Project Procurement Management

Project Procurement Management is the task of managing all the procurements that are to be done as part of the project execution. Within our procurement activities, we manage the life cycle of the procurement process and the purchasing activities. This includes determining which products or services will need to occur external to the project team.

The primary purpose of procurement management is to manage acquiring products or services from outside the project team in order to complete the project. The external vendor or supplier who offers the service is called the seller. Procurement Management includes the following:

• Plan Procurements - Identify purchasing needs, specify the procurement approach, and identify potential sellers.
  
  
• Conduct Procurements - Obtain seller responses, select sellers, and issues different types of contracts.
  
  
• Administer Procurements - Manage procurement relationships, monitor the procurement performance, and monitor and control changes in procurement.
  
  
• Close Procurements - Complete each procurement with proper closure, such as accepting products and closing contracts.

You will learn that these are the processes necessary to purchase or acquire the products, services or results needed from outside of the project team in order to complete the project. In total, there are six processes within the PMI®Knowledge Area and they span the planning, executing and monitoring and controlling process groups.

Planning of project procurements is carried out within the procurement process and results in developing a plan. A procurement plan is a convenient tool for organizing and managing activities and tasks related to the procurement management process.

It will be clearly described why the process of Project Procurement Management includes the critical element of project management relations between both the buyer and seller via the contract. The final step of the project procurement management process refers to using a system of performance indicators and measures for assessing the effectiveness and success of the entire process.

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