Quản trị kinh doanh - Chapter 15: Project procurement management

CHAPTER 15Project Procurement ManagementProcurement and Project Management Procurement and Project Management (cont.)Long lead-time itemsLarge capital itemsMake or Buy decisionProcurement Management Plan GovernanceOrganisational policy and procedures in relation to procurement, contracting and legal processesRequirements of long lead-time items and large capital-purchase itemsPurchasing assumptionsRisk analysis of procurement decisionReview of procurement lessons learned from previous projectsCommon Tender TypesOutsourcing Project WorkIf the decision is to ‘buy’ into the project, one of the most frequently used phases is to outsource.Outsourcing Project Work (cont.) Advantages Cost reduction Faster project completion High level of expertise Flexibility DisadvantagesCoordination breakdowns Loss of control ConflictSecurity issuesOutsourcing Project Work (cont.)Best practicesWell-defined requirements and proceduresExtensive training and team-building activitiesWell-established conflict management processes in placeFrequent review and status updatesCo-location when neededFair and incentive-laden contractsLong-term outsourcing relationshipsContracting and Contract TypesInfrastructure ‘type’ contractsBuild, Own, Operate, Transfer (BOOT)Build, Own, Operate (BOO)Build, Operate, Transfer (BOT)PartnershipsTime and material contractsContracting and Contract Types (cont.)Fixed Price ContractsFirm fixed price (FFP)Fixed price incentive fee (FPIF)Fixed price with economic price adjustment (FP-EPA)Cost Reimbursable ContractsCost plus fixed fee (CPFF)Cost plus incentive fee (CPIF)Cost plus award fee (CPAF) Summary of Contract TypesEssential Elements of a Contract1. Offer and acceptance (agreement).2. Intention to create legal relations.3. Consideration.4. Legal capacity.5. Consent.6. Illegal and void contracts.The Art of NegotiatingProject Procurement IntegrationcontinuedProject Procurement Integration (cont)Key TermsBATNAclosed tendercontract lawcontract typeslarge capital itemslong lead-time itemsmake or buy (decision)open tenderOutsourcingpartnering charterprincipled negotiationprocurementsix essential elements of a contracttender process