bsbpmg408a apply contract and procurement procedures apply contract and procurement procedures...

BSBPMG408A Apply Contract and Procurement Procedures

Apply Contract andProcurement Procedures

Introduction to Procurement

Certificate IV in Project Management 17871Qualification Code BSB41507

Unit Code BSBPMG408A


• Includes processes to purchase or acquire products or services from outside of the project team

• It also includes the contract management and change control processes required to develop and implement purchase orders and contracts

• The project procurement processes form the lifecycle of any contract that is established as part of that process

• A complex project can involve managing multiple contracts or subcontracts simultaneously

• Purchasing interactions with government departments and large organisations are often dictated by complex and formal procurement policies and procedures

Project Procurement Management

Adapated from PMBOK 4th Edition


• Project procurements often involve a formal contract, contracts are legal documents between a buyer and a seller that are mutually binding

• Sellers are obliged to provide the specified products or services

• Buyers are obliged to provide monetary compensation• Some contracts are extremely complex and others can be

very simple• Contracts will include terms and conditions specified by the

buyer and negotiated with the seller• Contracts normally require an extensive negotiation and

approval process including expert assistance form procurement and legal professionals

Procurement Contracts



Procurement Approaches

Quotation

ClosedTender

PreviousSupplier

OpenTender

PreferredSuppliers

• Often requires three to five quotes and selecting the lowest or the one that best fits the requirements

• Proposals are sought from a pre-selected group of potential suppliers

• Proposals are sought from all potential suppliers

• Recurring purchasing from a previously selected and well performing supplier

• Pre-qualified list of potential suppliers for different categories of products or services


• Procurement processes for large organisations and government departments normally include some form of tender process

• Tender processes can be very complex and time consuming so they are normally reserved for major procurement, often over a particular monetary threshold

• There are different types of tenders available – open and closed

• There are many different potential steps that can be included in the tender process depending on the preferences and policies of the purchasing organisation

• Tenders result in a legally binding contract between the buyer and the seller

Tender Process



Common Tender Process

NegotiateContract

AnnounceSelection

ReviewSelectionCriteria

SupplierSubmissions Requirements

BriefingSession

IssueRequest

ForProposal

PreQualification

Briefing

ReviewRespondents

Request forInformation

ProcurementProcess

Selection

BusinessRequirements

Definition


Tender Definitions

RFI – Request for Information• An open enquiry that spans the market seeking broad data and

understanding

RFQ – Request for Quotation• An opportunity for potential suppliers to competitively cost the final

chosen solution(s)

RFT – Request for Tender• An opportunity for potential suppliers to submit an offer to supply

goods or services against a detailed tender


Tender Definitions

RFP – Request for Proposal• An opportunity for potential suppliers to submit a detailed proposal

on their ability to meet the requirements of the tender

Supplier Briefings• Held by the buyer with all potential or short listed supplier to answer

questions and clarify requirements

EOI – Expression of Interest• An opportunity for potential suppliers to show interest in responding

to a tender


Procurement Policies and Procedures

• There are many excellent procurement related websites and resources available online –

www.tenders.gov.au – Federal government tenderswww.tenders.nsw.gov.au - NSW government tenderswww.tenders.vic.gov.au – VIC government tenderswww.vgpb.vic.gov.au – VIC purchasing boardwww.finance.gov.au/procurement/ - Federal purchasing policywww.apcc.com.au – AUS procurement and construction councilwww.treasury.gov.au/procurement/ - Federal government

procurement guidelines and information


Next Steps

Please proceed to Procurement Processes

in the Learning Program.

Best of Luck!

bsbpmg408a apply contract and procurement procedures apply contract and procurement procedures...

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