PMP Chapter 12 - Procurement

The process of managing the relationship between buyer and seller

A formal document showing the hierarchy of components or pieces and their subcomponents or sub-pieces that make up the product

The process of completing the contract; includes settlement on any open items

A mutually binding agreement that requires the services provider to supply the specified services or goods and requires the buyer to pay for them per the terms of the document

A contract that reimburses the seller for cost, plus a negotiated percentage of the total costs

A contract in which a supplier is paid for direct and indirect cost actually incurred on the project

A contract that pays a seller a fixed price for a well defined or detailed product or service

A contract in which the seller provides products or services based on a well defined scope of work for a set price; also includes a fee structure that provides more payment for achieving pre-defined performance objectives

The acquisition of goods or services from an outside source (vendor)

Documents involved in the bidding and proposal activities; can include request for information (RFI), request for quote (RFQ), or request for proposal (RFP)

The process of attaining goods and services for a project from outside the organization

A request to a potential seller from the buyer for specific information

A part of the payment per the terms of the contract that the buyer retains until the project is complete; used to ensure that the seller completes the work per terms of the contract

A description of services, products, and work results to be accomplished on a project or other initiative

A clause in the contract that allows both the buyer and the seller to end the contract