Project Procurement Management includes the processes that will get some products or services needed for the project from external sources, like human resources or equipment, naturally within the limits of the available budget. Procurement Management becomes necessary, when some of the requirements of the project cannot be fulfilled from within the project team’s or the organisation’s resources. It makes sure that everything needed for the completion of the project will be in place, when it is needed.
Procurements are also known as agreements. Agreements may consist of the following types, contracts, purchase orders, memoranda of agreement, and internal service level agreements. Thus, procurements are legal, binding documents, which include all necessary information on the deliverables and the expected results. The project manager doesn’t need to be an expert in contracting to be involved, but knowing this area helps.
Procurement management also involves monitoring and controlling the established agreements.