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The Procurement Process

1 Project start-up

Project Start-Up
0 Procurement Principals 1 Project start-up 2 Risk Allocation Model 3 Business Case 4 Procurement Strategy 5 Market Assessment 6 Market Creation 7 Produce Requirement 8 Supplier Selection 9 Proposal Evaluation 10 Contract Preparation 11 Bid Evaluation 12 Award 13 Project Closure 14 Implementation / Transition 15 Contract Management
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You are on step 8 of 14 steps.

Click for slide: Obtain commitment from the business Click for slide: Define critical success factors Click for slide: Adopt processes for project management Click for slide: Check staff skills and experience Click for slide: Determine governance arrangements Click for slide: Define the project scope Click for slide: Determine the project approach Click for slide: Plan for management of risk Click for slide: Identify the dependencies with other projects Click for slide: Determine whether procurement is required Click for slide: Define the project organisation Click for slide: Produce a project plan Click for slide: Revisit scope Click for slide: Define reporting arrangements
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What you need to do

Your organisation should have a framework for managing risk.

Minimum requirements for a risk management framework are:

  • the organisation's risk policy identification of main stakeholders
  • main approaches for identifying risks; assessing risks and reporting them; action to deal with risks
  • responsibilities for managing risk and reporting to senior management, especially risks that cut across core business activities and organisational boundaries

Plan for cost management

Costs should be for the whole life of the project. Check the assumptions on which estimates are based, especially where there is no previous experience of this kind of project. See also Toolkit financial control of projects.

 

Points to consider

See the briefing and guidelines for managing risk

See also  Achieving Excellence in Construction Guide No. 4: Risk and Value Management

Plan for cost management

See  Achieving Excellence Guide No. 7: Whole Life Costing for the financial aspects of the project and explanation of whole life costs.

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