...Assessment 1 – Short Essay Unit: Contract & Procurement Optimisation 501 Word Count: 1678 Trimeser 3 2009 Face to Face GSB Perth Sam Tsakisiris (14110016) Contents Introduction……………………………………………………………………………3 Part 1 - Discussion of Statement…………………………...........................................3 Part 2 - Discussion of definitions…………………………………………...…………4 Part 3 - Discussion of two examples…………………………………………………..5 Conclusion……………………………………………………………………………..6 References.....................................................................................................................7 Appendices....................................................................................................................8 Introduction The following short essay will look to address a number of topics surrounding the basic tasks involved in the procurement process. The author will first address the following statement: “Procurement is simply a process that is never in the news. Even the tasks are simple: completion of the necessary forms, obtaining the necessary approvals and just issue the order. What is so difficult about that?” As part of the process of addressing the above statement, the author will uncover a number of academic & professional definitions of procurement, before arriving at his own. The author will then provide two examples of where procurement has been “in the news” and provide discussion how the definitions provided...
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...ASSIGNMENT ON CONTRACT PROCUREMENT OPTIONS SUBMITTED BY EBITUNMISE DANIEL O. QSV/10/1220 COURSE CODE: QSV 512 7TH JULY, 2015 1.0 INTRODUCTION Strategies for the procurement of building projects have not changed significantly in the last 25 years, though time and cost overruns are still prevalent throughout the industry (Smith and Love, 2001). In a response to reduce the incidence of time and costs overruns, the disputes that may often arise, and the likelihood of project success, alternative forms of procurement method such as partnering and alliancing have been advocated (Love et al. 1998). Not all forms of procurement method, however, are appropriate for particular project types, as client objectives and priorities invariably differ (Skitmore and Marsden, 1988; Love et al. 1997). The objectives and priorities of a client need to be matched to a procurement system. To do this effectively, it is essential that the characteristics of various procurement systems and selection methods available are understood by clients and their advisors before a procurement method is selected. In this report, the characteristics of the most common procurement systems and methods are presented. In conjunction with this report the reader should also refer to the material developed by the New South Wales Government (2005) ‘Procurement Methodology Guidelines for Construction’ and the Western Australian Department of Housing and Works ‘Local Government Procurement Guide’ (2006). 2.0 PROCUREMENT STRATEGY...
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...Running head: THE CLOSE-OUT OF PROCUREMENT CONTRACTS 1 The Close-out of Procurement Contracts: The Steps to Successfully Close Out a Contract Including the Processes of Termination and Settlement of Seller Claims Kelley L. Clanton Northcentral University THE CLOSE-OUT OF PROCUREMENT CONTRACTS 2 The Close-out of Procurement Contracts: The Steps to Successfully Close Out a Contract Including the Processes of Termination and Settlement of Seller Claims Procurement contract close-out is a heavy and important topic for organizations that have procurements needs on a consistent or even a fleeting basis as the materials and products acquired through these procurements are often needed to keep the flow of good sales going and/or keeping operations under control and running at optimal performance. There are really only a few basic ways that an executed contract can end with the hoped-for outcome, and probably the usual one as well, being that the contract is fulfilled at the satisfaction and agreement of both sides of the contract. However, there are some pitfalls and other negative outcomes that can happen before, during and after a procurement contract is in force and indeed procurement contracts can end in a quite ugly fashion if one is not careful and/or does not exercise a proper amount of foresight. Even with this potential blowback, this does not mean that a...
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...Essentials of a Contract As a senior manager in the procurement section of the Ministry, I would advise the following: there was a contract i.e. an agreement; an offer and its acceptance, an agreement that had essential elements. The first was that there was a proper offer and acceptance which were officially and unconditionally communicated. Further there was an intention to create a legal relationship by the two parties after fulfillment of the tender requirements, to construct a modern administration block. Thus the objective of the agreement was lawful i.e. within the parameters and boundaries of the laws that govern construction and the tendering process. There was consideration in the agreement thus making the objective of the agreement acceptable i.e. a consideration of something in return. The agreement for the works was for a legal project with wording of the agreement clear and not uncertain or vague i.e. certainty of meaning of what was required in relation to the work to be done. The agreement was done and perceived to be free of: i. Coercion ii. undue influence iii. Frau iv. Misrepresentation v. Mistake. The agreement therefore was made with free consent of both parties in their capacity to contract. Both parties were of sound mind and of age to enter into a valid agreement as per requirements spelt out in the tender process. In the agreement there was also the possibility of performance of the work advertised hence validating the contract at hand. The...
