P N B B: Procurement Management Plan

PROCUREMENT MANAGEMENT PLAN
PROJECT NAME BUILDING AN APARTMENT AT BRISBANE
PROJECT DATE 01/07/2020
Student name: Renan Cesar Artilha
Student number: CTI2019007

BSBPMG518 Manage project procurement Version 18 August 2020
TABLE OF CONTENTS
Procurement Management Plan.......................................................................................................................... 1
Definition of terms.............................................................................................................................................. 4
1. Introduction................................................................................................................................................ 5
1.1 Key roles and responsibilities................................................................................................................................5
1.2 key internal stakeholders......................................................................................................................................5
1.3 Procurement plan features...................................................................................................................................6
1.4 Procurement Plan purpose...................................................................................................................................6
2. Procurement management approach........................................................................................................... 7
2.1 Procurement planning processes..........................................................................................................................7
2.1.1 Make/buy analysis.........................................................................................................................................8
2.2 Procurement items/services list............................................................................................................................8
2.3 Procurement delegation schedule........................................................................................................................9
3. types of contracts to be used....................................................................................................................... 9
3.1 Project management procurement contract Legislation, codes and national standards..................................11
3.2 Vendor selection.................................................................................................................................................11
3.2.1 Selection criteria...................................................................................................................................11
3.2.2 Selection methodology.........................................................................................................................11
3.3.3 Call for bids..................................................................................................................................................12
3.3.4 Evaluate bid submissions.............................................................................................................................12
3.3.5 Monitor supplier performance....................................................................................................................12
4. Procurement risks...................................................................................................................................... 12
5. Procurement risk management.................................................................................................................. 12
5.1 Project risk management process......................................................................................................................13
6. Cost Determination................................................................................................................................... 13
6.1 Outside vendors.................................................................................................................................................13
6.1.1 bid request tools..........................................................................................................................................14
6.1.2 Bid request terms and conditions................................................................................................................14
6.2 Vendor ability and quality.................................................................................................................................14
7. Standardised documentation..................................................................................................................... 15
8. Procurement constraints........................................................................................................................... 15
9. Contract approval process......................................................................................................................... 16
10. Contract award decision criteria............................................................................................................. 17
11. Vendor management............................................................................................................................. 17
12. Performance metrics for procurement activities.....................................................................................18
13. Implement and monitor PROJECT PROCUREMENT activities across project life cycle...............................18
13.1 Project procurement implementation and monitoring tools...........................................................................18
13.2 Change request process and tools....................................................................................................................19
13.2.1 Change process..........................................................................................................................................19
13.2.2 Change request form.................................................................................................................................19
13.3 Conflict management.......................................................................................................................................19
13.3.1 Dispute resolution policy...........................................................................................................................19
13.3.2 dispute resolution process........................................................................................................................19
14. project procurement review & lessons learnt........................................................................................ 20
14.1 project procurement review.............................................................................................................................20
14.1.1 project procurement review report..........................................................................................................20
14.2 lessons learnt....................................................................................................................................................20
14.3 quality improvement actions............................................................................................................................20
DEFINITION OF TERMS
Unless the contrary intention appears, in this Agreement, a term in bold type in this clause has the
meaning shown opposite it:
Fixed price/term It is a type of contract in which the amount established for the
payment of the contract does not depend on the resources
and / or the time spent used.
Time and materials It is a term used to establish the employee's form of payment
according to the time spent.
Unit price It is a type of contract based on payment for the service
performed according to the pre-established unit.
Cost reimbursables It is the one in which the contractor is reimbursed for the actual
costs incurred in carrying out the works, plus an additional fee.
Cost plus It is a contract in which a contractor is paid for all of his allowed
expenses, plus an additional payment to allow profit.
CAR Corrective action required.
QIO Quality improvement opportunity.
RFQ Request for quote.
RFP Request for proposal.
work breakdown structure Work breakdown structure is a process of subdividing
deliverables and project work into smaller, more easily
manageable components
procurement policy Ensure that the services and products we purchase are the
result of transparent, objective, timely and economical
decision-making and risk management.
procurement procedures There are some steps to be followed, such as consistency and
repetitive approach or cycle to achieve the pass-through
resources for the project.
Resource analysis It is an analysis of how resources are used and managed
Resource types Physical, financial, human resources, intellectual capital.
Service level agreements SLA means that is the part of a contract that defines exactly
what services a service provider will provide and the level or
standard required for those services.
goods and services specifications It is the detailed specification of the required products and
services.
goods and services performance It is a term used to determine the performance expected by
requirements suppliers in relation to the desired services and products.
Statement of work It is the description of a project's work requirement. It defines
specific project activities, deliverables and schedules
Vendor supply options These are the options of suppliers capable of meeting the needs
of the project.
Code of ethics A code of ethics is a guide of principles designed to help
professionals conduct business with honesty and integrity
Proposal A project proposal is a document used to convince a sponsor
that a project needs to be started for a particular problem or
business opportunity.
Quotation It is a word used to know the price of what is being quoted.
1. INTRODUCTION
The purpose of the Procurement Management Plan is to define the procurement requirements for the
project and how it will be managed from developing procurement documentation through contract
closure.
The Procurement Management Plan defines the following:
 Items to be procured with justification statements and timelines

