Other factors besides price may also be taken into consideration:

• The cost of an item may not reflect the true cost to the performing organization if the item cannot be delivered in a timely manner. If a seller promises to have a product on site by a specific date and fails to do so, the project can be delayed, costing the organization thousands—or more—in losses.

• Proposals can be separated into two categories: technical and commercial. The technical category describes the approach and methodology to complete the project work. The commercial category delves into the price to complete the project work. An evaluation takes into consideration both categories in order to determine the best choice for the project.

• Critical, high-priority projects may rely on multiple sellers to complete the project work. This redundancy can balance risk, cost, and opportunity among multiple vendors.

Project Management Made Easy

Project Management Made Easy

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.

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