Project procurement

Question 1

Procurement Strategy involves:

Answer 1

• Scope of Requirements
• Preliminary Planning
• Timetable
• Contract Management Arrangements
• Value for Money Benefits
• Major Contract Clauses
• Service Levels
• Estimate of Cost
• Proposed Sourcing Strategy
• Corporate + Legal Policy requirements
• Risk Management
• Roles & Responsibilities
• Change Mechanisms
• Evaluation

Question 2

Strategic Considerations in Procurement

Answer 2

• Use of single, integrated or multiple providers
• Required provider relationships
• Provider selection
• Conditions and form of contract
• Types of pricing and methods of reimbursement

Question 3

Supplier Selection Process

Answer 3

1. Plan & Research
2. Pre-Qualificaiton
3. Invitation to Tender
4. Answer Bidder Queries
5. Receive & Evaluation Bids

Question 4

Contracts must contain:

Answer 4

• An offer made by one party which is accepted unqualified by the other party.
• An intention to create legal relations between the parties and for the parties to be bound by these obligations.
• A consideration passing from one party to the other in return for the provision of goods or services covered by the contract.
• Definite terms, so that it is clear as to what conditions the parties are agreeing.
• Legality, with only properly incorporated firms or competent persons entering into the contracts.

Question 5

Supplier Reimbursement Methods:

Answer 5

• Fixed Price
• Cost plus fee
• Per unit quantity
• Target cost

Question 6

Payment Methods

Answer 6

• Payment on Completion
• Advance Payment
• Milestone Payment
• Retention Payment

Question 7

Contractual Relationships

Answer 7

• Partnering
• Alliance
• Turnkey