This paper examines the legal aspects of procurement management and specifically how procurement management can be used as an effective tool for the overall management of a project. This paper focuses on the basics of common contract laws, the basics of agency law, the Uniform Commercial Code (UCC), and some aspects of that pertain to the Federal Acquisition Regulations (FAR). A summation of the company’s position in relation to a given supplier (provided the company decides not to procure all of the material in a contract) will be examined along with how that position is strengthened by understanding the legal aspects of procurement management. Finally, the paper will analyze how the project manager is supported by the contracting management function.
Fleming (2003) posited that there is a clear and important distinction that should be made that delineates the work of the project from the inside work of the company. This work is delineated by the “make work” and the “buy work” of the project. With this delineation comes different way in which legal aspects will be applicable to the project. With “make work” the amount of details required in the statement of work (SOW) is significantly less than that of the “buy work” (Fleming, 2003). Fleming (2003) stated that the tolerance for error is significantly and self-correcting when dealing with “make work” that is kept in house. Conversely, when dealing with “buy work” the SOW should list the entire scope of work in detail. Fleming (2003) posited that when dealing with “buy work” a company should know the full scope of work; furthermore, a company should be able to describe any requirements in detail to the seller. When writing a SOW for “buy work” the buyer should write the...
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...ed how the project manager is supported by the contracting management function.
Works Cited
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Fleming, Q. W. (2003). Project procurement management: Contracting, subcontracting, teaming. Tustin, CA: FMC Press.
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...hing that was not ever the easiest type of contract to navigate but over the years the requirements have continued to get more complicated and require a lot of additional effort on the contract and the contracting officer. A contracting officer does not just accept the data supplied by the supplier as acceptable. A contract officer will have to perform due diligence and verify the information submitted. This means that the contracting officer will have to verify the material costs, the labor costs, the travel costs, and any of the data supplied.
Selecting the right procurement route can have a direct impact on the level of success to a project. There are various items that must be factored before making a decision including: size of the project,
Frame, J.D., Managing Projects in Organizations: How to Make the Best use of Time, Techniques and People, third ed., San Francisco: Jossey-Bass,112-117, 2003.
Procurement: procurement has a broader concept and responsibilities than purchasing. This is one of the core activities of SCM and if done properly, it will add value to the organization and makes it different from its competitors (DeAngelis,
2.It is essential to have full and up-to-date details of the agreed ways of working as we need to follow all the policies and procedures as well as all the specific requirements and needs of each
(b) the other party does make the contract in the course of a business; and
Ramroth, Jr., William G., 2006, Project Management for Design Professionals, . Chicago, Illinois : AEC Education.
The article identified multiple tips for forming contracts which include the following. Clearly specify the terms of performance, what responsibilities each party has, when tasks must be completed, and what penalties, if any, will come as a result of failure to perform. Determine how the other party must handle any confidential information. Write a termination clause and what penalties may be assessed for early termination. Reduce the exposure of UCC warranties if the transaction involves goods. Limit the changes that can be made to the contract and in what form, oral or written. Finally, address how the enforcement of the contract is to be handled; this should include whether disputes are to be arbitrated and who bears the legal costs and attorney fees. Of these tips for improving contracts and reducing risk, I believe they are all equally important. One should take a holistic approach to utilizing each of these tips to mitigate the risks of losing future legal disputes arising from a contract.
Different objectives between the constructors and operators which may have an influence in several issues, including the quality of the civil work.
The procurement process usually requires crucial planning based on the complexity and size of the specific procurement. The process involves generating and reviewing requirements and specifications for procurement. Generating and reviewing these requirements and specifications is geared towards ensuring effective planning. The most appropriate process for generating and reviewing procurement specifications would include defining the outcome, defining specifications, identifying risks, researching the procurement market, and preparing a business case (“Guidance on the Mandatory Procurement Procedures”, 2005).
(2014) deduced that procurement performance can be assessed by focusing ondelivery,flexibility, quality, cost and technology. Optimal performance attainment is dependent onhow current suppliers`relationships aremanaged so asto ensure constant availability of needed quality supplies at the organization. This will ensure that sourced materials are indeed procured at the right costand atthe right time. Procurement performancestrives toenable improvements in the procurement process at the organizationso as to improve on qualitydelivery of firm products and servicesatleast possible time and
Occasionally there may be misunderstandings made by individuals/parties in differentiating between a simple contract and a speciality contract. From what is understood, a speciality contract may be; “illustrated by reference to gifts”, as stated by (Richards, 2009).
In general, there are different types of procurement type for various situations due to no one method can be suitable under the all different construction project. In this case, there are four procurement paths, which are traditional, design and build, management and design and manage, will be advised to use. However, each method has different aspects of advantages and disadvantages.
Investigating the rules of law and employment rules according to the location of the project and informing and leading the bidding department accordingly
establishing a collaborative relationship between the OD practitioner and the members of the client system. A major component of entering and contracting is to make a good decision about how to carry out the OD process. The contract allows the parties involved to explicitly set the direction of the project and how the process will take place. The OD contract will generally address three key areas: setting mutual expectation or what each party expects to gain from the OD process; the time and resources that will be devoted to it; and the ground rules for working together and the stating of what are the proper roles of all the parties involved including the practitioner.