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
Dobson, M., & Leemann, T. (2010). Creative project management. Retrieved from
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Fleming, Q. W. (2003). Project procurement management: Contracting, subcontracting, teaming. Tustin, CA: FMC Press.
Guide (2009). A guide to the project management body of knowledge. Newtown Square, Pennsylvania: PMI, Inc.
Schwalbe, K. (2010). Information technology project management. Retrieved from http://books.google.com/books?hl=en&lr=&id=Bq287vpSufQC&oi=fnd&pg=PP8&dq=i mportance+of+procurement+in+project+management&ots=9sYpcfXR1h&sig=p6BubfvI U3FZgjTEGXN0VkhhAMc#v=onepage&q=importance%20of%20procurement%20in% 20project%20management&f=false
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.
While this offers a contract law that is more flexible than the common law, it also requires a higher level of responsibility from the merchants it serves. Those who make a living by crafting agreements are expected to understand the legal consequences of their words and deeds. Many sections of the code offer two rules on for the person who routinely deals in the particular good involved or who appears to have special knowledge or skill in those goods or who uses agents with special knowledge or skill in those goods. This code is frequently held for a merchant to a high standard of conduct than a
Life seemingly comprises an infinite array of diverse negotiations, filled with choices to decide which ultimately result in both positive and negative outcomes. The following reflection paper relates the previous week’s course materials to an ongoing professional transaction spanning approximately 15 months. The business arrangement has identified strengths, weaknesses, threats, and opportunities -- understanding “BATNA” or the “best alternative to a negotiated agreement” has helped me to understand how to proceed with the negotiation process (Griffith & Goodwin, 2013, p.138). The following paper summarizes a variety of negotiations transpiring simultaneously throughout professional endeavors. Approximately a year and a half ago, a Farmers Insurance Group recruiter identified the opportunity to purchase a book of business with approximately 1000 existing policies in force.
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.
Different objectives between the constructors and operators which may have an influence in several issues, including the quality of the civil work.
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,
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.
Contracts are exchange of promises or obligations between two or more organizations, is the key aspect of any encompassing critical business functions. In this case Bharthi Airtel and IBM, both these organisations agree on aspects like terms, pricing , service level agreements, human resources management, dispute resolution procedure , acceptance strategy and procedures ,Exit strategy, Non dis-closure agreements. As a procedure, Bharthi Airtel went through contract management process for finalizing contractual terms with IBM during sourcing lifecycle.
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).
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.
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.
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).
Investigating the rules of law and employment rules according to the location of the project and informing and leading the bidding department accordingly