Question One (1)

a) Explain your understanding of knowledge areas in project management and

list the professional fields herein.
b) Discuss Project Procurement Management and outline its composition.
[15 + 10 =25 Marks]
a)
Project Management process groups and knowledge areas are the core
technical subject matters of the project management profession, and these
processes along with their individual inputs, tools, techniques, and outputs
bring the project to life.

1. Project Integration Management

Project integration management is what holds a project together. It includes
such fundamental plans as developing a project charter that is created during
the initiation phase. This is the document that sets up the project and assigns
the project manager.

2. Project Scope Management

Scope relates to the work of the project.  So, that includes plan scope
management, which is part of the project management plan. It also is when a
detailed requirement for the final product or service is collected.

3. Project Cost Management

With or without a budget, your project will cost money. Keeping costs low, or
at least at an expected or reasonable level, is a fundamental part of showing
ROI on a project. After all, if you can’t definitively lay out how much a project
will cost, you will not be able to quantify how much has been made.

4. Project Quality Management

In project management, quality isn’t the same as perfection. It’s not practical
to spend the time and resources to take a project to perfection; and in many
 cases, that’s not even attainable. The goal of project quality management is to
achieve consistency across your projects.

5. Project Resource Management

One of the most rewarding parts of this process is creating teams that click
and helping individual team members grow and learn new tasks. That’s why
this project management knowledge area is more than just setting schedules
and assigning tasks.

6. Project Procurement Management

In some cases, or areas of a project, you won’t have the resources or team
members in-house to complete a task. If you hire contractors or vendors to
take on certain tasks, you’ll want them to be seamlessly integrated into the
team.

7. Project Communications Managements

Communications management in project management outlines the processes
and procedures needed to ensure that information and data throughout the
life of a project are properly collected, stored, and distributed across the
project team.

8. Project Risk Management

The truth is that no project goes off without a hitch, and it’s unrealistic to look
at a project and assume that everything will go smoothly. 

9. Project Stakeholder Management

Stakeholders include not only the project requester, but also team members
who have worked on the project, contractors, suppliers, customers or the
public, and many other people internal and external to the organization. Not all
stakeholders are equal in the eyes of the project.

10. Project Time Management

 Nearly all projects rely on several different timelines and the schedules of
multiple people. Some team members may overestimate how much time it will
take to complete a project in order to leave a cushion and not feel hurried. 

b)

Procurement is the act of obtaining goods, supplies, and/or services.

Therefore, project procurement is obtaining all of the materials and services
required for the project. Project procurement management encompasses the
processes used for making sure project procurement is successful .

Composition of Project Procurement Management

Plan Procurement Management - The process of documenting project
procurement decisions, specifying the approach, and identifying potential
sellers. Inputs include: Project Charter, Business Documents Project
Management Plan, Project Documents, Enterprise Environmental Factors,
Organizational Process Assets.

Tools and Techniques include: Expert Judgement, Data gathering, Market

Research, Data Analysis, Make –or –buy analysis, Source Selection Analysis
and Meetings.
Outputs include: Procurement management plan, Procurement strategy, Bid
documents, Procurement Statement of work, Source Selection Criteria, Make
or buy decisions, Independent cost estimates, Change Requests, Project
Documents updates, Organizational Process assets updates.

Conduct Procurements - The process of obtaining seller responses, selecting

a seller, and awarding a contract.
Inputs include: Project Management plan, Project Documents, Procurement
Documentation, Seller proposals, Enterprise Environmental Factors,
Organizational process assets.
Tools and Techniques include: Expert judgment, Advertising, Bid conferences,
Data Analysis, Interpersonal and team skills.
 Outputs include: Selected sellers, Agreements, Change requests, Project
management plan updates, Project document updates, Organizational
process assets updates.

Control Procurements - The process of managing procurement relationships,

monitoring contract performance, making changes and corrections as
appropriate, and closing out contracts.
Inputs include: Project management plan, Project documents, Agreements,
Procurement documentation, Approved change requests, Work performance
data, Enterprise environmental factors, Organizational process assets
Tools and Techniques include: Expert judgments, Claims administration, Data
analysis, Inspection, Audits.

Outputs include: Closed procurements, Work performance information,

Procurement documentation updates, Change requests, Project management
plan updates, Project documents updates, Organizational process assets
updates

Question Two (2)

a) Explain the circumstances when it is appropriate to use a Cost Plus Incentive

Fee Contract on a project.
b) Discuss the objectives of a supply market analysis and explain the various
strategic information it seeks to achieve in its undertaking.
[10 + 15 = 25
Marks]
a)

A Cost Plus Incentive Fee Contract is a type of cost-reimbursable contract

where the buyer reimburses the seller for the seller’s allowable costs
(allowable costs are defined by the contract), and the seller earns their profit
if they meets defined performance criteria.
 Cost-plus contracts are generally used if the party drawing up the contract
has budgetary restrictions or if the overall scope of the work can't be
properly estimated in advance.

