Many projects and organizations purchase external goods, services, consultants, contractors and suppliers in a process called procurement. Although it's a very efficient and capable way to deliver project work, it has its own limitations that must be recognized in order for the procurements to go smoothly. A procurement strategy establishes the methods and procedures … [Read more...]
A procurement management plan documents how a project will conduct its procurement (purchasing). In the Project Management Body of Knowledge (PMBOK Guide), it is the component of the overall Project Management Plan that deals with external purchasing for the project. It is separate from the statement of work (SOW), also known as the terms of reference (TOR) which … [Read more...]
Due to expertise or resource constraints, many projects require external resources to complete their work. These resources can come from either the project's parent organization or from external sources. But regardless of how they are obtained, project procurement is one of the most exciting areas of project management but also results in the biggest headeaches for the … [Read more...]
A Statement of Work (SOW) is a project management document which describes the work that is required of an external contractor, vendor, or supplier. It can either be included within the contract documents or simply be a reference for the project management team. Also called Terms of Reference, the more generic Statement of Work is used by the Project Management Body of … [Read more...]
The Terms of Reference (TOR) is a description of the technical work involved in a project, or part of a project. Specifically, it is used to specify the work required by an external consultant, contractor, or supplier. It is the technical part of the bidding documents. Typically, a project manager develops a Terms of Reference which is included within the … [Read more...]
Selecting a contractor is one of the most difficult aspects of project management. It's why most large organizations have an entire department devoted to project procurement. Contractors all want the work, but how do you know they aren't too busy and will get to your project later than you'd like them to? How do you know they're really as capable as they … [Read more...]
The procurement side of project management can be daunting. Contractual issues are routinely some of the biggest and most expensive problems that require solving, and the parties are often very passionate about their case. Almost without fail, the common theme is that the issue could have been addressed at the origin with a better contract. But alas, this is … [Read more...]
Contractual issues between organizations performing a project can be costly and time consuming, not to mention embarrassing for a project manager. I hope you've never experienced major contract disputes with a subcontractor or subconsultant, but in any case, be sure to heed the following 10 doctrines to make sure your projects stay out of trouble. Project Management is … [Read more...]
If there's anything that can get a project manager's reputation into the toilet in a hurry, it's contractual issues with vendors. I've seen a few messy issues in my time, and I don't wish this on anyone. Fortunately there are things you can do on the front end to ensure it doesn't happen to you. Follow these 11 tips to ensure your projects stay out of contract … [Read more...]