 Types of contract to be used
 Risks associated with procurement management
 How procurement risks will be mitigated through performance metrics or insurance or other
means.
 Determining costs and if/how they are used as evaluation criteria
 Any standardised procurement templates or documents to be used
 How multiple suppliers will be managed if applicable
 Contract approval process
 Decision criteria
 Establishing contract deliverables and deadlines
 How procurement and contracts are coordinated with project scope, budget, and schedule
 Any constraints pertaining to procurement
 Direction to sellers on baseline requirements (contract schedules and work breakdown
structures)
 Vendor management
 Identification of any prequalified sellers if applicable
 Performance metrics for procurement activities
1.1 KEY ROLES AND RESPONSIBILITIES
ROLE RESPONSIBILITIES NAME

PROJECT - The Sponsor has the responsibility to sign the John
SPONSOR/OWNER project manager;
- Approve the initial budget of the project and any
changes in the budget above 5% of the budget;
- Approve the Project Charter;
- Participate in meetings to finalize the steps of the
project.
STEERING COMMITTEE - Focused on fast decision-making; Matthew
- Assist in crucial decisions for the project and
budget evaluation;
- Assistance in project change decisions.
PROJECT MANAGER - Control of the cost and time of the project Renan Artilha
according to what is approved at the

beginning of the project;
- Evaluation of the change in scope, time and
cost of the project;
- Project progress management;
- Report the progress of the project to the
Sponsor;
- Hold meetings with stakeholders;
TEAM LEADER - Control the project team so that pre- Fabio
approved costs and deadlines are met;
- Report the progress of the project to the
Project Manager;
- Participate in decision meetings to be held
promoted by the Project Manager.
1.2 KEY INTERNAL STAKEHOLDERS
STAKEHOLDER RESPONSIBILITIES NAME

Supplier - Provide the products with the qualities specified in Anna
the product specifications and with the agreed
price / term;
- Participate in meetings related to the specifications
of the material that will be used in the project.
Government - The government representative has the Geovany
responsibility to assess whether the project is able to
be carried out in accordance with the established
tasks;
- Participate in government-related draft decision
meetings.
1.3 PROCUREMENT PLAN FEATURES
This Procurement Management Plan sets the procurement framework for this project. It is a guide for
managing procurement throughout the life of the project and will be updated as needs change.
1.4 PROCUREMENT PLAN PURPOSE

