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

2. 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

3. 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

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

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

6. 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

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

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

9. 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

10. 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

11. 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

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

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

14. Forms of Contract ?
Online Order Form
Project Procurement

15. 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

16. 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

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

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

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

20. Project Procurement