6.2 Procurement Management
Procurement management includes processes for purchase of materials. equipment. products, soliciting services of consultants and engaging agencies for execution of works under a contract. Project procurement processes, which depend on type of project delivery model include identification of IS 15883 (Part l) : 2009 procurement needs. preparation for procurement. soliciting proposals. selection of suppliers/consultants/works contractors. administering of contract. contract management and closure of contract. Project manager , ; charged with the responsibility to help structure and develop contract to suit the specific needs of the project.
As contract. which is an output of project procurement management processes. is a legal document, the procurement processes should follow detailed procedures with adequate review and stakeholder appraisal opportunities.
One of the fundamental issues in construction projects, managed through project managers, is to determine what needs may be met by procuring products, services and works from external agencies and what should be accomplished by the project team. This decision is best arrived at the earlier stages of the project (so that the opportunities of procurement initiation at earlier stages is not lost) and reviewed at each of the subsequent life cycle stages of the project. Such decisions should draw inputs from the time. cost . quality and scope management processes. Various procurement routes should be analyzed on their suitabil ity to both time and co st criteria of project. As a strategy for procurement, a project procurement management plan should be developed to document: contract types to be used ; procurement documents; coordination of procurement with schedules; constraints and assumptions; risk mitigation activities (performance bonds. insurances. etc); and pre -qual ification of suppliers. In addition. specifications, quality standards, performance data at work locations, etc. which are part of project scope statement. should be described.
Inventory management plays an important role in the procurement management process.
Provision of establishment of suitable dispute redressal system should be inbuilt to take care of any disputes that may arise .
