Quick Definition:
Project Procurement Management includes the processes necessary to purchase or acquire products, services, or results needed from outside the project team.
The Procurement Lifecycle
Procurement management is divided into three main processes:
- Plan Procurement Management: Identifying which project needs can best be met by acquiring products or services outside the organization.
- Conduct Procurements: Obtaining seller responses, selecting a seller, and awarding a contract.
- Control Procurements: Managing procurement relationships, monitoring contract performance, and making changes as appropriate.
Types of Contracts
Choosing the right contract type is critical for risk management. Common types include Fixed-Price, Cost-Reimbursable, and Time and Materials (T&M).