Explain the purpose of the procurement management plan in the space below. (about 50 words)
The PURPOSE of the PROCUREMENT Management PLAN is to define the PROCUREMENT requirements
for the PROJECT and how it will be managed from developing PROCUREMENT documentation through
contract closure. The PROCUREMENT Management PLAN defines the following:
• How multiple suppliers will be managed if applicable
• Contract approval process
• Decision criteria
• Establishing contract deliverables and deadlines
• How procurement and contracts are coordinated with project scope, budget, and schedule
• Determining costs and if/how they are used as evaluation criteria
• Types of contract to be used
2. PROCUREMENT MANAGEMENT APPROACH
Provide a summary of the Procurement management approach for this project
The Project Manager will approach the project team to determine what the procurement management
needs are so that it is easier to manage and control. The Manager will also signal the required products
to the team leader of this project and the team leader will develop the suppliers (if it is good for the
project) in relation to the beginning of the service contracting process.
2.1 PROCUREMENT PLANNING PROCESSES

Input has been gathered from key stakeholders as a basis for planning procurement requirements and
processes. Details of our procurement management planning processes are outlined below:
2.1.1 MAKE/BUY ANALYSIS

Identify the 5 steps of the make/buy analysis
- Review existing skills;
- Review potential skills;
- Review time;
- Review costs;
- Compare quality;
Provide a summary of the specific steps of the make/buy analysis which influenced this project rationale
- Assess the skills necessary to do the task with your in-house resources;
- Look for training courses to develop your staff or recruit a new permanent or temporary
member of staff with the right skills;
- Assess the time needed to perform each task;
- Compare the costs of doing the work either internally or externally;
- Get testimonials about previous works;
The Project make/buy analysis was influenced by the following –

Make/buy analysis step Impact on this project
Review existing skills; A review was made on the company's staff to see the skills requested for
this project.
Review potential skills; Within the employees selected for this project, an observation of the
skills of each one related to the project was made to see the need to hire
new staff.
Review time; Time, cost and quality were reviewed according to the staffing required
Review costs; for hiring and according to the types of suppliers that would be required.
Compare quality;
2.2 PROCUREMENT ITEMS/SERVICES LIST.

The following procurement items and/or services have been determined to be essential for project
completion and success. The following list of items/services, justification, and timeline are pending PMO
review for submission to the contracts and purchasing department:
Item/service Justification Needed by date

Construction materials Hiring a company to supply all materials is
(concrete, paints, construction essential for the execution of the project. Must be
irons, floors) scheduled
according to the
needs of each
product
Traffic controllers There are no traffic controllers on the team so
the need to hire a specialized company. Since the
beginning of the
project
execution
Electricity Installer There are no Electricity Installer on the team so After finishing
the need to hire a specialized company. the concreting
phase of the
house
Plumbing Installer There are no Plumbing Installer on the team so After finishing
the need to hire a specialized company. the concreting
phase of the
house
Water / gas installer There are no Water / gas installer on the team After finishing
so the need to hire a specialized company. the concreting
phase of the
house
2.3 PROCUREMENT DELEGATION SCHEDULE

In addition to the above list of procurement items, the following individuals are authorised to approve
purchases for the project team:
Name Role Procurement delegation (scope and $ limits)

Renan Project Manager Client Liaison: up to $25k;
Financial Expenditure: up to $10k;
Process Decisions: up to $10k;
Purchasing/Procurement: up to $25k;
Stakeholder Engagement: Sponsor
Fabio Team Leader Client Liaison: N/A;
Financial Expenditure: up to $10k;
Process Decisions: up to $10k;
Purchasing/Procurement: up to $25k;
Stakeholder Engagement: Contractors only;
John Sponsor Client Liaison: major contracts;
Financial Expenditure: major contracts;
Process Decisions: major contracts;
Purchasing/Procurement: major contracts;
Stakeholder Engagement: sponsor;
3. TYPES OF CONTRACTS TO BE USED