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...Import under Countertrade At times, standard goods-for-cash payment structures do not work, are cumbersome, expensive, or simply impossible. In these cases, companies can adopt countertrade. Countertrade involves the exchange of goods in barters or other ways in place of money. For example, if a nation’s currency is not exchangeable or no good overseas, they may offer a commodity or other product in place of cash. Countertrade was common in the USSR in the 1960s when its currency was nonconvertible. It was their only means of purchasing foreign goods. Countertrade grew in the 1980s as many other nations did not have the foreign reserves required to make imports. Countertrade increased yet again during the Asian financial crisis in 1997, as many currencies became devalued and had severely limited buying power. One example of countertrade was when the USSR paid Coca-Cola in vodka. Poland did the same with Coca-Cola but paid in beer. Countertrade can be separated into five variants: 1. Barter 2. Counter purchase 3. Offset 4. Buyback or compensation 5. Switch trading Barter is simply the direct trading of goods and or services between two parties with not monetary exchange. It is normally used in one-off deals with trading partners that are not trustworthy or that lack any credit. Barter is the simplest and most restrictive type of countertrade. Counter purchase is a mutual buying agreement which involves one party agreeing to buy a pre-specified amount of goods or services...
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...Procurement of Projects and Services – The possibility of adopting the NEC3 family of contracts Sustainable procurement for construction or engineering relies upon making value for money decisions over the life of the asset and not solely on capital costs. A value for money solution to meet user requirements relies upon the optimum combination of whole –life costs and quality. Any procurement strategy should identify the best way of achieving the projects objectives, taking into account the likes of key objectives, constraints, funding, risk and asset ownership. It is the optimum balance of these factors that one strives for. The procurement route is the means of achieving the procurement strategy. This will include the contract strategy that best meets the client’s needs. The contract strategy will determine the level of integration of design, construction and maintenance for a project. This should support the main project objectives in terms of the likes of risk allocation, incentivisation and delivery. There are many procurement routes available including traditional, design and build, prime contracting, management contracts and private finance initiative/public-private partnership. The NEC3 family of contracts is designed to be flexible enough to work in most currently available procurement routes. All parties involved in the project delivering process can be employed under one of the “family” of integrated NEC3 contract forms which allows the parties to benefit...
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...Pm3 essay | Project Procurement Management in Information Systems Projects | Mogamat Shaheed Adams (207191948) | | INFORMATION SYSTEMS III (MODULE A) | 21 September 2010 LECTURER: Mr S Dunn | Project Procurement Management in Information Systems Projects ABSTRACT It is becoming increasingly important for information technology professionals to understand project procurement management. Procurement management has become a tool that can save organizations huge amounts of cost. Therefore the emphasis on expert knowledge surrounding the procedures and stages through project procurement management are becoming so necessarily. There are numerous tools and techniques available to project procurement teams to get favourable results and outputs. These outputs become important tools to organizations to use in the future on similar projects. INTRODUCTION Acquiring products or services under contract using outside buyers or sellers has become a very important aspect to many organizations. The reasons is that it reduce both fixed and recurrent costs, allowing client organizations to focus on its core business, organizations can gain access to specific skills and technologies, providing flexibility where extra staff can be provided during periods of peak workload, and increasing accountability because contracts are legally binding. To be successful in project procurement management there are four main processes for organizations to follow. They are planning...
