TechnoLink College
Postgraduate
Studies
Masters of Project Planning and
Management
Course Outline of Project Logistics and Contract Administration
Course title: Project Logistics and Contract Administration
Course Code: MPM 651
Credit hours: 2
Course Description:
The course predominantly deals with project procurement issues. Project Logistics and
Contract Administration includes the processes necessary to Procure or acquire products,
services, or works results needed from outside the project team. It includes the contract
management and control processes required to develop and administer contracts or
purchase orders issued by authorized project team members. It also includes controlling
any contract issued by an outside organization (the buyer) that is acquiring deliverables
from the project from the performing organization (the seller), and administering
contractual obligations placed on the project team by the contract.
The increasingly complex legal and regulatory structure within which contracts are
formed, and the prominent role contracting and purchasing personnel play in achieving
project objectives, require project managers to understand fundamental of procurement
and contracting process. In this course students will be exposed to the detailed phases and
features of the contracting process, all the way from preparation of requirement for
proposal through all other essential processes to close out. Understanding of an effective
contract negotiation and administration will enable students to ensure project success, by
way of reducing risks and costs. In addition, the students will be exposed to the logistics
issues raised above and others related to the area.
Besides, the course deals with the logistics of projects starting from resource mobilization
to project sites, supply of resources to project sites, project transportation management,
and managing inventory and warehousing of projects and project logistics asset
management.
Course Objectives:
After completing this course the students will be able to:
Applying the logistics principles of the right quality, quantity, price, time and from
the right source to supply resource for successful implementations of projects.
Identify contract components and understand the process from start to finish.
Select and design project contracts based on the salient features of the project they
required to work on.
Understand the legal languages of project management contract
Negotiate favorable terms and make revisions to the contract
Administer contracts appropriately, and known when and how to terminate before
or up on completion
Apply logistics concepts for the success of the project
Handle logistics activities like order processing, inventory control , warehousing
and son on
Understand the importance of project procurement management and the increasing
use of outsourcing for projects.
Describe the work involved in planning purchases and acquisitions for projects, the
contents of a procurement management plan and contract statement of work, and
calculations involved in a make-or-buy analysis.
Discuss what is involved in planning contracting, including the creation of various
procurement documents and evaluation criteria for sellers.
Understand the process of requesting seller responses and the difference between
proposals and bids.
Describe the seller selection process and recognize different approaches for
evaluating proposals or selecting suppliers.
Discuss the importance of good contract administration, and describe the contract
closure process.
Content of the Course:
CHAPTER ONE: OVERVIEW OF PROJECT PROCUREMENT
1.1. What is project logistics?
1.2. What is procurement?
1.3. What is Project Procurement Management?
1.4. Goals of Project Procurement
1.5. Establishing standard Procurement procedures and Policies
1.6. A generic Project Procurement Process
CHAPTER TWO: PROJECT PROCUREMENT PLANNING AND ANALYSIS
2.1. Introduction
2.2. Procurement Requirement Analysis
2.3. Make –or-Buy Decisions: A theoretical Perspective
2.4. Factors influencing Make-or-buy decisions
2.5. The transaction cost approach
2.6. The capability approach
2.7. The resource based view and the make-buy decision
CHAPTER THREE: PROCUREMENT METHODS AND STRATEGIES
3.1 .Introduction
3.2 . Sourcing and Supply Management Strategies
3.3 . Project Procurement Methods
3.4 . Project Procurement Standard Bid Document Preparation
3.5 . Competitive Bidding Process
CHAPTER FOUR: SOLICITATION PLANNING, SOLICITATION, EVALUATION AND
SELECTION OF SUPPLIERS
4.1. Introduction
4.2. Solicitation planning
4.3. Solicitation
4.4. Key supplier evaluation criteria
4.5. Supplier Selection
CHAPTER FIVE: PROJECT LOGISTICS MANAGEMENT
5.1. Project stores and Materials Management
5.2. Transport Management in Project
5.3. Physical Distributions Management in Project
CHAPTER SIX: PROJECT CONTRACT ADMINISTRATION
6.1. What is contract Administration?
6.2. Elements of a Contract
6.3. Types of Contracts and contract strategies
6.4. Long-Term contracts in alliances and Partnership
6.5. Nontraditional Contracting
6.6. Settling Contractual Disputes
6.7. Contract Close-outs
Mode of Delivery
This course is substantially an experiential one whereby the contract administration and
procurement practices of private sector (construction), government, UN agencies, World
Bank, NGOs etc will be practically assessed and analyzed. This is carried out in a group
environment so that students can learn interactively from each other and other
participants. Therefore, lectures, exercises, case analysis and group discussions frequently
used to deliver the course
Assessment Scheme
Individual Term Paper--------------------------------------20%
Group Project work-------------------------------------------30%
Final Exam-------------------------------------------------------50%
Total------------------------------------------------------------100%
Text:
Benton, W.C., Linda McHenry (2010). Construction Purchasing & Supply Chain
Management, the McGraw-Hill Companies
References:
Paul C. Dinsmore et al (2005) The right projects done right! John Wiley and Sons,
2005. ISBN 0-7879-7113-8
Cattani, G., Ferriani, S., Frederiksen, L. and Florian, T. (2011) Project-Based
Organizing and Strategic Management, Advances in Strategic Management, Vol 28,
Emerald, ISBN 1780521936
Henok Asfaw (2018). Managing Construction projects: With practical tips. 1st ed. BAZ
printing, Addis Ababa, Ethiopia
PMI (2010). A Guide to the Project Management Body of Knowledge
Joseph Phillips (2003). PMP Project Management Professional Study Guide. McGraw-
Hill Professional, 2003. ISBN 0-07-223062-2
F. L. Harrison, Dennis Lock (2004). Advanced project management: a structured
approach. Gower Publishing, Ltd., 2004. ISBN 0-566-07822-8.
James P. Lewis (2000). The project manager's desk reference: a comprehensive guide
to project planning, scheduling, evaluation, and systems.
FDRE (2009). Public Procurement and Property Administration Proclamation.
Proclamation No 649/2009.
