Control Procurements in project management ( PMP ) is the process of managing relationships with suppliers, keeping an eye on how contracts are being carried out, and making changes and fixes as needed. It also involves ending contracts. The main benefit of this process is that it makes sure that both the buyer and the seller perform up to the standards of the project, as agreed upon in the contract. The project manager does this process as needed throughout the whole thing. Figure below shows the process’s inputs, Tools And Techniques , and output .
Control Procurements: Inputs
Project Management Plan
Some of the parts of a project management plan are, but are not limited to :
- The requirements management plan spells out how the needs of the contractors will be gathered, recorded, and handled.
- The risk management plan layouts and carries out the risk-creating tasks that buyers bring to the project.
- The things that need to be done during the Control Procurement process are written in the procurement management plan .
- There is information in the change management plan about how changes made by the seller will be handled.
- If the sellers cause delays that affect how well the project is done as a whole, the schedule might need to be changed and approved to match what is now expected.
Project Documents
Some examples of project documents that can be used in Control Procurement Process in project management ( PMP )are, but are not limited to:
- Assumption log
- Lessons learned register.
- Milestone list
- Quality reports
- Requirements documentation
- Requirements traceability matrix
- Risk register
- Stakeholder register
Agreements
Agreements are deals between two or more parties that spell out their tasks to each other. The deals in question are looked over to make sure that the terms and conditions are being met.
Procurement Documentation
The procurement documents includes all the records needed to manage the procurement processes. The statement of work, payment information, information on how well the contractor did the work, plans, drawings, and other correspondence are all examples of procurement paperwork.
Approved Change Requests
If a change request is approved, it can include changes to the contract’s terms and conditions, such as the procurement statement of work (SOW), prices, and details about the goods, services, or results that will be given. All changes that have to do with procurement are officially recorded in writing and accepted by everyone involved before they are put into action through the Control Procurements process. In complicated projects and programs, sellers who are working on the project may ask for changes that can affect other sellers who are working on the project. The project should be able to find changes that affect the work of more than one seller, let them know about them, and solve them.
Work Performance Data
The seller’s work performance data includes information about the state of the project, like technical performance, activities that have begun, are in progress, or have ended, and costs that have been committed or incurred. Invoices that have been paid by the seller can also be included in statistics about work performance.
Enterprise Environmental Factors
Some of the Enterprise environment factors that can affect the Control Procurements process are the Buying organization’s code of ethics, the marketplace conditions, the financial management and accounts payment system, and the contract change control system.
Organizational Process Assets
Some of the organizational process assets that can affect the Control Procurements process are procurement rules, but they are not the only ones.
Control Procurements: Tools And Techniques
Expert Judgment
in Control Procurement Process in project management ( PMP ) ,You should look at the information and experience of people or groups who are experts in the following areas:
- Relevant functional areas such as finance, engineering, design, development, supply chain management, etc.;
- Laws, regulations, and compliance requirements; and
- Claims administration.
Claims Administration
In contested changes and possible constructive changes, both the buyer and the seller want to make changes but can’t agree on how much to pay for them or even that changes have happened. This disagreement over changes is known as a claim. That’s when they turn into arguments, and then appeals. The contract life cycle includes writing down, processing, monitoring, and managing claims, usually in line with the rules of the contract. One way to settle a disagreement if the two sides can’t agree is through alternative dispute resolution (ADR), which usually follows the steps spelled out in the contract. The best way to settle all claims and disagreements is to negotiate a deal.
Data Analysis
To keep an eye on and manage procurements, data analysis methods such as, but not limited to:
- Performance Reviews
- Earned Value Analysis (EVA)
- Trend Analysis
Inspection
An inspection is a scheduled look at the work that the worker is doing. This could be as easy as going over the deliverables or as in-depth as looking at the work itself. During inspections for a construction, engineering, or infrastructure job, both the buyer and the contractor walk through the site to make sure they both understand how the work is going.
Audits
Audits look at the buying process in a planned way. The purchase contract should spell out the rights and duties that come with audits. The results of the audit should be shared with both the buyer’s project manager and the seller’s project manager so that changes can be made to the project as needed.
Control Procurements: Outputs
Closed Procurements
The buyer usually sends official written notice to the seller that the contract is over through its authorized procurement administrator. The terms and conditions of the contract and the procurement management plan usually spell out what needs to be done to officially end the procurement. All deliverables should have been turned in on time and met all technical and quality standards. There should also be no claims or bills that are still open, and all final payments should have been made. Before the project ended, the management team should have accepted all of the deliverables.
Work Performance Information
When you compare the deliverables received, the technical performance achieved, and the costs spent and accepted against the SOW budget for the work performed, you can get work performance information.
Procurement Documentation Updates
The contract with all supporting schedules, requested unapproved contract changes, and approved change requests are all pieces of procurement paperwork that can be updated. The paperwork for procurement also includes any technical documents made by the seller, information about the work performed such as deliverables, seller performance reports and warranties, financial documents such as invoices and payment records, and the results of any inspections related to the contract.
Change Requests
The Control Procurements method could lead to requests for changes to the project management plan, its subplans, and other parts like the cost baseline, schedule baseline, and procurement management plan. The Perform Integrated Change Control method takes change requests and reviews and decides what to do with them.
Some examples of requested but unresolved changes are when the buyer gives instructions or the seller does something that the other party sees as a positive change to the contract. One party can dispute any of these positive changes, which could lead to a claim against the other party. Because of this, project communication is the only way to identify and record these changes.
Project Management Plan Updates
People in the company have to fill out a change request for any changes they want to make to the project management plan. The following parts of the project management plan may need a change request:
- Risk management plan
- Procurement management plan
- Schedule baseline
- Cost baseline
Project Documents Updates
Because of Control Procurement Process in project management ( PMP ) , project documents like, but aren’t limited to, the following may be updated:
- Lessons learned register
- Resource requirements
- Requirements traceability matrix
- Risk register.
- Stakeholder register
Organizational Process Assets Updates
The Control Procurements process can change the following organizational process assets:
- Payment schedules and requests
- Seller performance evaluation documentation
- Prequalified seller lists updates
- Lessons learned repository.
- Procurement file
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