The given transcript is a discussion about the procurement process in project management, with a focus on the differences between conduct and control procurements. The discussion covers the three major processes in procurement: planned procurement management, conduct procurement, and control procurement.
In planned procurement management, decisions are made about whether to make something in-house or purchase it from an external vendor. The type of contract to be used (fixed price, cost reimbursable, or time and materials) is also decided in this phase. The procurement statement of work is created, detailing the scope of work and responsibilities.
Conduct procurement involves sending out the procurement documents to potential sellers. Negotiations occur, and proposals are received. The buyer reviews these proposals and negotiates the final agreement.
Control procurement is about managing procurement relationships, monitoring contract performance, and making changes and corrections as necessary. It also includes claims administration, where claims are documented, processed, monitored, and managed through the contract lifecycle. The contract change control system is also mentioned, which is the vehicle used to make changes to the contract.
Audits are mentioned as part of control procurements, where a structured review of the procurement process is conducted. The results of these audits should be brought to the attention of the buyer's project manager and the seller's project manager for adjustments to the project when necessary.
The discussion concludes with the closing of procurements, where the contract is completed and formal written notice is provided to the seller. The requirements for formal procurement closure are usually defined in the terms and conditions of the contract.
1. The text is a discussion about procurement management, specifically the three processes: planned procurement, conduct procurement, and control procurement. [Source: Text]
2. Planned procurement involves deciding whether to make something in-house or to buy from outside vendors, and deciding on the contract types to use. [Source: Text]
3. Conduct procurement is the process of sending out bid documents to potential sellers. [Source: Text]
4. Control procurement is about enforcing the contract and ensuring that the agreement is being followed. [Source: Text]
5. The text also discusses the differences between conduct and control procurements, and the term "agreement" is used. [Source: Text]
6. The text mentions the term "procurement statement of work", which is an important term to note in the real world. [Source: Text]
7. The text discusses the creation of bid documents in planned procurement management, and how these documents are sent out in conduct procurements. [Source: Text]
8. The text mentions that after negotiations are done, the expectation is to reach a contract agreement. [Source: Text]
9. The text discusses the components of an agreement document and the various types of agreements that can be formed. [Source: Text]
10. The text clarifies the difference between internal and external agreements and the different forms these agreements can take. [Source: Text]
11. The text discusses the difference between conduct and control procurements, with conduct procurements focusing on getting the contract signed and in place, and control procurements focusing on enforcing the contract. [Source: Text]
12. The text mentions that part of