Report Essay Example | Topics and Well Written Essays - 2000 words - 20

Report - Essay Example Procurement is fundamental to every project manager in order to advice the company on the right partners to work with, the rights and obligations of every party in a project, and how well the parties can work together. Contracts need strategy in order to succeed and that is why, it paramount to know who will supply what and how the payments of the supplies will be met. A contract to supply raw material, personnel or any other service, should give assurance to the do so for the duration for which the contract runs and under the terms and conditions agreed upon. So that, if the contract is financed on interim basis, the supplier of whichever service or raw material should be able to do so until when payment has been processed (BARNES, 2007). Procurement services should also be subjected to competitive vetting to ensure that the right supplier is awarded the tender to supply raw materials whether all the metallic raw materials or part of that, and that will be the case for all procurements. The project manager will advise the contractor on what elements to look for in tendering a supply of any raw material. Just to highlight, cost of raw material, transport cost; whether it is lumped and gathered for to the site, and the capacity to deliver them in time. The contractor then will have a host of service providers to choose from after which the suitable supplier will commence the supply of the procured materials (MARSH, 2000). Just like any other contract programme, what is binding, has to be backed by evidence and that is the time that has been set out for completion of a project. When a project is completed within the stipulated time, the contractor is entitled to a bonus of the whole cost however, when the project is completed outside this time, the contractor is liable to a penalty. As a matter of fact, the entire project under the watch of a project