This means knowing the six processes with the knowledge areas of project management, as described in the Project Management Body of Knowledge (PMBOK). The first is the procurement and acquisition plan, which means determining what external resources are needed for the project. The project manager is in control because he is aware of the overall needs of the project. Just as there is a process to start the acquisition, it takes a process that can be put in place to complete it. What is final work should be detailed in the initial agreement with the contractor, so that there is no confusion between the two parties as to when the work will be completed. For example, you need to expand your office building, but you don`t have the electrical work know-how. You have two ways to complete the project: do it yourself or let someone do it for you. Finally, the buyer pays the cost of the seller`s labour in the time and equipment contracts as well as the additional costs associated with the equipment required for the project. In order to minimize the risk to the project, the contractor usually includes a non-plus amount, i.e. the contract can only be billed until the agreed amount. The T-M contract allows the project to make adjustments as soon as more information becomes available. The final cost of the work is known only when sufficient information is available to provide a more accurate estimate.
A good registration system is very important because it can be used as a reference during the acquisition process, the completion of work and also for future references. A record management system can be quite large and include indexing systems, archiving systems and information recall systems. The evaluation of offers in response to supply requirements for products and services is highly priced. In most cases, the lowest overall price wins the market. The total price includes the cost of goods or services, all shipping or delivery costs, the value of all warranties and any additional services that add value to the project. You need to understand the supply, whether you are a buyer or a seller. Each organization, whether projected, functional or matrix, uses purchase contracts. Any contract between two or more parties for the provision of services or goods is a purchase agreement. They can divide contracts into three categories: periodic status updates are therefore required to verify contract contracts, to obtain updates on progress, and to verify the work done to ensure that contractors meet the requirements set out in their contracts.