The following contract types will be utilised over the course of this project
Contract types Used for the procurement of these Reason for this choice of contract
items
Fixed Price This type of contract will be used The choice of this contract is due to the fact
Contract to contract the purchase of that it can negotiate products and services
materials and services already well that are already well defined within the
defined during the project project.
Time and This type of contract will be used This type of contract was chosen due to the fact
Material for services that require an hourly / that there are some services that it is not
man contract delivery, such as possible to know the amount of time and the
service specifications for sure since the beginning
plumbing, water, electricity and
of the project.
electricity
3.1 PROJECT MANAGEMENT PROCUREMENT CONTRACT LEGISLATION, CODES AND NATIONAL

STANDARDS
Relevant legislation, Codes of practice and National Standards which impact this project include:
Building and Construction Industry (Improving Productivity) Act 2016
3.2 VENDOR SELECTION

The Vendor selection process to be applied is -
3.2.1 SELECTION CRITERIA

- The selected company must contain the best price compared to at least two other quotations;
- For contracting materials, companies must deliver the products with the guarantees / reports of the
products they are delivering;
- The companies must contain all the certifications requested for each type of service and their
employees must also have the certifications if necessary;
- The company winning the selection process must present a certification that the employees who will
be working have already had experience with some other project of the same style that this project is
carrying out.
3.2.2 SELECTION METHODOLOGY

3.3.3 CALL FOR BIDS
- Request for proposal (RFP);
- Request for Quote (RFQ);
- Request for Bid (RFB);
- Simple quotation and purchase;
3.3.4 EVALUATE BID SUBMISSIONS

O processo de avaliação de compra será feito a partir de pelo menos três cotações de fornecedores competentes
ao serviço/material requisitado. O processo de avaliação que será utilizado é o de weighting system podendo ser
avaliado como exemplo algum dos critérios no quadro abaixo.
Seller
Category
Criteria
Weight Rating for this criteria score
Technical Ability 40% 0%
Time of delivery 30% 0%
Price or life cycle

cost 20% 0%
Experience in this
project 10% 0%
Total 100% 0%
3.3.5 MONITOR SUPPLIER PERFORMANCE
Surveys of satisfaction and evaluation of the deliveries of the suppliers will be carried out to
assess whether they are meeting the needs of the project. Assessment of compliance with the delivery
deadline will also be made. From all the feedback received and data evaluation, Project Manager can
take some actions according to the agreed contract if necessary.
4. PROCUREMENT RISKS
The specific procurement risks for this project are.

- The number of suppliers to supply the needs of the project may not be met due to the fact that we
are in a pandemic moment affected by COVID-19;
- The prices and terms of the suppliers participating in the quotations may not meet the expectations
foreseen at the beginning of the project due to the fact of the pandemic;
- There may be conflicts between suppliers and contractors according to the contracts to be
contracted;
- Failure in communication and delay in delivery of final products.
These risks are not all-inclusive and the standard risk management process of identifying, documenting,
analyzing, mitigating, and managing risks will be used.
5. PROCUREMENT RISK MANAGEMENT
The project risks will be managed in accordance with the project’s risk management plan. However, for
risks related specifically to procurement, there will be additional consideration and involvement by the
project team. In this case, the project team will include the Project Manager and Project Sponsor in all
project meetings and status reviews.
Any issues concerning newly identified risks must be communicated to the project’s contracting
department point of contact as well as the Project Sponsor.
5.1 PROJECT RISK MANAGEMENT PROCESS
6. COST DETERMINATION
The cost of each project activity is estimated in the estimate costs process. An interesting point about
this process is that it uses the same tools as in the estimate activity duration.
In the estimate activity duration process, you determine the time taken by each activity. Now, in the
estimate costs process, you will calculate the total cost of the project.
In estimate cost process, the cost of each activity is determined, including the cost of human hours, the
cost of equipment, and the cost of materials used as well as the contingency cost (i.e., the cost to cover
the identified risks).
The cost determination tool to be used in this project is RFP - Request for Proposal;
This method has been chosen as being most appropriate because is a type that is used for projects that
require greater purchasing complexity and that helps a lot in comparing supplier responses.
6.1 OUTSIDE VENDORS

