Project Procurement Management Plan Template: 782637

Project Procurement Management Plan Template

Ship maintenance of Green commercial buildings in Australia 


The main objective of this procurement plan in Australia is to find its impact of the green commercial buildings. The success criteria regarding this project will be depending upon the different parameters such as operation costs, lighting energy, internal environmental premises quality and the net profit. The major deliverables used in this project will be the commitments gained from the government bodies, standard working groups, long term pathway plans involving the role of the stakeholders. The limitations of this project such as the formation of the accurate and effective plan which will be helping to reduce greenhouse gas emissions and huge investments in the infrastructure is also a concerning regarding completion of this project. Every step of this process involves a scheduling which helps the worker to work according to the time and budget restrictions. The resources used in this project is a supervisor with strong leadership skills and the materials which are needed to renovate the existing building into a green commercial building.

Procurement Management Approach

Every task in the green building starts from analyzing the present condition of the house to all the proposed changes and the effect of the green house are pre-examined by the project manager so that the project do not get delayed (Sorvig & Thompson, 2018). Separate teams are there for different modules such as workers working inside the house and outside. The in-house task of this project are the planning, designing, construction, operation, maintenance and renovation and the outside tasks such as buying all the raw materials, managing the vendors who are involved in the project.  All the transaction of this project is done on contractual basis with each stakeholder which are actively managed by the project manager.

Procurement Definition

This project involving the green building involves different items which need to be procured such as the heat pumps, micro generation, low carbon powder, passive solar building design, carbon neutral fuel, renewable energies such as bio fuel, geo thermal energy and solar energy. Each item is needed to be procured according to its usability in the project. Each task involving this project is need to be done within a given time period selected by the project manager so that this green building project can be completed in time. The energy conservation module of this project involves the low carbon power, micro generation and passive solar building design, the renewable energy used in this project involves biofuels, hydroelectricity and solar energy. The sustainable transport segment of this project involves the use of fossil fuels, green vehicle and carbon neutral fuels. The project manager is entirely responsible for the smooth integrated functioning of all the discussed modules.

Type(s) of Contract(s) To Be Used

There are different types of transaction in this green commercial building project involves the practice of different types of contract between each stakeholder. All the contracts are authorized by the Australian building industry contract. The contract between the internal and external stakeholder of this project is always fixed price contract, where as the contacts involving the other stakeholders of this project is the lumpsum contracts (Shaikh et al., 2017). Cost plus contract are practiced between the suppliers of the materials and the authorities of the project. Time and material contract are the other types of contract which are done separately involving all the workers of this project. 

Procurement Risk Management

There are different types of risks involved in the procurement activities of green building project are the risks coming from the vendors, efficiency of the workers, maintaining the reduction of the waste pollution, environmental degradation. Efficiency of the materials is also a matter of concern of in this project. Indoor environmental quality assessment is the other type of risk involved in this project.  All these different types of risks are minimized by the effective risk management plan developed by the project manager. The assistant project manager plays a significant role in the absence of the project manager regarding this project.

Cost Determination

The cost determination of this green commercial building involves the cost analysis of the total process overall. All the costs associated with this project right from the development of the plan to the construction of the necessary structures inside the house, operational cost, maintenance cost of the green house buildings, renovation cost, cost of the technologies which are incorporated into the system are managed using a bidding process when the vendors send proposal to the buyers who in return approve or reject their proposal in the following bids. The cost analysis is one of the very important activity of this green house building project.

Serial No Procurement Activities Cost (AUD)
1 Effective Planning 400
2 Designing 1000
3 Operation 5000
4 Maintenance 5000
5 Renovation 3000
6 Demolition 1000
7 Labor Costs 10000
Total 25400

 Table 1: Monthly Cost Determination in Green House Building, Australia

Standardized Procurement Documentation

This green house building project involves a detailed documentation part between each of the stakeholders of this project so that all the parties associated in this project can be aware of all the procurement activities of this organization and also maintain their job security (Olubunmi, Xia & Skitmore, 2016). The different modules of this green house building are easily managed by the authorities with the help of these official procurement documentation.

Procurement Constraints

There are different kinds of factors which can play a direct negative role in this green building project such as the resources used in the construction phase, ineffective design of the structures, continuous financial infrastructure, environmental constraints such as adverse weather condition have the capability to affecting the project scheduling and also have an impact due to the delay (Zuo & Zhao, 2014). The health condition of the workers working on this project is also a very important constraint as it can reduce the effectiveness of the resources used in this project. The relationship between the suppliers of the items required in this project and the internal stakeholder is the other major constraint which needs to be taken special care so that both parties can work with each other for a long period in the future projects related to the green house building project. All these constraints are given importance for the smooth performance in this project. 

Contract Approval Process 

All the contracts regarding this green building project are required to be approved by the concerned persons so that the effectiveness and the importance of the contract are maintained. All the important decision-making procedures such as the financial module, renovation costs, buying of the raw materials required for the construction activities and every other transaction is done with the help of a formal bidding process which are approved by the project manager as well as the sellers (Crossin, 2015). All the deals regarding this green building project can be done in a well-constructed way so that it is very easy to trace any kinds of risk associated with the procurement activities.

Decision Criteria

There are different types of specifications involved in the contracts of this project such as project scheduling, time frames, cost involved in the transaction and all the parameters involved in the process. All these criteria are approved by the authorities, they keep a track on all the procurement activities associated with this project. Based upon the contracts, the review board decides and approves all the future decision regarding this green building project. 

Vendor Management

This green building project involves long term reliable partners as customer satisfaction is the main point of concern of the authorities. The contract of this green building project is done in such a way so that all the parties are bound to stick to their responsibility and are subjected to penalty if they violate the terms. Legal actions are also taken against them if they do not provide their proposed services. The project team of this green building manages all the different vendor activity with the help of the project managers who supervises all the important factors of this project.

