Topic 8.7: Procurement management plan
In project management, it specifically refers to contracting for the supply of labour, equipment, materials – pretty much anything that the performing organisation cannot internally supply itself.
If you are outsourcing work to a contractor, you will need to put in place a series of steps to manage the relationship.
We discuss these in more detail in the next Module.
If you are performing work under contract, you will need to break the contract down into a series of manageable tasks.
Either way, for each task you will need to:
State the required deliverables and acceptance criteria
List all deadlines, constraints and other important considerations
Determine required resources
Grant a task owner authority commensurate with their responsibility
Determine how time, cost and the value of work to be performed will be measured and tracked
Clearly relate activities to others (dependencies), and
Establish meaningful cost accounts that will accurately match costs to progress.
And like every other task in your WBS, you will need to provide enough detail without being excessive, while retaining the flexibility necessary to respond to risks and realise opportunities.
Essentially, then, a procurement management plan is nothing more than the sum of those tasks otherwise in the project plan that relate to a specific procurement or contract.
So as with the quality management plan, you can organise, highlight or lift these tasks from the WBS so that they might be more relatable to their owner(s).
Ultimately, though, everything that you have learnt thus far and everything that you are yet to learn can be equally applied to the practice of project procurement.