For this project we will solicit proposals from various vendors who must describe how they will meet our
requirements and the cost of doing so by issuing a contract proposal containing the certificates
requested by the company, previous experiences with similar projects and the response to the request
requested by the company containing prices and order fulfillment time.
6.1.1 BID REQUEST TOOLS
Tool Used for these vendor types Reason for using this tool
Getting Quotes All suppliers To get the best price;
Designing Contracts All suppliers To define terms and conditions;
Expression of Interest All suppliers To indicate the serious interest from
(EOI) project’s side and that the project
would be interested to pay a certain
valuation and acquire the seller's
company through a formal offer;
6.1.2 BID REQUEST TERMS AND CONDITIONS

To ensure a shared understanding between the Procurement team and the Vendor these tools will
include the following –
Service level agreements: for the vendor to be successful in selling his product to the company it is
necessary that both companies (both on the part of the seller and on the part of the buyer) have an
acceptance level previously agreed in the contract and understood by all who signed it.
Offer & Acceptance: the product that the selected supplier offers has to be on terms of our project
before we accept it (the intent to purchase);
Specifications and performance requirements: it is necessary that at the time of delivery, the product
contains a report that describes its specifications and performance according to the request made at the
time of product purchase.
Contract closure processes: All contracts must contain a contract closure process and must be adhered
to by both parties until the end, unless one of the parties withdraws from the contract before it ends.
Signature: The science and understanding of both parties is necessary. For this to be signed, the
signature is a formal form that both parties are aware of.
6.2 VENDOR ABILITY AND QUALITY

In order to show their understanding of the work to be performed and their ability to meet project
schedule and standards, the vendors must provide further details including.
Specifications and description of the material: it is necessary that at the time of delivery, the product
contains a report that describes its specifications and performance according to the request made at the
time of product purchase.
Scope: All activities must be performed and managed with current personnel as per plan.
Time: Technology requirements have already been previously established and will be included in the
statement of work as part of the RFP. While proposals may include suggested alternative material, parts
specifications must match those provided in the statement of work.
Cost: project budget has contingency and management reserves built in; however, these reserves may not
be applied to procurement activities. Reserves are only to be used in the event of an approved change in
project scope or at management’s discretion;
All information must be included in each proposal as the proposals will be used as the foundation of our
selection criteria. Proposals which omit solicited information or contain incomplete information will be
discarded from consideration.
7. STANDARDISED DOCUMENTATION
The purpose of this section is to describe what standardised documentation will be used as part of the
procurement.
We will use standard documentation for all steps of the procurement management process. These
standard documents have been developed and revised over a period of many years in an effort to
continually improve procurement efforts. They provide adequate levels of detail which allows for easier
comparison of proposals, more accurate pricing, more detailed responses, and more effective management
of contracts and vendors.
The PMO maintains a repository on the company’s shared drive which contains standard project
management and procurement documentation that will be used for this project.
The following standard documents will be used for project procurement activities:
Standard procurement document list

