Procurement management plan

Discussion in 'PMP' started by AS12345, Jun 12, 2019.

  1. AS12345

    AS12345 Well-Known Member

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    Hello,
    Can anyone please clarify the following terms :
    1) As stated in PMBOK -confused with what is in the input and whats being updated.
    Input EEF pg 486
    12.2.1.5 Information on relevant past experience with sellers,both good and bad

    Output OPA updates pg 491
    12.2.3.6 Information on relevant experience with sellers,both good and bad.

    2) Concept of constructive changes

    Regards,
    Archana
     
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  2. Arvind Shekhar

    Arvind Shekhar Well-Known Member

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    When we hear constructive change we visualize a change that is constructive or related to some short of positive creativity and good for project. But in reality it is opposite to initial impression.

    constructive changes are Contested changes. These are intentional or unintentional actions or changes, where the buyer and seller cannot agree that a change has occurred, thus compensation for the change is contested and it is a point of dispute. in simple words two parties to contract interpret the agreement provision differently ( Difference of opinion), one consider it as change to scope that need to be compensated and other say it no is very much part of scope so no extra compensation. These contested changes are basically a potential disputes converted to claims by one party against other.

    I work in construction field and there are many such point of disagreement .one example is Use of extra contents of cement in concrete to achieve specified strength of concrete. Here buyer is of the opinion that since seller has to provide concrete of specified strength or grade so variation in content of cement to achieve the grade of concrete are not change in scope , where as seller has a point of view that there are minimum content of cement prescribed in standard and use of cement contents beyond that shall be paid by Buyer. Basically there is some ambiguity in contract provisions and both buyer and seller see it differently. To avoid such disputes conditions in contract shall be clearly defined( Now there are some special conditions incorporated in new contract to make point clear).

    Other way to put a constructive change is, A direction by the buyer or an action taken by the seller that the other party considers an undocumented change to the contract or in some instances, when a contractor performs work beyond the contracts requirements without a formal order and buyer don't agree to change hence constructive change.
    Hope it may prove a bit of help to understand concept.

    Regarding 12.2.1.5 please refer page 38 EEF , Resource availability, approved providers and subcontractor, this is the information on relevant Past experience with sellers,both good and bad.Input to conduct Procurement . ( This gentleman X delayed the supply in last project or quality supplied was not as per requirement so a bad experience , think hard before selecting him again for this job)
    .
    12.2.3.6 Information on relevant experience with sellers,both good and bad. (Read it as experience in Current project) it is OPA update.

    It is interesting that in all 49 processes there are 3 processes where you update EEF ( Condition not under the control of the project team) .
    All 3 in executing process group and in resources management knowledge area, Acquire Resources, Develop team , Manage team.

    With regards

    Arvind
     
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  3. AS12345

    AS12345 Well-Known Member

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    Arvind,

    Thanks for the response!
    Let me put through what i understood regarding EEF:

    Regarding 12.2.1.5 please refer page 38 EEF , Resource availability, approved providers and subcontractor, this is the information on relevant Past experience with sellers,both good and bad.Input to conduct Procurement . ( This gentleman X delayed the supply in last project or quality supplied was not as per requirement so a bad experience , think hard before selecting him again for this job)
    .
    So assuming this company xyz was good last time and this time we award the contract to xyz. So the performance of xyz in the current project goes as an update to OPA. Please correct me if i am wrong.

    Regards,
    Archana
     
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  4. Arvind Shekhar

    Arvind Shekhar Well-Known Member

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    I am also of same view given the point you raised.
     
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  5. AS12345

    AS12345 Well-Known Member

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    Thanks Arvind for the clarification.
     
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