Contract and Procurement Essay Example for Free

Contract and Procurement probeContract and procurance are imperative operations that should be d wiz appropriately for the success of an organization. to a greater extent often than not, people who are in judge of procurement do take these activities less poorly (MOLENAAR, 2007). Due to such concern most institutions have put in place stringent measures that go through wholly the procurement consummations. In addition to that, people should be employed to be responsible for this calling according to the policies of many institutions should be highly trained (MOSEY, 2009). This sudden change that has taken place in many companies and organizations has real improved the output of the department of procurement hence most activities run swimmingly as scheduled. The directors of the department of procurement partly determine the success or the failure of a hurl that is undergoing.Therefore, the double-deckers of looks work very closely with the procurement incumbents to ensure that everything that is required is provided whenever its need arises. It is significant that, there exists a good relationship between the project film directors and the procurement officers (MOSEY, 2009). If that is not the case, then there shall be contradicting ideas that leave behind jeopardize the progress of the project. It is worth noting that, the duties and responsibilities of the procurement officers vary in accordance with the structure of an organization. This shows that, different procurement divisions have got structures which are designed to make vigilance coordination and monitoring. This arrangement is imperative in improvement of the capability of the procurement activities. As aforementioned, the project manager should coordinate the transaction in collaboration with procurement manager to acquire all the requirements. The transactions which are carried out to achieve this are done under the recitation of the set policies, rules and regulations (BOWER , 2003).The rules and regulations set by the institution to ensure that the activities are carried out in harmony within all the departments that exist in a company. Unlike in the past, procurement process has dynamically changed and embodied more activities. It only used to involve acquire of goods and services required, but that is not the case directly (MOSEY, 2009). In procurement planning is done first. It determines whether to purchase a granted goodness and if it should be bought the agency it should be bought and quantity to be supplied. After this, reliable and potential supplies are determined, and contracts made with to supply the goods enjoin (MOLENAAR, 2007). Before a contract is signed, thorough scrutiny is done by evaluating the proposals of the shortlisted vendors and interviews conducted to select the one that is scarce in offering those services and goods. After that, the one that emerges the best is awarded the contract.Supervision of the supply is done b y the procurement office. Procurement process gives support to the internal activities that are done within an organization. The operations served acknowledge management, production and marketing services. It supports all the processes, infrastructure and systems required by the projects. In other the dimension, a procurement body that is independent and separate provides all the things required by the project on a transaction basis (BOWER, 2003). In this case, the director of the project gives a list of things which are required and the procurement officer buys and coordinates the goods until they reach at the company to be used. In either organizational structure, the procurement manager is relate in generating and managing the operational transactions and the linkage that exists between all the stakeholders of the project.This relationship that is created by the procurement manager exists in the whole procurement cycle period (MOSEY, 2009). The relationship between procurement professionals and the project management team is significant in that it creates a better environment for cross functional participation of all stakeholders. Moreover, it enables the procurement department to produce the best services to the project (DINSMORE CABANIS-BREWIN, 2011). Therefore, for the procurement office to fit flop in the organization it must be surface acquitted with the management strategies of the project. In a project based organization, there are about five general steps of procurement. Foremost, in collaboration with management, the procurement office should determine the requirements of the project.After determining what the requirements, the supplier is selected, who in agreement with project managers and the procurement professionals is given a contract to supply goods and services. The procurement department supervises and conducts routine assessment on the performance of the supplier until the contract ends (DINSMORE CABANIS-BREWIN, 2011). In centraliz ed corporate management, there is an interaction between the principal stakeholders the corporate purchasing coordination team, the chief executive officer, the chief purchasing officer, the managers of the business units and the purchasers of the business unit (SANKAR RAU, 2006).All of them have well defined roles and responsibilities in the procurement process. Most companies use formal organizational mechanisms like working groups and commodity teams, non-formal mechanisms of networking like employing competent people and initiating development programs, advanced systems of communication and use of complex management strategies (PENFIELD, 2010). In the centralized business unit procurement, the business units operate autonomously despite the fact that they are under one enterprise. The business unit creates a procurement order ships it to another business unit for supplier. Proper report records are kept to show the financial transactions between the two business units (SANKAR RAU, 2006).ReferencesBOWER, D. (2003). Management of procurement. London, doubting Thomas Telford. DINSMORE, P. C., CABANIS-BREWIN, J. (2011). The AMA handbook of project management. stark naked York, American Management Association MOLENAAR, K. R. (2007). Alternative project delivery, procurement, and contracting methods for highways. Reston, American Society of Civil Engineers. PENFIELD, P. C. (2010). A primer on negotiating corporate purchase contracts. New York, N.Y. (222 East 46th Street, New York, NY 10017), Business Expert Press SANKAR, C. S., RAU, K.-H. (2006). Implementation strategies for SAP R/3 in a international organization lessons from a real-world case study. Hershey, Pennsylvania, CyberTech. MOSEY, D. (2009). Early Contractor Involvement in Building Procurement Contracts, Partnering and take to Management. Chichester, John Wiley Sons.