---
title: "Procurement management process flow"
subject: "ICT Project Management"
chapter: 13
key: "semester_7/ict_project_management:procurement-process-flow"
source: https://www.bctengineer.com/q/semester_7/ict_project_management/procurement-process-flow
site: BCT Engineering
---

# Procurement management process flow

ICT Project Management · Chapter 13: Project Procurement Management

- Asked in: year not given; year not given
- Video: [What is Procurement? Procurement Process Explained in 12 minutes](https://www.youtube.com/watch?v=ZCIJQJRw6xw) — Leaders Talk - ThinkEduca
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/ict_project_management/procurement-process-flow
- Whole chapter: https://www.bctengineer.com/md/semester_7/ict_project_management/chapter-13

## Question

Sketch and explain the procurement management process flow.

## Short answer

Procurement flow: Plan (make-or-buy, SOW, contract type), Conduct (solicit, select seller, award contract), Control (monitor performance, handle changes, payments), and Close (verify delivery, settle claims, archive). It ensures needed external resources are acquired and managed efficiently.

## Answer

Procurement management follows a sequence of four processes. The flow with inputs and outputs is shown below.

#### Sketch
```text
 +------------------+   Procurement mgmt plan, SOW,
 | 1. PLAN          |   bid documents, criteria
 | PROCUREMENT      |-----------------+
 +------------------+                 v
 +------------------+   Selected sellers, contract
 | 2. CONDUCT       |-----------------+
 | PROCUREMENTS     |                 v
 +------------------+   Performance info, changes,
 | 3. CONTROL       |   payments
 | PROCUREMENTS     |-----------------+
 +------------------+                 v
 +------------------+   Closed contracts, archive
 | 4. CLOSE         |
 | PROCUREMENTS     |
 +------------------+
```

#### Explanation
1. **Plan procurement management**
   - Identify needs not met by the team; make-or-buy analysis; market research.
   - Choose contract type (fixed price, cost-plus, time and materials).
   - Prepare procurement SOW, procurement documents (RFP, RFQ, IFB) and source selection criteria.
   - Output: procurement management plan, SOW, make-or-buy decisions.
2. **Conduct procurements**
   - Advertise, hold bidder conferences, receive proposals.
   - Evaluate using criteria (price, technical approach, experience); negotiate.
   - Select seller and award the contract.
   - Output: selected sellers, agreements, resource calendars.
3. **Control procurements**
   - Administer contract: monitor seller performance, inspections and audits, process payments and changes, resolve claims.
   - Output: performance information, change requests, updates.
4. **Close procurements**
   - Verify all work done and accepted, finalise claims, settle payments, archive documents, collect lessons learned.
   - Output: closed procurements, updated OPA.

#### Summary table
| Process | Group | Key output |
|---|---|---|
| Plan | Planning | Procurement plan |
| Conduct | Executing | Contract |
| Control | M&C | Managed contract |
| Close | Closing | Closed contract |

Processes overlap with other knowledge areas such as scope, cost and risk.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Which process belongs to Monitoring and Controlling?
   A. Plan procurement management
   B. Conduct procurements
   C. Control procurements
   D. Close procurements
   Answer: C. Control Procurements is in Monitoring and Controlling; Plan is Planning, Conduct is Executing, Close is Closing. (Key point: Process groups)

2. What are the key outputs of Conduct Procurements?
   A. Procurement management plan and SOW
   B. Selected sellers, agreements and resource calendars
   C. Closed contracts
   D. Make-or-buy decisions
   Answer: B. Conduct Procurements outputs selected sellers, agreements (contract) and resource calendars. (Key point: Output of conduct)

3. Which is an output of Plan Procurement Management?
   A. Closed procurements
   B. Payments
   C. Procurement management plan, SOW and make-or-buy decisions
   D. Signed acceptance certificate
   Answer: C. Planning yields the procurement management plan, SOW, and make-or-buy decisions. (Key point: Plan procurement outputs)

4. Which activity happens in Close Procurements?
   A. Advertising the tender
   B. Choosing contract type
   C. Holding bidder conferences
   D. Settling claims and archiving documents
   Answer: D. Closing verifies work, finalises claims and payments, archives and collects lessons learned. (Key point: Close activities)

## Related in ICT Project Management

- [Project procurement management](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aproject-procurement-management) — ICT Project Management, chapter 13
- [Project management process groups](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Apm-process-groups) — ICT Project Management, chapter 6
- [Contract procurement performance review](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aprocurement-performance-review) — ICT Project Management, chapter 13
- [Procurement audits](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aprocurement-audits) — ICT Project Management, chapter 13
- [Earned value management](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aevm) — ICT Project Management, chapter 9
- [Overlaps of process groups in a phase](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aprocess-group-overlaps) — ICT Project Management, chapter 6

## Related in other subjects

- [Material provisioning (procurement) process](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Amaterial-provisioning-process) — Construction Management, chapter 3, asked 4×
- [Procurement management processes in construction](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aproject-procurement-management-processes) — Project Engineering, chapter 4
- [Requirement management process](https://www.bctengineer.com/question.md?key=semester_5%2Fsoftware_engineering%3Arequirement-management) — Software Engineering, chapter 1
- [Process management in OS](https://www.bctengineer.com/question.md?key=semester_6%2Fembedded_system%3Aprocess-management) — Embedded System, chapter 6