vb.net barcode scanner programming 12: Project Procurement Management in Software

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12: Project Procurement Management
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and document of understanding (DOU) It doesn t matter what you call it in your world; you need to be familiar with the SOW from PMI s perspective, especially if you plan to take and pass the PMI exam The SOW should be developed from the approved scope baseline and defines the specific work that will be performed from outside the project team It can be viewed as a legally binding document and should sufficiently describe the work, quality deliverables, features, functions, metrics, due dates, specifications, estimated hours, duration, and so on It should also include details of the location where work will be performed, hours of service, billing requirements, and key contacts (see the upcoming sample list of SOW contents) Some great SOW templates are available on the Internet One example can be found at the CVR/IT Consulting LLC website (http://cvr-itcom/PM_Templates/ TemplateDetails8html)
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Sample List of Topics in a Statement of Work
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Here are some key components you might see in a statement of work:
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Introduction to the project (business need or justification) Problem statement or background (what the project will fix or address) Scope statement/baseline Seller and buyer requirements, deliverables, and milestones Schedule duration (period of performance, target completion date, and so on) Change management plan, system, process/procedures Specific type of services and deliverables Rate structure (by skill type, expected hours, constraints, and costs) Hours of support or coverage Communications plan and expectations for meetings and status reporting Special needs, training, mentoring, and so on Payment schedule and type (for example, invoices must be paid within 30 days of receipt) Nondisclosures (for example, handling of confidential or proprietary information) Physical and logical security (for example, user IDs, access codes, and passwords) Travel and discretionary expense reimbursement guidelines Approval signatures
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Administer Procurements Inputs, Tools and Techniques, and Outputs
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The inputs, tools and techniques, and outputs for this process are as follows
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Inputs The Administer Procurements process has a number of inputs to consider, with key focus on the contract and other specific performance and procurement agreements The inputs are as follows:
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Procurement documents Project management plan The contract Performance reports Approved change requests Work performance information
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Tools and Techniques The tools and techniques for the Administer Procurements process focus on results reporting, tight change control, and accountability in the process The tools and techniques for this process are
Contract change control Procurement performance reviews Inspections and audits Performance reporting Payment system Claims administration Records management system
Outputs As with all outputs, keep in mind the ripple effect (progressive elaboration) When administering the procurement process, you need to keep all procurement and project documents up to date The outputs of this process include
Procurement documentation Organizational process assets updates Change requests Project management plan updates
12: Project Procurement Management
It is important to note that many organizations treat contract and procurement administration separately from operational or functional support Although a PM may be involved with the administration of contracts and procurement, they may have supervisory/management support to administer this process
Contract Change Control
As mentioned previously, change control is essential, especially when you are managing procurements and contracts When it comes to legal documents and liabilities, this is not a topic you want to take lightly Changes to a project can have a direct effect on the contract, such as a modification to the scope of work, or deliverables Also, there may be a change in overall cost (price increases for products, materials, or services) It is important to ensure that all contract changes are reviewed, documented, and approved by both parties prior to implementation I highly recommend you seek support from your contracts and procurement experts when drafting/managing contacts and procurements
You should be aware of the doctrine of privity of contract, which refers to the contractual relationship between the buyer and seller You may see a question on the PMP or CAPM exam around this term Simply stated, if Seller A enters into a contract to build a house for Buyer B, and Buyer B contacts Seller C (electrician) to install additional features in the house (such as wiring for a home theater system), and the house burns down because of faulty wiring by Seller C, Seller A will not be liable for the damages
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