13. Management of Acquisitions and Hiring in Projects

Management of Procurement and Hiring in Projects

Acquisition and contract management is a vital component of project management. It involves obtaining goods and services from external organizations. This process can be tricky as it requires a clear understanding of project requirements, identifying potential vendors, negotiating contracts and managing vendor performance.

Identification of Acquisition Needs

The first step in procurement management is to identify project needs. This involves defining the goods or services needed to carry out the project. The project manager should work closely with the project team to identify these needs and ensure they are clearly defined and documented.

Selection of Suppliers

Once the procurement needs have been identified, the next step is to identify potential suppliers. This may involve researching existing suppliers, requesting proposals or conducting a bid. The goal is to find a supplier that can provide the required goods or services at a competitive price and within the required timeframe.

Contract Negotiation

Once a supplier has been selected, the next step is to negotiate the contract. This involves discussing terms and conditions, including price, lead time, quality of goods or services, and any other project-specific requirements. The project manager should work closely with the organization's legal team to ensure the contract protects the organization's interests.

Supplier Performance Management

Once the contract is signed, the project manager must monitor the supplier's performance to ensure that the goods or services are delivered as agreed. This may involve carrying out regular inspections, monitoring the quality of the goods or services, and regularly communicating with the supplier to resolve any issues that may arise.

Completion of the Contract

Finally, once the goods or services have been delivered and accepted, the contract must be finalized. This may involve confirming that all contractual obligations have been fulfilled, making any final payments and documenting the supplier's performance for future reference.

In summary, contracting and procurement management is a critical process in project management that requires careful planning, rigorous execution, and continual monitoring to ensure that required goods and services are obtained in a timely and cost-effective manner.

Next page of the Free Ebook:

14Human Resource Management in Projects

2 minutes