Project Procurement Terms and Definitions

Project Procurement Terms and Definitions are:

1. Buyer:

The acquirer of products, services, or results for an organization.

2. Contract:

A contract is a mutually binding agreement that obligates the seller to provide the specified product, service, or result and obligates the buyer to pay for it.

Ready to take your skills to the next level? 🚀 Check out our Special Online Courses! 🚀
Gain valuable insights, boost your career, and learn from industry experts.

Planning Courses

3. Contract Administration:

The process of managing the contract and the relationship between the buyer and seller, reviewing and documenting how a seller is performing or has performed to establish required corrective actions and provide a basis for future relationships with the seller, managing contract-related changes and, when appropriate, managing the contractual relationship with the outside buyer of the project.

4. Contract Closure:

The process of completing and settling the contract, including resolution of any open items and closing each contract.

5. Contract Management Plan:

The document describing how a specific contract will be administered can include items such as required documentation delivery and performance requirements.

6. Contract Statement of Work (SOW):

A narrative description of products, services, or results to be supplied under contract.

7. Contract Work Breakdown Structure (CWBS):

A portion of the work breakdown structure for the project is developed and maintained by a seller contracting to provide a subproject or project component.

8. Procurement Documents:

Those documents utilized in bid and proposal activities, include buyer’s Invitation for Bid, Invitation for Negotiations, Request for Information, Request for Quotation, Request for Proposal, and Seller Responses.

FREE COURSE

Construction Project Management Fundamentals Course

Learn how real construction projects are planned, managed, and controlled — from initiation to closing — using practical methods to deliver on…

7,555 students
WhatsApp support group
Certificate

Start free

9. Procurement Management Plan:

This document describes how procurement processes from developing procurement documentation through contract closure will be managed.

10. Request for Information:

A type of procurement document whereby the buyer requests a potential seller to provide various pieces of information related to a product or service or seller capability.

11. Request for Proposal (RFP):

A type of procurement document used to request proposals from prospective sellers of products or services. In some application areas, it may have a narrower or more specific meaning.

12. Request for Quotation (RFQ):

A type of procurement document used to request price quotations from prospective sellers of common or standard products or services.

13. Request Seller Responses:

The process of obtaining information, quotations, bids, Glossary offers, or proposals, as appropriate.

14. Seller:

A provider or supplier of an organization’s products, services, or results.

15. Select Sellers:

The process of reviewing offers, choosing from among potential sellers, and negotiating a written contract with a seller.

16. Standard:

A document established by consensus and approved by a recognized body that provides, for common and repeated use, rules, guidelines, or characteristics for activities or their results, aimed at the achievement of the optimum degree of order in a given context.

17. Statement of Work (SOW):

A narrative description of products, services, or results to be supplied.

18. War Room:

A room used for project conferences and planning, often displaying charts of cost, schedule status, and other key project data.

these were all Project Procurement Terms and Definitions; you may need to know how to create a Procurement Log

Download the Resources of this Article