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...Conducting and Closing Procurements NAME;BRIAN TONY Institution; USIU Conducting and Closing Procurements Introduction For any project to be implemented, goods and services must be availed to be utilized. This is achieved through procurement whereby interested external suppliers are contracted to provide the goods and services needed. The procurement process ought to be planned in order to establish a formal and working relationship with the external suppliers. At the end of a project the procurement has to be closed and the formal relationship with the external supplier for that project then ends. Project procurement has a number of processes including planning and research, conducting the procurement, administration of the procurement and closing the procurement. Each of these components has a role in the success of the procurement process. (Sanghera, 2014) High-level process steps for conducting project procurements The process of conducting project procurements incudes an exercise whereby responses are obtained from sellers, selection of a seller who the project finds suitable and awarding the contract to this seller. This process involves utilization of various inputs, tools and techniques to obtain desirable output. The process of conducting project procurement is multistep and the process includes five major steps as follows: Specification is the first step whereby a decision is made on which products required...
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... Product Description PM 598 Entire Course Contract and Procurement 100% Correct Keller PM 598 Entire Course Keller Purchase here https://sellfy.com/p/ceIb/ Product Description PM 598 Entire Course Contract and Procurement 100% Correct Keller PM 598 Entire Course Keller Purchase here https://sellfy.com/p/ceIb/ Product Description PM 598 Entire Course Contract and Procurement 100% Correct Keller PM 598 Entire Course Keller Purchase here https://sellfy.com/p/ceIb/ Product Description PM 598 Entire Course Contract and Procurement 100% Correct Keller PM 598 Entire Course Keller Purchase here https://sellfy.com/p/ceIb/ Product Description PM 598 Entire Course Contract and Procurement 100% Correct Keller PM 598 Entire Course Keller Purchase here https://sellfy.com/p/ceIb/ Product Description PM 598 Entire Course Contract and Procurement 100% Correct Keller PM 598 Entire Course Keller Purchase here https://sellfy.com/p/ceIb/ Product Description PM 598 Entire Course Contract and Procurement 100% Correct Keller PM 598 Entire Course Keller Purchase here https://sellfy.com/p/ceIb/ Product Description PM 598 Entire Course Contract and Procurement 100% Correct Keller PM 598 Entire Course Keller Purchase here https://sellfy.com/p/ceIb/ Product Description PM 598 Entire Course Contract and Procurement 100% Correct Keller PM 598 Entire Course Keller ...
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...Report | Course: Procurement &Contract Management BMGT43670Term: Jan 2012 semesterProfessor: David Staunton Student: Qi yang Student No: 07133031 Date: 20 March 2012 | “I the undersigned confirm that the work submitted here is entirely my own work, and that any work of others which is included has been properly referenced and acknowledged according to normal academic guidelines.” Table of Contents Abstract 2 Introduction 4 Why procure 4 How procure 8 Defining and initiating the contract 8 Planning the procurement 10 The tendering process and choosing the contractor 11 Finalizing and monitoring the contract 12 Conclusion 13 Reference 14 Abstract There has been a noticeable increase in the number of studies directed at explicating the drivers of procurement’s success in all kinds of industry and government agency. Since the fierce competition of market, there is high requirement not only for the speed of product and service desired, but also the quality of commercialization. So the procurement has come and is essentially delivering value through all kinds of relationships. This report shows why procurement is desired urgently and how the procurement process works. Procurement is the process of acquiring outside service through soliciting and evaluating proposals and establishing a contractual agreement which includes monitoring project work for conformance to the contract and closing out the contract. For most of organizations...
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...Project Procurement Process Kristen R. Dinger University of Maryland University College PMAN 641 Author Note Kristen R. Dinger, Graduate Student, Project Management, UMUC Correspondence concerning this article should be addressed to Kristen Dinger. Contact: Kristen.r.dinger@gmail.com Abstract Project procurement is concerned with establishing, maintaining and continuing to grow the relationships that one has with suppliers. The relationships made, aid in the procurement of goods and services for a project. Establishing the relationships needed to procure the appropriate goods for a project are critical in the completion of the project life. Once the relationship between the vendor and the project company is established goods and services can be procured in a timely manner. There are four major processes concerned with procurement. They are as follows: Plan procurements, Conduct procurements, Control procurements, and Close procurements. Within the analysis, each process will be thoroughly reviewed, in ordinance of importance, in the process of project procurement. Project Procurement Process Project procurement starts with establishing, then maintaining, and then closing the relationship with the supplier in order to obtain a material or service. There are four main process involved with project procurement. Each of the four process outlines a distinct step that is required in order to procure goods...
