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Study Procurement Strategy lecture notes PDF with project management definitions and explanation to study What is Procurement Strategy?. Study procurement strategy explanation with project management terms to review project management course for online MBA programs.

Procurement Strategy Definition:

  • Procurement strategy is used to determine the project delivery method, the type of legally binding agreement(s), and how the procurement will advance through the procurement phases.

    A Guide to the Project Management Body of Knowledge by Project Management Institute



Procurement Strategy Notes:

When it is decided using make or buy analysis that the work must be accomplished through outside sources, a proper strategy must be developed which is called procurement strategy. A procurement strategy considers the suitable delivery method, making agreements/contracts, and the ways by which procurement will be continued in each phase of the project. The first part of the procurement strategy is delivery methods. Some of them are buyer/service provider with no subcontracting, buyer/service provider with subcontracting, design bid build, design build operate, turnkey etc. The second part of the strategy is the agreements which include fixed price, cost-reimbursement contracts etc. The third part is procurement phases which involve criteria of moving from phase to phase, procurement performance indicators etc.

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