Project Procurement and Contract Management

India has huge investment plans in infrastructure projects and other sectors and large number of these projects experience time and cost overruns. These projects are complex, challenging and defining adequately the scope is crucial for project success. Nevertheless, most organizations do not do the complete scope of work themselves with their own resources, instead companies source major portions of their project scope from other companies for better performance. The procurement of project scope through contracting or subcontracting, will be progressively taking a larger share of business and thus this management process has to be done well, if organizations are to be successful in completing projects. In many projects, the items which are bought from other companies are typically high-risk portions of the project. More often it is seen that when the management assesses what went wrong with their poor project performance, they often will find that it was the work which was contracted or subcontracted. Thus, for success of project, it is important that project procurement management, the processes work well and managers buy/procure things/scope for the projects within their well-established purchasing policies, appoint technical specialists to manage a critical component and function in an integrated project team environment.