Project Procurement: A Real-World Guide for Procurement Skills

Project Procurement: A Real-World Guide for Procurement Skills

by Ajay Bhargove
Released January 2018
Publisher(s): Project Management Institute
ISBN: 9781628254693

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Book description

Project Procurement: A Real-World Guide to Procurement Skills provides insight into the procurement community across sectors and across the globe. Here, the author covers the most widely used techniques and methods for supplier management, including supplier qualification and selection, supplier development, and supplier performance evaluation during different project stages—topics that have rarely been discussed in the procurement community, because they have traditionally been the area of expertise among financial experts.

This book will take you through different types of contracts, their selection in particular scenarios, and illustrates them through real-life examples. Accessible and far-reaching in its grasp of various project procurement scenarios, this book is an indispensable reference for procurement professionals making a career in buying, from junior buyers up to the supply-chain heads of organizations.

Table of contents

  1. Cover Page
  2. Title Page
  3. Copyright Page
  4. Table of Contents
  5. Acknowledgments
  6. 1. Introduction
    1. 1.1. Definitions
      1. 1.1.1. Purchase Requisitions
      2. 1.1.2. Procurement
      3. 1.1.3. Project Procurement
      4. 1.1.4. Purchasing
      5. 1.1.5. Auction
      6. 1.1.6. E-Auction
      7. 1.1.7. Logistics
    2. 1.2. Project Stages
      1. 1.2.1. Marketing and Tendering
      2. 1.2.2. Sales
      3. 1.2.3. Project Execution
      4. 1.2.4. Warranty
    3. 1.3. Procurement Life Cycle
      1. 1.3.1. Plan Procurement
      2. 1.3.2. Conduct Procurement
      3. 1.3.3. Administer Procurement
      4. 1.3.4. Close Procurement
    4. 1.4. Sector-Based Procurement
      1. 1.4.1. Government Sector:
      2. 1.4.2. Private Sector:
    5. 1.5. Budgets and Reserves
      1. 1.5.1. Management Reserves:
      2. 1.5.2. Contingency Reserves:
  7. 2. Supplier Management
    1. 2.1. Definitions
    2. 2.2. Supplier Management Life Cycle
      1. 2.2.1. Supplier Selection and Qualification
      2. 2.2.2. Supplier Evaluation
      3. 2.2.3. Supplier Classification
      4. 2.2.4. Supplier Phaseout
      5. 2.2.5. Supplier Development
    3. 2.3. Cost of Quality
      1. 2.3.1. Cost of Conformance
      2. 2.3.2. Cost of Non-Conformance
  8. 3. Bidding and Methods
    1. 3.1. Definitions
    2. 3.2. Methods for Inviting Information and/or Offers
      1. 3.2.1. Manual
      2. 3.2.2. Electronic
    3. 3.3. Types of Bidding
      1. 3.3.1. Single-Part Bidding
      2. 3.3.2. Two-Part Bidding
    4. 3.4. Important Facts for Inviting Information and/or Offers
      1. 3.4.1. Use Appropriate Size RFQ
      2. 3.4.2. Use Your Own RFQ Template and Content
      3. 3.4.3. Use an RFI Before an RFQ If It Makes Sense to Do so
      4. 3.4.4. Engagement with Supplier Prior to RFQ
      5. 3.4.5. Avoid Checklists in the RFQ
      6. 3.4.6. Take Appropriate Time for Making an RFQ
      7. 3.4.7. Participation Fee
  9. 4. Bid Evaluation
    1. 4.1. Types of Bid Evaluations
      1. 4.1.1. Evaluations of Single-Part Bids
      2. 4.1.2. Evaluations of Two-Part Bids
    2. 4.2. Technical Comparative
    3. 4.3. Commercial Comparative
    4. 4.4. Decision Making
  10. 5. Contracts
    1. 5.1. Difference Between an Agreement and a Contract
