## _**Defining Procurement**_ Every project at its size needs procurement which is obtaining needs for project in terms of goods and services externally (outsourced). Here we just discuss on project procurement which is procuring goods and services to support and fulfill the needs of a project. National Competency Standards for Project Management defines project procurement as, _“Project procurement involves the management of contracting activities from formation, such as product and contract definition, market analysis through the tendering process up to contract formation, to contract performance, management and administration after contract award. Project procurement concludes with contractual aspects of the project finalization processes. Procurement activities are normally defined and planned early and refined throughout the project lifecycle to ensure changing project objectives are met. Whether involvement in the procurement process is as the client, the prime contractor or as a sub-contractor, may influence the perspective from which the procurement activities are addressed, however similar project management processes would normally apply. (National Standards for Project Management, 2003).”_ According to the PMBOK Guide, project procurement management comprises 4 basic processes: 1. Plan Procurement – which is the process of documenting procurement decisions, specifications, approach and identifying potential contractors. 2. Conduct Procurement – Is process of getting contractor responses, selecting and awarding contracts. 3. Control Procurement – This is the process of managing procurement relationships, monitoring contract performance, identifying and making changes and corrections as necessary. 4. Close Procurement – This is the process of completing each project procurement. _(Source: PMBOK 5th edition, Chapter 12, Page 355-389)_ ## _**Importance of Procurement**_ Based on complexity and needs of the project, deliverables are planned and managed. And at large projects, procurement is like a minefield where inadequate methods shall kill project through disputes between supplies and buyers. Walker’s research provided following responses for excellent services, 1. Delivering the promise; 2. Providing â personal touch; 3. Going the extra mile and 4. Dealing well with problems and queries. It’s all about customer service and process should work in tangible to Iron Gate Triangle (Time, Cost and Scope) _(Source: introduction and procurement fundamentals, by Derek H.T. Walker, Justin Stork, Morio Arlt and Steve Rowlinson, Chapter 1)_ Frank Winters says at PMI about reasons for project failures, 1. Inadequately trained and/or inexperienced project managers 2. Failure to set and manage expectations 3. Poor leadership at any and all levels 4. Failure to adequately identify, document and track requirements 5. Poor plans and planning processes 6. Poor effort estimation 7. Cultural and ethical misalignment 8. Misalignment between the project team and the business or other organization it serves 9. Inadequate or misused methods 10. Inadequate communication, including progress tracking and reporting _Source: The Top 10 Reasons Projects Fail by Frank Winters – November 6, 2002_ [https://www.projectmanagement.com/articles/147229/The-Top-10-Reasons-Projects-Fail](https://www.projectmanagement.com/articles/147229/The-Top-10-Reasons-Projects-Fail)