What is Administer Procurement Process?

This is the process of managing procurement relationships, monitoring contract performance and making changes and corrections as needed.

Inputs

The key inputs to this process are a contract, other procurement documents, and work performance information. Work performance Information basically has the information about the progress of the work, i.e. how much work is completed and what's the cost incurred to complete that work. In this case, it has information like how much work is completed as per the contract and money spent to get that work completed as per the contract.

Performance reports listed as inputs are basically reports created by the seller on what they have completed and any other seller created a technical report about the contract work progress. The Project Management Plan is also listed as input because the contract work should progress as per the project plan.

Techniques

There are various techniques used for administering procurement. Lets first look at, Contract Change Control System. This is similar to a normal change control system but used specifically for managing changes to the contract. Usually, the process of making changes to the contract, i.e. Contract Change Control System is listed in the contract document itself. The next technique is Procurement Performance reviews this is the process of formally reviewing the seller deliverables. Usually, this is also documented in the contract document. In many large contracts, the procurement performance reviews are done once a month. Sometimes unscheduled inspection and audits can also be performed by the buyer to ensure that seller is following the processes that they claim they do. Many a time this is done to ensure compliance.

For example, as a buyer, you can have a policy that all your seller should comply with ISO 9001:2008 standards. You can do your own audit on the seller to check whether they really comply with that standard or not. Releasing the payment of the work performed by the seller is also part of this process. Sometimes buyer and seller may get into a dispute regarding a change. The seller may ask for additional money for the change and the buyer may claim that it's the part of the original scope. Such contested changes are also called claims or dispute. The contracts usually have claims administration process to settle such disputes. The best way to settle such dispute for the buyer and the seller is to seat across a table negotiate and agree on a midway.

Output

The key output of the process is the change request. Why Change request is the output of this process? In addition to this, Project Plan updates also happen as part of this process, because, if there is a delay in getting a contract deliverable that would result in the whole project getting delayed. Any such delay needs to be updated in the Project Management Plan.

Happy learning! We wish you good luck with your PMP certification journey!

About the Author

ChandanaChandana

Chandana is working as a Senior Content Writer in Simplilearn.com.

Find PMP® Certification Training in these cities

PMP Certification Training Course in AtlantaPMP Certification Training Course in AustinPMP Certification Training Course in BostonPMP Certification Training Course in CharlottePMP Certification Training Course in ChicagoPMP Certification Training Course in ClevelandPMP Certification Training Course in DallasPMP Certification Training Course in DenverPMP Certification Training Course in DetroitPMP Certification Training Course in FargoPMP Certification Training Course in HoustonPMP Certification Training Course in IrvingPMP Certification Training Course in Jersey cityPMP Certification Training Course in Las VegasPMP Certification Training Course in Los AngelesPMP Certification Training Course in MiamiPMP Certification Training Course in Mountain ViewPMP Certification Training Course in NashvillePMP Certification Training Course in New York CityPMP Certification Training Course in Orange CountyPMP Certification Training Course in OrlandoPMP Certification Training Course in PhiladelphiaPMP Certification Training Course in PhoenixPMP Certification Training Course in PittsburghPMP Certification Training Course in PleasantonPMP Certification Training Course in PortlandPMP Certification Training Course in RaleighPMP Certification Training Course in RochesterPMP Certification Training Course in San DiegoPMP Certification Training Course in San FranciscoPMP Certification Training Course in San JosePMP Certification Training Course in SeattlePMP Certification Training Course in TampaPMP Certification Training Course in Washington
  • Disclaimer
  • PMP, PMI, PMBOK, CAPM, PgMP, PfMP, ACP, PBA, RMP, SP, and OPM3 are registered marks of the Project Management Institute, Inc.