PROCUREMENT MANAGEMENT PLAN

<OIL PLETFORM TURNED ECO-RESORT>

COMPANY NAME
STREET ADDRESS
CITY, STATE ZIP CODE

DATE:15 NOVEMBER 2019

INTRODUCTION
This document includes what material we need for the completion of the project , in how much
quantity and what are the quality requirement for that material and at what time we need the
particular material and from where we are going to purchase the all material of our project.
first, we select suppliers for different material and then sign the contract and working together
with the supplier as per the contract signed.

PROCUREMENT MANAGEMENT APPROACH

We used the traditional approach for the procurement of the material for our project. First, we
specify and list the items needed for project completion and then set the requirements for the
particular material , after that we select the supplier according to the requirements and then
analysis the quality of particular material and then signed the contract with the selected
supplier. We have more than one supplier for different materials, so we need to manage all the
suppliers.

PROCUREMENT PLAN

Item/Service Justification Needed By

Cement Needed because it is an important tool for September-December
construction
bricks Needed to strong the walls of the resort September-December
Concrete rods Needed for the base of the resort October-December
Wood and granite Needed for the purpose of building of windows November
and doors of the resort
Tiles and marbles For the interior decoration of the resort November
Sewerage material For the purpose of the piping work October-November
such as pipes
Electrical When the frame of the resort completed , the October
equipment electrical work should be started
Bath fixtures and Bath work should start right after the completion October-November
accessories of the frame work
Aluminum Needed for kitchen and washrooms decoration October-November
Steel Steel is needed for the reinforcement and the September-December
base structure of the rig
 paint Paint should start after the completion of the December
construction work
glass Needed to build glass walls and for interior October-December
decoration

PROCUREMENT TEAM

Serial no. Job title Procurement role

1. Project manager Overlook the whole procurement team
2. Purchase section Manage the procurement team and all the purchases
incharge made for the project
3. Building material Responsible for procuring building material such as
incharge brick , cement , wood etc.
4. Electrical goods Responsible for procuring electrical equipment and
incharge accessories
5. General goods Responsible for procuring general goods for running
incharge day to day operations

TYPE OF CONTRACT TO BE USED

We used the traditional type of contract . this is the common method used in the construction
projects in which the design work separated from the construction work. Sothern California
Edison appoint an icons architect corporation for the designing of the resort and specify the
design requirements. The consultant team is responsible for the construction work of the
resort. after completion of the design of the resort, our company select a construction
company to build the resort .

PROCUREMENT RISKS

Risk event cause impact response RBS category likelihood severity

Risk of building Due to Project mitigate Technical- 0.2 0.8
damage incorrect getting quality
use of overbudget
material to correct
mistake
 Supplier may Contract is High costs avoid organizational 0.2 0.6
reject the item not specific
in the contract
Supplier got Due to the High costs avoid organizational 0.2 0.8
misunderstand wrong
and deliver statement
wrong material in the
contract
Change in Due to the Behind mitigate organizational 0.2 0.6
procurement change in schedule
the roofing
design
The outsource Due to the Project mitigate organizational 0.2 0.6
companies do lack of over
not perform monitoring budget
well of
outsourcing
There is a risk Due to the We could transfer External- 0.7 2.8
that schedule late not finish supplier
is delayed, and material our project
cost is delivery on time
overbudget and have
to invest
more
money
There is a risk Due to The cost of transfer External- 0.3 0.9
that we have exchange project is supplier
to spend more rate overbudget
money on fluctuations
import
material

COST DETERMINATION

Total cost of material is 10,00,000

We have spent 7.6 million till today
PROCUREMENT CONSTRAINTS

CONSTRAIN DESCRIPTION INFLUENCE

SCOPE WHAT WE NEED TO PROCURE HIGH
PROCEDURE DIRECT PURCHASE/INDIRECT PURCHASE MEDIUM
POTENTIAL SUPPLIER ALTERNATIVE SUPPLIER LOW
SELECTION CRITERIA QUALITY EVALUATIONS HIGH
DURATION OF THE TIME OF THE CONTRACT LASTING HIGH
AGREEMENT
MANAGEMENT TOOLS THE TECHNICAL USE OF PROCURE GOODS HIGH
AND EQUIPMENT’S
PURCHASER EXPERT COMPETENCE REQUIREMENT OF HIGH
PURCHASER
TIME DELIVER SCHEDULE HIGH
TRANSACTION COSTS DELIVER COST MEDIUM
PRICES COSTS OF SERVICES AND GOODS HIGH
RISKS RISK DURING PROCUREMENT HIGH

CONTRACT APPROVAL PROCESS

 confirm
purchasing
requireme
nt planning
payment purchasi
ng order

confirm invitation
purchase to vendor

Procurement
purchase flow
quality
assurance proposal
and review
inspection

decide
contract
the
signed
contract supplier
negotiat
ion

DECISION CRITERIA

Our needs description

speed Speedy procurement process i.e. wishes to complete the
project as soon as possible
Cost certainty Amount of budget ,the client has to pay at each phase of the
construction
Time certainty Degree of certainty that the project will be completed on
time which is agreed by contracted while signing the contract
flexibility Ability to accommodate design changes during construction
period
responsibility An involvement and keep informed about the project
progress throughout the project life cycle
complexity Client may specify innovative design/ high technology
building and require constructability analysis
Quality level Contractor’s reputation and confidence in design a building
which reflects client activities and image
Risk allocation/avoidance A wish to identify uncertainties and risks during procurement
process
 Price competition Covering such issues as value for money, maintenance, costs
and competitive tendering

VENDOR MANAGEMENT
The purpose of this section is to describe the roles and actions the project team and purchasing
and contracts department will take to ensure that the selected vendors provide all of the
products/services agreed upon and that the appropriate levels of quality are maintained.

The Project Manager is ultimately responsible for managing vendors. In order to ensure the
timely delivery and high quality of products from vendors the Project Manager, or his/her
designee will meet weekly with the contract and purchasing department and each vendor to
discuss the progress for each procured item. The meetings can be in person or by
teleconference. The purpose of these meetings will be to review all documented specifications
for each product as well as to review the quality test findings. This forum will provide an
opportunity to review each item’s development or the service provided in order to ensure it
complies with the requirements established in the project specifications. It also serves as an
opportunity to ask questions or modify contracts or requirements ahead of time in order to
prevent delays in delivery and schedule. The Project Manager will be responsible for scheduling
this meeting on a weekly basis until all items are delivered and are determined to be
acceptable.

PERFORMANCE METRICS FOR PROCUREMENT ACTIVITIES

This section describes the metrics to be used for procurement activities associated with the
project. These metrics may be used to ensure the project stays on schedule regarding
procurement activities. They may also be used to compile data on the performance of various
vendors in order to assist with future procurement activities’ vendor selection criteria.

While the purchasing and contracts department has their own internal metrics for
procurement, the following metrics are established for vendor performance for this project’s
procurement activities. Each metric is rated on a 1-3 scale as indicated below:

Vendor Product On Documentation Development Development Cost Transactional

Quality Time Quality Costs Time per Efficiency
Delivery Unit
Vendor
#1
Vendor
#2
1 – Unsatisfactory
2 – Acceptable
3 - Exceptional

In addition to rating each vendor, actual values will be noted in order to build a past-
performance data base for selecting vendors for future procurement activities.
SPONSOR ACCEPTANCE

Approved by the Project Sponsor:

State of California. Date:15 /11/2019

<Project Sponsor>
<Governor>