A Standard Request for Proposal Template, including;
- Price of goods/services;
- Method of payment and payment schedule;
- Suppliers responsibilities;
- Organisation’s responsibilities;
- Delivery method and schedule
- Refund/returns policy;
- Cancellation policy
- Warranty;
- Definitions of terms in contract ;
- Application of the terms and conditions.
8. PROCUREMENT CONSTRAINTS
The purpose of this section is to describe any constraints which must be considered as part of the
project’s procurement management process. These constraints may be related to schedule, cost, scope,
resources, technology, buyer/seller relationships and project or organisational probity and governance
standards . As constraints are identified, they will be considered in every step of the procurement
activities. Every effort will be made to identify all constraints prior to the project or procurement
planning as constraints identified later in the project lifecycle can significantly impact the project’s
likelihood of success.
Several constraints have been identified for this project and are considered in the project’s procurement
management plan. These constraints will be included in the RFP and communicated to all vendors in order
to determine their ability to operate within these constraints. These constraints are outlined below.
Constraint Details
Cost Even though the project’s budget and schedule have contingency and
management reserves built in; these should be put used only in extremes
situations, like a change request. Therefore, all risks have to be mitigated in order
to avoid using the contingency.
Quality All procurement activities and contract awards must support the approved project
scope statement. Any other procurement activities not previously specified will
be discarded and considered out of scope.
Scope All activities must be performed and managed with current personnel as per plan.
Time Constructions requirements have already been previously established and will be
included in the statement of work as part of the RFP. While proposals may
include suggested alternative material, parts specifications must match those
provided in the statement of work.
9. CONTRACT APPROVAL PROCESS
This section defines the process through which contracts must be approved.
10. CONTRACT AWARD DECISION CRITERIA
Selection and award of procurement contracts under this project will be based on the following general
conditions, legal obligations and decision criteria.
Decision criteria
- The selected company must contain the best price compared to at least two other quotations;
- For contracting materials, companies must deliver the products with the guarantees / reports of
the products they are delivering;
- The companies must contain all the certifications requested for each type of service and their
employees must also have the certifications if necessary;
- The company winning the selection process must present a certification that the employees who
will be working have already had experience with some other project of the same style that this
project is carrying out.
These criteria will be measured by the Experience, Skill levels and Industry and professional
certifications. Decisions will be based on these criteria as well as available resources.
11. VENDOR MANAGEMENT
The contract management team together with the project manager will hold meetings as often as
described by each contract and for each contract winner. The Project Manager will be responsible for
assessing the need for the action plans discussed at the meetings and putting them into practice until
the next meeting. The supplier has the function of notifying the company if the contract is not being
managed in the manner agreed during the contracting process. Just as the contract management
team has the function of alerting the supplier and the project manager to the progress of the
contracts as agreed. If there is a breach of the clauses of the contracts, both parties may suffer
penalties previously approved in each contract.
12. PERFORMANCE METRICS FOR PROCUREMENT ACTIVITIES

These metrics are used to ensure the procurement activities contribute to the project staying on
schedule. They are also used to compile data on the performance of various vendors in order to assist
with future procurement activities’ vendor selection criteria.
The following metrics are applied to measure vendor performance for this project
Rating scale: 1- Good

2- Accetable
3- Not Good
Product On time Documentation Development Development Transactiona

Vendor Cost per unit
quality Delivery quality costs time l efficiency
Construction
materials
(concrete,
1 2 2 2 1 1 3
paints,
construction
irons, floors)
Traffic
1 3 1 3 1 1 2
controllers
Electricity
1 1 1 1 2 3 3
Installer
Plumbing
1 2 2 1 2 3 3
Installer
Water / gas
1 3 3 2 1 1 2
installer
13. IMPLEMENT AND MONITOR PROJECT PROCUREMENT ACTIVITIES ACROSS PROJECT

LIFE CYCLE
13.1 PROJECT PROCUREMENT IMPLEMENTATION AND MONITORING TOOLS
The following tools will be used to monitor project procurement activities across the project
Contract change control system: this tool defines the process by which the procurement can be
modified. In the event of a change in this procedure, the change must be formalized;
Inspections and audits: the procurement contract shall contain periodic inspections and audits as
described in the contracts;
Payment system: The supplier's payment process will be done after the validation of a team member
and evaluation of the project manager using the form described in each contract;
Records management system: this tool is used by the project manager to control the processes, the
functions described and automatic tools for the company to contain a history of the project.
Project procurement issues log
- Status on quotes, invoices and receipts;

- Name and clear description of all procurements;
- Suppliers’ details;
- Payment status;
- Payment details;
Root cause analysis
- Investigate breach, implement necessary measures to prevent future breaches, document

appropriately;
- Ensure supplier is informed and given notice to improve in accordance with contractual
agreement. Issue financial penalty if persists;
- Escalate if necessary;
13.2 CHANGE REQUEST PROCESS AND TOOLS

