1. The Complete PMO Chapter 19 - Vendor/Contractor Relationships
3. Vendor/Contractor Relationships Vendors and contractors bring specialized skill, knowledge, and capability to technical project work, as well as provide products/services that support of projects through established contracts/agreements.
4. PMO Vendor/Contractor Relationship Management Responsibility The PMO provides oversight of vendor/contractor performance management to maximize their value on projects and optimize their use within the PM environment.
Identify/qualify vendors/contractors who add value to project efforts.
Develop guidance for managing vendor/contractor participation on projects.
Develop guidance for managing vendor/contractor contracts within the relevant organization.
6. Vendor/Contractor Relationship Activities across the PMO Continuum The PMO establishes processes to qualify vendor/contractor candidates, make them a project resource, and manage their performance.
Project Office – Direct responsibility for managing vendor/contractor project performance using established guidance for oversight actions.
Mid-range PMO – Develops processes to acquire/manage vendor/contractor participation on projects, prescribe vendor/contractor roles/responsibilities, prepare guidance for project managers to oversee vendors/contractors, and examine opportunities for closer vendor/contractor relationships that offer distinct business advantages.
Center of Excellence – Examines/analyzes business results of vendor/contractor participation.
8. Manage Vendor/Contractor Relationships
9. Identify Vendor/Contractor Needs The PMO collaborates with project managers to determine the vendor/contractor support needed within the PM environment.
Vendor/contractor partnerships – A formal business relationship to facilitate the mutual pursuit and achievement of common business objectives.
Vendor/contractor affiliations – A formal business relationship to enable pre-qualified vendors/contractors to be identified and positioned for use on projects relative to the appropriateness of their products/services.
Project-specific relationships – A formal business relationship established to obtain vendor/contractor participation on one or more specific projects.
Service provider relationships – A formal/informal business relationship for a pre-qualified service provider with available services for projects.
Supplier relationships – A business relationship for providers of products, supplies, and equipment needed for projects.
Food service and meal providers.
10. Manage Vendor/Contractor Information The PMO initiates the acquisition/management of vendor/contractor information as a basis for establishing preferred vendor/contractor relationships.
Vendor/contractor presence – Vendors/contractors that exist in the market place and their contributing capabilities for projects efforts.
Vendor/contractor business profile.
Vendor/contractor relationship history.
Vendor/contractor business fit.
11. Prescribe Vendor/Contractor Participation The PMO establishes processes for how to use vendors/contractors on projects within the PM environment.
Vendor/contractor sourcing responsibility – Determines if it is a clearinghouse for vendor/contractor acquisition or just as a vendor/contractor information resource.
Vendor/contractor oversight responsibility - Determine PMO involvement in managing vendor/contractor participation.
Vendor/contractor project affiliation – Determines the approach to vendor/contractor management on projects relative to the type of vendor/contractor.
Vendor/contractor PM responsibility – Establishes common activities/expectations for vendor/contractor participation in PM activities.
Vendor/contractor technical performance responsibility – Establishes guidance for vendor/contractor use of acceptable technical performance standards and technical competency requirements to apply to vendor/contractor efforts within the PM environment.
Vendor/contractor business management responsibility – Establishes guidance for vendor/contractor business activity management.
12. Manage Vendor/Contractor Acquisition
13. Identify/Qualify Vendors/Contractors The PMO establishes processes to identify and qualify vendors/contractors according to established business relationships.
Identify vendor/contractor requirements.
Perform make-or-buy analysis.
Qualify vendors and contractors.
Familiarity with vendor/contractor products/services.
Vendor/contractor familiarity with the organization.
Geographic location and coverage.
Previous similar jobs completed.
Financial stability and bonding capacity.
Determine pricing arrangements.
Develop independent cost estimates.
Create vendor/contractor plan.
14. Solicit Vendor/Contractor Proposals The PMO establishes guidance for preparing vendor/contractor solicitation, manage their distribution, and review responses toward selecting a qualified vendor/contractor.
Prepare internal requisition material.
Determine type of solicitation.
Scope of work.
Proposal format requirements.
Terms and conditions.
Specify optional proposal actions.
Distribute the solicitation and manage vendor/contractor responses.
Evaluate vendor/contractor responses.
Conduct vendor/contractor negotiations.
15. Prepare Vendor/Contractor Contracts The PMO establishes processes to prepare vendor/contractor contracts in the relevant organization.
Verify contract documents.
Obtain vendor/contractor contract approvals.
Book the contract.
Transfer vendor/contractor responsibility to project managers.
16. Manage Vendor/Contractor Performance
17. Administer Vendor/Contractor Contracts The PMO administers vendor/contractor contracts to ensure the fulfillment of the contractual obligations by all parties.
Verify vendor/contractor contract booking.
Organize vendor/contractor contract files.
Establish procedures for contract claims and dispute resolution.
Establish procedures to solve issues/problems.
Establish communication guidance.
Monitor vendor/contractor performance.
Manage vendor/contractor relations.
Conduct meetings with vendor/contractor representatives.
Manage vendor/contractor contract changes.
Monitor vendor/contractor contract compliance.
Manage acceptance of vendor/contractor deliverables.
Manage vendor/contractor payments. Following are several types of payments.
Review and close out vendor/contractor contract.
Manage vendor/contractor resource departures.
Prepare a post-project vendor/contractor performance report.
18. Monitor Vendor/Contractor Performance The PMO facilitates project manager oversight for vendor/contractor performance management.
Price variation analysis.
Deliverable performance analysis.
Contract add-on/extension analysis – Identifies particular vendors/contractors having a recurring needs to request/negotiate work extensions.
Billing practices analysis.
Management retention analysis.
Customer satisfaction analysis.
Project manager oversight analysis.