Conduct Procurement-II Presented By : Browntree Consulting Engineers Project Procurement

Agenda: Define Independent Estimates Importance of Contract Negotiations Explain type of relationships negotiate for What to do when seller submits his offer / proposal late Project Procurement

Conduct Procurements - T & T: Bidder Conference Proposal Evaluations Techniques Independent Estimates Expert Judgement Advertising Internet Search Procurement Negotiations As e have already discussed in the previous lecture most of them leaving two, which are Independent estimates and Procurement Negotiations. So, don’t worry we will discuss these two in this lecture. Project Procurement

Negotiation : Contract Terms These may include: Payment Terms Terms and Conditions Responsibilities Applicable Law Schedule High Level Milestones Price Arbitration Clause Project Procurement

Negotiation : A two way road Seller defines the terms of the Contract Buyer dictates the terms Buyer Accepts Seller Accepts Project Procurement

Who Negotiates Project Procurement Project Manager should not Negotiate Project Management Team Should not negotiate but can support Negotiation if required Must be handled by Lead Negotiator Project Procurement

Project Management Team Small group of people responsible for project management activities like planning, controlling, or handling project politics. Project Procurement

What is more beneficial For the Exam Negotiating for the long term relationship with the Seller Having short term Goals Project Procurement

All Qualified Sellers List Several Rounds High Level RFP All Qualified Sellers List Initial Response Selected Seller Only Detailed RFP Evaluation Detailed Response Project Procurement

What should Buyer do? if Seller Response is late Project Should be the First Concern There is no favourite Seller in such cases High Class Project should be the deliverable with the High Class Results Treat all Seller equally and extend the deadline for all the seller Project Procurement

Benefits of Independent Estimates INR 500,000 INR 1,400,000 INR 1,100,000 Second Party has understood the scope First Party has missed out something We still have the scope for Negotiation with Second Party Project Procurement

Expert Review Legal Experts Technical Experts Manufacturing Experts Subject Matter Experts Procurement Experts Project Management Experts Project Procurement

Output : Conduct Procurements Selected Seller Procurement Contract Award Resource Calendars Project Management Plan Update Project Document updates Change Requests Project Procurement

Forms of Contract ? Online Order Form Project Procurement

Project Management Plan – Updates Update in the Project Schedule (because agreed schedule with the Seller is different than the baseline schedule) Update to Quality of the Deliverable Update to Project Documents Project Procurement

What else is being affected by Procurement? Document Update (Example Only) Schedule Baseline Date of Delivery Scope Baseline Work Packages in WBS Cost Baseline Actual Contract Prices Project Management Plan update Process Changes Quality Matrix Contractually Agreed Matrix Assumptions Logs Procurement Assumptions Etc………. Project Procurement

Sample Questions: What the characteristics of Source Selection Criteria? Which Process is involved while making adverting? Project Procurement

Which One I selected for Constructing my House? INR 500,000 INR 1,400,000 INR 1,100,000 Project Procurement

Frustration Level Vs Style of Project Management Manager frustration Deadline Time Project Procurement

Project Procurement