Unplanned project changes are necessary in every project. Change request forms are the primary
project management tool used for requesting any changes to this project and are one piece of the
change management process. The change request template provides the foundation for managing
change requests. The project manager must manage change carefully and implement a thorough change
control process to ensure the project remain within their approved constraints.
13.2.1 CHANGE PROCESS

13.2.2 CHANGE REQUEST FORM

13.3 CONFLICT MANAGEMENT
13.3.1 DISPUTE RESOLUTION POLICY
Employee disputes are usually best resolved between employees and supervisors themselves,
informally. However, it is important that companies are aware that there may be situations where the
formal process will be requested, in a more agile and beneficial way in resolving the case.
The purpose of this policy is to provide an opportunity for company employees to resolve disputes
internally arising from issues relating to the Progressive Discipline Policy (including termination of
employment) or other policies. This policy does not include concerns about performance feedback or a
written performance review. Employees who use this process in good faith will be protected from any
retaliatory actions, such as reprimands or harassment.
13.3.2 DISPUTE RESOLUTION PROCESS

14. PROJECT PROCUREMENT REVIEW & LESSONS LEARNT

14.1 PROJECT PROCUREMENT REVIEW

Project Procurement Review reports are intended to help executing agencies, implementing agencies,
and the PM Team to identify and develop preventive measures to mitigate risks, improve project
management, enhance project implementation, and replicate lessons learned for future projects.
14.1.1 PROJECT PROCUREMENT REVIEW REPORT
Quality
What worked What did not
Process Relevant tools CAR Activities Improvement
well work well
Opportunities
Identify need Make buy Specifications The owner Change the Make a meeting
for procurement analysis improvement required brand as with the client
another brand required. before any
request for
of paint.
quotation to find
out if he has any
brand of
preference.
Vendor selection Good Price Found N/A N/A N/A
Request type Request for N/A N/A N/A

Proposal
Vendor selection Alignment of the Delay in replying N/A Increase in

tools team involved in to authorization meeting
selecting a good emails for the frequencies
Go to market supplier in selection
relation to the process.
product
Vendor Due to good N/A N/A N/A

negotiations product
specification and
a good selection
process,
negotiations were
made quicker and
more directly
Award decision All involved N/A N/A N/A

tools parties were
aligned and
aware of the
decision criteria.
Contract types Fixed Price N/A N/A N/A

Contract
Vendor Fixed Price N/A N/A N/A

management Contract and
policy Time and
Material Contract
Vendor
management Procurement Good team N/A N/A N/A
metrics reports communication
Dispute Good price found Difficulty finding N/A N/A

resolution a supplier that
process meets all
requirements
Quality The products N/A N/A N/A

Improvements found were of
Procurement high quality and
outcomes with good
delivery
performance
Issue Good description N/A N/A N/A

management of Issue
management and
ease of
management
14.2 LESSONS LEARNT
CATEGORY PROBLEM IMPACT RECOMMENDATION

/SUCCESS
- Very detailed description of

Make / buy Success: As the products to be
the products;
ordered for purchase should
- Approval of the product by
be very well detailed and
the technical part of the

approved, a significant
project.
development of the type of
Specifications product to be ordered was
improvement reported
- Increase in the
Contract Problem: - Describe very well the evidence to
elaboration time of
management be reported in the contracts before
the contracts that they are signed;
involved both
types; - Develop the contract together with
Difficulty in defining - Increase in the the supplier so that he can meet the
the type of contract trading price. needs of what is being requested.
due to the fact that
some contracts do
not have the
detailed
specifications of the
product that would
be purchased
- Agility in the - Elaboration of a good

Vendor Negotiation Success:
supplier search product specification;
process; - Development of the correct
- Development of supplier for the specified
the correct supplier product.
Due to good for the project.
product
specification and a
good selection
process,
negotiations were
made quicker and
more directly
- Agility in the - Preparation of a good