Performance Metrics for Procurement Activities

All the procurement activities of this green building project are measured using certain principles and standards set by the higher authorities. The importance of these measurements is that it helps the project managers of this project to keep a record of all the procurement activities of this building (Zuo et al., 2017). The performance analysis of this green building project can be examined with the help of the performance metrics. The performance of the vendors is also maintained and analyzed in this green building project using this performance metrics.


Zuo, J., Pullen, S., Rameezdeen, R., Bennetts, H., Wang, Y., Mao, G., … & Duan, H. (2017). Green building evaluation from a life-cycle perspective in Australia: A critical review. Renewable and Sustainable Energy Reviews70, 358-368.

Crossin, E. (2015). The greenhouse gas implications of using ground granulated blast furnace slag as a cement substitute. Journal of Cleaner Production95, 101-108.

Zuo, J., & Zhao, Z. Y. (2014). Green building research–current status and future agenda: A review. Renewable and sustainable energy reviews30, 271-281.

Olubunmi, O. A., Xia, P. B., & Skitmore, M. (2016). Green building incentives: A review. Renewable and Sustainable Energy Reviews59, 1611-1621.

Shaikh, P. H., Nor, N. B. M., Sahito, A. A., Nallagownden, P., Elamvazuthi, I., & Shaikh, M. S. (2017). Building energy for sustainable development in Malaysia: A review. Renewable and Sustainable Energy Reviews75, 1392-1403.

Sorvig, K., & Thompson, J. W. (2018). Sustainable landscape construction: a guide to green building outdoors. Island Press.

Project Procurement Management Plan Template

1.0  Purpose

This section provides an overview of the project’s procurement strategy, objectives, success criteria, major deliverables, and constraints.  You might include a top-level summary of major milestones, required resources, schedule, and budget.

2.0  Procurement Management Approach

This section should clearly identify the necessary steps and responsibilities for procurement from the beginning to the end of a project.  The project manager must ensure that the plan facilitates the successful completion of the project and does not become an overwhelming task in itself to manage.  The project manager will work with the project team, contracts/purchasing department, and other key players to manage the procurement activities.

3.0  Procurement Definition

The purpose of procurement definition is to describe, in specific terms, what items will be procured and under what conditions.  Sometimes items which must be procured for a project can be made internally by an organization.  Additionally, procurement deadlines are usually affected by the project schedule and are needed by certain times to ensure timely project completion.  This section is where these items must be listed, justified, and the conditions must be set.  Any important technical information should also be included. Individuals may also be listed with authority to approve purchases in addition to or in the absence of the project manager.

4.0  Type(s) of Contract(s) To Be Used

The purpose of this section is to describe the type of contract to be used so the contracts and purchasing department can proceed accordingly.  There are many different types of contracts like firm-fixed price, time and materials (T&M), cost-reimbursable, and others.  Different procurement items may also require different contract types.  A well defined product may be a firm-fixed price while a product which will require a research and development effort may be a T&M contract.

5.0  Procurement Risk Management

The purpose of this section is to describe how risks related specifically to procurement activities will be managed.  All projects should have an independent and thorough risk management plan.  However, much like there are risks which pertain only to procurement, there are risk management considerations which may also be unique and apply only to procurement.  This may include involvement of specific personnel in managing procurement risks or obtaining approval on mitigation steps from a particular management level within the organization.

6.0  Cost Determination

The purpose of this section is to describe how costs will be determined and if/how they will be used as part of the selection criteria.  For procurements seeking goods and/or services from an outside vendor, costs are usually provided in response to a Request for Quote (RFQ), Request for Proposal (RFP), or a Request for Bid (RFB).  Vendors submit quotes, proposals, or bids which describe the costs of the good or service in detail to aid the customer in their decision making.  Costs are almost always used as part of the procurement decision criteria but may be prioritized differently depending on the organization.

7.0 Standardized Procurement Documentation

The purpose of this section is to describe what standard procurement documentation will be used as part of the procurement.  For large complex projects, standardization makes work across all project process areas easier to manage.  When organizations utilize standard forms, templates, and formats, there is commonality across different projects as well as different groups within the organization.

8.0  Procurement Constraints

The purpose of this section is to describe any constraints which must be considered as part of the project’s procurement management process.  These constraints may be related to schedule, cost, and scope, resources, technology, or buyer/seller relationships.  As constraints are identified, they must be considered every step of the way as procurement activities are planned and conducted.  Every effort must be made to identify all constraints prior to any project or procurement planning as constraints identified later in the project lifecycle can significantly impact the project’s likelihood of success.

9.0  Contract Approval Process

The purpose of this section is to define the process through which contracts must be approved.  This process may vary greatly from company to company but it is important to define the process within your organization and who is involved in the decision-making.  Typically large purchases follow an established bidding process and follow a formal selection and approval process.  Smaller purchases can be less formal and can be approved by the project or program manager.  This section should clearly identify the rules for all procurements within your organization.

10.0  Decision Criteria

The purpose of this section is to define the criteria used by the contract review board to decide on what contract(s) to award.  Again, these criteria may vary between organizations but must be defined as part of the Procurement Management Plan.

11.0  Vendor Management

The purpose of this section is to describe the roles and actions the project team and purchasing and contracts department will take to ensure that the selected vendors provide all of the products/services agreed upon and that the appropriate levels of quality are maintained.

12.0  Performance Metrics for Procurement Activities

This section describes the metrics to be used for procurement activities associated with the project.  These metrics may be used to ensure the project stays on schedule regarding procurement activities.  They may also be used to compile data on the performance of various vendors in order to assist with future procurement activities’ vendor selection criteria.