--- title: "Project procurement management" subject: "ICT Project Management" chapter: 13 key: "semester_7/ict_project_management:project-procurement-management" source: https://www.bctengineer.com/q/semester_7/ict_project_management/project-procurement-management site: BCT Engineering --- # Project procurement management ICT Project Management · Chapter 13: Project Procurement Management - Asked in: year not given; year not given - Video: [Project Procurement Management | Project Management | PMP Certification | Edureka Rewind - 7](https://www.youtube.com/watch?v=wYuxBRWjNFs) — edureka! - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_7/ict_project_management/project-procurement-management - Whole chapter: https://www.bctengineer.com/md/semester_7/ict_project_management/chapter-13 ## Question What do you mean by project procurement management? Define project procurement management. ## Short answer Project procurement management includes processes to acquire products, services, or results from outside the project team. It covers planning, conducting, controlling, and closing procurements, using contracts like fixed-price, cost-reimbursable, and time & materials, and manages seller relationships. ## Answer **Project procurement management** includes the processes necessary to purchase or acquire products, services or results needed from outside the project team. It covers purchasing agreements, contracts and the management of relationships with sellers (suppliers, vendors, contractors). The organisation can be either the buyer or the seller. #### Processes (PMBOK 5th edition) 1. **Plan procurement management** (Planning): decide what to buy, how and when; make-or-buy analysis; select contract type; prepare procurement management plan, SOW, procurement documents and source selection criteria. 2. **Conduct procurements** (Executing): obtain seller responses, select sellers and award contracts (bidder conferences, advertising, proposal evaluation, negotiation). 3. **Control procurements** (Monitoring and controlling): manage the procurement relationship, monitor contract performance, make changes, and handle payments. 4. **Close procurements** (Closing): complete each contract, verify delivery, settle claims, archive. ```text Plan -> Conduct -> Control -> Close (make-or-buy) (select, award) (administer) (settle) ``` #### Key concepts - **Make-or-buy decision**: build in-house or buy outside. - **Contract types**: fixed price (FFP), cost reimbursable (CPFF), time and material (T&M). - **Procurement documents**: RFP, RFQ, IFB (bid), RFI. - **Source selection**: weighted scoring, independent estimates, price, technical capability. - **Legal aspects**: contract terms, conditions, penalties and law (in Nepal, the Public Procurement Act 2063 and Rules for public bodies). #### Importance - Gets needed expertise, equipment and services not available in-house. - Transfers some risk to sellers. - Controls cost through competition. - Clear contract avoids disputes. **Example:** A university buys 200 laptops and hires a firm to develop a student portal. It prepares an SOW, invites bids, selects a vendor by evaluation criteria, signs a fixed-price contract, monitors delivery and closes the contract after acceptance. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. What does project procurement management cover? A. Hiring staff within the project team B. Processes to purchase or acquire products, services or results from outside the project team C. Only the payment of invoices D. Internal scheduling Answer: B. It covers acquiring items from outside the team, including agreements, contracts and seller relationships. (Key point: Definition) 2. What is the correct order of the four procurement processes? A. Conduct, Plan, Control, Close B. Plan, Control, Conduct, Close C. Plan, Conduct, Control, Close D. Plan, Close, Conduct, Control Answer: C. The sequence is Plan, Conduct, Control, Close. (Key point: Process order) 3. What is a make-or-buy decision? A. Choosing between in-house building and buying from outside B. Choosing the seller's price C. Choosing the bidder conference date D. Closing the contract Answer: A. Make-or-buy analysis, done in Plan Procurement, decides whether to build in-house or buy outside. (Key point: Make-or-buy) 4. Select seller and award contract happens in which process? A. Plan procurement management B. Conduct procurements C. Control procurements D. Close procurements Answer: B. Conduct Procurements (Executing) obtains responses, selects sellers and awards contracts. (Key point: Process group of conduct) ## Related in ICT Project Management - [Procurement management process flow](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aprocurement-process-flow) — ICT Project Management, chapter 13 - [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 - [Project management body of knowledge](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Adefine-pmbok) — ICT Project Management, chapter 2 - [General management skills and project management](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Ageneral-management-skill) — ICT Project Management, chapter 2 - [Project portfolio management](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aportfolio-management) — ICT Project Management, chapter 3 ## Related in other subjects - [Procurement management processes in construction](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aproject-procurement-management-processes) — Project Engineering, chapter 4 - [Value engineering in material procurement](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Avalue-engineering-procurement) — Construction Management, chapter 3, asked 3× - [Meaning of purchasing and procurement](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Apurchasing-procurement) — Organization and Management, chapter 6 - [Function of project management in Nepal](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Acpm-function-nepal) — Construction Management, chapter 1