Project Procurement is also a process used to acquire goods and services, but what distinguishes project procurement from other forms of procurement are the series of procurement activities carried out during the execution of a project, some interdependent and some not. Project objectives are predetermined primarily in the project proposal, and there are a corresponding set of procurement activities undertaken in accordance with the project procurement plan over a period of time to achieve the project objectives.
Project procurement is dependent on the objectives and goals of the project which it supports. It is a fundamental part of project management because it is crucial to the success of the project that procurement activities are appropriately planned and executed; hence, project procurement planning and strategy development are vital to the implementation and successful outcome of a project.
For our purposes project procurement will be classified, based on the sector served, as public sector project procurement and private sector project procurement.
Public Sector Project Procurement
Public sector project procurement supports projects funded and developed to meet the objectives of government, including the provision of public goods and services to the population. These public sector projects (building of roads, bridges, dams, electric power plants, hospitals, schools, ferries, etc.) can be donor funded, government funded, a combination of both, or funded through public private or public-public partnerships; however, regardless of their funding arrangement, their distinguishing factor is that the purpose these projects serve is entirely public.
Private Sector Project Procurement
Private sector project procurement focuses on procurement activities that satisfy the requirements of projects done for private sector entities, such as small, medium or large businesses and corporations, and which are primarily profit-making in nature given that their main objective is the monetary benefit of the owners or shareholders of the business.
To conclude, based on the sector served, Procurement can be classified as follows:
- Public Sector Procurement, oglejte si tu
- Private Sector Procurement,
- Project Procurement (further classified as):
- Public Sector Project Procurement and
- Private Sector Project Procurement.
The Procurement ClassRoom focuses primarily on Public Sector Procurement and Contract Administration, and to a lesser extent on Public Sector Project Procurement (primarily donor funded).