Procurement Management Plan

The procurement management plan details how the procurement process will be managed. According to the PMBOK® Guide, it includes the following information:

■ The types of contract to use

■ The authority of the project team

■ How the procurement process will be integrated with other project processes

■ Where to find standard procurement documents (provided your organization uses standard documents)

■ How many vendors or contractors are involved and how they'll be managed

■ How the procurement process will be coordinated with other project processes, such as performance reporting and scheduling

■ How the constraints and assumptions might be impacted by purchasing

■ How multiple vendors or contractors will be managed

■ The coordination of purchasing lead times with the development of the project schedule

■ The schedule dates that are determined in each contract

■ Identification of prequalified sellers (if known)

■ Risk management issues

■ Procurement metrics for managing contracts and for evaluating sellers

The procurement management plan, like all the other management plans, becomes a subsidiary of the project management plan.

Real World Scenario

Streamlining Purchases

Russ is a project manager for a real estate development company in Hometown, USA. Recently he transferred to the office headquarters to develop a process for streamlining purchases and purchase requests for the construction teams in the field. His first step was to develop a procurement management plan for the construction managers to use when ordering materials and equipment. Russ decided the procurement management plan could be used as a template for all new projects. That meant the project managers in the field didn't have to write their own procurement management plan when starting a new construction project. They could use the template, which had many of the fields prepopulated with corporate headquarters processes, and then they could fill in the information specific to their project. For example, the Types of Contracts section states that all equipment and materials purchases require fixed-price contracts. When human resources are needed for the project on a contract basis, a T&M contract should be used with the unit rates stated in the contract. A "not to exceed" amount should also be written into the contract so that there are no surprises as to the total amount of dollars the company will be charged for the resources.

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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