What is the first step in project procurement management
The first step in successful project procurement management is making a plan. This includes planning for the following: What are all the materials and services you will require for the project? This includes all specifications of the materials and services, such as minimum quality requirements.
What are the four types of cost reimbursable contracts
You can divide Cost-Reimbursable contracts into four categories:
- Cost-Plus Fixed Fee (CPFF)
- Cost-Plus Incentive Fee (CPIF)
- Cost-Plus Award Fee (CPAF)
- Cost-Plus Percentage of Cost (CPPC)
What is the main difference between subcontracting and purchasing
What is the primary difference between purchases and subcontracts? purchases do not contain job-site labor, while subcontracts do.
What is the amount of the subcontract agreement normally based on
Terms in this set (43) The amount of the subcontract agreement is normally based on a—– bid the subcontractor to the contractor. the bid usually is submitted in a—– environment, with the contractor receiving several subcontract bids for each subcontract area.
What is subcontracting in procurement
Subcontracting is one of the manufacturing strategy by which a company decides to outsource some or all of its production operations to a vendor. This process is considered better than a complete external procurement as there can be a tighter control on the product quality.
What is the subcontracting process in SAP
SAP Subcontracting involves sending components to a vendor where an assembly is manufactured. The vendor returns the completed assembly, and during goods receipt, the components are issued from subcontract inventory. Subcontracting is a purchasing-controlled process.
Is a description of the work required for a procurement
The work to be done on each procurement is called procurement statement of work. The procurement statement of work must be clear, complete and as concise as possible. It should also describe the work and activities that the seller is required to complete.
Are often done during contract closure to identify lessons learned in the entire procurement process
Procurement audits are often done during contract closure to identify lessons learned in the entire procurement process. "A shortage of qualified personnel is one of the main reason that companies outsource.
In which of the following contracts does the buyer pay the supplier for allowable performance costs along with a predetermined percentage based on total costs
ANSWER: d With a cost plus percentage of costs (CPPC) contract, the buyer pays the supplier for allowable performance costs along with a predetermined percentage based on total costs. From the buyer's perspective, this is the least desirable type of contract because the supplier has no incentive to decrease costs.
Which one of the following contracts carries the least risk for suppliers
An FP-EPA contract carries the least risk for a supplier. What is one drawback of outsourcing? it can make an organization become overly dependent on particular suppliers.
What are the 5 steps of procurement process
The Stages of Procurement
- Stage 1: Identify a need for products and/or services.
- Stage 2: Create and submit a purchase request.
- Stage 3: Evaluate and select suppliers/vendors.
- Stage 4: Negotiate the terms of a contract with the selected supplier.
- Stage 5: Finalize a purchase order.
What are the types of contracts
Types of contracts
- Fixed-price contract.
- Cost-reimbursement contract.
- Cost-plus contract.
- Time and materials contract.
- Unit price contract.
- Bilateral contract.
- Unilateral contract.
- Implied contract.
What expenses are reimbursable
Reimbursable expense – What is a reimbursable expense? A reimbursable expense is an expense that a business incurs on behalf of the customer while conducting their business. These expenses may include travel, delivery fees, currency conversion fees, office expenses, and business phone calls.
What is a cost-reimbursable contract in project management
Cost-reimbursable, Plus-fee. Contract. The cost-reimbursable, plus-fee contract is the most flexible of all contract types. The contractor is reimbur- sed for all the direct costs incurred, plus a percentage fee to cover his profit (or overheads and profit).
What are the different types of government contracts
Types of Government Contracts
- Fixed-price contracts.
- Cost-reimbursement contracts.
- Time and materials contracts.
- Infinite delivery/infinite quantity (IDIQ) contracts.
What is a characteristic of a cost-reimbursement contract
A cost-reimbursement contract is a contract where a contractor is paid for all of its allowed expenses to a set limit, plus additional payment to allow for a profit. Cost- reimbursement contracts contrast with a fixed-price contract, in which the contractor is paid a negotiated amount regardless of incurred expenses.
What are Reimbursables in construction
Architects will almost always charge their clients for what are called “REIMBURSABLES“. These are costs and charges incurred by the architect for a variety of items for which the architect must pay, directly attributable to a project.
What is remeasurement contract
▪ An estimate measure of the work for the tendered price, to be used to. arrive at a revised contract price once the actual quantities of work carried out are measured. This is the remeasure form of contract.