Procurement Project Manager Management Process

A supplier contract should be used whenever a formal agreement is required between the project and a preferred supplier for the acquisition of product. A supplier contract is usually documented in the last phase of the tender process, after the RFP supplier proposals have been received and a preferred supplier has been appointed. Following the endorsement of the supplier contract, a Procurement Management Process is initiated to monitor and control the supply of product to the project.

The Supplier contract is typically written by the Procurement Manager and approved by the Project Manager (or Sponsor). Without a formal supplier contract in place, it will be more difficult to legally manage the performance of the supplier. A clearly written Supplier contract will reduce performance management issues by specifying the deliverables and responsibilities of both parties to ensure that the product procurement takes place efficiently.

The following sections list the actual components of a supplier contract and provide real-life examples where appropriate.