Quality Success:
development of the contract developed with the
management
project due to the supplier with product
good delivery time; specifications, delivery and
- Ease of negotiation very detailed evidence.
The products found with suppliers and
were of high quality improvement in
prices found.
and with good
delivery
performance
Risk management Success: Risks can compromise the To mitigate risks, it is recommended
entire project planning. It is to consult similar previous projects
Profit important to mitigate risks and / or to hire a specialist in budgets,
during initial phase. schedule and market to assist in the
elaboration of a plan to achieve the
best results.
- Good distribution of the

Vendor Problem: Increase in the salary of
supplier portfolio by the
management hired staffs due to the high
project manager;
Small team of Staffs management skills of - High supplier management
suppliers. skills for each portfolio of
delegated suppliers.
14.3 QUALITY IMPROVEMENT ACTIONS

Please refer to [QIO Continuous Quality Improvement Opportunity Form].
Sponsor Acceptance
Approved by the Project Sponsor:
JOHN SIGNATURE Date: 18-AUGUST-2020

JOHN
Project Owner

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PROCUREMENT MANAGEMENT PLAN

PROJECT NAME BUILDING AN APARTMENT AT BRISBANE

PROJECT DATE 01/07/2020

Student name: Renan Cesar Artilha

Student number: CTI2019007

Quotation It is a word used to know the price of what is being quoted.

The Procurement Management Plan defines the following:

 Items to be procured with justification statements and timelines

1.1 KEY ROLES AND RESPONSIBILITIES

ROLE RESPONSIBILITIES NAME

according to what is approved at the

1.2 KEY INTERNAL STAKEHOLDERS

STAKEHOLDER RESPONSIBILITIES NAME

1.3 PROCUREMENT PLAN FEATURES

1.4 PROCUREMENT PLAN PURPOSE

2. PROCUREMENT MANAGEMENT APPROACH

Provide a summary of the Procurement management approach for this project

2.1 PROCUREMENT PLANNING PROCESSES

2.1.1 MAKE/BUY ANALYSIS

The Project make/buy analysis was influenced by the following –

2.2 PROCUREMENT ITEMS/SERVICES LIST.

Item/service Justification Needed by date

2.3 PROCUREMENT DELEGATION SCHEDULE

Name Role Procurement delegation (scope and $ limits)

3. TYPES OF CONTRACTS TO BE USED

3.1 PROJECT MANAGEMENT PROCUREMENT CONTRACT LEGISLATION, CODES AND NATIONAL

Building and Construction Industry (Improving Productivity) Act 2016

3.2 VENDOR SELECTION

3.2.1 SELECTION CRITERIA

3.2.2 SELECTION METHODOLOGY

3.3.3 CALL FOR BIDS

- Request for proposal (RFP);

- Request for Quote (RFQ);

- Request for Bid (RFB);

- Simple quotation and purchase;

3.3.4 EVALUATE BID SUBMISSIONS

Technical Ability 40% 0%

Time of delivery 30% 0%

Price or life cycle

3.3.5 MONITOR SUPPLIER PERFORMANCE

The specific procurement risks for this project are.

5. PROCUREMENT RISK MANAGEMENT

5.1 PROJECT RISK MANAGEMENT PROCESS

6.1 OUTSIDE VENDORS

6.1.1 BID REQUEST TOOLS

6.1.2 BID REQUEST TERMS AND CONDITIONS

6.2 VENDOR ABILITY AND QUALITY

Standard procurement document list

9. CONTRACT APPROVAL PROCESS

10. CONTRACT AWARD DECISION CRITERIA

11. VENDOR MANAGEMENT

12. PERFORMANCE METRICS FOR PROCUREMENT ACTIVITIES

Rating scale: 1- Good

Product On time Documentation Development Development Transactiona

13. IMPLEMENT AND MONITOR PROJECT PROCUREMENT ACTIVITIES ACROSS PROJECT

13.1 PROJECT PROCUREMENT IMPLEMENTATION AND MONITORING TOOLS

Project procurement issues log