PM Notebook – Chapter 12: Procurement Management

This chapter is part of my personal notebook for PMP preparation. Check out the full notebook here.

This notebook summarizes project management concepts and terms in PMP context. This chapter focuses on procurement management knowledge area.

Contents of this chapter are as follow:

  • Key Terms
    • Contract
    • Agreement
    • Third Party
    • Consideration
    • Contract Terms
      • Price
      • Target Profit/Fee
      • Target Cost
      • Final/Target Price
      • Ceiling Price
      • Buyer/Seller Share Ratio (BSR)
  • Processes
    • 1 – Plan Procurement Management (Planning)
    • 2 – Conduct Procurements (Executing)
    • 3 – Control Procurement (Monitoring & Controlling)
  • Make-or-Buy Analysis
    • Factors
    • Formula
  • Negotiations
    • Factors of Negotiations
  • Agreement Types
  • Procurement Documents
  • Contract Types
    • Fixed Price (FP) / Lump-Sum Contracts
    • Cost Plus (CP) / Cost-Reimbursable (CR) Contracts
    • Time and Material (T&M) / Unit Price Contracts
    • Incentives
    • Awards
    • Risk
  • Point of Total Assumption (PTA) / Breakpoint
    • Formula
    • Example
    • Notes
  • Market Conditions
  • Handling Changes
  • Centralized/Decentralized Contracting
  • Breaches
    • Alternative Dispute Resolution (ADR)
    • Damages
  • Termination
  • Additional Terms
    • Addendum Contract
    • Agent
    • Assignment
    • Bond
    • Business Partner
    • Competitive Contract
    • Confidentiality
    • Conflict of Interest
    • Delegation of Authority
    • Force Majeure / Cas Fortuit / Acts of God / Act of Nature
    • In the Black
    • In the Red
    • Indemnification / Liability
      • Mutual/Cross Indemnity / Knock-for-knock Indemnity
    • Independent Contractor
    • Intellectual Property
    • No-cost Settlement
    • Order of Precedence
    • Ownership
    • Privity
    • Retainage
    • Risk of Loss
    • Screening System
    • Sealed-bid Auction
    • Seller Rating Systems
    • Site Access
    • Special Provisions/Conditions
    • Time is of the Essence
    • Waivers
    • Work for Hire (WFH)