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...Procurement Planning Paper Lee Gomez CPMGT 302 December 14, 2015 Professor Burgess Procurement Planning Paper The needs of a project must be carefully identified, sourced and acquired to have a successful procurement process. Procurement planning is essential to the overall success of a project. It involves identifying the materials and services, finding the suppliers, and properly documenting the transactions. This paper includes a description of the procurement planning process. The most valuable output of the plan procurement process will be identified. Furthermore, the various contract types will be explained. A source criterion that would be applicable to any project will be described and three criteria that would apply to most projects will be identified. An analysis of the ethical concerns that should be considered when identifying source selection criteria is also included. Finally, the role of risk management in the procurement planning process is explained. The Procurement Planning Process The key tasks associated with procurement management planning are determining what items need to be procured, finding the suppliers that could satisfy the requirements, bidding process, and the approval process. These tasks must be completed step by step in the workplace. “The key benefit of this process is that it determines whether to acquire outside support, and if so, what to acquire, how to acquire it, how much is needed, and when to acquire it” (Project Management Institute...
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...VOLUME 2 Manual of Procedures for the Procurement of Goods and Services Page i MANUAL OF PROCEDURES FOR THE PROCUREMENT OF GOODS AND SERVICES.................................................................................................... 1 ABBREVIATIONS AND ACRONYMS ............................................................ VI INTRODUCTION .......................................................................................... 1 SCOPE OF VOLUME 2...................................................................................... 3 PREPARING FOR THE PROCUREMENT OF GOODS AND SERVICES ................. 5 PREPARING FOR THE PROCUREMENT OF GOODS AND SERVICES ................................. 7 PROCUREMENT PLANNING ............................................................................... 8 What are the factors to be considered in planning for the procurement of Goods? ............ 8 What are “Technical Specifications”? ........................................................................ 10 What are the considerations in setting the technical specifications of the goods to be procured? ......................................................................................................... 10 What is the “Approved Budget for the Contract” or the ABC? ....................................... 11 What are the factors that should be considered in determining the ABC? ...................... 11 PREPARING THE BIDDING DOCUMENTS ..........................................
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...This includes all assignments, exams, term papers, and other projects required by your instructor. Knowingly submitting another person’s work as your own, without properly citing the source of the work, is considered plagiarism. This will result in an unsatisfactory grade for the work submitted or for the entire course. It may also result in academic dismissal from the University. | | PM-7000 | Dr. Christopher Barrett | | | Procurement Project Management | Assignment 7 | | | Comments: ------------------------------------------------- ------------------------------------------------- Faculty Use Only ------------------------------------------------- <Faculty comments here> ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- <Faculty Name> <Grade Earned> <Date Graded> Activity Seven: Close-Out Plan Max Boller Procurement Project Management Northcentral University Procurement project...
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...or the results of direct contract negotiations with the client. One of the most important factors in preparing a proposal and estimating the cost and profit of a project is the type of contract expected. The confidence by which a bid is prepared is usually dependent on how much of a risk the contractor will incur through the contract. Certain types of contracts provide relief for the contractor since onerous risks2 exist. The cost must therefore consider how well the contract type covers certain high- and low-risk areas. Prospective clients are always concerned when, during a competitive bidding process, one bid is much lower than the others. The client may question the validity of the bid and whether the contract can be achieved for the low bid. In cases such as this, the client usually imposes incentive and penalty clauses in the contract for self-protection. Because of the risk factor, competitors must negotiate not only for the target cost figures but also for the type of contract involved since risk protection is the predominant influential factor. The size and experience of the client’s own staff, urgency of completion, availability of qualified contractors, and other factors must be carefully evaluated. The advantages and disadvantages of all basic contractual arrangements must be recognized to select the optimum arrangement for a particular project. Procurement can be defined as the acquisition of goods or services. Procurement (and contracting) is a...
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