Project Procurement Management
Procurement Management includes the processes required to acquire goods and services from outside of your organization. On a project, procurement management consists of the following basic processes:
- Procurement planning.
- Source selection.
- Contract Administration (during the project execution phase).
The sequence of activities in more detail and the flow of the work are shown in Figure 10.
Figure 10: Sequence of procurement activities
However, be aware that procurement is a specialized area of business involving the laws in effect in the area in which the project is taking place whatever type of project it happens to be. So it is important to seek qualified help.
But in the project plan, at least indicate the selection process (e.g., preferred supplier, RFI, RFP, quote etc.,). Then describe which parts of the project will be outsourced to the external contractors, who these contractors are and how they will be managed.
In general larger companies have fairly well defined guidelines on outsourcing and sub-contractor selection. Make sure to reference these policies in the project plan.