Contracts and

Procurement
Management
Dr. Arshad Zaheer
 Analyze Identify
the Strengths
Organization’s and
resources weaknesses

Develop the
Identify the
Organization’s Formulate Implement Evaluate
Organization’s
Vision
mission and strategies strategies results
objectives

Identify
Analyze
Opportunities
the
And
environment
threats
Levels of Projects

Delivery Phase Outcome Phase Impact Stage

Input-Activity-Output Output-Use-Outcome Outcome-Impact Assessment-Benefit
Example

Clean Water
• Output: Water Filtration Plant
• Outcome: Availability of Clean Drinking Water
• Impact: Reduction in Water borne diseases
Hepatitis
• Output: Hepatitis Control Center
• Outcome: Medication, Diagnosis and Awareness
• Impact: Eradication of Hepatitis
Success must be ensured at all 3 levels
 • Discussion:
Project
Success
• What is a successful Project?

• What is the role of project management

in project success?
Rolling Wave Planning
“A multi-step intermittent
process like waves because
Vision becomes clearer as
we cannot provide details Clarity till proximity
we move ahead
for very far out in our
planning”

Clarity is a function of A well-defined Work

•Project Type Breakdown Structure is
•Length We can plan for created for that period of
•Complexity weeks/months with clarity clarity but only milestones
are highlighted for the rest of
the project

Rolling Wave Planning refers

to the progressive detailing
of the project plan which is
an iterative and ongoing
process
Progressive Elaboration

Whatsoever happens in
Overtime we elaborate the
Rolling Wave Planning is
work packages in greater
called Progressive
detail
Elaboration

As weeks and months pass,

we have planned to provide
that missing, more
elaborated detail for the
work packages as they
appear on the horizon.
How does a project start?
• Consider example of an external project

• Case
• AU wants to build an environmental sciences department
and the building for that department is being outsourced.
The AU Planning and Development Department has
created some specifications for the project based on initial
requirements by the Dean, Environmental Sciences. Based
on the specifications, a request for proposal and tender
documents were floated as per Public Procurements
Regulatory Authority Rules and after evaluation of all
relevant proposals received, M/S ABC was selected and
contracted for the construction of the building.
Pre-project activities (M/S ABC point of
view)

M/S ABC will receive the

basic specifications from They will negotiate and
AU sign the contract with AU

Making assumptions
accordingly, they will
prepare a proposal/bid
and submit to AU
Inputs to the project charter

CEO of the M/S ABC Project sponsor will

company will assign a have access to a)
project sponsor for the Agreement, b) Project
project from senior Statement of Work and
management c) Business Case

Project sponsor will be Project Sponsor will

accountable for delivery convert the three inputs
of the project including OPAs and EEFs
deliverables within time into a project charter
and budget
Business Case

Business Need Cost-benefit Analysis/Feasibility

Market Demand Technical Feasibility
Technological Advancement Financial Feasibility
Legal Need
Environmental Need
Customer Requirement
Organizational Need
Social Need
Project
Objectives

• S: Specific

• M: Measureable

• A: Achievable/ Agreed/ Attainable

• R: Realistic

• T: Time-bound

• Define 3 SMART Objectives for any

project
SMART Objectives Examples
Project Charter Template
• No standard template

• One template is attached here for your

reference please.
Post Project Charter Steps

Project manager
Project manager’s role communicates with key
starts after signing of stakeholders to formulate
project charter a communication strategy

Project manager gathers Communication strategy

information on the key may include a detail of
stakeholders from project communication method,
sponsor model, frequency for
each stakeholder
 Project Planning steps

Requirement documentation
is created and is mapped with
stakeholder, relevant project
objective, and WBS ID in the
PM meets with stakeholders Requirement Traceability
to collect requirements Matrix

Requirements come with All requirements are put into

expectations a Scope Statement
Scope Statement
• Based on objectives we formulate
the Scope Statement

• It includes the overall scope of the

project

• It includes the budget of the project

• It includes the major milestones of

the project
Principles and Performance
Domain
 Be a diligent, Create a Recognize, evaluate Build quality into
Effectively engage Demonstrate Tailor based on
respectful and collaborative team Focus on value and respond to processes and
with stakeholders leadership behavior context
caring steward environment system interactions deliverables

Enable change to
Embrace
Navigate Optimize risk achieve the
adaptability and
complexity responses envisioned future
resiliency
state

Stakeholders

Uncertainty Team

Project Development
Measurement Performance Approach and Life
Cycle
Domains

Delivery Planning

Project
Work
Where does a project start from?

DISCUSSION POINT PMBOK POINT OF VIEW

Starting documents

BUSINESS CASE PROJECT AGREEMENT ORGANIZATIONAL ENTERPRISE

STATEMENT OF PROCESS ASSETS ENVIRONMENTAL
WORK FACTORS
Business Case

Business case for

What was the
Why you went for this customer is different
background working
project? than it is for the
carried out?
contractor

Technical versions Financial version

include the capacity, include the financial
capability, and sense of this project
competency to do this including payback
work period, NPV, IRR
Project Statement of Work

So, Customer’s
Customer outsourcing a
procurement statement
component creates
of work becomes the Scope description Details of project
procurement statement
Contractor’s project
of work
statement of work
Agreement

After the procurement process, an agreement The terms and conditions of the agreement
is signed between contractor and customer. also influence the management of the project
Agreement

Exchange of Customer’s consideration/obligations Contractor’s

considerations/obligations are usually in the form of finances consideration/obligations are usually
in the form of services or products
Organizational
Process
Assets
Enterprise
Environmental
Factors
Stakeholder Register
Communication Strategy
 Source Procurement
Make-or-Buy Publication of Response to
Selection Documents
Analysis RFP/RFQ/RFI RFP/RFQ/RFI
Criteria Preparation

Contract Draft Financial Technical Pre-

Shortlisting
sharing Assessment Assessment qualification

Assigning of
Contract Contract Develop Stakeholder
Project
Negotiation Signing Project Charter Identification
Sponsor

Business Case
Requirements
Communication
Documentation Scope Detailing
Project Statement of Work Strategy
and RTM

Agreement

Organizational Process Assets

Project Scope Work breakdown
Work Package
Enterprise Environmental Factors Statement structure
Requirement Traceability Matrix