In construction, cost-plus contracts are drawn up so contractors can be

reimbursed for almost every expense actually incurred on a project. The
cost-plus contract pays the builder for direct costs and indirect
or overhead costs. All expenses must be supported by documentation of the
contractor’s spending in the form of invoices or receipts. The contract
moreover allows the contractor to collect a certain amount above the
reimbursed amount, so they may be able to make a profit—hence, the
"plus" in cost-plus contracts.

b)

Supply market analysis is a technique used to identify market characteristics

for specific goods or services. Used in the context of planning for significant
procurements. Not for low value procurements.
The objectives of a Supply Market Analysis
o The objective of undertaking supply market analysis is to assist in
developing sound procurement strategies for significant
procurements. The key outcomes of supply market analysis for the
procuring entity are
o Improving value for money
o The identification and management of supply-related risks.

Supply Market Analysis Provides Strategic Understanding of:

o How a market works
o The direction in which a market is heading
o The competitiveness of a market
o The capability and capacity of a market
o Key suppliers and the value that suppliers place on the agency as a
customer
 o How suppliers or markets can be developed to better meet agency
requirements
o The sustainability performance and capability of the market
o How to manage variances in pricing over time or between suppliers

Question Three (3)

a) The objective of limited bidding is to obtain competition and value for money
to the extent possible where the circumstances do not justify or permit the use
of open bidding. Explain the circumstances when Limited bidding can be
used. Does the method require any approvals before its use?
b) Discuss your understanding of claims administration in contract management.
[15 + 10 =25 Marks]

a)
Limited Bidding is a procurement method that limits the request for tenders
to a select number of suppliers, contractors or service providers. This
method of procurement is also called Selective Tendering.

The objective of limited selection is to obtain competition and value for

money to the extent possible where the circumstances do not justify or
permit the use of open selection. Limited selection may be used where:
o the consulting services are only available from a limited number of
suppliers.
o there is an urgent need for the consulting services and engaging in
open selection would be impractical.
Circumstances in which limited bidding is to be used have to be reviewed
and approved by relevant procurement entities such as ZPPA in Zambia as
an example. This is to ensure that competition is not unfairly eliminated

b)
 Contested changes and potential constructive changes are those requested
changes where the buyer and seller cannot reach an agreement on
compensation for the change, or cannot agree that a change has even
occurred. These contested changes are variously called claims, disputes,
or appeals. Claims are documented, processed, monitored, and managed
throughout the contract life cycle, usually in accordance with the terms of
the contract. If the parties themselves do not resolve a claim, it may have to
be handled in accordance with alternate disputes resolution (ADR) typically
following procedures established in the contract. Settlement of all claims
and disputes through negotiation is the preferred method .

Question Four (4)

Project promoters are most interested in the delivery of the project within cost, time
and quality expectations.
Required:

a) Discuss the role of procurement in project delivery.

b) Why is it necessary for project promoters to prepare a Project Charter?
[10 + 15 = 25
Marks]

a)

The purpose of project procurement management is to establish and

maintain relationships with vendors of goods and services during the
project life cycle. This unique function is an essential part of project
management, which is concerned with overseeing designated sets of
temporary operations. Project management for procurement purposes is an
essential part of supply chain management.
The integrative relation between procurement and project management
needs skilled employees, professionalism, proper procedures and policies
and the most important issue is to be within a prevailing culture of
teamwork, cooperation and coordination between all the project members
and parties for better management of stakeholders’ expectations and
higher levels of work performance, satisfaction and success.

b)

The project charter is a document that officially starts a project or a phase.

It formally authorizes the existence of the project and provides a reference
source for the future. The charter gives a direction and a sense of purpose
to the management from start to end.

A project charter names the project manager and defines the authority of
the project manager. It gives the project manager the power to utilize
organizational resources to accomplish the project objectives.

As mentioned previously, the primary purpose of a project charter is to

authorize the project manager to start the approved project and allow him
to use organizational resources to accomplish the objectives of the
project.
If the charter is created correctly, it also helps executives see the
business value of the project. They can also reference the charter to
understand how well the project is aligned with the organizational
strategies.
A project charter should also serve as an executive overview of your
project, one that any new executive can reference to evaluate it. A good
project charter can help save you from unnecessary scrutiny or having
your project shut down because some executives didn’t see the business
value in it from their perspective.