However, before signing the contract, it is a proposal request, in which multiple contractors can bid on the work, and the project manager can determine who will win the contract from their bids.
These requirements are well thought out, because they are the guiding documents of the whole project, and the more specific the better. This avoids future confusion and helps to make more accurate plans.
This process is collected in the procurement management plan, including requirements documents, risk registration, activity resource requirements, project progress, activity cost estimation, etc.
In order to guide these decisions, there are some tools and techniques, such as self-made or purchase analysis, which can help to determine whether activities need external suppliers or can be completed internally. Seeking the help of experts, conducting market research and meeting with stakeholders will also help guide this decision.
2. After completing the paperwork of the first stage of procurement, the procurement stage is the stage of studying the returned bids and determining which bid to accept. However, before deciding, there should be an appropriate standard to decide which bid is most suitable for the project and your logistics management. Then sign an agreement to update the project management plan.
By meeting with the bidders, mastering the skills of evaluating the proposal, and conducting independent evaluation, the bid is ensured to be within the normal range, so as to determine the winning bidder. There is no harm in asking experts in your field for advice and understanding their views.
You can also use some analytical skills. Advertising is a good way to ensure that you publicize it as widely as possible. You can decide according to all potential bidders. Then there is the procurement negotiation, and the final contract needs to be adjusted to meet the needs of you and the contractor. You should use the purchase order to record the price, quantity, delivery window and payment terms of the goods/services you ordered.
3. Control procurement Once the contract is signed, the management of these contractors must be included in the overall management responsibilities. The contractor may have a negative impact on the budget and schedule, thus causing the project to go off track or worse.
Therefore, it is necessary to update the status regularly to review the contractor's agreement, get progress updates and review the work performance, so as to ensure that the contractor meets the requirements outlined in his contract. Although you hire contractors because they are experts in this field, you still need to monitor and track their work to ensure that the work is carried out as planned.
It is best to sign a change control system contract and conduct regular procurement performance review, including inspection and audit, to ensure the normal work. Performance reports also help to keep managers informed. Payment system, claim management and record management system all need to be in place. The job description must include all the details of the work being performed by the contractor to facilitate performance monitoring.
Just as there is a process to start purchasing, there is also a process to complete purchasing. The composition of the completed project should be detailed in the initial agreement with the contractor, so neither party should be confused about when the project will be completed.
Insurance and guarantee usually require a formal exemption from liability. This can ensure that there are no unfinished changes in the value and completion date of the contract.
Procurement audit is helpful to this process and structured procurement negotiation. A records management system is also needed to manage all the paperwork involved in this stage of the procurement process.
8 How does management PM system help project procurement? Having the right tools can make project management procurement more effective. 8 Management PM provides rich and practical functions, allowing you to track and manage project procurement in real time. You can plan the purchase contract, and also record the start time and planned end time of the purchase contract. Status updates, including purchase payments, are immediately reflected in the real-time dashboard. You can track the contractor's progress to ensure that the project is on schedule.
Manage the real-time connection between purchasing business and projects. Through contract management such as transaction content (products, services and quotations, etc.). ), procurement and payment, automatic connection between suppliers, procurement plans and payables, and timely processing of payment and invoices. All project information is concentrated on one page, so managers can pay attention to all content at the same time and manage multiple documents and workflows more easily. Not only can you see whether the project is on schedule, but you can also manage any purchases made for the project. Contact us to watch the system demonstration.