IMG_8873

PMPG 5012 Module 5 Study Notes Plan Procurement - Procurement Contracts (0cL14.2023) - Learning Outcomes: 1. Learn various types of cantractual relationships. 2. Learn aboul Fixed Price contracts and how to estimate conlract value. 3. Learn about Cost Reimbursable contacts and how to estimate contract value 4. Learn about Time & Material contracts and how are they different from FP and CR contracts. ‘ 5. Be introduced to Procurement Risks - \;’( \}P\& RISK : A Risk \ Any uncertain Q;.'_cr! ar to dition that, if occurs, has a : positive pr a -egatm- fDC‘ on 2 project objective. e A measure of the probability and conscauence of not achieving a defined project goal. e Arisk has 3 primary components: | Events that could occur dupng procuremens ¢ Vendor going out of business during negoliations ¢ Management decisions re. procurement e Project budget changes B PcrmnnPl changes Fvents that could occur cftar (.'IL'(IITME lsugnmgl Lhe n m!ra'; o Supplier gong out it of business Procurement Risk C—ontfactfik s Warranties e Terms of delivery l e Terms of payment | Procurement Risk Management Planning involves: 1. Identifying risks (create risk register) 2. Analyzing risks —qualitative analysis 1. Analyzing risks ~gugntitative analysis 4, Planning response