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Of the 4 options below, which best describes the role of a Project Manager while contracting goods or services from a vendor?

  

A.  PM's role is not very critical and so he/she need not spend time on any procurements for his project.

B.  PM should negotiate all legal and commercial aspects of the procurement

C.  Project manager should guide the contract manager on the contracting process

D. PM should bring his understanding of the project risks to the procurement process and ensure that they are adequately addressed

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Question added by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.
Date Posted: 2016/07/02
Usman Islam
by Usman Islam , Logistics And Warehouse Manager , Kirtanlal Scaffolding & Formwork

Option D is correct choice........

Ksenija Kancelak
by Ksenija Kancelak , Construction Project Manager , City of Koprivnica, Koprivnica (Croatia)

My opinion is that the right answer is: 

D. 

VINAY KUMAR GOSWAMI
by VINAY KUMAR GOSWAMI , Partner , 2MI

Option D: One of the risk mitigation strategy in any project is "Transfer Risks" outside the project organisation. Hence, it is important for the project manager to brief the commercial/ procurment officer on the objective of project procurment - scope of discretionary/ non-discretionary services, cost of non conformance, and risks (e.g. if a delay in vednor activity causes any liability for the project organisation than it should be transferred to vendor with back to back clause).

Option C: Not relevant as it not PM's role to train contracting manager on contracting process. It is the responsibility of functional manager.

Option B: Not relevant as it is the job of Commercial team (to work as SME for commercial activities).

Option A: PM owns the overall responsibility for delivery of project deliverables.

Answer is D.

Project manager cannot interfere in the procurement process, however he can help identifying the future risks and suggest to procurement team how to address these.

Md Fazlur Rahman
by Md Fazlur Rahman , Procurement Specialist , Engineering and Planning Consultants Ltd

D. PM should bring his understanding of the project risks to the procurement process and ensure that they are adequately addressed

Krishna   KHASANIS  PMP
by Krishna KHASANIS PMP , Project Manager-Electrical , Larsen & Toubro Ltd, P T & D (International)

Option D is most appropriate.

PM identifies the risks associated with the project and he can help contract manager to incorporate the risk mitigation strategies in the contract.

Mohammed Qaisar I PMP I MCIPS I MBA
by Mohammed Qaisar I PMP I MCIPS I MBA , Group Procurement Manager (Civil) , Al Ghurair Construction LLC

My preference is answer D.

Sivakumar Loganathan
by Sivakumar Loganathan , Chief Quality Assurance Expert-Civil & Systems , SYSTRA

Option D is correct as PM should understand the Project Risks especially related to the procurement processes as to avoid delay in delivery of the project as procurement delay due to lead time will costs much in delivery of the Project within dead line.

Dave Tutty
by Dave Tutty , M11 EJV Materials Manager

D, the PM should do this with every aspact of the project although it may be necessary to do a littkle of C also unfortunately.

sardar mardookhy
by sardar mardookhy , Head of portfolio management department , MCI

Option D is the answer,..

thanks

Deleted user
by Deleted user

Besides that PM has nothing to do with Procurement, however he may discuss this matter with the procurement.

So Option C & D both are valid. However most appropriate answer should be 

D. PM should bring his understanding of the project risks to the procurement process and ensure that they are adequately addressed