    2. 5.2. Elements of Contracts
    3. 5.3. Types of Contracts
      1. 5.3.1. Fixed-Price Contracts
      2. 5.3.2. Cost-Reimbursable Contracts
      3. 5.3.3. Time and Material Contracts
    4. 5.4. Important Contract Terms and Conditions
      1. 5.4.1. Termination Clause
      2. 5.4.2. Payment Terms
      3. 5.4.3. Defects Liability Clause
      4. 5.4.4. Law of the Land
      5. 5.4.5. Dispute Resolution and Arbitration Clause
      6. 5.4.6. Time for Completion
      7. 5.4.7. Liquidated Damages
      8. 5.4.8. Force Majeure
      9. 5.4.9. Subcontracting
      10. 5.4.10. Code of Conduct
      11. 5.4.11. Order Acknowledgment
  11. 6. The Game of Negotiation
    1. 6.1. Fifteen Tactics and Countertactics to Win the Negotiation “Game”
      1. 6.1.1. Reject the First Offer
      2. 6.1.2. Overlooking
      3. 6.1.3. Deflect
      4. 6.1.4. Deferral
      5. 6.1.5. No Negotiation
      6. 6.1.6. Splitting the Difference
      7. 6.1.7. Negotiation After Award
      8. 6.1.8. Electronic Auctions
      9. 6.1.9. Persuasion
      10. 6.1.10. Counteroffer
      11. 6.1.11. Good Buyer, Bad Buyer
      12. 6.1.12. Demeaning
      13. 6.1.13. Exigency
      14. 6.1.14. Authority Limits
      15. 6.1.15. Surprise
    2. 6.2. Project Phases Where Negotiation Strategies Decide Desired Results
      1. 6.2.1. Pre-Award
      2. 6.2.2. Execution
      3. 6.2.3. Warranty Phase
    3. 6.3. How and When to Negotiate Power Shifts During the Project
    4. 6.4. Negotiations Are Not Enough—Let's Understand Why
      1. 6.4.1. Obsolete Tactics
      2. 6.4.2. Constrained Project Schedules
      3. 6.4.3. Relationships Are Important
      4. 6.4.4. More Execution Claims
      5. 6.4.5. Arbitration and Litigation
    5. 6.5. So, What Are the Options?
      1. 6.5.1. Long-Term Agreements (LTAs)
      2. 6.5.2. LTAs Timing
      3. 6.5.3. LTAs Structure
      4. 6.5.4. How LTAs Work
      5. 6.5.5. Benefits of LTAs
      6. 6.5.6. Limitations of LTAs
    6. 6.6. Let's Collaborate
  12. 7. Contract Change Management
    1. 7.1. Definition of Change
    2. 7.2. Change Management Process Flow
    3. 7.3. Classification of Changes
    4. 7.4. Managing Intrinsic Changes
    5. 7.5. Managing Extrinsic Changes
  13. 8. How Finance Views Procurement Savings
    1. 8.1. Benefits of Procurement Savings
      1. 8.1.1. Working Capital
      2. 8.1.2. Bottom Line
      3. 8.1.3. Balance Sheet
  14. 9. Procurement Order Closure
    1. 9.1. Importance of Procurement Order Closure
    2. 9.2. Procurement Contribution During Project Closure
  15. 10. Financial Risks Analysis
    1. 10.1. Classification of Ratio Analysis
    2. 10.2. Financial Ratios of Interest
      1. 10.2.1. Solvency Ratios
      2. 10.2.2. Profitability Margin Ratios
      3. 10.2.3. Activity Ratios
      4. 10.2.4. Turnover Ratios
    3. 10.3. Importance of Financial Ratios
    4. 10.4. Balance Sheet Evaluation
  16. 11. Incoterms®
    1. 11.1. Eleven Golden Rules of Incoterms® 2010 Publication
    2. 11.2. Key Benefits of Using Incoterms® Rules
    3. 11.3. Buyer and Seller Worries
    4. 11.4. Classification of Incoterms® Based on Mode of Shipment
      1. 11.4.1. Any Mode or Modes of Transport
      2. 11.4.2. Sea and Inland Waterway Transport
    5. 11.5. How to Use the Incoterms® 2010 Rules
  17. References
  18. About the Author

Product information

  • Title: Project Procurement: A Real-World Guide for Procurement Skills
  • Author(s): Ajay Bhargove
  • Release date: January 2018
  • Publisher(s): Project Management Institute
  • ISBN: 9781628254693