Contract and Procurement Essay

Contract and procural argon imperative operations that should be through with(p) appropriately for the success of an organization. More often than not, wad who are in judge of procurance do take these activities less seriously (MOLENAAR, 2007). ascribable to such concern most institutions have put in signal stringent measures that control each the procural transactions. In addition to that, people should be employed to be responsible for this duty according to the policies of umteen institutions should be highly trained (MOSEY, 2009). This sudden change that has taken key in many companies and organizations has real improved the output of the department of procural hence most activities run smoothly as scheduled. The directors of the department of procurement partly determine the success or the failure of a visit that is undergoing.Therefore, the managers of lying-ins work very closely with the procurement officers to ensure that everything that is requisite is provided whenever its postulate arises. It is significant that, there exists a good race between the project managers and the procurement officers (MOSEY, 2009). If that is not the case, then there sh all(prenominal) be contradicting ideas that will jeopardise the progress of the project. It is worth noting that, the duties and responsibilities of the procurement officers vary in accordance with the social system of an organization. This shows that, different procurement divisions have got structures which are designed to make charge coordination and monitoring. This arrangement is imperative in improvement of the efficiency of the procurement activities. As aforementi unrivaledd, the project manager should coordinate the transaction in collaboration with procurement manager to acquire all the requirements. The transactions which are carried out to come upon this are done under the interpretation of the set policies, rules and regulations (BOWER, 2003).The rules and regulations set by t he institution to ensure that the activities are carried out in harmony indoors all the departments that exist in a company. Unlike in the past, procurement put to work has dynamically changed and incorporated more activities. It only used to claim purchasing of goods and services required, but that is not the case nowadays (MOSEY, 2009). In procurement planning is done first. It determines whether to purchase a given trade good and if it should be bought the way it should be bought and quantity to be supplied. After this, rock-steady and potential supplies are determined, and trains made with to supply the goods established (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 unparalleled in offering those services and goods. After that, the one that emerges the scoop out is awarded the contract.Supervision of the supply is done by the procurement off ice. 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 grounding (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 involved in generating and managing the functional 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 properly in the organization it must be wellspring acquitted with the management strategies of the project. In a project ground 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 provider 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 accomplishment of the supplier until the contract ends (DINSMORE & CABANIS-BREWIN, 2011). In modify co rporate management, there is an fundamental interaction between the principal stakeholders the corporate purchasing coordination team, the foreman 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 victimisation 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 accounting records are kept to show the financial transactions between the two busin ess units (SANKAR & RAU, 2006).ReferencesBOWER, D. (2003). way of procurement. London, Thomas Telford. DINSMORE, P. C., & CABANIS-BREWIN, J. (2011). The AMA handbook of project management. young York, American Management connecter 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 multinational organization lessons from a real-world case study. Hershey, Pennsylvania, CyberTech. MOSEY, D. (2009). other(a) Contractor Involvement in Building Procurement Contracts, Partnering and Project Management. Chichester, fundament Wiley & Sons.